July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger.…
July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger.…
July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative…
July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and…
July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus.…
July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction.…
The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown.…
The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management.…
Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the…
Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic.…
Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus.…
Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August…
With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon.…
At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline.…
A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at…
The Covid-19 pandemic has hit the tourism sector the hardest in Nepal.…
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', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. They have demanded exemption in royalty for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The Electricity Regulatory Commission has already unveiled the draft of the Directive on Merger, Acquisition, Purchase and Transfer of Authorised Person or Projects 2077.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The commission is preparing to finalize the draft. In the mean time, energy producers have demanded favourable policy to go for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The draft has a provision of merger between authorised projects that are involved in production, transmission and distribution of electricity. There is also a provision for one project to acquire, purchase or transfer the shares of other projects.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Promoters of the private companies have taken the proposal of merger positively. The promoters of private energy sector have been demanding facilities similar to those provided by the central bank to encourage the merger of BFIs. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Vice President of Independent Power Producers of Nepal (IPPAN) Kumar Pandey says it is important to provide incentives for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">“Merger of hydropower project itself is a positive step. However, it is important to provide facilities for the projects that opt for merger. This issue is missing in the draft,” said Pandey.</span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11944', 'image' => '20200720050237_1595198302.Clipboard18.jpg', 'article_date' => '2020-07-20 17:01:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '12196', 'article_category_id' => '1', 'title' => 'Handicraft Entrepreneurs Choosing Alternative Occupation ', 'sub_title' => '', 'summary' => 'July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation. Entrepreneurs, craftsman and business persons involved in this sectors are in crisis after tourists stopped coming to Nepal even before the spread of coronavirus in Nepal. As the handicraft industry is directly linked with the tourism industry, it has been badly affected due to the closure of tourism sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of Nepal Handicraft Association, Hari Century, around 50 percent handicraft entrepreneurs and workers have chosen other profession as it will still take around two years for tourism industry to flourish again.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman""> “They are now involved in vegetable farming and animal husbandry,” he said. Some of them are thinking of returning to the business in the coming days if the situation improves. But it is expected that some will abandon the sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Achyut Aryal, who has been making and selling handicraft products since 40 years at Basantapur, is now into maize farming after people stopped purchasing handicrafts. He has started the farming by renting 15 ropani land in Godawari, Lalitpur. “Neither there is the possibility of tourists coming to Nepal nor is export possible due to coronavirus. Even though we open the shops, there aren’t any buyers,” he said, adding, “I am obliged to get into agriculture as the business has dried up.” </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">As per the statistics of the Federation of Handicraft Association of Nepal (FHAN), Nepali handicraft products worth Rs 6 billion was sold in the international market last year. The major market for Nepali handicrafts is the USA, China and European countries. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">In an average, handicraft products worth Rs 11 billion to Rs 15 billion is exported from Nepal yearly, while it is estimated that around 1 million people (including businessmen, entrepreneurs and workers) are involved in this sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of FHAN, Surendra Bahi Shakya, the situation of Nepali handicraft is very critical for the next one year. He said that many people have had to change their profession until the situation becomes favourable. Moreover, he states that although the production of felt which was ordered before the lockdown is underway, they are facing problem in export. He further informed that the businessmen could not send some products from Nepal in the rescue flights due to exorbitant fare. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">“As the fare was five times high than normal charge, we have not been able to send the ordered products,” he said. Entrepreneurs and businessmen are frustrated as they could not sell the goods. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Places like Basantapur, Thamel, and Patan where the handicrafts used to be made and sold are still deserted, due to which there is no business even if they open their shops. Handmade pashmina, felt, thanka and painting, wood carving, sculpture, and metalwork, etc fall under handicraft products. </span></span></span></p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11943', 'image' => '20200720025203_20160802043332_meta.jpg', 'article_date' => '2020-07-20 14:51:14', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '12195', 'article_category_id' => '1', 'title' => 'Importers Spending Millions for Electronic Tracking System Despite Lack of Tracking Facility', 'sub_title' => '', 'summary' => 'July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">However, the importers complain that the service provider despite charging the fees did not provide the container tracking facility to them.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">The GPS-based system is currently being used to track the transshipment of goods imported from the third countries to the Indian ports of Kolkata and Visakhapatnam. Such tracking system came in operation in Kolkata on February 15, 2019 and before that in Visakhapatnam port on August 28, 2018.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">In 2019/20, a total of 108,000 thousand containers were imported to Nepal from third countries. Of the total containers, 59,214 entered Nepal through Birgunj Dry Port by rail. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Transcure Telematics Pvt Ltd, has been providing the ECTS service. The company charges Rs 3,400 per container to the importers. However, Nepali importers complain that another company working as a middle agent has been charging them to Rs 10,000 for the same service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Nepali importers have so far spent at least Rs 320 million for availing the tracking service. However, Nepali entrepreneurs complain that Transcure, despite charging them millions, has not provided the tracking service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Importer Suresh Rungta complained that the service provider charges them hefty amount but is not providing the tracking service. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">“The charge for this reusable electronic system is exorbitant. On top of that, tracking facility has not been provided to the importers,” claimed industrialist Rungta.</span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11942', 'image' => '20200720023416_95196488.Clipboard05.jpg', 'article_date' => '2020-07-20 14:27:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '12193', 'article_category_id' => '1', 'title' => 'Hotel Entrepreneurs Agree to Pay Minimum Salary to Workers', 'sub_title' => '', 'summary' => 'July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The entrepreneurs have agreed to pay between Rs 4,300 to Rs 10,000 to the staffers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Hotel Association of Nepal informed during a press conference on Sunday (July 19) that they have agreed pay the amount to the workers after reaching an understanding with the workers’ union.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to HAN, this agreement will remain valid from April 13, 2020 to 31 December 2020. With this understanding, the payment issue of hotel staffers has finally been resolved.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">As per the understanding, hotel employees will receive the minimum amount even if they are unable to join office or the employer is unable to provide job due to any circumstances during this period. The staffers will receive anything between Rs 4,300 to Rs 10,000 depending on the standard of the hotel where they work, informed president of HAN Srijana Rana.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The hotel industry has been completely closed due to coronavirus and the subsequent lockdown imposed since March 24. Rana said that the agreement has set a good precedent among the employers and the employees during the crisis period.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the understanding, deluxe and five-star hotels and resorts with more than 200 rooms will pay Rs 10,000 per month to their workers. Likewise, deluxe and five-star hotels with less than 200 rooms will pay Rs 9000 to their staffers. Similarly, four-star hotels with more than 100 rooms will pay Rs 8455 to their workers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Four-star hotels with less than 100 rooms will pay Rs 8000 to the employees while 3-star hotels have agreed to pay Rs 5000 per month to the workers. Likewise, two-star hotels have agreed to pay Rs 4300 to the workers while the minimum pay for employees of one-star hotels and other restaurants will be decided by the concerned parties, informed Binayak Shah, senior vice president of HAN.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Meanwhile, General Secretary of HAN Sajan Shakya said that the hotel entrepreneurs and workers’ union have also agreed to deploy staffers on need basis and in different shifts as per the requirement.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The agreement further states that the employees who wish to take voluntary retirement from service can avail all the benefits guaranteed before the lockdown period.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11940', 'image' => '20200720010231_han.jpg', 'article_date' => '2020-07-20 12:44:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '12191', 'article_category_id' => '1', 'title' => 'Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion', 'sub_title' => '', 'summary' => 'July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. However, the delay in timely completion of 12 such projects has added financial burden of Rs 282.43 billion to the state coffers. Had these projects been completed on time or delayed by only a year, the government would not have had to incur such huge amount needlessly. The extra amount spent in the projects could have been utilized to complete the Budhi Gandaki Hydropower Project.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of Budhi Gandaki project, which is yet to start physical infrastructure work, is said to be around Rs 260 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The 57<sup>th</sup> annual report of the Financial Comptroller General’s Office states that the cost of the national pride projects has been increasing due to the delay in completion of the work.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The additional expenses of these projects are more than the capital expenditure of the government announced for the fiscal year 2072/73. The government had allocated a total of Rs 208.87 billion as capital expenditure for FY 2072/73.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The government is finding it quite challenging to manage source of investment to meet the additional cost burden of the national pride projects due to the inordinate delay in completion of the works. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Pushpalal Mid-Hill Highway is one of the national pride projects which has taken a long time for completion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The project which started in 2064/65 BS (2007/2008 AD) was supposed to be complete in a decade by 2074/75 BS (2017/18 AD). However, the deadline for the project has been extended by five years, which has increased the total cost estimate to Rs 84.33 billion. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of the project was just Rs 33.36 billion. Had the government completed the project on time, it could have saved Rs 50.97 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the annual report of the Financial Comptroller General’s Office, the fate of other projects is also similar. The Babai Irrigation Project, which was initiated in FY 2044/45 BS more than two decades ago was set to be completed by 2069/70. However, the deadline of the project has been extended by 10 more years.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The cost of the project which was estimated to be Rs 2.87 billion initially has now increased to Rs 18.96 billion. According to the report, most of the irrigation projects have been facing delay in completion.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11938', 'image' => '20200720114511_1595199291.jpg', 'article_date' => '2020-07-20 11:43:56', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '12190', 'article_category_id' => '1', 'title' => 'Capacity Utilisation of Carpet Industry Reaches 20% ', 'sub_title' => '', 'summary' => 'The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. However, export of carpet has not resumed due to the continuing ban on international flight. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs say that while previously produced carpets could not be exported, new products will unlikely to come into the market. According to them, they have to run the industries to sustain workers. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">As the exports have been halted due to covid-19 pandemic, carpets worth Rs 4 billion are stuck in warehouses. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The wool carpets produced in Nepal are exported in more than 50 countries including America, China, Germany, UK, Italy, France, Canada, Belgium and Australia. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Tenzing Sherpa, vice president of Nepal Carpet Manufacturers and Exporters Association, it is not possible to export Nepali carpets currently. The demand in the US, Europe and the UK, where Nepali carpets are exported in large quantities, has decreased due to the pandemic. “The demand of Nepali carpet has dropped by 80 percent as the international market is also almost closed. On the other hand, even if we want to export, there is no favorable environment now,” Sherpa said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepali carpet exporters mainly export carpets to foreign countries through the Kolkata Port in India. However, compared to countries including India and Pakistan, it takes more time for Nepali exporters to supply their products to foreign markets. "It takes 2-3 months for our carpets to reach major foreign markets," mentioned Sherpa</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Nepal Carpet Manufacturers and Exporters Association, only a small number of carpets exported to China are being produced. According to Amrit Tamang, CEO of the association, the compulsion to manufacture carpets to support the workers and the increase in stock of have hit the carpet manufacturers hard. “We have not been able to export, on top of our stocks are increasing,” he said. At present, more than 300,000 people in Nepal are dependent on the carpet industry. Similarly, there are about 700 entrepreneurs and more than 150 exporters in the carpet exporters. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Customs Department, carpets worth Rs. 7.36 billion were exported from Nepal in the fiscal year 2075/76. Carpet exports have declined by about 19% in the first 11 months of FY 2076/77. During this period, carpets worth Rs 5.5 billion have been exported from Nepal. Now, the main market for Nepali carpets is the United States, followed by Germany, the UK, and China. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the carpet entrepreneurs, there is no shortage of raw material as of now, as there was stock of raw materials even before the lockdown. The raw materials for the carpet in Nepal are mainly imported from Tibet and New Zealand. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11937', 'image' => '20200719042410_Nepali Carpet.jpg', 'article_date' => '2020-07-19 16:22:12', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 6 => array( 'Article' => array( 'id' => '12189', 'article_category_id' => '1', 'title' => 'Govt and World Bank Sign USD 450 mn Road Support Project Financing Agreement', 'sub_title' => '', 'summary' => 'The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The government and the World Bank on Friday signed a USD 450 million </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">(around Rs 54 billion) </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. Issuing a press statement, the Washington D.C.-based lender said that this is the single largest value project that the Nepal government has signed with the World Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The agreement was signed by Finance Secretary Sishir Kumar Dhungana and Faris Hadad-Zervos, World Bank Country Director for Maldives, on the presence of Minister for Finance Dr Yuba Raj Khatiwada. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support post-COVID-19 recovery,” the statement quoted Dr Khatiwada as saying. "Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals." </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, finance secretary Dhungana said that the Project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of COVID-19.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The government is working on a 3R –Relief, Recovery and Resilience –strategy to help Nepal build back better from the impacts of the COVID-19 crisis. This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience,” reads the statement. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India. “It will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports,” informed the statement. The bank said that amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“This Project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” the statement quoted Hadad-Zervos as saying. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11936', 'image' => '20200719042203_world bank nepal.jpg', 'article_date' => '2020-07-19 16:21:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 7 => array( 'Article' => array( 'id' => '12188', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Skeptical about Implementation of Monetary Policy ', 'sub_title' => '', 'summary' => 'Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.', 'content' => '<pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The policy has some special arrangements in working capital loans, concessional loans and refinancing scheme for the revival of aviation business, transport, hotel, restaurant and tourism sector enterprises to overcome the losses caused by the Covid-19 crisis.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The new monetary policy has extended the repayment deadline of loan installment by two years for the under-construction tourist hotel projects that have been halted due to Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Hoteliers say that the provision to direct development bank and financial institutions to mandatorily provide 20 percent and 15 percent loans, respectively, of their total paid-up capital to the tourism sector will provide relief for small and medium-sized hotels.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that that the monetary policy will be crucial and positive for of reestablishment of the tourism sector businesses affected by the Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The monetary policy has included most of the suggestions of the ministry and tourism entrepreneurs,” he said.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Stakeholders have welcomed the policy. However, they are skeptical over the implementation of the measures.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Even though the monetary policy has tried to address the demand of the overall tourism industry, its implementation is doubtful,” said Yograj Sharma Kandel, spokesperson of the Airlines Operators Association of Nepal.</span></span></span></span></pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> "There were some good measures in the 2015 monetary policy, which was announced after the earthquake, to help businesses in trouble. However, the measures were not implemented at all. This is likely to happen now,” he added.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, Sajan Shakya, general secretary of the Hotel Association of Nepal (HAN) said that the measures in the policy are crucial to revive the tourism industry affected by the pandemic. “However, the implementation is important than the policy itself,” mentioned Shakya.</span></span></span></span></pre> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11935', 'image' => '20200719042015_Tourism Nepal.jpg', 'article_date' => '2020-07-19 16:18:05', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 8 => array( 'Article' => array( 'id' => '12187', 'article_category_id' => '1', 'title' => 'Monetary Policy Aims to Provide Relief to Pandemic-stricken Sectors', 'sub_title' => '', 'summary' => 'Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. Presenting the Monetary Policy for fiscal year 2020/21, NRB Governor Maha Prasad Adhikari said that the central bank has prioritised measures aimed at the reviving the pandemic economic affected sectors. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Monetary Policy for FY2020/21 has received warm welcome from the business sector. Stakeholders have said that the central bank has addressed demands of business associations of various sectors and has incorporated their suggestions in the policy. However, economists and bankers have said that the targets in the monetary policy are challenging to achieve. According to Ganesh Raj Pokharel, CEO of Citizens Bank International, the central bank has taken measures with a view to help both bankers and businesspersons survive during the current crisis. Meanwhile, banking expert AR Bhattarai doubts on the bank’s target to keep inflation rate within the 7 percent range. Bhattarai also views the lending expansion target of 20 percent in the current fiscal year 2020/21 in the monetary policy as challenging. “The target set for the current year is ambitious because last year the lending expansion in the private sector was 10 percent,” said Bhattarai, adding, “Other targets in the monetary policy can be achieved because directive work procedure which comes after the policy further manages and implement it.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Extension of Loan Repayment Deadline</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Businesses in tourism, manufacturing, education, communications, healthcare, education and entertainment are entitled to receive the loan restructuring and rescheduling facilities. NRB has put businesses in categories of low, medium and highly affected for repayment of loans. The deadline for repayment of interest and principal amount for such businesses has been extended from 6 months to a year. As per the arrangements, highly affected businesses can repay their loans by mid-July 2021 while the deadline has been extended to mid-April 2021 for medium affected and mid-January 2021 for low affected businesses. Likewise, the repayment deadline can be extended to more than a year for those businesses needing reestablishment in sectors like tourism. