Nepal’s RSP majority eases near-term political risk, policy agenda key: Fitch Ratings

The clear parliamentary majority for Nepal’s Rastriya Swatantra Party (RSP) reduces near-term political uncertainty and provides an opportunity for enhanced policy predictability and implementation of governance and economic reforms, according to a press note issued by the Fitch Ratings. "The election result should lower the risk of a prolonged coalition negotiation after severe unrest last year, reduce the chance of a recurrence of recent years’ frequent government changes and potentially boost investor sentiment over time if signals point to tangible improvements in governance and economic reform delivery," it adds.
The scale of the RSP’s victory reflects a voter mandate to break with the status quo politics of power sharing, with the Nepali Congress (NC) and the Communist Party of Nepal-Unified Marxist-Leninist (CPN-UML) losing seats. A single-party majority, subject to final certification by the Election Commission (EC), should imply a short political transition and could improve Nepal’s ability to sustain reform momentum and translate hydropower-led investment into broader-based growth.
The RSP targets average real GDP growth of about 7 percent over the next five years, raising per capita income above $3,000, which we believe is ambitious. The new government’s policy agenda will be key in determining the extent to which growth can be lifted from our current forecast of 4.5 percent in the fiscal year ending 15 July 2027.
The RSP’s manifesto and announcements indicate it is aiming for policies that would lead to productivity gains, formal job creation to curb emigration, and higher private-sector-led investment in infrastructure, agriculture, service, digital and innovative industries.
When Fitch affirmed Nepal’s ‘BB-’ rating with a Stable Outlook in November 2025, "we stated that strong, sustainable growth, enabling substantial increases in GDP per capita - potentially supported by improved governance standards and regulations conducive to private and foreign investment - could improve Nepal’s credit profile," it further reads.
However, implementation capacity could be a key risk down the road, it says, adding that Nepal’s weak government effectiveness and regulatory quality scores compared with its peers could constrain execution, for instance, if reform sequencing is unclear or governance outcomes lag behind campaign expectations. "Private investment and foreign participation are likely to hinge on measurable improvements in the business environment and accountability frameworks, alongside sustained anti-corruption enforcement under the new government."
Nepal’s ‘BB-’ rating is supported by low and highly concessional government and external debt burdens, strong external liquidity, and solid medium-term growth prospects anchored by hydropower, with resilience reinforced by successful IMF programme implementation. Constraints remain the underdeveloped economy’s exposure to external shocks and natural disasters, and weaker structural features - especially GDP per capita and governance metrics - than ‘BB’ category peers.

Indira Rana Magar elected House of Representatives deputy speaker

Rastriya Swatantra Party (RSP) lawmaker Indira Rana Magar has has been elected new deputy speaker of the House of Representatives (HoR).

The ruling coalition – that includes CPN-UML, CPN-Maoist Centre and Rastriya Prajatantra Party (RPP) besides the RSP – candidate Rana Magar has been elected deputy speaker with 166 votes today. She has defeated Mukta Kumari Yadav of Nepali Congress (NC). Out of 275 members of the House of Representatives, 264 participated in the election. One needs to secure the support of 138 members in the 275-strong lower house to be elected. As many as 97 lawmakers stood against Magar, while Prem Suwal of the Majdoor Kishan Party stood neutral.

Magar and Yadav filed their candidacy for the position of deputy speaker in the House of Representatives yesterday. NC’s Yadav was supported by the CPN-Unified Socialist and the Loktantrik Samajbadi Party Nepal besides the NC.

Newly elected Speaker Debraj Ghimire first presented Rana's candidacy in the assembly for decision. During the division of votes, as the majority of MPs were in favor of Rana, the candidacy of Congress MP Muktakumari, who was her rival, did not have to be presented for decision.

The 52-year-old Rana Magar, who is from Jhapa, became an HoR member from RSP through the proportional representation (PR) electoral system. 

Actively involved in social work and child rights before entering politics, she is the founding chairperson of Prisoners Assistance Nepal, a non-profit organisation that looks after children whose parents are in prison.

A resident of Salbadi from Arjundhara-11 in Jhapa, Rana Magar, has two schools and 10 childcare centres under her guardianship. In the centres, as many as 2,000 children of inmates from Jhapa to Palpa district are getting care and education at her initiative.

Born to father Pratap Ranamagar and mother Manmaya Ranamagar as the youngest child in 2027 BS, she began taking care of the inmates’ children by renting two rooms in Kathmandu 22 years ago.

Rana Magar is also listed on BBC 100 Women. In 2005, Rana Magar also got the prestigious Ashoka Fellowship, and the ‘Asia People’s Service’ award in 2009. She has received Asia 21 Young Leader Public Service Award in 2009 and World Children’s Honourary Award in 2014 for her social work. She was featured in BBC’s 100 Women List in 2017.

The third largest party in the ruling coalition RSP got the post of deputy speaker and the largest CPN-UML the speaker according to the agreement of the coalition. CPN-UML lawmaker Dev Raj Ghimire was elected speaker on Thursday defeating Ishwari Neupane of NC.

The Constitution makes it mandatory to elect a Speaker and a deputy Speaker within 15 days of the House’s first meeting.

According to the Article 91 (2) of the Statute, either the Speaker or the deputy Speaker must be a woman and from different parties, preferably form government and opposition. However, the ruling alliance has divided Speaker and deputy Speaker among themselves.

Rana, after being elected, claimed to work on strengthen the federalism, though her party openly has criticized the federalism, and asked to scrap the Province as according to them Province has become liability.

The deputy Speaker, according to her, is inspired by renowned litterateur Parijat, who was her guide and guardian, when Rana Magar moved to Kathmandu for study. She did her schooling by getting enrolled at Grade 5 at the age of 12 in a local Maharanigunj Primary School, Arjundhara, according to her elder brother Jagat Ranamagar.

She holds a MA degree in Sociology and has a daughter.

According to the Parliamentary Secretariat, except the single party Panchayat Rule of 30 years, Rana Magar is the 12th deputy Speaker and seventh women deputy Speaker in the parliamentary history of Nepal. The first deputy Speaker was Mahendra Narayan Nidhi of NC (March 31, 1960), who could enjoy his tenure till December 15, 1960 as then King Mahendra dissolved the House and arrested the democratically elected government led by NC president BP Koirala.

After the democratic movement of 1990 that reestablished the multiparty democracy, Mahanta Thakur – then NC now Loktantrik Samaajbadi Party – became the deputy Speaker on June 23, 1991 to December 17, 1994. From December 18, 1994 Ram Bilas Yadav from Rastriya Prajatantra Party (RPP) became deputy Speaker till October 13, 1997.

The first women deputy Speaker of the House was Lila Shrestha Subbha from CPN-UML. Due to intra-party feud in CPN-UML, her party asked her to resign and she resigned on October 10, 1998. 

Bhoj Raj Joshi from the CPN-ML – a splinter party of CPN-UML – became deputy Speaker of the House on October 14, 1998, after the resignation of Lila Shrestha Subba. Joshi – now CPN-UML leader – remained deputy Speaker till March 23, 1999.

The second women deputy Speaker of the House Chitralekha Yadav was elected deputy Speaker of the House on June 29, 1999. He is the longest serving deputy Speaker of the House due to political upheaval. She remained deputy Speaker till January 17, 2007. During her tenure as the deputy Speaker, the country witnessed direct rule of the King Gyanendra.

