Number of 4G users soars by 125 per cent

The number of fourth generation (4G) mobile network users has reached 3.6 million within three years of being introduced in the country.
According to Nepal Telecommunications Authority (NTA), the number has increased by 125 per cent compared to last year. The recently published Management Information System (MIS) report of mid-April to mid-May revealed that the number stood at 1.6 million last year. “The 4G network was first introduced in Nepal on January 1, 2017 by Nepal Telecom (NT). Currently, NT, Ncell and Smart Telecom Pvt Ltd (STPL) are providing 4G service across the country, apart from Ncell that has the largest coverage of 4G service.”
The MIS report also revealed that there are a total of 2.6 million 4G subscribers of Ncell so far, whereas NT and STPL have 762,945 and 174,816 4G users, respectively.
Although NT was the first to start 4G service in the country, till date it has been able to provide 4G service only in Kathmandu and Pokhara, whereas Ncell is currently providing the service in 1,000 different locations of seven provinces.
Within two years of the 4G launch, Ncell has expanded the service in 44 districts but the STPL is providing 4G service in four major cities – including Kathmandu, Bhaktapur, Lalitpur and Pokhara – in the country.
Meanwhile, NT has divided the 4G expansion project into three categories including Network I, Network II and Core Network. While the Nepse-listed company has awarded the Network I and Network II categories of the project to CCSI, ZTE Corporation has been awarded the contract to develop necessary core network and radio access network for the expansion of 4G or Long Term Evolution (LTE) service.
Likewise, the number of mobile data users reached 18.6 million compared to 14.3 million last year, it revealed, adding, “Of the total number of data users, 10 million are 3G users while remaining 136,573 users are using networks that are below 3G capacity.”
According to the MIS report, some 63.31 per cent, out of the total population, are using internet service across the country. “Of the total number of internet users, some 49.65 per cent are mobile network users, 12.47 per cent are fixed broadband users, while 1.18 per cent are wireless broadband users,” it stated in the report.

Tourist arrivals up, income down

Income from the travel sector under the service account increased by 9.7 per cent in the first 11 months of the last fiscal year 2018-19, but the tourist arrivals has increased by more than the income.
According to central bank, Nepal earned a total of Rs 68.63 billion from the travel industry against Rs 62.57 billion in the same period of a fiscal year ago. In 2018, a total of 1.17 million tourists visited Nepal via both air and land routes while a total of 585,531 tourists have visited Nepal in first half of 2019.
Though, the tourist income has been increasing, the average length of stay of tourists and their per day spending has declined. According to the Nepal Tourism Board (NTB) statistics 2018 published by the Tourism Ministry, the average length of stay stands at 12 days, while the average per day spending per tourist has dropped to $44.
The average spending of tourists in the country has also dropped by 22.73 per cent in 2018, the data revealed, adding that the three-year development plan (2016- 2018) had aimed to increase the length of stay of foreigners to 14 days by 2018, which ranged from eight to 13.5 days in the past. “However, the government has failed to achieve that target as well.”
The plan has also targeted to raise the contribution of travel in the country’s GDP to 10.3 per cent, while the current contribution stands at 3.5 per cent.

National conference on rainwater harvesting next week

A Kathmandu-based non-profit organisation ‘Smart WASH Solutions’ and Department of Water Supply and Sewerage Management(DWSSM) under the Ministry of Water Supply are set to jointly organise a National Conference on Rainwater Harvesting for Livelihood, Community and Ecosystem Resilience on July 27 and 28 in collaboration with different organisations.
Organising a press conference in the capital today, the conference organising committee informed that preparations for the conference have reached the final stage.
The conference is aimed at making concerned stakeholders aware of how to reduce the impact of floods and rain-triggered-landslides by collecting and utilising rainwater to meet domestic water needs through effective management, they said, adding that the conference will be attended by experts working in the related field from India, Bangladesh, Sri Lanka, South Korea and Nepal.
Minister of Energy, Water Resources and Irrigation Barsha Man Pun is scheduled to inaugurate the conference, said the conference organising committee – that is composed of different representatives – led by chair of Smart WASH Solutions Ramdeep Sah. Likewise, a six-member technical committee entrusted with the responsibility of assessing and selecting conference papers has been formed under the leadership of Gunanidhi Paudel. A management committee has also been formed under the leadership of the chair of the Smart WASH Solutions Sah.
Speaking at the press conference, chair of Smart WASH Solutions said that it was impossible to address the problem of drinking water supply until rainwater was properly managed permanently. “About 1.3 per cent of total global population and 2.4 per cent of rural population in developing countries meet the domestic needs for drinking water by collecting and utilizing rainwater,” Shah claimed calling for revival of Nepali tradition of collecting and utilizing rainwater that people belonging to the present generation are unaware of.