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Besides, NRB has also announced refinancing facility, extension of grace period for infrastructure projects and targeted lending for productive sectors at lower interest rates to aid the process of recovery. Similarly, NRB has prioritised lending to small and medium enterprises (SMEs). </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Lending Capacity of Banks in Doubt</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NRB has increased the credit-to-core capital-plus-deposit (CCD) ratioto 85 percent from 80 percent. According to Bhattarai, the arrangement will add an average of Rs 120 billion additional liquidity in the banking system. Nevertheless, Bhuvan Kumar Dahal, president of Nepal Bankers’ Association (NBA) argues that the existing problems in expansion of loans cannot only be resolved by increasing CDD ratio. “The situation of liquidity will ease to some extent, but it won’t increase the banks’ ability to expand loans. The 20 percent net liquid asset should also need to be addressed. The lending capacity of banks will increase only if both issues are addressed,” he opined. Dahal viewed the restructuring and rescheduling of loans to support the pandemic-stricken business sectors as a positive step to face the challenges created by the Covid-19 crisis. “However, the measures will impact income of banks,” he mentioned. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11934', 'image' => '20200719041756_Monetary Policy.jpg', 'article_date' => '2020-07-19 16:16:42', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 9 => array( 'Article' => array( 'id' => '12186', 'article_category_id' => '1', 'title' => 'Pandemic Hits Nepal’s Foreign Trade Hard ', 'sub_title' => '', 'summary' => 'Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. The train traffic at the Birgunj Dry port where containers from overseas and cargoes from different parts of India arrive, has decreased dramatically. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The movement decreased after containers stopped arriving at Kolkata and Visakhapatnam ports in India. As of July 16, only 17 containers, two sacks and five racks of iron have entered the port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The statistics of Himalayan Terminal shows that in average, 70 racks of cargo have entered in the last three months. On the annual train traffic, this number is 95. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Normally, three to four trains come to the port in a day but now hardly a train arrives,” said Bishnukant Chaudhary, CEO of Himalayan Terminal, which operates the Birgunj dry port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Animesh Kumar, a senior official at the Himalayan Terminal, cargo arrivals have dropped further this week. "Not a single rack is likely to arrive on Thursday," he said.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chaudhary said that while there used to be 25 to 30 racks on the way from Kolkata and Visakhapatnam to Birgunj, it has now dropped to two to four. The terminal said that only two containers and racks of iron from Visakhapatnam were seen on the road on Thursday. There is no pressure of containers coming to Nepal even in this port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Laxmi Khadka, chief of the Kolkata based Nepal Transit and Warehousing Company said that not even 25/30 containers could reach the Kolkata port now which used to receive around 200 containers daily. According to the port management, not a single rack has reached Kolkata in three days. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs said that the goods of letter of credit (LC) opened before the lockdown have arrived and since the number of LCs has decreased from then, its impact has seen on import. The lockdown was imposed from March 24. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Guru Poudel, director of the Foreign Exchange Management Department of Nepal Rastra Bank, said that very few LCs have been opened for about a month since then. According to him, although the process of opening LC has improved after March, the situation has not become normal. As the validity period of LC is 120 to 150 days, the importer says that the goods of LC before the lockdown have already arrived. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ashok Kumar Temani, chairman of the Transport and Transit Committee and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) claimed that the import was reduced as the government was only trying to collect taxes from traders and not facilitating business. “Trade has become uncomfortable due to Corona. Credits from the market have not been raised. But the government is not concerned in anything other than collecting taxes and raising revenue,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Although foreign trade has declined, Temani says it will have a cyclical effect on the economy. Importer Suresh Rungta has complained that entrepreneurs are discouraged due to government policy. “The cost of most goods and services has increased due to corona. However, the government is inflexible about the old values and evaluation. Such an impractical policy would further weaken the business,” Rungta told New Business Age. </span></span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Cambria",serif">Both Birgunj custom offices fail to meet revenue targets</span></strong> </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Birgunj (ICP) and dry port customs at the main customs checkpoint failed to meet the revenue target in the last fiscal year. Out of the target of Rs 188 billion set for Birgunj customs, only Rs 126 billion has been collected. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chief Customs Administrator Dhundi Prasad Niraula said that this amount is only 67% of the target. Birgunj customs had raised 72 percent of the target in FY2075/76. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, the dry port customs office has collected revenue of Rs 36.19 billion. According to customs Chief Umesh Shrestha, the collected revenue is 86 percent of the annual target. A target of Rs 41.88 billion was given to the dry port customs in the last fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Customs officials say the target could not be met as imports were affected by the corona outbreak and lockdown in the last four months of the year. They say the government's control over imports of luxury goods and the decline in foreign trade have had an impact on overall revenue collection. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11933', 'image' => '20200717032225_vigaz train nepal.jpg', 'article_date' => '2020-07-17 15:17:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 10 => array( 'Article' => array( 'id' => '12185', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Demand Resumption of Flight Operations', 'sub_title' => '', 'summary' => 'Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1. </span></span></span></span><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Organising a joint press conference on Thursday, 35 tourism sector related organisations including Airlines Operators’ Association of Nepal (AAON), Hotel Association Nepal (HAN), Nepal Association of Travel and Tour Operators (NATTO), Trekking Agencies Association of Nepal (TAAN), said that the halt in flights has resulted in zero business for tourism enterprises for the last four months and that the government needs to reopen the domestic airspace ensuring proper health safety measures. Likewise, they also demanded resumption of international flights operation and opening of border checkpoints from August 15.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Tourism entrepreneurs said that that air connectivity is directly linked with overall tourism activities and Nepalis are compelled to pay high air fares for international flights in the absence of regular flights.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to them,</span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> liabilities of the entrepreneurs have crossed negative levels putting the one million employment and investment of billions of rupees is in jeopardy.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepal has been hit by Covid-19 pandemic while the tourism sector, in particular, is bearing an unprecedented loss due to closure of hotels, resorts, homestays, air, and public and tourist transport.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, AAON President Captain Rameshore Thapa asked that the government needs to reopen the airspace by following the steps taken by other countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice president of HAN said that the government has not paid attention to attempts made by entrepreneurs to reopen businesses and waiting for the Covid-19 pandemic to end has crippled the tourism sector badly. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NATTA President Achyut Guragain warned that there is no alternative left for entrepreneurs other than to start phase-wise protests if the government declined to address their demands. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11932', 'image' => '20200717031711_airspace nepal.jpeg', 'article_date' => '2020-07-17 15:14:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 11 => array( 'Article' => array( 'id' => '12184', 'article_category_id' => '1', 'title' => 'Bankers Fear Increase in Bad Loans ', 'sub_title' => '', 'summary' => 'With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. The calls made by the Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari to debtors, who are able to pay their loans, to clear interest and principal amount, have been ignored by the debtors increasing the risk of surge of NPLs, bankers say. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The banks had announced to provide concession on the loans during the time of pandemic. NRB had already decided to give 10 percent concession to those who pay their interest within June 16. But, NPLs of banks in FY2020/21 is likely to increase. Bankers say that the double standard of government and the regulatory body to act well with both banks and the debtors is exacerbating the problems in the banking sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Company Secretary of Agricultural Development Bank, Himlal Poudel says that it is irrelevant to pressurize debtors who have invested in sectors like tourism and transportation which are badly affected by the pandemic. Even after requesting to those who can pay, the repayment of loans is not satisfactory. He further says that Agricultural Development Bank has collected only Rs 500 million from March to June, out of the targeted amount Rs 1.25 billion. “We have provided additional reliefs to our borrowers besides the concessions announced by NRB. We have provided 10 to 60 percent concession in interest rate to those who have borrowed money from us for more than two years, but the recovery of loans hasn’t been as expected, said Poudel.” According to him, NPL of Agricultural Development Bank in March was 3.29 which will increase significantly due to the non-recovery of loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NIC Asia bank announced an attractive concession scheme to encourage the borrowers to repay their loans. The bank said that if the debtors pay the entire installment/interest amount by Mid-June, they will receive an additional 10 percent discount in the interest amount and a 100 percent waiver of the penalty interest amount. However, the loan recovery has not been as expected, according to a source at NIC Asia Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">President of the Nepal Bankers' Association Bhuvan Kumar Dahal said that it is difficult to put pressure on debtors who are already under stress due to the economic slowdown. Therefore, he says, there is a need to take as much as banks can recover the loans by convincing the borrowers. “The current situation for banks is that very few debtors will repay their loans leading to the increase of NPLs of banks,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Dahal, NRB has said that there is no need to calculate NPL of those who have not paid till mid-July. However, the decision has not been made. Even if the NPL is not shown, the bank's interest income is affected. He said that non-recovery of loans will also impact distribution of cash dividends to bank shareholders. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">A banker, under the condition of anonymity, said that the governor had given a verbal assurance that bad loans would not be counted during this period, but as there is no policy as such. The existing rules mandate banks to show their NPLs in the financial statements which will be made public in mid-July. Another banker claims that the governor's assurance that the monetary policy will increase the deadline to those who are unable to pay, restructure, reschedule and other facilities depending on the condition of loans, has led the businessmen not to clear their debts. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11931', 'image' => '20200717031443_NPLs.jpg', 'article_date' => '2020-07-17 15:13:15', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 12 => array( 'Article' => array( 'id' => '12183', 'article_category_id' => '1', 'title' => 'OAG Report Shows Worsening of Fiscal Discipline', 'sub_title' => '', 'summary' => 'At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. According to the 57<sup>th</sup> OAG Report released on Wednesday, the arrears of the government totaled Rs 418 billion in FY2019/20, an increase of 11 percent compared to the previous fiscal year. OAG audited financial documents of 5,619 government agencies and associated institutions in central, provincial and local levels. The total amount audited was Rs 5,171.64 billion. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the report, of the total arrears amount of Rs 132 billion,10 percent belong to government ministries with the highest amount (Rs 19.06 billion) belonging to the Ministry of Finance. Similarly, the Ministry of Physical Infrastructure and Transportation has Rs 14 billion, Ministry of Defense has Rs 9 billion, Ministry of Water Supply has Rs 4.28 billion and Prime Minister’s Office has Rs 4 billion in arrears. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to OAG, arrears of agencies under the federal government stood at 4.05 percent while it is 4.33 percent for agencies under provincial governments and 5.15 percent for local levels. Of the total arrears, expenses with no submitted documents are the highest with Rs 44.64 billion while expenditures suspected with irregularities have totaled Rs 17.30 billion. Likewise, amounts in mobilization advance and letter of credits (LCs) stood at Rs 21.40 billion and Rs 10.62 billion, respectively. Auditor General Tanka Mani Sharma said that there has been slight improvement in arrears. According to him, highest arrears have been seen in areas such as public procurement and project management. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11930', 'image' => '20200717031305_arrears.jpeg', 'article_date' => '2020-07-17 15:00:07', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 13 => array( 'Article' => array( 'id' => '12182', 'article_category_id' => '1', 'title' => 'Rejection of Munich International Airport’s Proposal to Operate GBIA Recommended', 'sub_title' => '', 'summary' => 'A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">July 10: A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa. According to ministry officials, the recommendation was presented due to some legal complications in the proposal presented by Munich. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The cabinet meeting held on May 30, 2019 had decided to operate the Gautam Buddha International Airport on the basis of government-to-government (G2G) agreement instead of open competition. After the decision, Munich Airport had sent a formal proposal to MoCTCA and Civil Aviation Authority of Nepal (CAAN) on June 2019<strong>.</strong> Munich had offered to give it the responsibility to operate the airport for 50 years. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Buddhi Sagar Lamichhane, joint secretary at MoCTCA said that although Munich’s offer seemed technically appropriate, it is recommended to cancel the proposal as it had legal complications and ambiguity. Lamichhane is the coordinator of the committee formed by the ministry to hand over responsibility for the operation of the airport. Representatives of NAC, Ministry of Law, Justice and Parliamentary Affairs, and Ministry of Foreign Affairs are in the committee. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to Lamichhane, the committee had assessed the proposal and recommended the government to reject it a few days ago. “Our recommendation is based on some legal complications in the Munich’s proposal. Now further decision will be taken by the government,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to him, the government had called for proposal through G2G, but only one proposal was received. Due to some provision in Public Procurement Act, the proposal cannot be accepted at the moment. “Munich’s proposal is rejected because it is important to know whether any proposal is legally correct or not before accepting,” he mentioned. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The government had preparations to complete the construction work by December 2019, and start the operation from March 2020. However, completion of the construction of the project has been delayed due to the Covid-19 pandemic. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As per the Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai, preparations are being made to complete the work by the end of 2020 and start flights from March 2021. “The pandemic has definitely pushed us back. However, we will complete the construction work by 2020 end and start operation of flights by March 2021,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As there were no proposals from other countries, there was higher possibility that the German company would have been awarded the contract. But, after their proposal is rejected, there is confusion as to how to proceed after the airport’s construction is completed. Lamichhane said that the government could operate the airport from its own resources and manpower even if no other proposals are received at the moment. “The global marketing and expansion would have been easier with Munich. However, we must prepare for operation ourselves as that possibility has been reduced at the moment due to corona,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Construction period extended due to Corona </span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Northwest Civil Aviation Airport Construction Group, a Chinese government-owned company, was assigned to complete the construction of the airport by December 2017. But due to various reasons, </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">the construction deadline was extended for multiple times. This has been again extended due to the Covid-19 pandemic. According to ministry officials, 91 percent of the works have been completed and the construction of a runway and link taxiway connecting the parking bay has been finished during the lockdown period. </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Spokesperson of the ministry, Rudra Singh Tamang said that the work of connecting the runway lights has reached the final stage. Similarly, work of installing air conditioning in the terminal building has been started during the shutdown and decoration work is underway. Currently, 275 workers including 29 Chinese have been mobilised for the construction of the airport. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-10', 'modified' => '2020-07-10', 'keywords' => '', 'description' => '', 'sortorder' => '11929', 'image' => '20200710024104_GBIA.jpg', 'article_date' => '2020-07-10 14:39:10', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 14 => array( 'Article' => array( 'id' => '12181', 'article_category_id' => '1', 'title' => 'Lack of Data Makes Tourism Sector Recovery Difficult', 'sub_title' => '', 'summary' => 'The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 9: The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. The entire star and non-star hotels across the country are closed, flights are suspended, and travel agencies have become workless in a matter of four months. But what is the actual damage to the sector due to the global health crisis? This is a baffling question because the government doesn’t have credible data. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Three days ago, tourism minister Yogesh Bhattarai said that the tourism sector ha incurred a monthly loss of Rs 10 billion during the lockdown period. Speaking at a press conference he estimated that by mid-July the overall loss to the tourism sector would be Rs 41 billion. However, this is a random assessment because the ministry does not have comprehensive data on the amount of damage in different areas of tourism. The government also does not have any official data on how many people lost their jobs from the tourism sector due to Covid-19 pandemic, and how much loan do the tourism entrepreneurs have. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">On the basis of a study conducted by Nepal Tourism Board (NTB), the ministry estimated the loss and said at the press conference. Bhattarai claims that the details of the loss in the tourism sector have been sent to the Ministry of Finance and National Planning Commission. A committee was formed by NTB and Civil Aviation Authority of Nepal to study the loss in tourism and aviation sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">However, the study of the Board does not find anything other than a general study of investment and employment in the tourism sector. The report submitted by the board to the MoF does not provide data on how much the sector has lost due to the corona and lockdown. According to a study conducted by the board, more than Rs 1 trillion has been invested in Nepal's tourism sector (including the aviation sector). </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ministry spokesperson Rudra Singh Tamang said that the Ministry of Tourism has estimated the amount of damage as per the details sent by the board and further study is being done by the National Planning Commission. According to private organizations affiliated with tourism, the damage in the tourism sector is much more than the government's claim. Based on the data provided by the private sector, the tourism sector has suffered much more than the government's estimate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice-president of the Hotel Association of Nepal (HAN), argues that due to lack of official data from the state and proper coordination with the private sector, there are no reliable figures on the loss. "We have official statistics about organisations affiliated with us. In the three months of the lockdown, the hotel industry has lost more than Rs 2.5 billion in a month. Even after calculating that, we have to bear a loss of more than Rs 10 billion,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Manoj Karki, general secretary of the Airlines Operators Association of Nepal, the domestic aviation has lost between Rs 7-10 billion in the last three months. "Combining the international flights and government flag carrier Nepal Airlines Corporation, the loss is likely to increase," states Karki. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, according to Khum Bahadur subedi, president of the Trekking Agencies Association of Nepal, the trekking and mountaineering sector has lost more than Rs 15 billion. The Restaurant and Bar Association of Nepal (REBAN) has also estimated that 3,500 restaurants in Kathmandu, Pokhara and Chitwan have suffered losses of Rs 9-10 billion during the period. President of REBAN Araniko Rajbhandari said the estimated loss would be much higher if other restaurants across the country that are not connected with the organisation. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-09', 'modified' => '2020-07-09', 'keywords' => '', 'description' => '', 'sortorder' => '11928', 'image' => '20200709035505_tourism sector crisis Nepal.jpg', 'article_date' => '2020-07-09 15:51:09', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ) ) $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' => '12198', 'article_category_id' => '1', 'title' => 'Independent Power Producers Demand Incentives for Merger', 'sub_title' => '', 'summary' => 'July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. They have demanded exemption in royalty for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The Electricity Regulatory Commission has already unveiled the draft of the Directive on Merger, Acquisition, Purchase and Transfer of Authorised Person or Projects 2077.