But after the CPN-Maoist – now Maoist-Centre – came to main stream politics, they won majority in the House and the House saw Purna Kumari Subedi was elected the deputy Speaker on November 28, 2008. Her tenure was till November 19, 2013. After Subedi of CPN-Maoist, Onsari Gharti, of the same party, became deputy Speaker of the House on February 26, 2014. Her tenure remained till October 14, 2015. Later Gharti also became the Speaker of the House.

From October 15, 2015, Ganga Prasad Yadav of RPP became the deputy Speaker of the House till October 15, 2017. Then Dr Shiva Maya Tumbahamfe of unified CPN (CPN) remained deputy Speaker till January 20, 2020. From July 15, 2022, Puspa Bhusal of NC became deputy Speaker till September 17, 2022.

On January 20, 2023, today, Indira Rana Magar of RSP elected deputy Speaker of the House. RSP – the fourth largest party in the House – according to power sharing agreement among the ruling alliance, was planning to field lawmaker Sovita Gautam, who has defeated the former Speaker of the House Onsari Gharti in Kathmandu-2, but all of a sudden proposed Rana Magar, who has become HR member under Proportional representation (PR) electoral system – at the last moment.

Lawmakers urge to bring Petroleum Act

Lawmakers asked the government to bring the Petroleum Act immediately to also address the current petroleum price hike.

Participating in the discussion of a special proposal registered by the opposition chief whip Bishal Bhattarai, general secretary of the Nepali Congress (NC) and lawmaker Gagan Thapa requested the government to bring the Petroleum Act immediately in the current session of the House to make the fuel business transparent. Suggesting the government to make a petrol, diesel and LP gas free country within 10 years, he said that the government has reduced price of petrol and diesel by Rs 10 per liter but it is not enough. “People should be given relief by further reducing the petroleum price,” he said, asking the government to reduce the taxes levied on petroleum products.

The government monopoly Nepal Oil Corporation (NOC) imports and distributes the fuel worth billions without the Petroleum Act, which has helped people doubt on the transparency. The government entities consume more than half the imports, and is suspected leakage on supply. The consumer rights activists have been long asking the government to bring the Petroleum Act to monitor and regulate the billion-rupee petroleum business. However, neither the incumbent government nor the past governments have any interest in bringing the Act.

Registering the special proposal at the House of Representatives today, CPN-UML chief whip Bishal Bhattarai, urged the government to reduce the prices of petroleum products. UML lawmakers also demanded a parliamentary probe committee to study the price increment of petroleum products.

UML lawmaker Yagya Raj Sunuwar also said that the public is suffering due to the hike in fuel prices. Suspecting the decision to hike prices of petroleum products of corruption, he asked it to be investigated by the parliamentary committee. He said that prices of petroleum products were hiked twice in a week contrary to the procedure laid down by the government.

Likewise, other lawmakers and members of UML demanded the government to further lower the prices of petroleum products in the domestic market.

The hike in petroleum prices will push the inflation up as fuel is the most important factor in price hike in the market. According to the central bank, the inflation has been recorded at 7.3 per cent in the nine months of the current fiscal year. The government – in its fiscal policy for the current fiscal year – and central bank – in its Monetary Policy for the current fiscal year, had targetted to keep the inflation under 6.5 per cent. But both the government and central bank failed to crack the whip on rising inflation also due to rising petroleum prices. The petroleum prices have been increasing in the world due to supply disruption and Russia-Ukraine war that seems to end no time sooner.

Nepali Congress suggests to focus on five sectors

Nepali Congress (NC) has suggested the central bank to focus monetary policy to check inflationary pressure.
Suggesting to focus monetary policy on five areas, a special committee of NC asked the central bank to focus on economic revival, long-term economic growth, financial reform, exchange rate and external sector stability, and regulation and supervision capacity.
The monetary policy holds paramount importance as Covid19 has devastated the national economy, adversely impacted the jobs and income of millions of people apart from hitting the confidence of the private sector, former finance minister Dr Ram Sharan Mahat said, in a press meet organised at the NC headquarters Sanepa today. The coordinator of the Nepali Congress special committee Dr Mahat also said that the target of both fiscal policy and monetary policy should be toward supporting Nepali society in getting rid of health, economic and human crises caused by the global pandemic.
“The monetary policy should offer flexibility on loan management through loan restructuring, reschedule loan repayment period and capitalisation of interest,” he said, asking the central bank to provide economic relief to tourism, transportation, construction and SMEs sectors that are hit hardest by Covid-19. “Thus, the refinance fund size should be increased to Rs 200 billion.”
He also said that only limited areas and groups have benefited from the current refinance fund.
Recommending the central bank to focus its monetary policy on five areas to address the current challenges, he said that the monetary policy for the current fiscal year 2020-21 should also check inflationary pressure.
The policy recommendations of the main opposition party comes at a time when the central bank is in the final stage of announcing the monetary policy for the current fiscal year 2020-21 that began today. The central bank is preparing to announce monetary policy for the current fiscal year tomorrow.
Advising the central bank to become cautious to minimize the effects of crowding out of private sector investments due to the government’s plan to raise nearly Rs 225 billion in domestic debts, the opposition party has asked the central bank to increase the limit of margin lending of banks and financial institutions (BFIs), huge discounts on profit tax for at least two years for BFIs to encourage merger and acquisition, and revision of the maximum limit for the digital payment.
Mahat, on the occasion, also showed serious concern over the weakening central bank’s autonomy in these past years. “The central bank has become a mere shadow of Finance Ministry,” Mahat said.

Government publishes expenditures related to Covid-19 response, Rs 2 billion vanished