Cross border petro pipeline to open from next month

The first cross border petroleum pipeline in South Asia will start commercial operation by the first week of August following virtual inauguration of the Nepal-India bilateral project by the heads of the states.
The Motihari-Amlekhgunj oil pipeline project has been completed and is awaiting its formal inauguration by the Prime Ministers of Nepal KP Sharma Oli and his Indian counterpart Narendra Modi, according to the state oil monopoly. “The two Prime Ministers will officially open the fuel trade via the pipeline through the remote control, though the date for the official inauguration is yet to be fixed.”
Nepal Oil Corporation (NOC), the two governments are working to ensure that inauguration of the project takes place in the first week of August. “The virtual inauguration of the project will be done through video conferencing, where the two prime ministers will press a button in New Delhi and Kathmandu, resulting in opening of the valve of the petroleum pipeline,” the petroleum monopoly informed.
First proposed in 1996, the Motihari-Amlekhgunj petroleum pipeline memorandum of understanding was signed with Nepal Oil Corporation at the junior executive level a year later. In 2004, the two sides upgraded the agreement to the chief executive level. However, due to a number of legal hurdles, the project failed to take off. The project finally moved closer to reality during Indian PM Modi’s visit to Kathmandu in 2014. The then supply minister Sunil Bahadur Thapa and Indian state minister for petroleum and natural gas Dharmendra Pradhan signed an agreement on August 24, 2015 on constructing the Motihari-Amlekhgunj petroleum pipeline within 30 months, though the project was delayed due to devastating earthquake. But still Motihari-Amlekhgunj petroleum pipeline is the only mega project completed in time, apart from being the bilateral project completed in time.
“The NOC and Indian Oil Corporation (IOC) today successfully tested the Motihari-Amlekhguni pipeline project,” the NOC said, adding that the IOC – through its refinery in Motihari – had supplied diesel to NOC’s Amlekhgunj-based depot yesterday, and received it today. “However, NOC will unload only 1,000 kilolitres of the 3,100-kilolitre diesel supplied by IOC via the pipeline to test the newly constructed tanks at Amlekhgunj.”
Though the project was estimated to cost Rs 2.75 billion Indian Currency (IC) with Indian government injecting Rs 2 billion IC and Rs 750 million IC by NOC and the remaining Indian grants, the final project cost escalated to almost Rs 3.25 billion IC. “The 69.2-km-long pipeline was completed with the budget of Rs 5.18 billion,” the NOC added. Of the Motihari- Amlekhgunj pipeline’s total length, 36.2 km lies within Nepali territory. The fuel pumping facilities will be located in Motihari, India. It is estimated that 300 kilolitres to 350 kiloliters of diesel can be supplied through the pipeline per hour.
The cross border petro pipeline is going to save NOC’s around Rs 2 billion – in transportation and ensure smooth supply of diesel, even during the strikes in Terai – helping it to bring down the petroleum price in the domestic market.
Under the first phase of the project, a pipeline will be laid from Raxaul to Amlekhgunj. In the second phase, it will be extended to Kathmandu.
Though some of the energy experts claim that the cross border pipeline will make Nepal further dependent on India because Nepal has to deal with a single company, officials say the pipeline will be a boon for the country, not only in reducing transportation costs and eliminating the hassles of hiring tanker trucks but also running operation during strikes that often hamper petroleum imports through the Indian border. “Most importantly, the pipeline will end fuel adulteration,” the NOC claimed, adding that fuel adulteration is a major problem. “The Nepal Bureau of Standards and Metrology reports revealed that the diesel sold in the valley is heavily adulterated.”