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The commission is preparing to finalize the draft. In the mean time, energy producers have demanded favourable policy to go for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The draft has a provision of merger between authorised projects that are involved in production, transmission and distribution of electricity. There is also a provision for one project to acquire, purchase or transfer the shares of other projects.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Promoters of the private companies have taken the proposal of merger positively. The promoters of private energy sector have been demanding facilities similar to those provided by the central bank to encourage the merger of BFIs. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Vice President of Independent Power Producers of Nepal (IPPAN) Kumar Pandey says it is important to provide incentives for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">“Merger of hydropower project itself is a positive step. However, it is important to provide facilities for the projects that opt for merger. This issue is missing in the draft,” said Pandey.</span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11944', 'image' => '20200720050237_1595198302.Clipboard18.jpg', 'article_date' => '2020-07-20 17:01:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '12196', 'article_category_id' => '1', 'title' => 'Handicraft Entrepreneurs Choosing Alternative Occupation ', 'sub_title' => '', 'summary' => 'July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation. Entrepreneurs, craftsman and business persons involved in this sectors are in crisis after tourists stopped coming to Nepal even before the spread of coronavirus in Nepal. As the handicraft industry is directly linked with the tourism industry, it has been badly affected due to the closure of tourism sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of Nepal Handicraft Association, Hari Century, around 50 percent handicraft entrepreneurs and workers have chosen other profession as it will still take around two years for tourism industry to flourish again.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman""> “They are now involved in vegetable farming and animal husbandry,” he said. Some of them are thinking of returning to the business in the coming days if the situation improves. But it is expected that some will abandon the sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Achyut Aryal, who has been making and selling handicraft products since 40 years at Basantapur, is now into maize farming after people stopped purchasing handicrafts. He has started the farming by renting 15 ropani land in Godawari, Lalitpur. “Neither there is the possibility of tourists coming to Nepal nor is export possible due to coronavirus. Even though we open the shops, there aren’t any buyers,” he said, adding, “I am obliged to get into agriculture as the business has dried up.” </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">As per the statistics of the Federation of Handicraft Association of Nepal (FHAN), Nepali handicraft products worth Rs 6 billion was sold in the international market last year. The major market for Nepali handicrafts is the USA, China and European countries. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">In an average, handicraft products worth Rs 11 billion to Rs 15 billion is exported from Nepal yearly, while it is estimated that around 1 million people (including businessmen, entrepreneurs and workers) are involved in this sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of FHAN, Surendra Bahi Shakya, the situation of Nepali handicraft is very critical for the next one year. He said that many people have had to change their profession until the situation becomes favourable. Moreover, he states that although the production of felt which was ordered before the lockdown is underway, they are facing problem in export. He further informed that the businessmen could not send some products from Nepal in the rescue flights due to exorbitant fare. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">“As the fare was five times high than normal charge, we have not been able to send the ordered products,” he said. Entrepreneurs and businessmen are frustrated as they could not sell the goods. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Places like Basantapur, Thamel, and Patan where the handicrafts used to be made and sold are still deserted, due to which there is no business even if they open their shops. Handmade pashmina, felt, thanka and painting, wood carving, sculpture, and metalwork, etc fall under handicraft products. </span></span></span></p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11943', 'image' => '20200720025203_20160802043332_meta.jpg', 'article_date' => '2020-07-20 14:51:14', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '12195', 'article_category_id' => '1', 'title' => 'Importers Spending Millions for Electronic Tracking System Despite Lack of Tracking Facility', 'sub_title' => '', 'summary' => 'July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">However, the importers complain that the service provider despite charging the fees did not provide the container tracking facility to them.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">The GPS-based system is currently being used to track the transshipment of goods imported from the third countries to the Indian ports of Kolkata and Visakhapatnam. Such tracking system came in operation in Kolkata on February 15, 2019 and before that in Visakhapatnam port on August 28, 2018.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">In 2019/20, a total of 108,000 thousand containers were imported to Nepal from third countries. Of the total containers, 59,214 entered Nepal through Birgunj Dry Port by rail. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Transcure Telematics Pvt Ltd, has been providing the ECTS service. The company charges Rs 3,400 per container to the importers. However, Nepali importers complain that another company working as a middle agent has been charging them to Rs 10,000 for the same service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Nepali importers have so far spent at least Rs 320 million for availing the tracking service. However, Nepali entrepreneurs complain that Transcure, despite charging them millions, has not provided the tracking service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Importer Suresh Rungta complained that the service provider charges them hefty amount but is not providing the tracking service. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">“The charge for this reusable electronic system is exorbitant. On top of that, tracking facility has not been provided to the importers,” claimed industrialist Rungta.</span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11942', 'image' => '20200720023416_95196488.Clipboard05.jpg', 'article_date' => '2020-07-20 14:27:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '12193', 'article_category_id' => '1', 'title' => 'Hotel Entrepreneurs Agree to Pay Minimum Salary to Workers', 'sub_title' => '', 'summary' => 'July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The entrepreneurs have agreed to pay between Rs 4,300 to Rs 10,000 to the staffers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Hotel Association of Nepal informed during a press conference on Sunday (July 19) that they have agreed pay the amount to the workers after reaching an understanding with the workers’ union.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to HAN, this agreement will remain valid from April 13, 2020 to 31 December 2020. With this understanding, the payment issue of hotel staffers has finally been resolved.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">As per the understanding, hotel employees will receive the minimum amount even if they are unable to join office or the employer is unable to provide job due to any circumstances during this period. The staffers will receive anything between Rs 4,300 to Rs 10,000 depending on the standard of the hotel where they work, informed president of HAN Srijana Rana.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The hotel industry has been completely closed due to coronavirus and the subsequent lockdown imposed since March 24. Rana said that the agreement has set a good precedent among the employers and the employees during the crisis period.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the understanding, deluxe and five-star hotels and resorts with more than 200 rooms will pay Rs 10,000 per month to their workers. Likewise, deluxe and five-star hotels with less than 200 rooms will pay Rs 9000 to their staffers. Similarly, four-star hotels with more than 100 rooms will pay Rs 8455 to their workers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Four-star hotels with less than 100 rooms will pay Rs 8000 to the employees while 3-star hotels have agreed to pay Rs 5000 per month to the workers. Likewise, two-star hotels have agreed to pay Rs 4300 to the workers while the minimum pay for employees of one-star hotels and other restaurants will be decided by the concerned parties, informed Binayak Shah, senior vice president of HAN.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Meanwhile, General Secretary of HAN Sajan Shakya said that the hotel entrepreneurs and workers’ union have also agreed to deploy staffers on need basis and in different shifts as per the requirement.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The agreement further states that the employees who wish to take voluntary retirement from service can avail all the benefits guaranteed before the lockdown period.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11940', 'image' => '20200720010231_han.jpg', 'article_date' => '2020-07-20 12:44:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '12191', 'article_category_id' => '1', 'title' => 'Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion', 'sub_title' => '', 'summary' => 'July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. However, the delay in timely completion of 12 such projects has added financial burden of Rs 282.43 billion to the state coffers. Had these projects been completed on time or delayed by only a year, the government would not have had to incur such huge amount needlessly. The extra amount spent in the projects could have been utilized to complete the Budhi Gandaki Hydropower Project.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of Budhi Gandaki project, which is yet to start physical infrastructure work, is said to be around Rs 260 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The 57<sup>th</sup> annual report of the Financial Comptroller General’s Office states that the cost of the national pride projects has been increasing due to the delay in completion of the work.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The additional expenses of these projects are more than the capital expenditure of the government announced for the fiscal year 2072/73. The government had allocated a total of Rs 208.87 billion as capital expenditure for FY 2072/73.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The government is finding it quite challenging to manage source of investment to meet the additional cost burden of the national pride projects due to the inordinate delay in completion of the works. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Pushpalal Mid-Hill Highway is one of the national pride projects which has taken a long time for completion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The project which started in 2064/65 BS (2007/2008 AD) was supposed to be complete in a decade by 2074/75 BS (2017/18 AD). However, the deadline for the project has been extended by five years, which has increased the total cost estimate to Rs 84.33 billion. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of the project was just Rs 33.36 billion. Had the government completed the project on time, it could have saved Rs 50.97 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the annual report of the Financial Comptroller General’s Office, the fate of other projects is also similar. The Babai Irrigation Project, which was initiated in FY 2044/45 BS more than two decades ago was set to be completed by 2069/70. However, the deadline of the project has been extended by 10 more years.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The cost of the project which was estimated to be Rs 2.87 billion initially has now increased to Rs 18.96 billion. According to the report, most of the irrigation projects have been facing delay in completion.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11938', 'image' => '20200720114511_1595199291.jpg', 'article_date' => '2020-07-20 11:43:56', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '12190', 'article_category_id' => '1', 'title' => 'Capacity Utilisation of Carpet Industry Reaches 20% ', 'sub_title' => '', 'summary' => 'The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. However, export of carpet has not resumed due to the continuing ban on international flight. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs say that while previously produced carpets could not be exported, new products will unlikely to come into the market. According to them, they have to run the industries to sustain workers. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">As the exports have been halted due to covid-19 pandemic, carpets worth Rs 4 billion are stuck in warehouses. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The wool carpets produced in Nepal are exported in more than 50 countries including America, China, Germany, UK, Italy, France, Canada, Belgium and Australia. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Tenzing Sherpa, vice president of Nepal Carpet Manufacturers and Exporters Association, it is not possible to export Nepali carpets currently. The demand in the US, Europe and the UK, where Nepali carpets are exported in large quantities, has decreased due to the pandemic. “The demand of Nepali carpet has dropped by 80 percent as the international market is also almost closed. On the other hand, even if we want to export, there is no favorable environment now,” Sherpa said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepali carpet exporters mainly export carpets to foreign countries through the Kolkata Port in India. However, compared to countries including India and Pakistan, it takes more time for Nepali exporters to supply their products to foreign markets. "It takes 2-3 months for our carpets to reach major foreign markets," mentioned Sherpa</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Nepal Carpet Manufacturers and Exporters Association, only a small number of carpets exported to China are being produced. According to Amrit Tamang, CEO of the association, the compulsion to manufacture carpets to support the workers and the increase in stock of have hit the carpet manufacturers hard. “We have not been able to export, on top of our stocks are increasing,” he said. At present, more than 300,000 people in Nepal are dependent on the carpet industry. Similarly, there are about 700 entrepreneurs and more than 150 exporters in the carpet exporters. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Customs Department, carpets worth Rs. 7.36 billion were exported from Nepal in the fiscal year 2075/76. Carpet exports have declined by about 19% in the first 11 months of FY 2076/77. During this period, carpets worth Rs 5.5 billion have been exported from Nepal. Now, the main market for Nepali carpets is the United States, followed by Germany, the UK, and China. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the carpet entrepreneurs, there is no shortage of raw material as of now, as there was stock of raw materials even before the lockdown. The raw materials for the carpet in Nepal are mainly imported from Tibet and New Zealand. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11937', 'image' => '20200719042410_Nepali Carpet.jpg', 'article_date' => '2020-07-19 16:22:12', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 6 => array( 'Article' => array( 'id' => '12189', 'article_category_id' => '1', 'title' => 'Govt and World Bank Sign USD 450 mn Road Support Project Financing Agreement', 'sub_title' => '', 'summary' => 'The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The government and the World Bank on Friday signed a USD 450 million </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">(around Rs 54 billion) </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. Issuing a press statement, the Washington D.C.-based lender said that this is the single largest value project that the Nepal government has signed with the World Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The agreement was signed by Finance Secretary Sishir Kumar Dhungana and Faris Hadad-Zervos, World Bank Country Director for Maldives, on the presence of Minister for Finance Dr Yuba Raj Khatiwada. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support post-COVID-19 recovery,” the statement quoted Dr Khatiwada as saying. "Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals." </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, finance secretary Dhungana said that the Project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of COVID-19.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The government is working on a 3R –Relief, Recovery and Resilience –strategy to help Nepal build back better from the impacts of the COVID-19 crisis. This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience,” reads the statement. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India. “It will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports,” informed the statement. The bank said that amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“This Project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” the statement quoted Hadad-Zervos as saying. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11936', 'image' => '20200719042203_world bank nepal.jpg', 'article_date' => '2020-07-19 16:21:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 7 => array( 'Article' => array( 'id' => '12188', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Skeptical about Implementation of Monetary Policy ', 'sub_title' => '', 'summary' => 'Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.', 'content' => '<pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The policy has some special arrangements in working capital loans, concessional loans and refinancing scheme for the revival of aviation business, transport, hotel, restaurant and tourism sector enterprises to overcome the losses caused by the Covid-19 crisis.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The new monetary policy has extended the repayment deadline of loan installment by two years for the under-construction tourist hotel projects that have been halted due to Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Hoteliers say that the provision to direct development bank and financial institutions to mandatorily provide 20 percent and 15 percent loans, respectively, of their total paid-up capital to the tourism sector will provide relief for small and medium-sized hotels.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that that the monetary policy will be crucial and positive for of reestablishment of the tourism sector businesses affected by the Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The monetary policy has included most of the suggestions of the ministry and tourism entrepreneurs,” he said.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Stakeholders have welcomed the policy. However, they are skeptical over the implementation of the measures.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Even though the monetary policy has tried to address the demand of the overall tourism industry, its implementation is doubtful,” said Yograj Sharma Kandel, spokesperson of the Airlines Operators Association of Nepal.</span></span></span></span></pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> "There were some good measures in the 2015 monetary policy, which was announced after the earthquake, to help businesses in trouble. However, the measures were not implemented at all. This is likely to happen now,” he added.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, Sajan Shakya, general secretary of the Hotel Association of Nepal (HAN) said that the measures in the policy are crucial to revive the tourism industry affected by the pandemic. “However, the implementation is important than the policy itself,” mentioned Shakya.</span></span></span></span></pre> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11935', 'image' => '20200719042015_Tourism Nepal.jpg', 'article_date' => '2020-07-19 16:18:05', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 8 => array( 'Article' => array( 'id' => '12187', 'article_category_id' => '1', 'title' => 'Monetary Policy Aims to Provide Relief to Pandemic-stricken Sectors', 'sub_title' => '', 'summary' => 'Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. Presenting the Monetary Policy for fiscal year 2020/21, NRB Governor Maha Prasad Adhikari said that the central bank has prioritised measures aimed at the reviving the pandemic economic affected sectors. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Monetary Policy for FY2020/21 has received warm welcome from the business sector. Stakeholders have said that the central bank has addressed demands of business associations of various sectors and has incorporated their suggestions in the policy. However, economists and bankers have said that the targets in the monetary policy are challenging to achieve. According to Ganesh Raj Pokharel, CEO of Citizens Bank International, the central bank has taken measures with a view to help both bankers and businesspersons survive during the current crisis. Meanwhile, banking expert AR Bhattarai doubts on the bank’s target to keep inflation rate within the 7 percent range. Bhattarai also views the lending expansion target of 20 percent in the current fiscal year 2020/21 in the monetary policy as challenging. “The target set for the current year is ambitious because last year the lending expansion in the private sector was 10 percent,” said Bhattarai, adding, “Other targets in the monetary policy can be achieved because directive work procedure which comes after the policy further manages and implement it.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Extension of Loan Repayment Deadline</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Businesses in tourism, manufacturing, education, communications, healthcare, education and entertainment are entitled to receive the loan restructuring and rescheduling facilities. NRB has put businesses in categories of low, medium and highly affected for repayment of loans. The deadline for repayment of interest and principal amount for such businesses has been extended from 6 months to a year. As per the arrangements, highly affected businesses can repay their loans by mid-July 2021 while the deadline has been extended to mid-April 2021 for medium affected and mid-January 2021 for low affected businesses. Likewise, the repayment deadline can be extended to more than a year for those businesses needing reestablishment in sectors like tourism. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Besides, NRB has also announced refinancing facility, extension of grace period for infrastructure projects and targeted lending for productive sectors at lower interest rates to aid the process of recovery. Similarly, NRB has prioritised lending to small and medium enterprises (SMEs). </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Lending Capacity of Banks in Doubt</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NRB has increased the credit-to-core capital-plus-deposit (CCD) ratioto 85 percent from 80 percent. According to Bhattarai, the arrangement will add an average of Rs 120 billion additional liquidity in the banking system. Nevertheless, Bhuvan Kumar Dahal, president of Nepal Bankers’ Association (NBA) argues that the existing problems in expansion of loans cannot only be resolved by increasing CDD ratio. “The situation of liquidity will ease to some extent, but it won’t increase the banks’ ability to expand loans. The 20 percent net liquid asset should also need to be addressed. The lending capacity of banks will increase only if both issues are addressed,” he opined. Dahal viewed the restructuring and rescheduling of loans to support the pandemic-stricken business sectors as a positive step to face the challenges created by the Covid-19 crisis. “However, the measures will impact income of banks,” he mentioned. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11934', 'image' => '20200719041756_Monetary Policy.jpg', 'article_date' => '2020-07-19 16:16:42', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 9 => array( 'Article' => array( 'id' => '12186', 'article_category_id' => '1', 'title' => 'Pandemic Hits Nepal’s Foreign Trade Hard ', 'sub_title' => '', 'summary' => 'Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. The train traffic at the Birgunj Dry port where containers from overseas and cargoes from different parts of India arrive, has decreased dramatically. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The movement decreased after containers stopped arriving at Kolkata and Visakhapatnam ports in India. As of July 16, only 17 containers, two sacks and five racks of iron have entered the port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The statistics of Himalayan Terminal shows that in average, 70 racks of cargo have entered in the last three months. On the annual train traffic, this number is 95. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Normally, three to four trains come to the port in a day but now hardly a train arrives,” said Bishnukant Chaudhary, CEO of Himalayan Terminal, which operates the Birgunj dry port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Animesh Kumar, a senior official at the Himalayan Terminal, cargo arrivals have dropped further this week. "Not a single rack is likely to arrive on Thursday," he said.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chaudhary said that while there used to be 25 to 30 racks on the way from Kolkata and Visakhapatnam to Birgunj, it has now dropped to two to four. The terminal said that only two containers and racks of iron from Visakhapatnam were seen on the road on Thursday. There is no pressure of containers coming to Nepal even in this port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Laxmi Khadka, chief of the Kolkata based Nepal Transit and Warehousing Company said that not even 25/30 containers could reach the Kolkata port now which used to receive around 200 containers daily. According to the port management, not a single rack has reached Kolkata in three days. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs said that the goods of letter of credit (LC) opened before the lockdown have arrived and since the number of LCs has decreased from then, its impact has seen on import. The lockdown was imposed from March 24. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Guru Poudel, director of the Foreign Exchange Management Department of Nepal Rastra Bank, said that very few LCs have been opened for about a month since then. According to him, although the process of opening LC has improved after March, the situation has not become normal. As the validity period of LC is 120 to 150 days, the importer says that the goods of LC before the lockdown have already arrived. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ashok Kumar Temani, chairman of the Transport and Transit Committee and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) claimed that the import was reduced as the government was only trying to collect taxes from traders and not facilitating business. “Trade has become uncomfortable due to Corona. Credits from the market have not been raised. But the government is not concerned in anything other than collecting taxes and raising revenue,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Although foreign trade has declined, Temani says it will have a cyclical effect on the economy. Importer Suresh Rungta has complained that entrepreneurs are discouraged due to government policy. “The cost of most goods and services has increased due to corona. However, the government is inflexible about the old values and evaluation. Such an impractical policy would further weaken the business,” Rungta told New Business Age. </span></span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Cambria",serif">Both Birgunj custom offices fail to meet revenue targets</span></strong> </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Birgunj (ICP) and dry port customs at the main customs checkpoint failed to meet the revenue target in the last fiscal year. Out of the target of Rs 188 billion set for Birgunj customs, only Rs 126 billion has been collected. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chief Customs Administrator Dhundi Prasad Niraula said that this amount is only 67% of the target. Birgunj customs had raised 72 percent of the target in FY2075/76. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, the dry port customs office has collected revenue of Rs 36.19 billion. According to customs Chief Umesh Shrestha, the collected revenue is 86 percent of the annual target. A target of Rs 41.88 billion was given to the dry port customs in the last fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Customs officials say the target could not be met as imports were affected by the corona outbreak and lockdown in the last four months of the year. They say the government's control over imports of luxury goods and the decline in foreign trade have had an impact on overall revenue collection. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11933', 'image' => '20200717032225_vigaz train nepal.jpg', 'article_date' => '2020-07-17 15:17:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 10 => array( 'Article' => array( 'id' => '12185', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Demand Resumption of Flight Operations', 'sub_title' => '', 'summary' => 'Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1. </span></span></span></span><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Organising a joint press conference on Thursday, 35 tourism sector related organisations including Airlines Operators’ Association of Nepal (AAON), Hotel Association Nepal (HAN), Nepal Association of Travel and Tour Operators (NATTO), Trekking Agencies Association of Nepal (TAAN), said that the halt in flights has resulted in zero business for tourism enterprises for the last four months and that the government needs to reopen the domestic airspace ensuring proper health safety measures. Likewise, they also demanded resumption of international flights operation and opening of border checkpoints from August 15.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Tourism entrepreneurs said that that air connectivity is directly linked with overall tourism activities and Nepalis are compelled to pay high air fares for international flights in the absence of regular flights.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to them,</span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> liabilities of the entrepreneurs have crossed negative levels putting the one million employment and investment of billions of rupees is in jeopardy.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepal has been hit by Covid-19 pandemic while the tourism sector, in particular, is bearing an unprecedented loss due to closure of hotels, resorts, homestays, air, and public and tourist transport.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, AAON President Captain Rameshore Thapa asked that the government needs to reopen the airspace by following the steps taken by other countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice president of HAN said that the government has not paid attention to attempts made by entrepreneurs to reopen businesses and waiting for the Covid-19 pandemic to end has crippled the tourism sector badly. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NATTA President Achyut Guragain warned that there is no alternative left for entrepreneurs other than to start phase-wise protests if the government declined to address their demands. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11932', 'image' => '20200717031711_airspace nepal.jpeg', 'article_date' => '2020-07-17 15:14:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 11 => array( 'Article' => array( 'id' => '12184', 'article_category_id' => '1', 'title' => 'Bankers Fear Increase in Bad Loans ', 'sub_title' => '', 'summary' => 'With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. The calls made by the Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari to debtors, who are able to pay their loans, to clear interest and principal amount, have been ignored by the debtors increasing the risk of surge of NPLs, bankers say. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The banks had announced to provide concession on the loans during the time of pandemic. NRB had already decided to give 10 percent concession to those who pay their interest within June 16. But, NPLs of banks in FY2020/21 is likely to increase. Bankers say that the double standard of government and the regulatory body to act well with both banks and the debtors is exacerbating the problems in the banking sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Company Secretary of Agricultural Development Bank, Himlal Poudel says that it is irrelevant to pressurize debtors who have invested in sectors like tourism and transportation which are badly affected by the pandemic. Even after requesting to those who can pay, the repayment of loans is not satisfactory. He further says that Agricultural Development Bank has collected only Rs 500 million from March to June, out of the targeted amount Rs 1.25 billion. “We have provided additional reliefs to our borrowers besides the concessions announced by NRB. We have provided 10 to 60 percent concession in interest rate to those who have borrowed money from us for more than two years, but the recovery of loans hasn’t been as expected, said Poudel.” According to him, NPL of Agricultural Development Bank in March was 3.29 which will increase significantly due to the non-recovery of loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NIC Asia bank announced an attractive concession scheme to encourage the borrowers to repay their loans. The bank said that if the debtors pay the entire installment/interest amount by Mid-June, they will receive an additional 10 percent discount in the interest amount and a 100 percent waiver of the penalty interest amount. However, the loan recovery has not been as expected, according to a source at NIC Asia Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">President of the Nepal Bankers' Association Bhuvan Kumar Dahal said that it is difficult to put pressure on debtors who are already under stress due to the economic slowdown. Therefore, he says, there is a need to take as much as banks can recover the loans by convincing the borrowers. “The current situation for banks is that very few debtors will repay their loans leading to the increase of NPLs of banks,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Dahal, NRB has said that there is no need to calculate NPL of those who have not paid till mid-July. However, the decision has not been made. Even if the NPL is not shown, the bank's interest income is affected. He said that non-recovery of loans will also impact distribution of cash dividends to bank shareholders. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">A banker, under the condition of anonymity, said that the governor had given a verbal assurance that bad loans would not be counted during this period, but as there is no policy as such. The existing rules mandate banks to show their NPLs in the financial statements which will be made public in mid-July. Another banker claims that the governor's assurance that the monetary policy will increase the deadline to those who are unable to pay, restructure, reschedule and other facilities depending on the condition of loans, has led the businessmen not to clear their debts. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11931', 'image' => '20200717031443_NPLs.jpg', 'article_date' => '2020-07-17 15:13:15', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 12 => array( 'Article' => array( 'id' => '12183', 'article_category_id' => '1', 'title' => 'OAG Report Shows Worsening of Fiscal Discipline', 'sub_title' => '', 'summary' => 'At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. According to the 57<sup>th</sup> OAG Report released on Wednesday, the arrears of the government totaled Rs 418 billion in FY2019/20, an increase of 11 percent compared to the previous fiscal year. OAG audited financial documents of 5,619 government agencies and associated institutions in central, provincial and local levels. The total amount audited was Rs 5,171.64 billion. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the report, of the total arrears amount of Rs 132 billion,10 percent belong to government ministries with the highest amount (Rs 19.06 billion) belonging to the Ministry of Finance. Similarly, the Ministry of Physical Infrastructure and Transportation has Rs 14 billion, Ministry of Defense has Rs 9 billion, Ministry of Water Supply has Rs 4.28 billion and Prime Minister’s Office has Rs 4 billion in arrears. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to OAG, arrears of agencies under the federal government stood at 4.05 percent while it is 4.33 percent for agencies under provincial governments and 5.15 percent for local levels. Of the total arrears, expenses with no submitted documents are the highest with Rs 44.64 billion while expenditures suspected with irregularities have totaled Rs 17.30 billion. Likewise, amounts in mobilization advance and letter of credits (LCs) stood at Rs 21.40 billion and Rs 10.62 billion, respectively. Auditor General Tanka Mani Sharma said that there has been slight improvement in arrears. According to him, highest arrears have been seen in areas such as public procurement and project management. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11930', 'image' => '20200717031305_arrears.jpeg', 'article_date' => '2020-07-17 15:00:07', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 13 => array( 'Article' => array( 'id' => '12182', 'article_category_id' => '1', 'title' => 'Rejection of Munich International Airport’s Proposal to Operate GBIA Recommended', 'sub_title' => '', 'summary' => 'A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">July 10: A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa. According to ministry officials, the recommendation was presented due to some legal complications in the proposal presented by Munich. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The cabinet meeting held on May 30, 2019 had decided to operate the Gautam Buddha International Airport on the basis of government-to-government (G2G) agreement instead of open competition. After the decision, Munich Airport had sent a formal proposal to MoCTCA and Civil Aviation Authority of Nepal (CAAN) on June 2019<strong>.</strong> Munich had offered to give it the responsibility to operate the airport for 50 years. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Buddhi Sagar Lamichhane, joint secretary at MoCTCA said that although Munich’s offer seemed technically appropriate, it is recommended to cancel the proposal as it had legal complications and ambiguity. Lamichhane is the coordinator of the committee formed by the ministry to hand over responsibility for the operation of the airport. Representatives of NAC, Ministry of Law, Justice and Parliamentary Affairs, and Ministry of Foreign Affairs are in the committee. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to Lamichhane, the committee had assessed the proposal and recommended the government to reject it a few days ago. “Our recommendation is based on some legal complications in the Munich’s proposal. Now further decision will be taken by the government,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to him, the government had called for proposal through G2G, but only one proposal was received. Due to some provision in Public Procurement Act, the proposal cannot be accepted at the moment. “Munich’s proposal is rejected because it is important to know whether any proposal is legally correct or not before accepting,” he mentioned. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The government had preparations to complete the construction work by December 2019, and start the operation from March 2020. However, completion of the construction of the project has been delayed due to the Covid-19 pandemic. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As per the Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai, preparations are being made to complete the work by the end of 2020 and start flights from March 2021. “The pandemic has definitely pushed us back. However, we will complete the construction work by 2020 end and start operation of flights by March 2021,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As there were no proposals from other countries, there was higher possibility that the German company would have been awarded the contract. But, after their proposal is rejected, there is confusion as to how to proceed after the airport’s construction is completed. Lamichhane said that the government could operate the airport from its own resources and manpower even if no other proposals are received at the moment. “The global marketing and expansion would have been easier with Munich. However, we must prepare for operation ourselves as that possibility has been reduced at the moment due to corona,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Construction period extended due to Corona </span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Northwest Civil Aviation Airport Construction Group, a Chinese government-owned company, was assigned to complete the construction of the airport by December 2017. But due to various reasons, </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">the construction deadline was extended for multiple times. This has been again extended due to the Covid-19 pandemic. According to ministry officials, 91 percent of the works have been completed and the construction of a runway and link taxiway connecting the parking bay has been finished during the lockdown period. </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Spokesperson of the ministry, Rudra Singh Tamang said that the work of connecting the runway lights has reached the final stage. Similarly, work of installing air conditioning in the terminal building has been started during the shutdown and decoration work is underway. Currently, 275 workers including 29 Chinese have been mobilised for the construction of the airport. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-10', 'modified' => '2020-07-10', 'keywords' => '', 'description' => '', 'sortorder' => '11929', 'image' => '20200710024104_GBIA.jpg', 'article_date' => '2020-07-10 14:39:10', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 14 => array( 'Article' => array( 'id' => '12181', 'article_category_id' => '1', 'title' => 'Lack of Data Makes Tourism Sector Recovery Difficult', 'sub_title' => '', 'summary' => 'The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 9: The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. The entire star and non-star hotels across the country are closed, flights are suspended, and travel agencies have become workless in a matter of four months. But what is the actual damage to the sector due to the global health crisis? This is a baffling question because the government doesn’t have credible data. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Three days ago, tourism minister Yogesh Bhattarai said that the tourism sector ha incurred a monthly loss of Rs 10 billion during the lockdown period. Speaking at a press conference he estimated that by mid-July the overall loss to the tourism sector would be Rs 41 billion. However, this is a random assessment because the ministry does not have comprehensive data on the amount of damage in different areas of tourism. The government also does not have any official data on how many people lost their jobs from the tourism sector due to Covid-19 pandemic, and how much loan do the tourism entrepreneurs have. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">On the basis of a study conducted by Nepal Tourism Board (NTB), the ministry estimated the loss and said at the press conference. Bhattarai claims that the details of the loss in the tourism sector have been sent to the Ministry of Finance and National Planning Commission. A committee was formed by NTB and Civil Aviation Authority of Nepal to study the loss in tourism and aviation sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">However, the study of the Board does not find anything other than a general study of investment and employment in the tourism sector. The report submitted by the board to the MoF does not provide data on how much the sector has lost due to the corona and lockdown. According to a study conducted by the board, more than Rs 1 trillion has been invested in Nepal's tourism sector (including the aviation sector). </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ministry spokesperson Rudra Singh Tamang said that the Ministry of Tourism has estimated the amount of damage as per the details sent by the board and further study is being done by the National Planning Commission. According to private organizations affiliated with tourism, the damage in the tourism sector is much more than the government's claim. Based on the data provided by the private sector, the tourism sector has suffered much more than the government's estimate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice-president of the Hotel Association of Nepal (HAN), argues that due to lack of official data from the state and proper coordination with the private sector, there are no reliable figures on the loss. "We have official statistics about organisations affiliated with us. In the three months of the lockdown, the hotel industry has lost more than Rs 2.5 billion in a month. Even after calculating that, we have to bear a loss of more than Rs 10 billion,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Manoj Karki, general secretary of the Airlines Operators Association of Nepal, the domestic aviation has lost between Rs 7-10 billion in the last three months. "Combining the international flights and government flag carrier Nepal Airlines Corporation, the loss is likely to increase," states Karki. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, according to Khum Bahadur subedi, president of the Trekking Agencies Association of Nepal, the trekking and mountaineering sector has lost more than Rs 15 billion. The Restaurant and Bar Association of Nepal (REBAN) has also estimated that 3,500 restaurants in Kathmandu, Pokhara and Chitwan have suffered losses of Rs 9-10 billion during the period. President of REBAN Araniko Rajbhandari said the estimated loss would be much higher if other restaurants across the country that are not connected with the organisation. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-09', 'modified' => '2020-07-09', 'keywords' => '', 'description' => '', 'sortorder' => '11928', 'image' => '20200709035505_tourism sector crisis Nepal.jpg', 'article_date' => '2020-07-09 15:51:09', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ) ) $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' => '12198', 'article_category_id' => '1', 'title' => 'Independent Power Producers Demand Incentives for Merger', 'sub_title' => '', 'summary' => 'July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. They have demanded exemption in royalty for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The Electricity Regulatory Commission has already unveiled the draft of the Directive on Merger, Acquisition, Purchase and Transfer of Authorised Person or Projects 2077.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The commission is preparing to finalize the draft. In the mean time, energy producers have demanded favourable policy to go for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The draft has a provision of merger between authorised projects that are involved in production, transmission and distribution of electricity. There is also a provision for one project to acquire, purchase or transfer the shares of other projects.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Promoters of the private companies have taken the proposal of merger positively. The promoters of private energy sector have been demanding facilities similar to those provided by the central bank to encourage the merger of BFIs. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Vice President of Independent Power Producers of Nepal (IPPAN) Kumar Pandey says it is important to provide incentives for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">“Merger of hydropower project itself is a positive step. However, it is important to provide facilities for the projects that opt for merger. This issue is missing in the draft,” said Pandey.