After the huge pressure from the youth activists across the country to release the details of the expenses, the government has made public the expenditures related to the prevention, control and treatment of coronavirus infection. But the government expenses – made public today – and the Health Minister Bhanubhakta Dhakal, and secretary at the Office of Prime Minister and Council of Ministers (OPMCM) Narayan Prasad Bidari. Either the expenses made public today is false or the Health Minister Bhanubhakta Dhakal lied in the House of Representatives and secretary Bidari lied to the journalist. Minister Dhakal, addressing the House of Representatives last week said that the governments – from federal to provinces and local – have spent more than Rs 10 billion to fight Covid-19. Likewise, Bidari – on June 3 – told the journalists that the three tier of governments – from federal to provinces and local – have spent Rs 9.87 billion, and some local governments still have not filed for expenses, which could cross Rs 10 billion.
However, the government today – after three days of massive protest by the youth across the country – published the expenses of Rs 8.39 billion, far too less from the announcements of both Dhakal and Bidari. “Either the health minister Dhakal lied in the House or secretary Bidari lied to journalists,” said a leader from opposition party in the parliament Nepal Congress (NC).
The directorate of the Coronavirus Control and Management Committee (CCMC) – led by deputy prime minister and defense minister Ishwar Pokharel – has ordered to publicise the expenses as the protest against the government’s lack of accountability and transparency has angered the youth, who have been protesting since last three days, various places in Kathmandu including in front of Prime Minister’s Official residence Baluwater, and many cities including Pokhara, Chitwan, Birgunj, Biratnagar across the country.
Prime Minister’s press advisor Surya Thapa shared the expenditure details in his tweet today trying to pacify the agitating youths.
According to the document – that has neither any sign nor any official seal – a total of Rs 8.39 billion has been spent so far in Covid-19 response through three tiers of governments. “Of the total, some Rs 5.63 billion has been allocated under various headings including medical/health supplies, health infrastructure, mobilisation of human resources, quarantine, and others,” Thapa claimed, adding that a total of Rs 4.10 billion has been spent through government entities including the Ministry of Health and Population, Defence Ministry, Home Ministry; Ministry of Foreign Affairs, Minsitry of Culture, Tourism and Civil Aviation, Urban Development Ministry, and Ministry of Education, Science and Technology. Interestingly the Defence Ministry has spent Rs 2.40 billion – the highest among the ministries – whereas province-wise, a total of Rs. 2.002 billion has been allocated for the seven provinces under Covid-19 response fund, out of which Rs 1.3 billion has been spent so far. “Out of a total of Rs 4.83 billion allocated for the local governments, some Rs. 2.98 billion has been spent to fight the transmission of coronavirus infection,” Thapa explained.
The CCMC directorate has publicised the details of expenses made by various government agencies, money spent on procuring medical supplies including mobilization of human resources, development of quarantine facilities as well as other health infrastructures and miscellaneous expenses. According to the details, seven federal ministries have so far spent Rs 4.10 billion in response to Covid-19. “While the Ministry of Health and Population has spent Rs 1.58 billion, the Defence Ministry and Ministry of Home Affairs have spent Rs 2.40 billion and Rs 24.58 million, respectively. Similarly, the Ministry of Culture, Tourism and Civil Aviation has spent Rs 52 million, the Ministry of Urban Development Rs 26.97 million and the Ministry of Education, Science and Technology Rs 14.2 million so far.
The government has spent Rs 3.90 billion to buy medical supplies, Rs 1.12 billion to develop physical infrastructures, Rs 58.33 million to mobilize human resources, and Rs 135.59 million for developing quarantine facilities. Likewise, Rs 401.59 million was spent on miscellaneous purposes, according to the details.
Bagmati and Sudur Paschim provinces are among those provinces spending the highest amount of money in response to Covid-19. While Province 1 has spent Rs 193.56 million, Province 2 has spent Rs 133.94 million and Bagmati Province, Gandaki Province and Province 5 have so far spent Rs 136.7 million, Rs 154.21 million and Rs 77.93 million, respectively. Likewise, Karnali Province has spent Rs 239.28 million, Sudur Paschim Province has spent Rs 364.87 million so far.
The directorate claimed that this expenses does not include the details of the expenses made by various local bodies across the country. Government officials informed that they have asked all local bodies to furnish details of the expenses made so far in response to Covid-19.
CCMC directorate – issuing a press note yesterday – claimed that funds have been allocated under various headings by the government for the prevention and control of coronavirus infection. “Likewise, the provinces and local levels have been carrying out expenses from their funds in dealing with Covid-19 crisis and the details of which will be made public by the government soon.”

After huge pressure, government extends tax clearance date till June 21

The government has backtracked from its earlier decision – within 24 hour – on payment of individual and business taxes and deferred the deadline to pay taxes and submit tax details by 15 days to June 21 after a huge pressure from the private sector and the main opposition Nepali Congress (NC).
According to the new notice by the Inland Revenue Department (IRD) published today, the deadline is extended keeping in mind the nationwide lockdown and risk of coronavirus transmission. The government has imposed the lockdown till June 14 – by extending it for the eighth time since March 24 – to contain the spread of coronavirus. And the department yesterday published a notice ordering businesses and individuals to clear their tax dues by June 7 as in the normal times. The department – in the notice – asked businesses and individuals to submit the second instalment of income tax of the current fiscal year by mid-June and value added tax (VAT) and excise duty till mid-March and mid- April, respectively, by June 7. “The failure to meet the deadline for filing tax returns and clearing tax dues of previous months will result in charges,” the notice read.
But the notice only infuriated private sector, citizens and main opposition party. The main opposition party Nepal Congress – issuing a press note signed by party president Sher Bahadur Deuba – has urged the people to gently disobey the government diktat to clear tax by June 7, as the country is still under lockdown since last 72 days bleeding the economy. Nepali Congress alleged that the government has been terrorising private businesses, labourers, and farmers with tax compliance instead of introducing a special relief package to them.
The businesses have remained shut for almost two-and-a-half months since March 24, and the movement has been curtailed by the government, which is forcing the people to pay tax by June 7 within lockdown period, said an angry entrepreneur. The lockdown has been imposed till June 14.
After the criticism from different sectors of the society, the department in its new notice today said that the deadline to submit tax details, income details and payment of taxes has been extended to June 21. The department has extended the deadline to pay value added tax, excise duty, tax deducted at source (TDS) under income tax, education service tax, telephone ownership fee, and telecommunication service fee to June 21 from the previous deadline of June 7, according to a notice issued today by the department.
According to the revised decision, businesses and individuals are now required to submit the second installment of income tax of the current fiscal year by June 29, the new notice reads, adding that VAT and excise duty need to be submitted by June 21.
This is the third time that the government has extended the deadline to pay taxes as the country continues to remain in lockdown to prevent the spread of Covid-19, which has claimed nine lives and infected over 2,300 people across the country till date.
The infuriated private sector representatives – including Federation of Nepalese Chambers of Commerce Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Chambers of Commerce (NCC) – has criticised the government decision for exerting undue pressure on the private sector to clear taxes despite the continuation of lockdown.
The deadline extension followed a request from the private sector representatives to the finance secretary Shishir Kumar Dhungana during a meeting with Finance Ministry officials today morning. “The government decision to extend the deadline is a move towards a positive direction,” senior vice-president of the FNCCI Shekhar Golchha said, adding that the private sector has asked that the deadline be extended till the end of current fiscal year, until mid-July. “Most of the businesses are not in a position to pay taxes immediately as there is still a lack of cash flow due to the fact that the markets are closed.”
The VAT and excise duty are taxes that the business people have collected in the market but they have already been spent. “So, they need to raise cash from the market to pay the tax authority,” he added.
The government, on the other hand, is under pressure to mobilise revenue as the government coffer is almost empty, and from the beginning of the new fiscal year 2020-21, the government may not be able to pay salary to government staff due to huge deficit in revenue mobilisation because of its failure in collecting taxes.
According to the Finance Ministry, the government has only collected Rs 657 billion so far, against a target of Rs 967 billion by mid-June. “Though Dr Yuba Raj Khatiwada is the second lucky finance minister to present three budgets in a row – after 1990 – he has failed, for the second consecutive years, to mobilise the revenue and also spend budget,” sources at the Finance Ministry claimed that the stronger government – in the history of Nepal – led by KP Oli has failed to create business friendly environment and promoted ‘some businessmen’ for the benefit of the party. “The stable, stronger and powerful communist government is promoting crony-socialism rather than taking care of people, which has resulted in the revenue deficit since last two fiscal years after Khatiwada took charge of the Finance Ministry.”