Inflation soars to 6.2 per cent

Inflation has started to soar suddenly in the last months of the last fiscal year 2018-19.
According to 'Current Macroeconomic’ of eleven months' of the last fiscal year 2018-19 released today, the inflation, as measured through the consumer price index (CPI), reached 6.2 per cent in mid-June from 4.1 per cent a year ago.
Inflation went up by 5.3 per cent in the last month of the same fiscal year. “Inflation expectation, increment in wages, and price rise in India accelerated inflation in the review period.”
According to the central bank data, the salary index and the wage rate index increased by 6.6 per cent and 10.3 per cent, respectively in the review period.
The food and beverage inflation rose to 6.7 per cent in mid-June 2019 from 3 per cent a year ago. Prices of cereal grains and their products rose by 6.7 per cent, meat and fish by 7.6 per cent, and vegetables by 14.6 per cent, according to the central bank data. “The non-food and service inflation stood at 5.7 per cent in mid-June 2019 compared to 5 per cent a year ago.”
Likewise, clothes, footwear, housing and utilities inflation rose by 7 per cent while transportation inflation went up by 4.7 per cent, according to the the Nepal Rastra Bank (NRB).
The Kathmandu Valley witnessed 7.1 per cent inflation followed by 6.5 per cent in the mountain, 5.8 per cent in the Terai, and 5.7 per cent in the hilly regions, the report revealed, adding that these regions had witnessed 3.1 per cent, 6.4 per cent, 4.2 per cent and 4.9 per cent inflation, respectively in the corresponding period of the previous year.

Gold price touches Rs 65,500 per tola

Gold was traded at Rs 65,500 per tola (11.664 grams) – the highest in the domestic market – today . It was priced at Rs 65,000 a day ago.
The precious yellow metal had made the record of Rs 65,500 per tola on June 25 this year. According to past president of the Federation of Nepal Gold and Silver Dealers' Association (Fenegosida) Tej Ratna Shakya attributed the fluctuation in international market for the price hike in the domestic market.
"The low US currency is one of the reasons for the increase in gold price," he said adding that the price hike in the domestic market is directly related to the US-China trade war. “The gold price in the international market increased by $20 today and $15 yesterday.”
With the increasing price, the demand of gold in the local market has also decreased. The daily demand of gold was hardly 10 kg at the moment, and if the price were under Rs 60,000, the fall in demand would not be this sharp, he said, adding that the daily demand of gold in the Nepali market stands at 35 kg during normal times.
Prior to today, gold was traded for a minimum of Rs 64,300 per tola and a maximum of Rs 65,000 per tola this month.

Certificate of Origin to be issued online

Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Chamber of Commerce (NCC) will be issuing Certificates of Origin (CoO) through online.
The NCC today organised a soft launch of the online system, whereas the FNCCI and CNI have already launched the system to make it easier for the exporters. CoO is necessary for the exporters to certify that the exportable products are originated from Nepal.
“Earlier, the traders had to wait for the office hours to issue the certificate,” NCC president Rajesh Kaji Shrestha said, adding that with the beginning of online system, the process can be completed within few hours during any time of the day.
“Though the online is yet to be integrated with payment mechanism, it will be collaborating with digital payment platforms like e-Sewa and Khalti soon,” according to Computer Association of Nepal (CAN) that has developed the online system of CoO for the FNCCI, CNI, and NCC. “The traders have to pay through banks and attach the voucher with the certificate for the time being.”
The private sector has hired staff to help traders with the system and the Ministry of Industry, Commerce and Supplies has also given them a month to get used to with the system. “From mid-August, using an online system will be mandatory to issue CoO, according to the ministry.
The system will also help the Department of Customs, Department of Industries, and central bank in checking the details on exports and transactions, Shrestha added, on the occasion.
According to the Ministry of Industry, Commerce and Supplies, the online system is a good step towards making paperless trade, and reduce hassles with no human face involved.
The Department of Customs – implementing a single-window system to facilitation trade and create business-friendly environment – has been integrating business processes with technology. The department has already been linked with 15 agencies in this integration process, and Vehicle Tracking Consignment System (VCTS) is one of its initiatives. The VCTS has been recently introduced as a trial for three months.