</span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11944', 'image' => '20200720050237_1595198302.Clipboard18.jpg', 'article_date' => '2020-07-20 17:01:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '12196', 'article_category_id' => '1', 'title' => 'Handicraft Entrepreneurs Choosing Alternative Occupation ', 'sub_title' => '', 'summary' => 'July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation. Entrepreneurs, craftsman and business persons involved in this sectors are in crisis after tourists stopped coming to Nepal even before the spread of coronavirus in Nepal. As the handicraft industry is directly linked with the tourism industry, it has been badly affected due to the closure of tourism sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of Nepal Handicraft Association, Hari Century, around 50 percent handicraft entrepreneurs and workers have chosen other profession as it will still take around two years for tourism industry to flourish again.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman""> “They are now involved in vegetable farming and animal husbandry,” he said. Some of them are thinking of returning to the business in the coming days if the situation improves. But it is expected that some will abandon the sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Achyut Aryal, who has been making and selling handicraft products since 40 years at Basantapur, is now into maize farming after people stopped purchasing handicrafts. He has started the farming by renting 15 ropani land in Godawari, Lalitpur. “Neither there is the possibility of tourists coming to Nepal nor is export possible due to coronavirus. Even though we open the shops, there aren’t any buyers,” he said, adding, “I am obliged to get into agriculture as the business has dried up.” </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">As per the statistics of the Federation of Handicraft Association of Nepal (FHAN), Nepali handicraft products worth Rs 6 billion was sold in the international market last year. The major market for Nepali handicrafts is the USA, China and European countries. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">In an average, handicraft products worth Rs 11 billion to Rs 15 billion is exported from Nepal yearly, while it is estimated that around 1 million people (including businessmen, entrepreneurs and workers) are involved in this sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of FHAN, Surendra Bahi Shakya, the situation of Nepali handicraft is very critical for the next one year. He said that many people have had to change their profession until the situation becomes favourable. Moreover, he states that although the production of felt which was ordered before the lockdown is underway, they are facing problem in export. He further informed that the businessmen could not send some products from Nepal in the rescue flights due to exorbitant fare. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">“As the fare was five times high than normal charge, we have not been able to send the ordered products,” he said. Entrepreneurs and businessmen are frustrated as they could not sell the goods. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Places like Basantapur, Thamel, and Patan where the handicrafts used to be made and sold are still deserted, due to which there is no business even if they open their shops. Handmade pashmina, felt, thanka and painting, wood carving, sculpture, and metalwork, etc fall under handicraft products. </span></span></span></p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11943', 'image' => '20200720025203_20160802043332_meta.jpg', 'article_date' => '2020-07-20 14:51:14', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '12195', 'article_category_id' => '1', 'title' => 'Importers Spending Millions for Electronic Tracking System Despite Lack of Tracking Facility', 'sub_title' => '', 'summary' => 'July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">However, the importers complain that the service provider despite charging the fees did not provide the container tracking facility to them.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">The GPS-based system is currently being used to track the transshipment of goods imported from the third countries to the Indian ports of Kolkata and Visakhapatnam. Such tracking system came in operation in Kolkata on February 15, 2019 and before that in Visakhapatnam port on August 28, 2018.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">In 2019/20, a total of 108,000 thousand containers were imported to Nepal from third countries. Of the total containers, 59,214 entered Nepal through Birgunj Dry Port by rail. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Transcure Telematics Pvt Ltd, has been providing the ECTS service. The company charges Rs 3,400 per container to the importers. However, Nepali importers complain that another company working as a middle agent has been charging them to Rs 10,000 for the same service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Nepali importers have so far spent at least Rs 320 million for availing the tracking service. However, Nepali entrepreneurs complain that Transcure, despite charging them millions, has not provided the tracking service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Importer Suresh Rungta complained that the service provider charges them hefty amount but is not providing the tracking service. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">“The charge for this reusable electronic system is exorbitant. On top of that, tracking facility has not been provided to the importers,” claimed industrialist Rungta.</span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11942', 'image' => '20200720023416_95196488.Clipboard05.jpg', 'article_date' => '2020-07-20 14:27:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '12193', 'article_category_id' => '1', 'title' => 'Hotel Entrepreneurs Agree to Pay Minimum Salary to Workers', 'sub_title' => '', 'summary' => 'July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The entrepreneurs have agreed to pay between Rs 4,300 to Rs 10,000 to the staffers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Hotel Association of Nepal informed during a press conference on Sunday (July 19) that they have agreed pay the amount to the workers after reaching an understanding with the workers’ union.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to HAN, this agreement will remain valid from April 13, 2020 to 31 December 2020. With this understanding, the payment issue of hotel staffers has finally been resolved.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">As per the understanding, hotel employees will receive the minimum amount even if they are unable to join office or the employer is unable to provide job due to any circumstances during this period. The staffers will receive anything between Rs 4,300 to Rs 10,000 depending on the standard of the hotel where they work, informed president of HAN Srijana Rana.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The hotel industry has been completely closed due to coronavirus and the subsequent lockdown imposed since March 24. Rana said that the agreement has set a good precedent among the employers and the employees during the crisis period.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the understanding, deluxe and five-star hotels and resorts with more than 200 rooms will pay Rs 10,000 per month to their workers. Likewise, deluxe and five-star hotels with less than 200 rooms will pay Rs 9000 to their staffers. Similarly, four-star hotels with more than 100 rooms will pay Rs 8455 to their workers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Four-star hotels with less than 100 rooms will pay Rs 8000 to the employees while 3-star hotels have agreed to pay Rs 5000 per month to the workers. Likewise, two-star hotels have agreed to pay Rs 4300 to the workers while the minimum pay for employees of one-star hotels and other restaurants will be decided by the concerned parties, informed Binayak Shah, senior vice president of HAN.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Meanwhile, General Secretary of HAN Sajan Shakya said that the hotel entrepreneurs and workers’ union have also agreed to deploy staffers on need basis and in different shifts as per the requirement.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The agreement further states that the employees who wish to take voluntary retirement from service can avail all the benefits guaranteed before the lockdown period.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11940', 'image' => '20200720010231_han.jpg', 'article_date' => '2020-07-20 12:44:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '12191', 'article_category_id' => '1', 'title' => 'Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion', 'sub_title' => '', 'summary' => 'July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. However, the delay in timely completion of 12 such projects has added financial burden of Rs 282.43 billion to the state coffers. Had these projects been completed on time or delayed by only a year, the government would not have had to incur such huge amount needlessly. The extra amount spent in the projects could have been utilized to complete the Budhi Gandaki Hydropower Project.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of Budhi Gandaki project, which is yet to start physical infrastructure work, is said to be around Rs 260 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The 57<sup>th</sup> annual report of the Financial Comptroller General’s Office states that the cost of the national pride projects has been increasing due to the delay in completion of the work.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The additional expenses of these projects are more than the capital expenditure of the government announced for the fiscal year 2072/73. The government had allocated a total of Rs 208.87 billion as capital expenditure for FY 2072/73.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The government is finding it quite challenging to manage source of investment to meet the additional cost burden of the national pride projects due to the inordinate delay in completion of the works. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Pushpalal Mid-Hill Highway is one of the national pride projects which has taken a long time for completion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The project which started in 2064/65 BS (2007/2008 AD) was supposed to be complete in a decade by 2074/75 BS (2017/18 AD). However, the deadline for the project has been extended by five years, which has increased the total cost estimate to Rs 84.33 billion. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of the project was just Rs 33.36 billion. Had the government completed the project on time, it could have saved Rs 50.97 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the annual report of the Financial Comptroller General’s Office, the fate of other projects is also similar. The Babai Irrigation Project, which was initiated in FY 2044/45 BS more than two decades ago was set to be completed by 2069/70. However, the deadline of the project has been extended by 10 more years.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The cost of the project which was estimated to be Rs 2.87 billion initially has now increased to Rs 18.96 billion. According to the report, most of the irrigation projects have been facing delay in completion.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11938', 'image' => '20200720114511_1595199291.jpg', 'article_date' => '2020-07-20 11:43:56', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '12190', 'article_category_id' => '1', 'title' => 'Capacity Utilisation of Carpet Industry Reaches 20% ', 'sub_title' => '', 'summary' => 'The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. However, export of carpet has not resumed due to the continuing ban on international flight. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs say that while previously produced carpets could not be exported, new products will unlikely to come into the market. According to them, they have to run the industries to sustain workers. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">As the exports have been halted due to covid-19 pandemic, carpets worth Rs 4 billion are stuck in warehouses. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The wool carpets produced in Nepal are exported in more than 50 countries including America, China, Germany, UK, Italy, France, Canada, Belgium and Australia. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Tenzing Sherpa, vice president of Nepal Carpet Manufacturers and Exporters Association, it is not possible to export Nepali carpets currently. The demand in the US, Europe and the UK, where Nepali carpets are exported in large quantities, has decreased due to the pandemic. “The demand of Nepali carpet has dropped by 80 percent as the international market is also almost closed. On the other hand, even if we want to export, there is no favorable environment now,” Sherpa said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepali carpet exporters mainly export carpets to foreign countries through the Kolkata Port in India. However, compared to countries including India and Pakistan, it takes more time for Nepali exporters to supply their products to foreign markets. "It takes 2-3 months for our carpets to reach major foreign markets," mentioned Sherpa</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Nepal Carpet Manufacturers and Exporters Association, only a small number of carpets exported to China are being produced. According to Amrit Tamang, CEO of the association, the compulsion to manufacture carpets to support the workers and the increase in stock of have hit the carpet manufacturers hard. “We have not been able to export, on top of our stocks are increasing,” he said. At present, more than 300,000 people in Nepal are dependent on the carpet industry. Similarly, there are about 700 entrepreneurs and more than 150 exporters in the carpet exporters. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Customs Department, carpets worth Rs. 7.36 billion were exported from Nepal in the fiscal year 2075/76. Carpet exports have declined by about 19% in the first 11 months of FY 2076/77. During this period, carpets worth Rs 5.5 billion have been exported from Nepal. Now, the main market for Nepali carpets is the United States, followed by Germany, the UK, and China. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the carpet entrepreneurs, there is no shortage of raw material as of now, as there was stock of raw materials even before the lockdown. The raw materials for the carpet in Nepal are mainly imported from Tibet and New Zealand. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11937', 'image' => '20200719042410_Nepali Carpet.jpg', 'article_date' => '2020-07-19 16:22:12', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 6 => array( 'Article' => array( 'id' => '12189', 'article_category_id' => '1', 'title' => 'Govt and World Bank Sign USD 450 mn Road Support Project Financing Agreement', 'sub_title' => '', 'summary' => 'The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The government and the World Bank on Friday signed a USD 450 million </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">(around Rs 54 billion) </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. Issuing a press statement, the Washington D.C.-based lender said that this is the single largest value project that the Nepal government has signed with the World Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The agreement was signed by Finance Secretary Sishir Kumar Dhungana and Faris Hadad-Zervos, World Bank Country Director for Maldives, on the presence of Minister for Finance Dr Yuba Raj Khatiwada. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support post-COVID-19 recovery,” the statement quoted Dr Khatiwada as saying. "Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals." </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, finance secretary Dhungana said that the Project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of COVID-19.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The government is working on a 3R –Relief, Recovery and Resilience –strategy to help Nepal build back better from the impacts of the COVID-19 crisis. This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience,” reads the statement. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India. “It will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports,” informed the statement. The bank said that amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“This Project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” the statement quoted Hadad-Zervos as saying. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11936', 'image' => '20200719042203_world bank nepal.jpg', 'article_date' => '2020-07-19 16:21:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 7 => array( 'Article' => array( 'id' => '12188', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Skeptical about Implementation of Monetary Policy ', 'sub_title' => '', 'summary' => 'Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.', 'content' => '<pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The policy has some special arrangements in working capital loans, concessional loans and refinancing scheme for the revival of aviation business, transport, hotel, restaurant and tourism sector enterprises to overcome the losses caused by the Covid-19 crisis.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The new monetary policy has extended the repayment deadline of loan installment by two years for the under-construction tourist hotel projects that have been halted due to Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Hoteliers say that the provision to direct development bank and financial institutions to mandatorily provide 20 percent and 15 percent loans, respectively, of their total paid-up capital to the tourism sector will provide relief for small and medium-sized hotels.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that that the monetary policy will be crucial and positive for of reestablishment of the tourism sector businesses affected by the Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The monetary policy has included most of the suggestions of the ministry and tourism entrepreneurs,” he said.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Stakeholders have welcomed the policy. However, they are skeptical over the implementation of the measures.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Even though the monetary policy has tried to address the demand of the overall tourism industry, its implementation is doubtful,” said Yograj Sharma Kandel, spokesperson of the Airlines Operators Association of Nepal.</span></span></span></span></pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> "There were some good measures in the 2015 monetary policy, which was announced after the earthquake, to help businesses in trouble. However, the measures were not implemented at all. This is likely to happen now,” he added.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, Sajan Shakya, general secretary of the Hotel Association of Nepal (HAN) said that the measures in the policy are crucial to revive the tourism industry affected by the pandemic. “However, the implementation is important than the policy itself,” mentioned Shakya.</span></span></span></span></pre> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11935', 'image' => '20200719042015_Tourism Nepal.jpg', 'article_date' => '2020-07-19 16:18:05', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 8 => array( 'Article' => array( 'id' => '12187', 'article_category_id' => '1', 'title' => 'Monetary Policy Aims to Provide Relief to Pandemic-stricken Sectors', 'sub_title' => '', 'summary' => 'Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. Presenting the Monetary Policy for fiscal year 2020/21, NRB Governor Maha Prasad Adhikari said that the central bank has prioritised measures aimed at the reviving the pandemic economic affected sectors. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Monetary Policy for FY2020/21 has received warm welcome from the business sector. Stakeholders have said that the central bank has addressed demands of business associations of various sectors and has incorporated their suggestions in the policy. However, economists and bankers have said that the targets in the monetary policy are challenging to achieve. According to Ganesh Raj Pokharel, CEO of Citizens Bank International, the central bank has taken measures with a view to help both bankers and businesspersons survive during the current crisis. Meanwhile, banking expert AR Bhattarai doubts on the bank’s target to keep inflation rate within the 7 percent range. Bhattarai also views the lending expansion target of 20 percent in the current fiscal year 2020/21 in the monetary policy as challenging. “The target set for the current year is ambitious because last year the lending expansion in the private sector was 10 percent,” said Bhattarai, adding, “Other targets in the monetary policy can be achieved because directive work procedure which comes after the policy further manages and implement it.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Extension of Loan Repayment Deadline</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Businesses in tourism, manufacturing, education, communications, healthcare, education and entertainment are entitled to receive the loan restructuring and rescheduling facilities. NRB has put businesses in categories of low, medium and highly affected for repayment of loans. The deadline for repayment of interest and principal amount for such businesses has been extended from 6 months to a year. As per the arrangements, highly affected businesses can repay their loans by mid-July 2021 while the deadline has been extended to mid-April 2021 for medium affected and mid-January 2021 for low affected businesses. Likewise, the repayment deadline can be extended to more than a year for those businesses needing reestablishment in sectors like tourism. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Besides, NRB has also announced refinancing facility, extension of grace period for infrastructure projects and targeted lending for productive sectors at lower interest rates to aid the process of recovery. Similarly, NRB has prioritised lending to small and medium enterprises (SMEs). </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Lending Capacity of Banks in Doubt</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NRB has increased the credit-to-core capital-plus-deposit (CCD) ratioto 85 percent from 80 percent. According to Bhattarai, the arrangement will add an average of Rs 120 billion additional liquidity in the banking system. Nevertheless, Bhuvan Kumar Dahal, president of Nepal Bankers’ Association (NBA) argues that the existing problems in expansion of loans cannot only be resolved by increasing CDD ratio. “The situation of liquidity will ease to some extent, but it won’t increase the banks’ ability to expand loans. The 20 percent net liquid asset should also need to be addressed. The lending capacity of banks will increase only if both issues are addressed,” he opined. Dahal viewed the restructuring and rescheduling of loans to support the pandemic-stricken business sectors as a positive step to face the challenges created by the Covid-19 crisis. “However, the measures will impact income of banks,” he mentioned. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11934', 'image' => '20200719041756_Monetary Policy.jpg', 'article_date' => '2020-07-19 16:16:42', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 9 => array( 'Article' => array( 'id' => '12186', 'article_category_id' => '1', 'title' => 'Pandemic Hits Nepal’s Foreign Trade Hard ', 'sub_title' => '', 'summary' => 'Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. The train traffic at the Birgunj Dry port where containers from overseas and cargoes from different parts of India arrive, has decreased dramatically. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The movement decreased after containers stopped arriving at Kolkata and Visakhapatnam ports in India. As of July 16, only 17 containers, two sacks and five racks of iron have entered the port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The statistics of Himalayan Terminal shows that in average, 70 racks of cargo have entered in the last three months. On the annual train traffic, this number is 95. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Normally, three to four trains come to the port in a day but now hardly a train arrives,” said Bishnukant Chaudhary, CEO of Himalayan Terminal, which operates the Birgunj dry port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Animesh Kumar, a senior official at the Himalayan Terminal, cargo arrivals have dropped further this week. "Not a single rack is likely to arrive on Thursday," he said.