Lawmakers ask to bring supplementary budget before regular budget

Lawmakers today demanded the government to bring supplementary budget – to mitigate the impact of the coronavirus – before the regular budget for the next fiscal year.
Commenting on the ‘Principals and Priorities of the Budget for the next fiscal year’ – presented by the finance minister Dr Yub Raj Khatiwada at the house yesterday – they asked the government to first bring immediate relief measures, through supplementary budget, as the economy has suffered a lot due to one-and-a-half month lockdown clamped to contain the spread of coronavirus.
The parliamentarians, on the occasion, also demanded the government to prioritise four sectors—employment generation, agriculture, health and the education—in the federal budget for the next fiscal year 2020-21.
They also said that as the coronavirus (Covid-19) pandemic is taking away jobs from thousands of Nepalis within the country and out in different labour destinations, the primary focus of the new budget should be creating jobs. “The government to hold adequate discussions within the House and outside before presenting the budget,” they said, adding that
The finance minister has to present the budget every year on Jesth 15, which falls on May 28 this year.
Dr Khatiwada will present the budget for next fiscal year 2020-21 in the Parliament on May 28, though the budget session has started late due to coronavirus pandemic. The government has escaped the pre-budget discussions, and holding the discussion from today before programmes and Policies to be presented by the president on May 15.
The lawmakers – of almost all the political parties in the House – has a unanimous view that the government should not set ambitious targets and be realistic in its budget focusing on resolving the problems created by the pandemic. The government has as always like in the normal times has targeted to get double digit growth, which it has failed to achieve in the last fiscal year and fiscal year too, and of course seems not possible in the next fiscal year also.
The incumbent government and finance minister – who is going to present the budget for the third year in the row – has repeatedly failed to not only achieve the growth target but also crack whip on inflation, and also create investment friendly environment. “The private sector that has already been under threat from the government and its machinery that have been directly involved in the extortion, has not been able to operate business but the government has ordered to pay the complete salary of last month and thus month too,” said an entrepreneur, who did not wanted to be named due to fear from the finance minister and the incumbent government that does not like to hear criticism. 
The government has failed to pay the salary to government staff, how can private sector – without operating industries – pay salary of the workers for two months without work, he said, adding that they have not been reaping huge profits as assumed by the public. “The government is taking loan from the development partners to pay salary to its staff, and how can the private sector pay salary to its workers without any support.”
On the occasion, Nepali Congress lawmaker Minendra Rijal, also the shadow finance minister, said that thousands of migrant Nepali workers, and also those inside the country, have lost their jobs. “The government must thus focus on creating jobs,” he said, adding that the government also does not have exact data of how many Nepalis are currently employed abroad, though estimates suggest the number could be in millions.
There are over 1.5 million Nepali youths in Malaysia, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait alone, according to the Migration in Nepal report. Likewise, some 3 million to 4 million people are employed in India. “The economic slowdown in these source countries has already hit the job market hard,” he said, adding that some 3,500 Nepali workers have registered to return home from Kuwait. “More unemployed Nepali migrant workers means more drop in remittance inflow, which will lead to decline in the import and affect revenue mobilisation.”
Urging the government to bring a realistic budget, he also said that despite agriculture accounting for one third of the country’s economy, the sector still continues to be neglected.
The lawmakers also demanded to allocate at least 10 per cent of the budget for the agriculture sector from currently 5 per cent that comes to around Rs 1.53 trillion.
The lawmakers also called the government to empower the local governments to help them implement projects more effectively, spend more to upgrade healthcare system, and invest more to develop infrastructure for online studies.

NC’s forms ‘economy-focused special committee’

The main opposition party Nepali Congress (NC) today formed an ‘economy-focused special committee’ to study and analyse the impacts of Covid-19 in various sectors, and prescribe the government immediate, medium and long term solutions.
Issuing a press note today, NC informed that party president Sher Bahadur Deuba formed the committee under the coordination of the former finance minister Dr Ram Sharan Mahat. The committee comprises former finance ministers and state ministers and vice chairs in the National Planning Commission (NPC), the press note reads, adding that the committee includes former finance ministers Mahesh Acharya, Gyanendra Bahadur Karki, Dr Narayan Khadka, Dr Minendra Rijal, Chinkaji Shrestha, Deep Kumar Upadhyay, Bharat Shah, and Uday Shumsher Rana. “Likewise, Dr Prithivi Raj Ligal, Dr Shankar Sharma, Dr Jagadish Chandra Pokhrel, Dr Govinda Pokhrel and Dr Swarnim Wagle are also in the special committee.”
“The party will set its immediate vision and position regarding relief packages, short-term vision on the priorities of the upcoming budget and long vision on national economy post-pandemic,” the press note reads.

NRNA to elect new team for next term

The three-day Global Conference of Non-Resident Nepali Association (NRNA) that started from Tuesday has seen more than 2,500 individuals from the Nepali diaspora in various countries. The Nepali diaspora has gathered in Kathmandu also for the election of the new NRNA team for the next two-year term.
The incumbent vice presidents Kumar Pant – claimed to be near the ruling party NCP (NCP) – and Kul Acharya – claimed to be near the Nepali Congress (NC) – are eyeing the post of president to become the sixth president of the NRNA after incumbent president Bhaban Bhatta, who is the fifth president of global Nepalis.
As the NRNA has been blamed for being a hostage of political parties, the incumbent NRNA president Bhaban Bhatta does not agree. “Since the NRNA has become bigger by the day, more people are joining it,” he said, adding that the institution has people from not only all the politcal parties but also caste, creed and race. “But we have unity in diversity as we are for Nepalis around the globe.”
Bhatta justifies the interest of political parties and government as the NRNA has become a global institution with presence in over 50 countires across the world.
The decision of NRNA’s founding president and patron Dr Upendra Mahato to boycott the convention has flamed the rumour that there is political interference, though Bhatta rejects both the charges. “Neither NRNA’s founding president and patron Dr Upendra Mahato boycotted the convention nor there is political interference in NRNA election,” he said, reiterating to the NRNA’s original vision of working for the development and betterment of the country. “The prime objective of NRNA is to bring in knowledge, expertise and capital of Nepali diaspora and utilise them for Nepal’s economic and social development.”
However, some of the candidates for different top posts at NRNA executive committee are blamed to be guided by politics – with some aligned with the ruling party Nepal Communist Party (NCP) and others inclined towards the opposition Nepali Congress (NC).
Though, the voting for the new executive committee of NRNA is underway, the results are expected to be out by Friday morning as the ruling party NCP iis blamed for trying to rig the election in their favour.
NRNA has been established in a bid to support Nepal’s development and growth some two decades ago.

Nepal and China sign and exchange 20 agreements

Nepal and China signed 18 memorandums of understanding (MoU) and two letters of exchange – to promote bilateral cooperation in multiple fields including physical infrastructure development, railroad connectivity and investment – today on the concluding day of Chinese President Xi Jinping's two-day state visit to Nepal.
The signing of 18 MoUs and two Letters of Exchange in regard with having a partnership with government bodies including the Ministries of Home, Foreign Affairs, Physical Infrastructure and Transport, Agriculture and Livestock Development, Industry, Commerce and Supply, and the Kathmandu metropolis were witnessed by Prime Minister KP Sharma Oli and Xi today morning.
Foreign ministers from Nepal and China as well as finance, home and foreign secretaries and secretaries at related ministries and the Chinese ambassador to Nepal Hou Yaunqi signed and exchanged the MoU and letters of exchange, on the occasion.
Xi arrived in Kathmandu yesterday in a first visit by a sitting Chinese president to Nepal in over two decades.
The two sides – while recalling the MoU signed between the two countries on June 21, 2018 on Cooperation in Railway Project – agreed to conduct the feasibility study as outlined in the MoU signed on October 13, 2019, which will lay an important foundation to launching the construction of the Cross-Border Railway, a joint statement issued on the occasion, reads, adding that both sides also reiterated their commitment to extend cooperation on Kathmandu-Pokhara-Lumbini Railway Project. “The two sides welcomed the reopening and restoration of the freight functions of the Zhangmu-Khasa port, and will optimise the functions of the Jilong-Keyrung port and open the Lizi-Nechung port at the earliest possible time and build necessary infrastructure on the Nepali side of the border.”
Both sides would also keep implementing the Protocol concerning the Utilisation of Highway in Tibet of China by Nepal for Cargo Transport and the Protocol to the Agreement on Transit Transport. On the basis of maintaining the long-term operational condition of the Araniko Highway, both sides agreed to cooperate on upgrading and reconstructing the highway on a priority basis in a step-by-step manner.
The Chinese side conveyed its readiness in initiating the repair of Syaphrubesi-Rasuwagadhi Highway, the statement reads realising the importance of enhanced level of connectivity between the two countries, the two sides agreed to proactively cooperate on the feasibility study for the construction of tunnels along the road from Jilong-Keyrung to Kathmandu. “The Chinese side also noted the request made by the Nepali side for the construction of Kimathanka-Leguwaghat section of the Koshi Highway and agreed to consider this project in future cooperation plan and requested the Nepali side to submit a detailed proposal.”
According to the joint statement, the two sides reiterated their commitment to undertake study on the possibility of cooperation, as reflected in the Joint Statement issued in Beijing on June 21, 2018, for the development of the three North-South corridors in Nepal – Koshi Economic Corridor, Gandaki Economic Corridor and Karnali Economic corridor – in order to create jobs and improve local livelihood, and stimulate economic growth and development. “The Chinese side will also extend assistance for training Nepali technical human resources in the field of railway, road and tunnel engineering as well as inland waterways and shipping.”
Both sides welcomed the consensus reached by the civil aviation authorities of the two countries on expanding the air rights arrangements, under the framework of which the airlines of both countries are encouraged to launch-operate more direct air services. Both sides will coordinate closely to speed up the construction of the Pokhara International Airport so that it would start operation at an early date.
The two sides expressed satisfaction over the successful commercial operation of Nepal-China cross-border optical fiber cable and agreed to further strengthen cooperation on information and communications for mutual benefit.
Both agreed to strengthen cooperation in various fields of economy including trade, tourism, investment, capacity of production and improving people’s livelihood so as to promote mutual development, reads the statement. “Under the framework of Nepal-China Joint Commission on Economy and Trade, the two sides will establish a working group on investment cooperation and a working group on trade led by secretary-vice minister-level officials or their designates so as to facilitate bilateral investment and trade.”
The Chinese side welcomed the Nepali side to participate in the National Exhibition of the Second China International Import Expo to be held in Shanghai in November 2019.
Both sides will hold comprehensive discussions with a view to strengthening trade relations between the two countries. The Chinese side will take positive measures to expand Nepal’s export to China. The Chinese side will consider providing technical support for the establishment of a multifunctional laboratory in Nepal and extend necessary cooperation to make Tatopani Frontier Inspection Station at Larcha fully functional. Nepal will facilitate the Chinese banks to open their branches and other financial services in Nepal with a view to facilitating trade and investment between the two countries. Both sides will complete their internal procedures at the earliest time for the operationalisation of the Protocol to the Transit Transport Agreement and try their best to implement it at an early date.
Both sides welcomed the signing of the Protocol on Phytosanitary requirements for the Export of Citrus Fruits from Nepal to China and agreed to conclude MoU on Cooperation on Import and Export of Food Safety at the earliest, it reads, adding that the two sides will continue cooperation on production capacity and investment according to the principles of ‘dominated by enterprises, respecting business principles, adhering to market-orientation and following international common practice’. “On the basis of the MoU on Energy Cooperation between the Ministry of Energy, Water Resources and Irrigation of Nepal and the National Energy Administration of the People’s Republic of China signed on June 21, 2018, both sides will bring into full play the Joint Implementation Mechanism (JIM) on Nepal-China Cooperation in energy sector, to carry out exchanges and cooperation in the fields of hydropower, wind power, solar power, biomass energy and other kinds of new energy as well as grid systems, etc.”
Both sides agreed to jointly carry out Nepal-China Electric Power Cooperation Plan and complete it within one year, apart from taking this Plan as an important reference for the next step of bilateral electric power cooperation and promote its implementation.
The Chinese side attached great importance to the aspiration of the Nepali side to establish a multidisciplinary Madan Bhandari University for Science and Technology as a mark of respect to People’s Leader Late Madan Bhandari and will extend support at the earliest date after the Nepali side chooses a suitable site for the university. Both sides will continue their discussion on the basis of the report to be submitted by the site visit working group of the Chinese side.
Likewise, the Chinese side is willing to expedite the project of improving the quality of supplied water in Kathmandu.
The Chinese side noted Nepal’s proposal on Integrated Development, including resettlement of scattered population in the Himalayan Region of Nepal. The Chinese side is willing to share experiences and consider cooperating with the Nepali side on this proposal.
Recognising that Mount Sagarmatha -Zhumulangma is an eternal symbol of the friendship between Nepal and China, the two sides will promote cooperation in different fields, including addressing climate change and protecting the environment. They will jointly announce the height of the Mount Sagarmatha-Zhumulangma and conduct scientific researches.
Both sides expressed satisfaction with the signing of the Agreement between the Government of Nepal and the Government of the People’s Republic of China on Boundary Management System, which will improve the level of boundary management and cooperation for both sides. They were also satisfied with signing the Treaty on Mutual Legal Assistance in Criminal Matters and expressed hope for an early conclusion of the Treaty on Extradition. The two sides agreed to strengthen cooperation between the law enforcement agencies on information exchanges, capacity building and training. In the next 3 years, China will offer 100 training opportunities to the Nepali law enforcement officers each year. With a view to promoting cooperation in security sector, the two sides will continue to strengthen cooperation in the exchange of visits of the security personnel, joint exercises and training, disaster prevention and reduction and personnel training.
The two sides agreed to promote exchanges and cooperation in education, culture, tourism, traditional medicine, media, think tanks and youth at different levels. The Chinese side will offer the Nepali side 100 Confucius Institute Scholarships.
The Chinese side supports the Nepali side to hold the activity of Visit Nepal Year 2020, welcomes the Nepali side to participate in the travel marts held in China and is willing to facilitate Nepal’s promotion on tourism in China. The Chinese side will hold the 9th China Festival and the 4th Kathmandu Cultural Forum in Nepal, and continue to encourage the Chinese Cultural Centre and the Confucius Institute to promote Nepal-China cultural exchanges and cooperation.
The two sides welcomed that Kathmandu of Nepal and Nanjing of China and Butwal Sub-Metropolitan City of Nepal and Xi’an city of China had developed friendship-city relations. The Chinese side consented to the establishment of Nepal’s Consulate General in Chengdu, Sichuan Province of China.
Both sides agreed to revitalise the existing mechanisms between the two countries to further strengthen relations and advance mutually beneficial cooperation in various fields.
Both sides agreed to strengthen cooperation in the United Nations and other multilateral fora and to safeguard common interests of developing countries. Both sides exchanged fruitful views on promoting collaboration and strengthening cooperation in regional issues and agreed to support each other on matters of mutual interest. The two sides expressed firm commitment to the multilateral trading regime and work for a more open, inclusive and balanced economic globalization with shared benefits.
Both sides held that President Xi Jinping’s State visit, on the historic occasion of the 70th anniversary of the founding of the People’s Republic of China, to Nepal marked the beginning of a new era in Nepal-China relations and served as an important milestone in the history of friendly cooperation between the two countries. The Chinese side would like to extend its sincere gratitude to the Government of Nepal and its people for their warm and friendly reception.
Nepal and China decided to elevate Nepal-China Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship to Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity, according to the joint statement.
The two sides also expressed satisfaction over the fact that since the establishment of diplomatic relations between the two countries in 1955, Nepal-China relationship has withstood changes of the international situation and has been growing in a consistent, steady and healthy manner, which sets a model of peaceful coexistence between the two countries of different size, reads the joint statement. “Both sides recognised that the bilateral relationship between the two countries is characterized by equality, harmonious coexistence, ever-lasting friendship and comprehensive cooperation.”
Both sides decided to, on the basis of the Five Principles of Peaceful Coexistence, Charter of the United Nations and principles of good neighborliness; elevate Nepal-China Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship to Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity.
Likewise, The two sides agreed to respect each other’s independence, sovereignty and territorial integrity, and respect and accommodate each other’s concerns and core interests, it reads. “The two sides will adhere to good neighboring policy and deepen overall cooperation in a win-win manner, so as to achieve mutual benefit and pursue stability and development together.”
Nepal and China take the Belt and Road Initiative (BRI) as an important opportunity to deepen mutually-beneficial cooperation in all fields in a comprehensive manner, jointly pursue common prosperity and dedicate themselves to maintaining peace, stability and development in the region, it reads, adding that the bilateral relationship between Nepal and China has entered a new phase.
The Nepali side, on the occasion, reiterated its firm commitment to One China policy, acknowledging that Taiwan is an inalienable part of the Chinese territory and Tibet affairs are China’s internal affairs, and the determination on not allowing any anti-China activities on its soil. The Chinese side also reiterated its firm support to Nepal in upholding the country’s independence, sovereignty and territorial integrity, and its firm support and respect to Nepal’s social system and development path independently chosen in the light of Nepal’s national conditions.
The two sides, on the occasion, agreed to intensify implementation of the MoU on Cooperation under the Belt and Road Initiative (BRI) to enhance connectivity, encompassing such vital components as ports, roads, railways, aviation and communications within the overarching framework of trans-Himalayan Multi-Dimensional Connectivity Network with a view to significantly contributing to Nepal’s development agenda that includes graduating from LDC at an early date, becoming middle income country by 2030 and realising the SDGs by the same date.
President of the People’s Republic of China Xi Jinping – at the invitation of President Bidya Devi Bhandari – paid two-day state visit to Nepal on October 12-13 October. President Xi and the Chinese delegation departed for Beijing on today afternoon.
During the visit, President Xi met with President Bhandari, held talks with Prime Minister K P Sharma Oli and attended the welcoming banquet by President Bhandari. While addressing a banquet hosted by Bhandari in honour of Xi yesterday evening, the Chinese President announced Rs 56 billion economic assistance for Nepal for the next two years from 2020 to 2022.
Before the banquet, Xi held talks with Nepali Congress (NC) President and former prime minister Sher Bahadur Deuba. During the meeting, Deuba appreciated Chinese investments that go towards Nepal’s development efforts.