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chaudhary said that while there used to be 25 to 30 racks on the way from Kolkata and Visakhapatnam to Birgunj, it has now dropped to two to four. The terminal said that only two containers and racks of iron from Visakhapatnam were seen on the road on Thursday. There is no pressure of containers coming to Nepal even in this port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Laxmi Khadka, chief of the Kolkata based Nepal Transit and Warehousing Company said that not even 25/30 containers could reach the Kolkata port now which used to receive around 200 containers daily. According to the port management, not a single rack has reached Kolkata in three days. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs said that the goods of letter of credit (LC) opened before the lockdown have arrived and since the number of LCs has decreased from then, its impact has seen on import. The lockdown was imposed from March 24. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Guru Poudel, director of the Foreign Exchange Management Department of Nepal Rastra Bank, said that very few LCs have been opened for about a month since then. According to him, although the process of opening LC has improved after March, the situation has not become normal. As the validity period of LC is 120 to 150 days, the importer says that the goods of LC before the lockdown have already arrived. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ashok Kumar Temani, chairman of the Transport and Transit Committee and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) claimed that the import was reduced as the government was only trying to collect taxes from traders and not facilitating business. “Trade has become uncomfortable due to Corona. Credits from the market have not been raised. But the government is not concerned in anything other than collecting taxes and raising revenue,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Although foreign trade has declined, Temani says it will have a cyclical effect on the economy. Importer Suresh Rungta has complained that entrepreneurs are discouraged due to government policy. “The cost of most goods and services has increased due to corona. However, the government is inflexible about the old values and evaluation. Such an impractical policy would further weaken the business,” Rungta told New Business Age. </span></span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Cambria",serif">Both Birgunj custom offices fail to meet revenue targets</span></strong> </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Birgunj (ICP) and dry port customs at the main customs checkpoint failed to meet the revenue target in the last fiscal year. Out of the target of Rs 188 billion set for Birgunj customs, only Rs 126 billion has been collected. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chief Customs Administrator Dhundi Prasad Niraula said that this amount is only 67% of the target. Birgunj customs had raised 72 percent of the target in FY2075/76. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, the dry port customs office has collected revenue of Rs 36.19 billion. According to customs Chief Umesh Shrestha, the collected revenue is 86 percent of the annual target. A target of Rs 41.88 billion was given to the dry port customs in the last fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Customs officials say the target could not be met as imports were affected by the corona outbreak and lockdown in the last four months of the year. They say the government's control over imports of luxury goods and the decline in foreign trade have had an impact on overall revenue collection. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11933', 'image' => '20200717032225_vigaz train nepal.jpg', 'article_date' => '2020-07-17 15:17:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 10 => array( 'Article' => array( 'id' => '12185', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Demand Resumption of Flight Operations', 'sub_title' => '', 'summary' => 'Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1. </span></span></span></span><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Organising a joint press conference on Thursday, 35 tourism sector related organisations including Airlines Operators’ Association of Nepal (AAON), Hotel Association Nepal (HAN), Nepal Association of Travel and Tour Operators (NATTO), Trekking Agencies Association of Nepal (TAAN), said that the halt in flights has resulted in zero business for tourism enterprises for the last four months and that the government needs to reopen the domestic airspace ensuring proper health safety measures. Likewise, they also demanded resumption of international flights operation and opening of border checkpoints from August 15.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Tourism entrepreneurs said that that air connectivity is directly linked with overall tourism activities and Nepalis are compelled to pay high air fares for international flights in the absence of regular flights.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to them,</span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> liabilities of the entrepreneurs have crossed negative levels putting the one million employment and investment of billions of rupees is in jeopardy.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepal has been hit by Covid-19 pandemic while the tourism sector, in particular, is bearing an unprecedented loss due to closure of hotels, resorts, homestays, air, and public and tourist transport.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, AAON President Captain Rameshore Thapa asked that the government needs to reopen the airspace by following the steps taken by other countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice president of HAN said that the government has not paid attention to attempts made by entrepreneurs to reopen businesses and waiting for the Covid-19 pandemic to end has crippled the tourism sector badly. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NATTA President Achyut Guragain warned that there is no alternative left for entrepreneurs other than to start phase-wise protests if the government declined to address their demands. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11932', 'image' => '20200717031711_airspace nepal.jpeg', 'article_date' => '2020-07-17 15:14:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 11 => array( 'Article' => array( 'id' => '12184', 'article_category_id' => '1', 'title' => 'Bankers Fear Increase in Bad Loans ', 'sub_title' => '', 'summary' => 'With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. The calls made by the Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari to debtors, who are able to pay their loans, to clear interest and principal amount, have been ignored by the debtors increasing the risk of surge of NPLs, bankers say. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The banks had announced to provide concession on the loans during the time of pandemic. NRB had already decided to give 10 percent concession to those who pay their interest within June 16. But, NPLs of banks in FY2020/21 is likely to increase. Bankers say that the double standard of government and the regulatory body to act well with both banks and the debtors is exacerbating the problems in the banking sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Company Secretary of Agricultural Development Bank, Himlal Poudel says that it is irrelevant to pressurize debtors who have invested in sectors like tourism and transportation which are badly affected by the pandemic. Even after requesting to those who can pay, the repayment of loans is not satisfactory. He further says that Agricultural Development Bank has collected only Rs 500 million from March to June, out of the targeted amount Rs 1.25 billion. “We have provided additional reliefs to our borrowers besides the concessions announced by NRB. We have provided 10 to 60 percent concession in interest rate to those who have borrowed money from us for more than two years, but the recovery of loans hasn’t been as expected, said Poudel.” According to him, NPL of Agricultural Development Bank in March was 3.29 which will increase significantly due to the non-recovery of loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NIC Asia bank announced an attractive concession scheme to encourage the borrowers to repay their loans. The bank said that if the debtors pay the entire installment/interest amount by Mid-June, they will receive an additional 10 percent discount in the interest amount and a 100 percent waiver of the penalty interest amount. However, the loan recovery has not been as expected, according to a source at NIC Asia Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">President of the Nepal Bankers' Association Bhuvan Kumar Dahal said that it is difficult to put pressure on debtors who are already under stress due to the economic slowdown. Therefore, he says, there is a need to take as much as banks can recover the loans by convincing the borrowers. “The current situation for banks is that very few debtors will repay their loans leading to the increase of NPLs of banks,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Dahal, NRB has said that there is no need to calculate NPL of those who have not paid till mid-July. However, the decision has not been made. Even if the NPL is not shown, the bank's interest income is affected. He said that non-recovery of loans will also impact distribution of cash dividends to bank shareholders. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">A banker, under the condition of anonymity, said that the governor had given a verbal assurance that bad loans would not be counted during this period, but as there is no policy as such. The existing rules mandate banks to show their NPLs in the financial statements which will be made public in mid-July. Another banker claims that the governor's assurance that the monetary policy will increase the deadline to those who are unable to pay, restructure, reschedule and other facilities depending on the condition of loans, has led the businessmen not to clear their debts. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11931', 'image' => '20200717031443_NPLs.jpg', 'article_date' => '2020-07-17 15:13:15', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 12 => array( 'Article' => array( 'id' => '12183', 'article_category_id' => '1', 'title' => 'OAG Report Shows Worsening of Fiscal Discipline', 'sub_title' => '', 'summary' => 'At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. According to the 57<sup>th</sup> OAG Report released on Wednesday, the arrears of the government totaled Rs 418 billion in FY2019/20, an increase of 11 percent compared to the previous fiscal year. OAG audited financial documents of 5,619 government agencies and associated institutions in central, provincial and local levels. The total amount audited was Rs 5,171.64 billion. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the report, of the total arrears amount of Rs 132 billion,10 percent belong to government ministries with the highest amount (Rs 19.06 billion) belonging to the Ministry of Finance. Similarly, the Ministry of Physical Infrastructure and Transportation has Rs 14 billion, Ministry of Defense has Rs 9 billion, Ministry of Water Supply has Rs 4.28 billion and Prime Minister’s Office has Rs 4 billion in arrears. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to OAG, arrears of agencies under the federal government stood at 4.05 percent while it is 4.33 percent for agencies under provincial governments and 5.15 percent for local levels. Of the total arrears, expenses with no submitted documents are the highest with Rs 44.64 billion while expenditures suspected with irregularities have totaled Rs 17.30 billion. Likewise, amounts in mobilization advance and letter of credits (LCs) stood at Rs 21.40 billion and Rs 10.62 billion, respectively. Auditor General Tanka Mani Sharma said that there has been slight improvement in arrears. According to him, highest arrears have been seen in areas such as public procurement and project management. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11930', 'image' => '20200717031305_arrears.jpeg', 'article_date' => '2020-07-17 15:00:07', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 13 => array( 'Article' => array( 'id' => '12182', 'article_category_id' => '1', 'title' => 'Rejection of Munich International Airport’s Proposal to Operate GBIA Recommended', 'sub_title' => '', 'summary' => 'A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">July 10: A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa. According to ministry officials, the recommendation was presented due to some legal complications in the proposal presented by Munich. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The cabinet meeting held on May 30, 2019 had decided to operate the Gautam Buddha International Airport on the basis of government-to-government (G2G) agreement instead of open competition. After the decision, Munich Airport had sent a formal proposal to MoCTCA and Civil Aviation Authority of Nepal (CAAN) on June 2019<strong>.</strong> Munich had offered to give it the responsibility to operate the airport for 50 years. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Buddhi Sagar Lamichhane, joint secretary at MoCTCA said that although Munich’s offer seemed technically appropriate, it is recommended to cancel the proposal as it had legal complications and ambiguity. Lamichhane is the coordinator of the committee formed by the ministry to hand over responsibility for the operation of the airport. Representatives of NAC, Ministry of Law, Justice and Parliamentary Affairs, and Ministry of Foreign Affairs are in the committee. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to Lamichhane, the committee had assessed the proposal and recommended the government to reject it a few days ago. “Our recommendation is based on some legal complications in the Munich’s proposal. Now further decision will be taken by the government,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to him, the government had called for proposal through G2G, but only one proposal was received. Due to some provision in Public Procurement Act, the proposal cannot be accepted at the moment. “Munich’s proposal is rejected because it is important to know whether any proposal is legally correct or not before accepting,” he mentioned. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The government had preparations to complete the construction work by December 2019, and start the operation from March 2020. However, completion of the construction of the project has been delayed due to the Covid-19 pandemic. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As per the Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai, preparations are being made to complete the work by the end of 2020 and start flights from March 2021. “The pandemic has definitely pushed us back. However, we will complete the construction work by 2020 end and start operation of flights by March 2021,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As there were no proposals from other countries, there was higher possibility that the German company would have been awarded the contract. But, after their proposal is rejected, there is confusion as to how to proceed after the airport’s construction is completed. Lamichhane said that the government could operate the airport from its own resources and manpower even if no other proposals are received at the moment. “The global marketing and expansion would have been easier with Munich. However, we must prepare for operation ourselves as that possibility has been reduced at the moment due to corona,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Construction period extended due to Corona </span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Northwest Civil Aviation Airport Construction Group, a Chinese government-owned company, was assigned to complete the construction of the airport by December 2017. But due to various reasons, </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">the construction deadline was extended for multiple times. This has been again extended due to the Covid-19 pandemic. According to ministry officials, 91 percent of the works have been completed and the construction of a runway and link taxiway connecting the parking bay has been finished during the lockdown period. </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Spokesperson of the ministry, Rudra Singh Tamang said that the work of connecting the runway lights has reached the final stage. Similarly, work of installing air conditioning in the terminal building has been started during the shutdown and decoration work is underway. Currently, 275 workers including 29 Chinese have been mobilised for the construction of the airport. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-10', 'modified' => '2020-07-10', 'keywords' => '', 'description' => '', 'sortorder' => '11929', 'image' => '20200710024104_GBIA.jpg', 'article_date' => '2020-07-10 14:39:10', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 14 => array( 'Article' => array( 'id' => '12181', 'article_category_id' => '1', 'title' => 'Lack of Data Makes Tourism Sector Recovery Difficult', 'sub_title' => '', 'summary' => 'The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 9: The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. The entire star and non-star hotels across the country are closed, flights are suspended, and travel agencies have become workless in a matter of four months. But what is the actual damage to the sector due to the global health crisis? This is a baffling question because the government doesn’t have credible data. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Three days ago, tourism minister Yogesh Bhattarai said that the tourism sector ha incurred a monthly loss of Rs 10 billion during the lockdown period. Speaking at a press conference he estimated that by mid-July the overall loss to the tourism sector would be Rs 41 billion. However, this is a random assessment because the ministry does not have comprehensive data on the amount of damage in different areas of tourism. The government also does not have any official data on how many people lost their jobs from the tourism sector due to Covid-19 pandemic, and how much loan do the tourism entrepreneurs have. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">On the basis of a study conducted by Nepal Tourism Board (NTB), the ministry estimated the loss and said at the press conference. Bhattarai claims that the details of the loss in the tourism sector have been sent to the Ministry of Finance and National Planning Commission. A committee was formed by NTB and Civil Aviation Authority of Nepal to study the loss in tourism and aviation sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">However, the study of the Board does not find anything other than a general study of investment and employment in the tourism sector. The report submitted by the board to the MoF does not provide data on how much the sector has lost due to the corona and lockdown. According to a study conducted by the board, more than Rs 1 trillion has been invested in Nepal's tourism sector (including the aviation sector). </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ministry spokesperson Rudra Singh Tamang said that the Ministry of Tourism has estimated the amount of damage as per the details sent by the board and further study is being done by the National Planning Commission. According to private organizations affiliated with tourism, the damage in the tourism sector is much more than the government's claim. Based on the data provided by the private sector, the tourism sector has suffered much more than the government's estimate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice-president of the Hotel Association of Nepal (HAN), argues that due to lack of official data from the state and proper coordination with the private sector, there are no reliable figures on the loss. "We have official statistics about organisations affiliated with us. In the three months of the lockdown, the hotel industry has lost more than Rs 2.5 billion in a month. Even after calculating that, we have to bear a loss of more than Rs 10 billion,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Manoj Karki, general secretary of the Airlines Operators Association of Nepal, the domestic aviation has lost between Rs 7-10 billion in the last three months. "Combining the international flights and government flag carrier Nepal Airlines Corporation, the loss is likely to increase," states Karki. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, according to Khum Bahadur subedi, president of the Trekking Agencies Association of Nepal, the trekking and mountaineering sector has lost more than Rs 15 billion. The Restaurant and Bar Association of Nepal (REBAN) has also estimated that 3,500 restaurants in Kathmandu, Pokhara and Chitwan have suffered losses of Rs 9-10 billion during the period. President of REBAN Araniko Rajbhandari said the estimated loss would be much higher if other restaurants across the country that are not connected with the organisation. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-09', 'modified' => '2020-07-09', 'keywords' => '', 'description' => '', 'sortorder' => '11928', 'image' => '20200709035505_tourism sector crisis Nepal.jpg', 'article_date' => '2020-07-09 15:51:09', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ) ) $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><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. They have demanded exemption in royalty for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The Electricity Regulatory Commission has already unveiled the draft of the Directive on Merger, Acquisition, Purchase and Transfer of Authorised Person or Projects 2077.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The commission is preparing to finalize the draft. In the mean time, energy producers have demanded favourable policy to go for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">The draft has a provision of merger between authorised projects that are involved in production, transmission and distribution of electricity. There is also a provision for one project to acquire, purchase or transfer the shares of other projects.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Promoters of the private companies have taken the proposal of merger positively. The promoters of private energy sector have been demanding facilities similar to those provided by the central bank to encourage the merger of BFIs. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">Vice President of Independent Power Producers of Nepal (IPPAN) Kumar Pandey says it is important to provide incentives for merger.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Times"><span style="font-family:"Bangla MN"">“Merger of hydropower project itself is a positive step. However, it is important to provide facilities for the projects that opt for merger. This issue is missing in the draft,” said Pandey.</span></span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11944', 'image' => '20200720050237_1595198302.Clipboard18.jpg', 'article_date' => '2020-07-20 17:01:51', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 1 => array( 'Article' => array( 'id' => '12196', 'article_category_id' => '1', 'title' => 'Handicraft Entrepreneurs Choosing Alternative Occupation ', 'sub_title' => '', 'summary' => 'July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">July 20: Handicraft entrepreneurs, whose business has been shut down for a long time due to coronavirus pandemic, have started turning into alternative occupation. Entrepreneurs, craftsman and business persons involved in this sectors are in crisis after tourists stopped coming to Nepal even before the spread of coronavirus in Nepal. As the handicraft industry is directly linked with the tourism industry, it has been badly affected due to the closure of tourism sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of Nepal Handicraft Association, Hari Century, around 50 percent handicraft entrepreneurs and workers have chosen other profession as it will still take around two years for tourism industry to flourish again.