No Extradition Treaty during Chinese President Xi visit

As the diplomatic community and political parties in Kathmandu show serious concern about the government’s ‘plan’ to sign the Nepal-China Extradition Treaty during the high level visit from China this week end, Nepal seems to back out from its plan.
“The understanding about China pressing Nepal to sign the Extradition Treaty has raised eyebrows in Kathmandu because it needs many rounds of transparent discussions before signing,” Nepali Congress (NC) leader and former foreign minister Dr Prakash Sharan Mahat said.
Remembering that Nepali Congress (NC) has had a cordial relations with China since the time of Nepal’s first elected Prime Minister BP Koirala – an ardent sociologist and the founder of Nepali Congress Party – Mahat said that Nepal always has adopted one-China policy but the Extradition Treaty needs to be discussed thoroughly before signing.
The diplomatic circle in Kathmandu, however, is worried that the treaty could be used by China to extradite Tibetans from Nepal. There are estimated 20,000 Tibetan refugees in Nepal – mostly in Kathmandu and Pokhara – at present. Some of them, who are suspected to be involved in Free Tibet movement, according to the Nepal Police, have already been arrested before the Chinese President’s visit. But the US and European Union (EU) take it as a gross violation against the human rights, and Nepal’s international commitment in the international agreements.
Taking part in a meeting in Baluwater, the official residence of the Prime Minister today, former prime minister and Nepali Congress (NC) president Sher Bahadur Deuba also suggested the government not to sign Extradition Treaty in haste as it needs wider consultations.
The meeting called by Prime Minister K P Sharma Oli also discussed on China-backed Belt and Road Initiative (BRI) and US-backed Indo-Pacific Strategy (IPS). The former prime ministers, and foreign experts present in the meeting reminded the government on Nepal's historic stance of non alignment. “Nepal should take advantage from both BRI and Indo-Pacific Strategy (IPS), and develop itself as a trading bridge between India and China,” suggested former premier Dr Baburam Bhattarai, on the occasion.
However, another former prime minister, who was in the meeting reminding what happened in Hong Kong after the proposals to allow extradition to mainland China, said that Nepal needs to follow the international commitments and agreements it has already signed before signing any bilateral agreements that could undermine the country's judicial independence and endanger rights of refugees especially Tibetan refugees. “The Extradition Treaty may ruffle many feathers,” he suggested.
Meanwhile, NC stalwart and former finance minister Dr Ram Sharan Mahat, wishing a historic success to President Xi visit to Nepal, said that Chinese assistance should focus on Nepal’s development, prioritise based on felt needs in power sector, road connectivity, technology transfer, investment and export trade, rather than wishful thinking without techno-economic appraisal.
However, foreign minister Pradeep Kumar Gyawali – during the meeting – briefed about the Nepal’s agenda. “Nepal has connectivity on top,” he briefed.
“The shopping list includes Kerung-Kathmandu Railway, physical infrastructure upgradation at the Kimathanka and Korala border, upgradation of Rashuwagadi customs and road to Kathmandu, Tatopani customs and road to Kathmandu, Tamor Hydropower and also the Madan Bhadari University,” another former prime minister, who took part in the meeting said, without wanting to be named. “Apart from the pacts, Beijing has sent a signal that there will be a big-surprise during Xi visit.”
According to a preliminary study, the 80-km long Kerung-Kathmandu cross border railway is estimated to cost Rs 300 billion, and will take 8 years to complete.
However, a Chinese team will visit Kathmandu tomorrow to finalise the drafts of agreements that are going to be signed in presence of Chinese President Xi’s visit, a high profile visit from northern neighbour after 23 year since Jiang Zemin visited in 1996.
Accepting the friendly invitation of President Mrs Bidya Devi Bhandar, the President of the People’s Republic of China Xi Jinping is paying a two-day state visit to Nepal on October 12 and 13.

Nepal waits to seal Kerung-Kathmandu railway deal during Chinese President’s visit

Nepal is waiting to sign an ambitious Kerung-Kathmandu cross-border railway agreement during the visit of the Chinese President Xi Jinping this weekend.
The Foreign Ministry today confirmed the Chinese President’s two-day state visit to Kathmandu accepting the friendly invitation of President Mrs Bidya Devi Bhandari. Xi will be coming to Nepal on October 12.
“The historic visit of the Chinese President will also see signing of Kerung-Kathmandu Railway agreement," said prime minister KP Sharma Oli’s foreign affairs advisor Dr Rajan Bhattarai.
“The President of the People’s Republic of China Xi Jinping is paying a state visit to Nepal on October 12 and 13,” he said, adding that during the visit, Xi will meet with President Bhandari, who will host a banquet in honour of the Chinese president and his delegation. “President Xi will hold delegation level official talks with Prime Minister KP Sharma Oli, following the talks, both the leaders will witness the signing of bilateral agreements and memoranda of understanding.”
One of the key agreements the Prime Ministers of both the countries will witness is much-talked about Kerung-Kathmandu Railway agreement, Bhattarai said.
However, the main opposition Nepali Congress (NC) leader and former foreign minister Dr Prakash Sharan Mahat, welcoming the high level visit from China – after 23 years since Jiang Zemin visited in 1996 – said that the Kerung-Kathmandu Railway should be constructed in Chinese grant not loan. “Kerung-Kathmandu Railway is important but more important is the road connectivity to bridge the widening trade deficit of Nepal with China,” he said, adding that the all-weather road connectivity between the two neighbours is the need of the hour, and investment (through loan) in cross border railway will not be economically feasible at present.
There are two schools of thought among Nepali intelligentsia at present, either to construct the Kerung-Kathmandu Railway in Chinese Loan or grant. The one, who thinks China’s Belt and Road Initiative (BRI) is a debt-trap, opines that the Kerung-Kathmandu Railway is not economically feasible and Nepal will fall in Chinese debt trap. But the Nepal Communist Party (NCP) government – also blamed for leaning towards north – has been using the Kerung-Kathmandu Railway agreement as its key to political achievement since it has failed to perform since it came to power 2 years ago.
Different Chinese officials have also repeatedly said that the detailed project report (DPR) of Kerung-Kathmandu railway will take a lot more time to materialise due to technical, engineering and geological reasons. China is yet to connect its railway to Sigatse, from where railway can be connected to Nepal-China broder Kerung to further connect to Kathmandu.
However, a joint communiqué issued after the conclusion of the Second Belt and Road Forum for International Cooperation in Beijing in April had incorporated the Nepal-China Trans-Himalayan Multi-Dimensional Connectivity Network and Nepal-China cross-border railway.
Xi will be flying to Kathmandu from Mamallapuram near Chennai in India where the Chinese President and Indian Prime Minister Narendra Modi will be meeting on October 11 and 12 for the second ‘informal summit’ after the Wuhan Summit last April.
The press note from the Foreign Ministry also stated that the Chennai informal summit will provide an opportunity for the two leaders to continue their discussions on overarching issues of bilateral, regional and global importance.

Central bank mulls stricter security policy

The central bank is mulling to introduce stricter cybersecurity policy as the Saturday’s hacking on various ATMs in Kathmandu have exposed significant security vulnerabilities in the Nepali banking system.
The central bank is amending its cyber security directive making banks and financial institutions (BFIs) adopt sophisticated technology to prevent the sporadic cyber and malware attacks in the banking system. Some Chinese nationals stole millions from ATMs of different banks few days ago also due to poor IT security among BFIs to cope with cyber and malware attacks, which is not the first time in Nepal.
The central bank will introduce a few provisions for BFIs related to cyber security as soon as the investigation on Saturday’s banking heist concludes, the central bank said, adding that the BFIs should be aware of such cyber attacks and adopt sophisticated technologies.
The central bank has also formed a probe committee led by head of Department of Payment System at the Nepal Rastra Bank (NRB) Bam Bahadur Mishra to investigate the ATM Freud. “The committee will prepare its preliminary report by midnight today and submit it to the central bank by tomorrow,” he said, adding that the Chinese hackers have withdrawn substantial amount of money from those ATM boths. The central bank has, however, earlier said that the the BFIs have notified the regulator that the hackers have withdrawn Rs 16.87 million in Nepali currency from ATM cards of different banks and Rs 10.5 million Indian Currency (IC) from ATM booths in India through the use of Nepali ATM cards.
The Nepali ATM cards are used in India also.
The Police claimed that it has recovered around Rs 12.63 million from the five Chinese nationals and suspected rest of the cash looted from Nepal have been carried away by absconders.
“But the details of the heist and the amount withdrawn by hackers will be available only after the digital forensic test, which will take more than a week,” Mishra added.
The hackers, according to Police, used electronic cards of at least six banks – NIC Asia, Siddhartha, Janata, Global IME, Prabhu and Sunrise – and used them at ATMs of three banks – Nabil, Nepal Investment and Nepal SBI – to illegally withdraw the money frpm ATM booths as the BFIs failed to conduct periodic security audits, comply with the latest technology and invest adequately in digital security.
Police has arrested a Chinese citizen Zhu Lianang on Saturday night from a Nabil Bank ATM booth in Durbar Marg, while attempting to withdraw cash. Zhu named four other Chinese nationals, who were involved in stealing cash from ATMs by using cloned debit cards to breach processing systems.
Although the central bank has made it mandatory for banks to conduct information security audits, many banks have not been allocating an adequate budget for a proper audit.
Despite banks making record profits year after year, the BFIs are blamed for not investment in digital security. In the last fiscal year, commercial banks made a net profit of over Rs 60 billion, with almost all of them posting net profits of more than Rs 1 billion each, according to the central bank.
Although most banks have transitioned to debit and credit cards with microchips, there are still a few banks that still use magnetic strips in their cards, which poses a vulnerability. Banks fail to follow security protocols for Swift and governance risk compliance systems for the Nepal Electronic Payment Systems (NEPS) – a local interface that allows transactions of money deposited in one bank using cards issued by other member banks – which should also have management oversight and an independent audit system.
Nepali BFIs currently use different types of software including Finacle, Temenos T24 and different editions of Pumori Plus.