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman""> “They are now involved in vegetable farming and animal husbandry,” he said. Some of them are thinking of returning to the business in the coming days if the situation improves. But it is expected that some will abandon the sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Achyut Aryal, who has been making and selling handicraft products since 40 years at Basantapur, is now into maize farming after people stopped purchasing handicrafts. He has started the farming by renting 15 ropani land in Godawari, Lalitpur. “Neither there is the possibility of tourists coming to Nepal nor is export possible due to coronavirus. Even though we open the shops, there aren’t any buyers,” he said, adding, “I am obliged to get into agriculture as the business has dried up.” </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">As per the statistics of the Federation of Handicraft Association of Nepal (FHAN), Nepali handicraft products worth Rs 6 billion was sold in the international market last year. The major market for Nepali handicrafts is the USA, China and European countries. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">In an average, handicraft products worth Rs 11 billion to Rs 15 billion is exported from Nepal yearly, while it is estimated that around 1 million people (including businessmen, entrepreneurs and workers) are involved in this sector. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">According to the president of FHAN, Surendra Bahi Shakya, the situation of Nepali handicraft is very critical for the next one year. He said that many people have had to change their profession until the situation becomes favourable. Moreover, he states that although the production of felt which was ordered before the lockdown is underway, they are facing problem in export. He further informed that the businessmen could not send some products from Nepal in the rescue flights due to exorbitant fare. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">“As the fare was five times high than normal charge, we have not been able to send the ordered products,” he said. Entrepreneurs and businessmen are frustrated as they could not sell the goods. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri"><span style="font-family:"Times New Roman"">Places like Basantapur, Thamel, and Patan where the handicrafts used to be made and sold are still deserted, due to which there is no business even if they open their shops. Handmade pashmina, felt, thanka and painting, wood carving, sculpture, and metalwork, etc fall under handicraft products. </span></span></span></p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11943', 'image' => '20200720025203_20160802043332_meta.jpg', 'article_date' => '2020-07-20 14:51:14', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 2 => array( 'Article' => array( 'id' => '12195', 'article_category_id' => '1', 'title' => 'Importers Spending Millions for Electronic Tracking System Despite Lack of Tracking Facility', 'sub_title' => '', 'summary' => 'July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.', 'content' => '<p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">July 20: In the last fiscal year (2019/20), Nepali importers spent millions of rupees on electronic container tracking system (ECTS) to track their container cargo imported into Nepal using Indian ports and railways.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">However, the importers complain that the service provider despite charging the fees did not provide the container tracking facility to them.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">The GPS-based system is currently being used to track the transshipment of goods imported from the third countries to the Indian ports of Kolkata and Visakhapatnam. Such tracking system came in operation in Kolkata on February 15, 2019 and before that in Visakhapatnam port on August 28, 2018.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">In 2019/20, a total of 108,000 thousand containers were imported to Nepal from third countries. Of the total containers, 59,214 entered Nepal through Birgunj Dry Port by rail. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Transcure Telematics Pvt Ltd, has been providing the ECTS service. The company charges Rs 3,400 per container to the importers. However, Nepali importers complain that another company working as a middle agent has been charging them to Rs 10,000 for the same service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Nepali importers have so far spent at least Rs 320 million for availing the tracking service. However, Nepali entrepreneurs complain that Transcure, despite charging them millions, has not provided the tracking service.</span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"> <span style="font-family:"Times New Roman"">Importer Suresh Rungta complained that the service provider charges them hefty amount but is not providing the tracking service. </span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Cambria"><span style="font-family:"Times New Roman"">“The charge for this reusable electronic system is exorbitant. On top of that, tracking facility has not been provided to the importers,” claimed industrialist Rungta.</span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11942', 'image' => '20200720023416_95196488.Clipboard05.jpg', 'article_date' => '2020-07-20 14:27:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 3 => array( 'Article' => array( 'id' => '12193', 'article_category_id' => '1', 'title' => 'Hotel Entrepreneurs Agree to Pay Minimum Salary to Workers', 'sub_title' => '', 'summary' => 'July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: The hotel entrepreneurs have agreed to pay minimum monthly salary to their staffers despite the industry remaining closed since the last four months due to the lockdown imposed by the government to contain the spread of coronavirus. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The entrepreneurs have agreed to pay between Rs 4,300 to Rs 10,000 to the staffers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Hotel Association of Nepal informed during a press conference on Sunday (July 19) that they have agreed pay the amount to the workers after reaching an understanding with the workers’ union.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to HAN, this agreement will remain valid from April 13, 2020 to 31 December 2020. With this understanding, the payment issue of hotel staffers has finally been resolved.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">As per the understanding, hotel employees will receive the minimum amount even if they are unable to join office or the employer is unable to provide job due to any circumstances during this period. The staffers will receive anything between Rs 4,300 to Rs 10,000 depending on the standard of the hotel where they work, informed president of HAN Srijana Rana.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The hotel industry has been completely closed due to coronavirus and the subsequent lockdown imposed since March 24. Rana said that the agreement has set a good precedent among the employers and the employees during the crisis period.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the understanding, deluxe and five-star hotels and resorts with more than 200 rooms will pay Rs 10,000 per month to their workers. Likewise, deluxe and five-star hotels with less than 200 rooms will pay Rs 9000 to their staffers. Similarly, four-star hotels with more than 100 rooms will pay Rs 8455 to their workers. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Four-star hotels with less than 100 rooms will pay Rs 8000 to the employees while 3-star hotels have agreed to pay Rs 5000 per month to the workers. Likewise, two-star hotels have agreed to pay Rs 4300 to the workers while the minimum pay for employees of one-star hotels and other restaurants will be decided by the concerned parties, informed Binayak Shah, senior vice president of HAN.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Meanwhile, General Secretary of HAN Sajan Shakya said that the hotel entrepreneurs and workers’ union have also agreed to deploy staffers on need basis and in different shifts as per the requirement.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The agreement further states that the employees who wish to take voluntary retirement from service can avail all the benefits guaranteed before the lockdown period.</span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11940', 'image' => '20200720010231_han.jpg', 'article_date' => '2020-07-20 12:44:44', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '34' ) ), (int) 4 => array( 'Article' => array( 'id' => '12191', 'article_category_id' => '1', 'title' => 'Delay in Completion of National Pride Projects adds Cost Burden of Rs 282 Billion', 'sub_title' => '', 'summary' => 'July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. ', 'content' => '<p><span style="font-size:20px"><span style="font-family:Times">July 20: Altogether 21 national pride projects, prioritized by the government to attain economic, are currently under construction. However, the delay in timely completion of 12 such projects has added financial burden of Rs 282.43 billion to the state coffers. Had these projects been completed on time or delayed by only a year, the government would not have had to incur such huge amount needlessly. The extra amount spent in the projects could have been utilized to complete the Budhi Gandaki Hydropower Project.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of Budhi Gandaki project, which is yet to start physical infrastructure work, is said to be around Rs 260 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The 57<sup>th</sup> annual report of the Financial Comptroller General’s Office states that the cost of the national pride projects has been increasing due to the delay in completion of the work.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The additional expenses of these projects are more than the capital expenditure of the government announced for the fiscal year 2072/73. The government had allocated a total of Rs 208.87 billion as capital expenditure for FY 2072/73.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The government is finding it quite challenging to manage source of investment to meet the additional cost burden of the national pride projects due to the inordinate delay in completion of the works. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">Pushpalal Mid-Hill Highway is one of the national pride projects which has taken a long time for completion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The project which started in 2064/65 BS (2007/2008 AD) was supposed to be complete in a decade by 2074/75 BS (2017/18 AD). However, the deadline for the project has been extended by five years, which has increased the total cost estimate to Rs 84.33 billion. </span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The initial cost estimate of the project was just Rs 33.36 billion. Had the government completed the project on time, it could have saved Rs 50.97 billion.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">According to the annual report of the Financial Comptroller General’s Office, the fate of other projects is also similar. The Babai Irrigation Project, which was initiated in FY 2044/45 BS more than two decades ago was set to be completed by 2069/70. However, the deadline of the project has been extended by 10 more years.</span></span></p> <p><span style="font-size:20px"><span style="font-family:Times">The cost of the project which was estimated to be Rs 2.87 billion initially has now increased to Rs 18.96 billion. According to the report, most of the irrigation projects have been facing delay in completion.</span></span></p> <p> </p> <p> </p> <p> </p> ', 'published' => true, 'created' => '2020-07-20', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11938', 'image' => '20200720114511_1595199291.jpg', 'article_date' => '2020-07-20 11:43:56', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '34' ) ), (int) 5 => array( 'Article' => array( 'id' => '12190', 'article_category_id' => '1', 'title' => 'Capacity Utilisation of Carpet Industry Reaches 20% ', 'sub_title' => '', 'summary' => 'The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The capacity utilisation of Nepali carpet industries has increased to 20 percent after the easing of the lockdown. However, export of carpet has not resumed due to the continuing ban on international flight. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs say that while previously produced carpets could not be exported, new products will unlikely to come into the market. According to them, they have to run the industries to sustain workers. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">As the exports have been halted due to covid-19 pandemic, carpets worth Rs 4 billion are stuck in warehouses. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The wool carpets produced in Nepal are exported in more than 50 countries including America, China, Germany, UK, Italy, France, Canada, Belgium and Australia. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Tenzing Sherpa, vice president of Nepal Carpet Manufacturers and Exporters Association, it is not possible to export Nepali carpets currently. The demand in the US, Europe and the UK, where Nepali carpets are exported in large quantities, has decreased due to the pandemic. “The demand of Nepali carpet has dropped by 80 percent as the international market is also almost closed. On the other hand, even if we want to export, there is no favorable environment now,” Sherpa said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepali carpet exporters mainly export carpets to foreign countries through the Kolkata Port in India. However, compared to countries including India and Pakistan, it takes more time for Nepali exporters to supply their products to foreign markets. "It takes 2-3 months for our carpets to reach major foreign markets," mentioned Sherpa</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Nepal Carpet Manufacturers and Exporters Association, only a small number of carpets exported to China are being produced. According to Amrit Tamang, CEO of the association, the compulsion to manufacture carpets to support the workers and the increase in stock of have hit the carpet manufacturers hard. “We have not been able to export, on top of our stocks are increasing,” he said. At present, more than 300,000 people in Nepal are dependent on the carpet industry. Similarly, there are about 700 entrepreneurs and more than 150 exporters in the carpet exporters. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the Customs Department, carpets worth Rs. 7.36 billion were exported from Nepal in the fiscal year 2075/76. Carpet exports have declined by about 19% in the first 11 months of FY 2076/77. During this period, carpets worth Rs 5.5 billion have been exported from Nepal. Now, the main market for Nepali carpets is the United States, followed by Germany, the UK, and China. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the carpet entrepreneurs, there is no shortage of raw material as of now, as there was stock of raw materials even before the lockdown. The raw materials for the carpet in Nepal are mainly imported from Tibet and New Zealand. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11937', 'image' => '20200719042410_Nepali Carpet.jpg', 'article_date' => '2020-07-19 16:22:12', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 6 => array( 'Article' => array( 'id' => '12189', 'article_category_id' => '1', 'title' => 'Govt and World Bank Sign USD 450 mn Road Support Project Financing Agreement', 'sub_title' => '', 'summary' => 'The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: The government and the World Bank on Friday signed a USD 450 million </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">(around Rs 54 billion) </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. Issuing a press statement, the Washington D.C.-based lender said that this is the single largest value project that the Nepal government has signed with the World Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The agreement was signed by Finance Secretary Sishir Kumar Dhungana and Faris Hadad-Zervos, World Bank Country Director for Maldives, on the presence of Minister for Finance Dr Yuba Raj Khatiwada. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support post-COVID-19 recovery,” the statement quoted Dr Khatiwada as saying. "Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals." </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, finance secretary Dhungana said that the Project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of COVID-19.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The government is working on a 3R –Relief, Recovery and Resilience –strategy to help Nepal build back better from the impacts of the COVID-19 crisis. This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience,” reads the statement. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India. “It will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports,” informed the statement. The bank said that amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“This Project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” the statement quoted Hadad-Zervos as saying. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the World Bank, the project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.</span></span></span></span></p> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-20', 'keywords' => '', 'description' => '', 'sortorder' => '11936', 'image' => '20200719042203_world bank nepal.jpg', 'article_date' => '2020-07-19 16:21:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 7 => array( 'Article' => array( 'id' => '12188', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Skeptical about Implementation of Monetary Policy ', 'sub_title' => '', 'summary' => 'Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.', 'content' => '<pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Tourism entrepreneur who are in anxiety due to the mounting losses think that the Monetary Policy for FY 2020/21 will bring some relief to the sector.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The policy has some special arrangements in working capital loans, concessional loans and refinancing scheme for the revival of aviation business, transport, hotel, restaurant and tourism sector enterprises to overcome the losses caused by the Covid-19 crisis.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The new monetary policy has extended the repayment deadline of loan installment by two years for the under-construction tourist hotel projects that have been halted due to Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Hoteliers say that the provision to direct development bank and financial institutions to mandatorily provide 20 percent and 15 percent loans, respectively, of their total paid-up capital to the tourism sector will provide relief for small and medium-sized hotels.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that that the monetary policy will be crucial and positive for of reestablishment of the tourism sector businesses affected by the Covid-19 pandemic.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“The monetary policy has included most of the suggestions of the ministry and tourism entrepreneurs,” he said.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Stakeholders have welcomed the policy. However, they are skeptical over the implementation of the measures.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Even though the monetary policy has tried to address the demand of the overall tourism industry, its implementation is doubtful,” said Yograj Sharma Kandel, spokesperson of the Airlines Operators Association of Nepal.</span></span></span></span></pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> "There were some good measures in the 2015 monetary policy, which was announced after the earthquake, to help businesses in trouble. However, the measures were not implemented at all. This is likely to happen now,” he added.</span></span></span></span> </pre> <pre> <span style="font-size:10pt"><span style="font-family:"Courier New""><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, Sajan Shakya, general secretary of the Hotel Association of Nepal (HAN) said that the measures in the policy are crucial to revive the tourism industry affected by the pandemic. “However, the implementation is important than the policy itself,” mentioned Shakya.</span></span></span></span></pre> <p> </p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11935', 'image' => '20200719042015_Tourism Nepal.jpg', 'article_date' => '2020-07-19 16:18:05', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 8 => array( 'Article' => array( 'id' => '12187', 'article_category_id' => '1', 'title' => 'Monetary Policy Aims to Provide Relief to Pandemic-stricken Sectors', 'sub_title' => '', 'summary' => 'Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. ', 'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 19: Nepal Rastra Bank (NRB) has announced extension of loan repayment deadline for up to a year for businesses hard hit by the Covid-19 pandemic. Presenting the Monetary Policy for fiscal year 2020/21, NRB Governor Maha Prasad Adhikari said that the central bank has prioritised measures aimed at the reviving the pandemic economic affected sectors. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Monetary Policy for FY2020/21 has received warm welcome from the business sector. Stakeholders have said that the central bank has addressed demands of business associations of various sectors and has incorporated their suggestions in the policy. However, economists and bankers have said that the targets in the monetary policy are challenging to achieve. According to Ganesh Raj Pokharel, CEO of Citizens Bank International, the central bank has taken measures with a view to help both bankers and businesspersons survive during the current crisis. Meanwhile, banking expert AR Bhattarai doubts on the bank’s target to keep inflation rate within the 7 percent range. Bhattarai also views the lending expansion target of 20 percent in the current fiscal year 2020/21 in the monetary policy as challenging. “The target set for the current year is ambitious because last year the lending expansion in the private sector was 10 percent,” said Bhattarai, adding, “Other targets in the monetary policy can be achieved because directive work procedure which comes after the policy further manages and implement it.”</span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Extension of Loan Repayment Deadline</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Businesses in tourism, manufacturing, education, communications, healthcare, education and entertainment are entitled to receive the loan restructuring and rescheduling facilities. NRB has put businesses in categories of low, medium and highly affected for repayment of loans. The deadline for repayment of interest and principal amount for such businesses has been extended from 6 months to a year. As per the arrangements, highly affected businesses can repay their loans by mid-July 2021 while the deadline has been extended to mid-April 2021 for medium affected and mid-January 2021 for low affected businesses. Likewise, the repayment deadline can be extended to more than a year for those businesses needing reestablishment in sectors like tourism. </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Besides, NRB has also announced refinancing facility, extension of grace period for infrastructure projects and targeted lending for productive sectors at lower interest rates to aid the process of recovery. Similarly, NRB has prioritised lending to small and medium enterprises (SMEs). </span></span></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><strong><span style="font-size:13.0pt"><span style="font-family:"Cambria",serif">Lending Capacity of Banks in Doubt</span></span></strong></span></span></p> <p><span style="font-size:12pt"><span style="font-family:"Times New Roman",serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NRB has increased the credit-to-core capital-plus-deposit (CCD) ratioto 85 percent from 80 percent. According to Bhattarai, the arrangement will add an average of Rs 120 billion additional liquidity in the banking system. Nevertheless, Bhuvan Kumar Dahal, president of Nepal Bankers’ Association (NBA) argues that the existing problems in expansion of loans cannot only be resolved by increasing CDD ratio. “The situation of liquidity will ease to some extent, but it won’t increase the banks’ ability to expand loans. The 20 percent net liquid asset should also need to be addressed. The lending capacity of banks will increase only if both issues are addressed,” he opined. Dahal viewed the restructuring and rescheduling of loans to support the pandemic-stricken business sectors as a positive step to face the challenges created by the Covid-19 crisis. “However, the measures will impact income of banks,” he mentioned. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-19', 'modified' => '2020-07-19', 'keywords' => '', 'description' => '', 'sortorder' => '11934', 'image' => '20200719041756_Monetary Policy.jpg', 'article_date' => '2020-07-19 16:16:42', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 9 => array( 'Article' => array( 'id' => '12186', 'article_category_id' => '1', 'title' => 'Pandemic Hits Nepal’s Foreign Trade Hard ', 'sub_title' => '', 'summary' => 'Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Nepal’s foreign trade has been severely affected by the four months long lockdown which the government imposed on March 24 to control the transmission of coronavirus. The train traffic at the Birgunj Dry port where containers from overseas and cargoes from different parts of India arrive, has decreased dramatically. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The movement decreased after containers stopped arriving at Kolkata and Visakhapatnam ports in India. As of July 16, only 17 containers, two sacks and five racks of iron have entered the port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The statistics of Himalayan Terminal shows that in average, 70 racks of cargo have entered in the last three months. On the annual train traffic, this number is 95. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">“Normally, three to four trains come to the port in a day but now hardly a train arrives,” said Bishnukant Chaudhary, CEO of Himalayan Terminal, which operates the Birgunj dry port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Animesh Kumar, a senior official at the Himalayan Terminal, cargo arrivals have dropped further this week. "Not a single rack is likely to arrive on Thursday," he said.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chaudhary said that while there used to be 25 to 30 racks on the way from Kolkata and Visakhapatnam to Birgunj, it has now dropped to two to four. The terminal said that only two containers and racks of iron from Visakhapatnam were seen on the road on Thursday. There is no pressure of containers coming to Nepal even in this port. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Laxmi Khadka, chief of the Kolkata based Nepal Transit and Warehousing Company said that not even 25/30 containers could reach the Kolkata port now which used to receive around 200 containers daily. According to the port management, not a single rack has reached Kolkata in three days. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Entrepreneurs said that the goods of letter of credit (LC) opened before the lockdown have arrived and since the number of LCs has decreased from then, its impact has seen on import. The lockdown was imposed from March 24. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Guru Poudel, director of the Foreign Exchange Management Department of Nepal Rastra Bank, said that very few LCs have been opened for about a month since then. According to him, although the process of opening LC has improved after March, the situation has not become normal. As the validity period of LC is 120 to 150 days, the importer says that the goods of LC before the lockdown have already arrived. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ashok Kumar Temani, chairman of the Transport and Transit Committee and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) claimed that the import was reduced as the government was only trying to collect taxes from traders and not facilitating business. “Trade has become uncomfortable due to Corona. Credits from the market have not been raised. But the government is not concerned in anything other than collecting taxes and raising revenue,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Although foreign trade has declined, Temani says it will have a cyclical effect on the economy. Importer Suresh Rungta has complained that entrepreneurs are discouraged due to government policy. “The cost of most goods and services has increased due to corona. However, the government is inflexible about the old values and evaluation. Such an impractical policy would further weaken the business,” Rungta told New Business Age. </span></span></span></span></p> <p><span style="font-size:20px"><span style="font-family:Calibri,sans-serif"><strong><span style="font-family:"Cambria",serif">Both Birgunj custom offices fail to meet revenue targets</span></strong> </span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The Birgunj (ICP) and dry port customs at the main customs checkpoint failed to meet the revenue target in the last fiscal year. Out of the target of Rs 188 billion set for Birgunj customs, only Rs 126 billion has been collected. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Chief Customs Administrator Dhundi Prasad Niraula said that this amount is only 67% of the target. Birgunj customs had raised 72 percent of the target in FY2075/76. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, the dry port customs office has collected revenue of Rs 36.19 billion. According to customs Chief Umesh Shrestha, the collected revenue is 86 percent of the annual target. A target of Rs 41.88 billion was given to the dry port customs in the last fiscal year. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Customs officials say the target could not be met as imports were affected by the corona outbreak and lockdown in the last four months of the year. They say the government's control over imports of luxury goods and the decline in foreign trade have had an impact on overall revenue collection. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11933', 'image' => '20200717032225_vigaz train nepal.jpg', 'article_date' => '2020-07-17 15:17:32', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 10 => array( 'Article' => array( 'id' => '12185', 'article_category_id' => '1', 'title' => 'Tourism Entrepreneurs Demand Resumption of Flight Operations', 'sub_title' => '', 'summary' => 'Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: Tourism entrepreneurs have warned to start protest if the government does not resume domestic flight operations from August 1. </span></span></span></span><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Organising a joint press conference on Thursday, 35 tourism sector related organisations including Airlines Operators’ Association of Nepal (AAON), Hotel Association Nepal (HAN), Nepal Association of Travel and Tour Operators (NATTO), Trekking Agencies Association of Nepal (TAAN), said that the halt in flights has resulted in zero business for tourism enterprises for the last four months and that the government needs to reopen the domestic airspace ensuring proper health safety measures. Likewise, they also demanded resumption of international flights operation and opening of border checkpoints from August 15.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Tourism entrepreneurs said that that air connectivity is directly linked with overall tourism activities and Nepalis are compelled to pay high air fares for international flights in the absence of regular flights.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to them,</span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif"> liabilities of the entrepreneurs have crossed negative levels putting the one million employment and investment of billions of rupees is in jeopardy.</span></span> <span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Nepal has been hit by Covid-19 pandemic while the tourism sector, in particular, is bearing an unprecedented loss due to closure of hotels, resorts, homestays, air, and public and tourist transport.</span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Speaking on the occasion, AAON President Captain Rameshore Thapa asked that the government needs to reopen the airspace by following the steps taken by other countries. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice president of HAN said that the government has not paid attention to attempts made by entrepreneurs to reopen businesses and waiting for the Covid-19 pandemic to end has crippled the tourism sector badly. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NATTA President Achyut Guragain warned that there is no alternative left for entrepreneurs other than to start phase-wise protests if the government declined to address their demands. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"> </span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11932', 'image' => '20200717031711_airspace nepal.jpeg', 'article_date' => '2020-07-17 15:14:50', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '31' ) ), (int) 11 => array( 'Article' => array( 'id' => '12184', 'article_category_id' => '1', 'title' => 'Bankers Fear Increase in Bad Loans ', 'sub_title' => '', 'summary' => 'With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: With the repayment of bank loans affected by the Covid-19 induced crisis, fears are rising among bankers that the non-performing loans (NPLs) of banks if the debtors do not repay their loans soon. The calls made by the Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari to debtors, who are able to pay their loans, to clear interest and principal amount, have been ignored by the debtors increasing the risk of surge of NPLs, bankers say. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">The banks had announced to provide concession on the loans during the time of pandemic. NRB had already decided to give 10 percent concession to those who pay their interest within June 16. But, NPLs of banks in FY2020/21 is likely to increase. Bankers say that the double standard of government and the regulatory body to act well with both banks and the debtors is exacerbating the problems in the banking sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Company Secretary of Agricultural Development Bank, Himlal Poudel says that it is irrelevant to pressurize debtors who have invested in sectors like tourism and transportation which are badly affected by the pandemic. Even after requesting to those who can pay, the repayment of loans is not satisfactory. He further says that Agricultural Development Bank has collected only Rs 500 million from March to June, out of the targeted amount Rs 1.25 billion. “We have provided additional reliefs to our borrowers besides the concessions announced by NRB. We have provided 10 to 60 percent concession in interest rate to those who have borrowed money from us for more than two years, but the recovery of loans hasn’t been as expected, said Poudel.” According to him, NPL of Agricultural Development Bank in March was 3.29 which will increase significantly due to the non-recovery of loans. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">NIC Asia bank announced an attractive concession scheme to encourage the borrowers to repay their loans. The bank said that if the debtors pay the entire installment/interest amount by Mid-June, they will receive an additional 10 percent discount in the interest amount and a 100 percent waiver of the penalty interest amount. However, the loan recovery has not been as expected, according to a source at NIC Asia Bank. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">President of the Nepal Bankers' Association Bhuvan Kumar Dahal said that it is difficult to put pressure on debtors who are already under stress due to the economic slowdown. Therefore, he says, there is a need to take as much as banks can recover the loans by convincing the borrowers. “The current situation for banks is that very few debtors will repay their loans leading to the increase of NPLs of banks,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Dahal, NRB has said that there is no need to calculate NPL of those who have not paid till mid-July. However, the decision has not been made. Even if the NPL is not shown, the bank's interest income is affected. He said that non-recovery of loans will also impact distribution of cash dividends to bank shareholders. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">A banker, under the condition of anonymity, said that the governor had given a verbal assurance that bad loans would not be counted during this period, but as there is no policy as such. The existing rules mandate banks to show their NPLs in the financial statements which will be made public in mid-July. Another banker claims that the governor's assurance that the monetary policy will increase the deadline to those who are unable to pay, restructure, reschedule and other facilities depending on the condition of loans, has led the businessmen not to clear their debts. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11931', 'image' => '20200717031443_NPLs.jpg', 'article_date' => '2020-07-17 15:13:15', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 12 => array( 'Article' => array( 'id' => '12183', 'article_category_id' => '1', 'title' => 'OAG Report Shows Worsening of Fiscal Discipline', 'sub_title' => '', 'summary' => 'At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 17: At a time when the government has claimed to become frugal in public expenses, the latest annual report published by the Office of Auditor General (OAG) has shown worsening of fiscal discipline. According to the 57<sup>th</sup> OAG Report released on Wednesday, the arrears of the government totaled Rs 418 billion in FY2019/20, an increase of 11 percent compared to the previous fiscal year. OAG audited financial documents of 5,619 government agencies and associated institutions in central, provincial and local levels. The total amount audited was Rs 5,171.64 billion. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to the report, of the total arrears amount of Rs 132 billion,10 percent belong to government ministries with the highest amount (Rs 19.06 billion) belonging to the Ministry of Finance. Similarly, the Ministry of Physical Infrastructure and Transportation has Rs 14 billion, Ministry of Defense has Rs 9 billion, Ministry of Water Supply has Rs 4.28 billion and Prime Minister’s Office has Rs 4 billion in arrears. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to OAG, arrears of agencies under the federal government stood at 4.05 percent while it is 4.33 percent for agencies under provincial governments and 5.15 percent for local levels. Of the total arrears, expenses with no submitted documents are the highest with Rs 44.64 billion while expenditures suspected with irregularities have totaled Rs 17.30 billion. Likewise, amounts in mobilization advance and letter of credits (LCs) stood at Rs 21.40 billion and Rs 10.62 billion, respectively. Auditor General Tanka Mani Sharma said that there has been slight improvement in arrears. According to him, highest arrears have been seen in areas such as public procurement and project management. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-17', 'modified' => '2020-07-17', 'keywords' => '', 'description' => '', 'sortorder' => '11930', 'image' => '20200717031305_arrears.jpeg', 'article_date' => '2020-07-17 15:00:07', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 13 => array( 'Article' => array( 'id' => '12182', 'article_category_id' => '1', 'title' => 'Rejection of Munich International Airport’s Proposal to Operate GBIA Recommended', 'sub_title' => '', 'summary' => 'A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa.', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">July 10: A committee formed by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has recommended rejecting the proposal of Munich International Airport of Germany to operation of Gautam Buddha International Airport (GBIA), which is under construction at Bhairahawa. According to ministry officials, the recommendation was presented due to some legal complications in the proposal presented by Munich. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The cabinet meeting held on May 30, 2019 had decided to operate the Gautam Buddha International Airport on the basis of government-to-government (G2G) agreement instead of open competition. After the decision, Munich Airport had sent a formal proposal to MoCTCA and Civil Aviation Authority of Nepal (CAAN) on June 2019<strong>.</strong> Munich had offered to give it the responsibility to operate the airport for 50 years. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Buddhi Sagar Lamichhane, joint secretary at MoCTCA said that although Munich’s offer seemed technically appropriate, it is recommended to cancel the proposal as it had legal complications and ambiguity. Lamichhane is the coordinator of the committee formed by the ministry to hand over responsibility for the operation of the airport. Representatives of NAC, Ministry of Law, Justice and Parliamentary Affairs, and Ministry of Foreign Affairs are in the committee. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to Lamichhane, the committee had assessed the proposal and recommended the government to reject it a few days ago. “Our recommendation is based on some legal complications in the Munich’s proposal. Now further decision will be taken by the government,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">According to him, the government had called for proposal through G2G, but only one proposal was received. Due to some provision in Public Procurement Act, the proposal cannot be accepted at the moment. “Munich’s proposal is rejected because it is important to know whether any proposal is legally correct or not before accepting,” he mentioned. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">The government had preparations to complete the construction work by December 2019, and start the operation from March 2020. However, completion of the construction of the project has been delayed due to the Covid-19 pandemic. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As per the Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai, preparations are being made to complete the work by the end of 2020 and start flights from March 2021. “The pandemic has definitely pushed us back. However, we will complete the construction work by 2020 end and start operation of flights by March 2021,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">As there were no proposals from other countries, there was higher possibility that the German company would have been awarded the contract. But, after their proposal is rejected, there is confusion as to how to proceed after the airport’s construction is completed. Lamichhane said that the government could operate the airport from its own resources and manpower even if no other proposals are received at the moment. “The global marketing and expansion would have been easier with Munich. However, we must prepare for operation ourselves as that possibility has been reduced at the moment due to corona,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Construction period extended due to Corona </span></span></strong></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Northwest Civil Aviation Airport Construction Group, a Chinese government-owned company, was assigned to complete the construction of the airport by December 2017. But due to various reasons, </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">the construction deadline was extended for multiple times. This has been again extended due to the Covid-19 pandemic. According to ministry officials, 91 percent of the works have been completed and the construction of a runway and link taxiway connecting the parking bay has been finished during the lockdown period. </span></span><span style="font-size:15.0pt"><span style="font-family:"Cambria","serif"">Spokesperson of the ministry, Rudra Singh Tamang said that the work of connecting the runway lights has reached the final stage. Similarly, work of installing air conditioning in the terminal building has been started during the shutdown and decoration work is underway. Currently, 275 workers including 29 Chinese have been mobilised for the construction of the airport. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-10', 'modified' => '2020-07-10', 'keywords' => '', 'description' => '', 'sortorder' => '11929', 'image' => '20200710024104_GBIA.jpg', 'article_date' => '2020-07-10 14:39:10', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ), (int) 14 => array( 'Article' => array( 'id' => '12181', 'article_category_id' => '1', 'title' => 'Lack of Data Makes Tourism Sector Recovery Difficult', 'sub_title' => '', 'summary' => 'The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. ', 'content' => '<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">July 9: The Covid-19 pandemic has hit the tourism sector the hardest in Nepal. The entire star and non-star hotels across the country are closed, flights are suspended, and travel agencies have become workless in a matter of four months. But what is the actual damage to the sector due to the global health crisis? This is a baffling question because the government doesn’t have credible data. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Three days ago, tourism minister Yogesh Bhattarai said that the tourism sector ha incurred a monthly loss of Rs 10 billion during the lockdown period. Speaking at a press conference he estimated that by mid-July the overall loss to the tourism sector would be Rs 41 billion. However, this is a random assessment because the ministry does not have comprehensive data on the amount of damage in different areas of tourism. The government also does not have any official data on how many people lost their jobs from the tourism sector due to Covid-19 pandemic, and how much loan do the tourism entrepreneurs have. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">On the basis of a study conducted by Nepal Tourism Board (NTB), the ministry estimated the loss and said at the press conference. Bhattarai claims that the details of the loss in the tourism sector have been sent to the Ministry of Finance and National Planning Commission. A committee was formed by NTB and Civil Aviation Authority of Nepal to study the loss in tourism and aviation sector. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">However, the study of the Board does not find anything other than a general study of investment and employment in the tourism sector. The report submitted by the board to the MoF does not provide data on how much the sector has lost due to the corona and lockdown. According to a study conducted by the board, more than Rs 1 trillion has been invested in Nepal's tourism sector (including the aviation sector). </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Ministry spokesperson Rudra Singh Tamang said that the Ministry of Tourism has estimated the amount of damage as per the details sent by the board and further study is being done by the National Planning Commission. According to private organizations affiliated with tourism, the damage in the tourism sector is much more than the government's claim. Based on the data provided by the private sector, the tourism sector has suffered much more than the government's estimate. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Binayak Shah, senior vice-president of the Hotel Association of Nepal (HAN), argues that due to lack of official data from the state and proper coordination with the private sector, there are no reliable figures on the loss. "We have official statistics about organisations affiliated with us. In the three months of the lockdown, the hotel industry has lost more than Rs 2.5 billion in a month. Even after calculating that, we have to bear a loss of more than Rs 10 billion,” he said. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">According to Manoj Karki, general secretary of the Airlines Operators Association of Nepal, the domestic aviation has lost between Rs 7-10 billion in the last three months. "Combining the international flights and government flag carrier Nepal Airlines Corporation, the loss is likely to increase," states Karki. </span></span></span></span></p> <p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:15.0pt"><span style="font-family:"Cambria",serif">Similarly, according to Khum Bahadur subedi, president of the Trekking Agencies Association of Nepal, the trekking and mountaineering sector has lost more than Rs 15 billion. The Restaurant and Bar Association of Nepal (REBAN) has also estimated that 3,500 restaurants in Kathmandu, Pokhara and Chitwan have suffered losses of Rs 9-10 billion during the period. President of REBAN Araniko Rajbhandari said the estimated loss would be much higher if other restaurants across the country that are not connected with the organisation. </span></span></span></span></p> ', 'published' => true, 'created' => '2020-07-09', 'modified' => '2020-07-09', 'keywords' => '', 'description' => '', 'sortorder' => '11928', 'image' => '20200709035505_tourism sector crisis Nepal.jpg', 'article_date' => '2020-07-09 15:51:09', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => null, 'user_id' => '31' ) ) ) $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