Chinese nationals hacked ATM systems and steal money

Nepal is increasingly becoming a soft target for hackers from around the world as some Chinese hackers steal the money from ATM hacking the system yesterday night, but the depositors money in the banks is safe.
After Chinese nationals hacked ATM systems in Kathmandu, most of the banks have closed down their ATM services throughout the day today though some of them resumed their services in the evening.
The ATMs of over six banks had turned temporarily dysfunctional the whole day after a gang of six Chinese nationals hacked the banks' collective ATM system by hacking the system of Nepal Electronic Payment System (NEPS) Limited – an interface that allows the transaction of money deposited in a bank by using cards issued by other member banks – according to the Nepal Bankers Association (NBA). “The NEPS has incorporated 11 commercial banks, including Prabhu Bank, Sunrise Bank, Machhapuchchhre Bank, Janata Bank, Siddhartha Bank, Citizens Bank, NIC Asia Bank, Prime Bank, Nepal Bangladesh Bank and Global IME Bank, apart from seven development banks.”
While depositors’ money was not affected by Saturday night’s attack, the exact amount of money looted has yet to be calculated. “The Police confiscated Rs 12.60 million and around $10,000 along with 132 forged VISA debit cards, 17 authentic VISA cards, six mobile phones, a laptop and a data card but the actual figure is yet to be known,” informed the chief of Kathmandu Police Uttam Raj Subedi.
However, records show that a total of Rs 34.5 million was withdrawn illegally in the past two days, including Rs 10.5 million Indian Currency (IC) from India, according to the Payment Systems Department at the central bank. “The hackers used debit cards at least 700 times to withdraw money from ATMs.”
The central bank, through the Monetary Policy 2015-16, had directed Nepali banks and financial institutions to switch to cards equipped with microchips, as they are safer than ones with magnetic strips. Most banks have upgraded their cards to microchips. But the ATMs recognise both the magnetic cards and cards with microchips due to transition of the technology. The hackers took advantage of the weakness, according to a banker.
Five Chinese nationals allegedly involved in the ATM card forgery were arrested from Durbarmarg, Subedi said, adding that the hackers stole millions from the bank accounts of subscribers by forging ATM cards in various ATM booths. Police believe that Zhu and his accomplices used both real and cloned bank cards in a coordinated ATM cash-out attack, where hackers breach a bank or payment processor’s systems and then use bank cards to withdraw millions in a short amount of time.
After arresting – on Saturday night – Zhu Lianang from a Nabil Bank ATM booth in Durbar Marg while trying to withdraw cash, acting on a tip-off, the Police interrogated him, who withdrew thousands in cash from the ATM using cloned debit cards. Upon interrogation, Zhu named four others – Lin Jianmeng, Luo Jialei, Zhu Liangang, Qiu-Yunqing and Chen Bin Bin, all Chinese citizens – as complicit in the hacking spree.”
The Police also seized dozens of ATM cards from the Chinese nationals.
“The Police will further launch an investigation against the accused in collaboration with banks and central bank,” Subedi said, adding that the Chinese nationals landed in Nepal on August 30 – according to their passports – and were planning to return on September 2, which shows that their sole intention was to steal cash.
Those arrested will be taken to court and kept in judicial custody. If convicted they could serve up to five years behind bars, including having to pay a cash penalty equal to the amount they robbed, according to the Police.
Following the incident, some banks urged their customers and staff not to use their debit cards on ATMs operated by other banks.
Meanwhile, the central bank has formed a committee to investigate the attack.
This is, however, not the first time that the foreigners got arrested in ATM forgery in Nepal. Earlier, two Bulgarian nationals were arrested after they were found to be involved in stealing money from ATMs Pokhara in March 2017. Likewise, in April 2017, four Moldovans were also arrested from Thamel on charge of hacking ATM cards and stealing money from bank clients’ accounts the same year. That same day, a Russian national was arrested while stealing money from a Nepal Investment Bank ATM in Durbar Marg. According to the Central Investigation Bureau (CIB) under Nepal Police, in the last seven years, police have altogether arrested 24 people, 18 of whom were foreigners. “Nepalis have mostly been found assisting foreign hackers.”
As hackers are always in search of countries with weak security systems all over the world, security systems should be upgraded periodically, according to the central bank.

Industrialist Golchha passes away

Former president of Federation of Nepalese Chambers of Commerce Industry (FNCCI) and vice chair of Golchha Organisation Diwakar Golchha passed away Tuesday night while undergoing treatment in India. He was 67 and undergoing a kidney transplant in Chennai. He is survived by his two sons.
The Golchha organisation that owns Hulas CGI sheets, Wires, Shree Ram Sugarmill and many more is one of the leading business organisation in Nepal and has contributed to the industrialisation of Nepa. Golchha, also the former vice president of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), was a parliamentarian in the first Constituent Assembly (CA) in 2008 from Nepali Congress (NC) party. The elder brother of its incumbent first vice-president Shekhar Golchha, Diwakar was elected to the first Constituent Assembly (CA) in 2008 by Nepali Congress (NC) through proportional representation system.
His body will be brought to Kathmandu on Wednesday and will be cremated on Thursday, according to the family.
Meanwhile, Nepali Congress has expressed grief on the passing away of industrialist Golchha. Issuing a press note, the NC said that Golchha's demise is a huge loss to the country's industrial sector. "The country has lost honest and competent industrialist," the NC said in the press note. The party has also paid tribute to the departed soul while expressing condolence to the bereaved family members and relatives.

Tea estate workers in east demand minimum wages

Tea estate workers in the eastern region started protest against factory owners as they have not implemented the monthly minimum wage and social security scheme, though tea factory owners have been claiming that the rule is not applicable to the tea industry as it requires seasonal workers only, not full time as in other industries.
The new labour and social security laws have guaranteed the minimum wages and social security to the workers. The government has made it mandatory for employers to pay industrial workers a minimum wage of Rs 385 daily and create a social security fund by this fiscal year but tea factories have not yet implemented the rule. However, the tea factory owners are complaining that the tea industry should not be in the 'industrial category' as it requires only seasonal workers.
The workers have intensified their protest against tea factory owners for not implementing the Labour Act, according to the central president of the Nepali Congress-affiliated Nepal Tea Estate Workers Association.
The tea factory owners have been paying their workers only Rs 278 for the last nine months – claiming that they are seasonal workers – through the workers have been demanding the government fixed the minimum daily wage at Rs 385 for industrial workers.
Only two tea factories in Dhankuta and three in Ilam have implemented the new law, according to the president of All Nepal Tea Workers Association. The government had formed a high level committee to study the tea sector last year. Its report has not yet been made public.
The Nepal Tea Producers Association said that it would be forced to shut down the factory if the industries implemented the law and paid the minimum wages fixed by the government. However, the tea producers claimed that the tea industry globally had separate labour laws. The industry is governed by the Tea Labour Regulation 1994.
According to the new Labour Act, employers require to provide a provident fund equal to 10 per cent of the basic salary for temporary employees and bonus. The previous law had provisioned a 5 per cent provident fund but only to permanent workers. There are nearly 50,000 tea workers in five districts in the eastern region.

Architect of social security programme, Adhikari no more

Architect of the elderly allowance and local level empowerment programme former deputy prime minister and finance minister Bharat Mohan Adhikari breathed his last at Dhumbarahi-based Hospital for Advanced Medicine and Surgery (HAMS) today at 9.35pm.
Adhikari (82) – who was undergoing treatment for heart and respiratory problems at HAMS – is survived by his wife and three daughters.
HAMS Hospital – issuing a press note – confirmed the news late in the evening. "We are very sad to announce that Bharat Mohan Adhikari, who was undergoing treatment at this hospital for the last 23 days, has passed away at 9:35 pm today,” the press note reads.
"Adhikari breathed his last at 9:35 pm," HAMS in its press note further reads, adding that Adhikari died due to multiple organ failure. "Though, his condition had improved a few days ago, his condition began to deteriorate three days ago."
Earlier today afternoon, the hospital - in a statement -- has also said that Adhikari had developed symptoms of multiple organs failure.
The senior NCP leader Adhikari – who also served as deputy prime minister twice – was admitted to the Intensive Care Unit (ICU) for the past few days following lung and heart-related complications.
Adhikari – a four-time finance minister – was a permanent resident of Morang district and the brother of former prime minister Man Mohan Adhikari. Born in Bhramarpur of Mahottari on May 4, 1936, he was a four-time member of parliament from Morang district. During his political career, Adhikari also worked as the then CPN-UML’s deputy parliamentary party leader and transportation minister.
However, he was popular – during his tenure as the finance minister in the cabinet of prime minister Man Mohan Adhikari in 1994 – for introducing the 'Aafno Gaun Aafai Banau' programme, a development programme aimed at developing villages across the country, giving them the authority to select local projects on their own. Under the programme, Adhikari allocated Rs 500,000 to each Village Development Committee (VDC), though the local bodies used to get money through the district bodies earlier.
Though the first elected communist government lasted only nine months, Adhikari's popular programme including the senior citizens social security programme was a policy departure as it started the realisation of the government's responsibility towards its senior citizen. Adhikari decided to provide Rs 100 as a monthly allowance to each citizen aged above 75 in his budget in 1995. Though opposition Nepali Congress (NC) party initially opposed Adhikari’s policy, saying that a distributive budget policy won’t help the country’s development in the long run as it would only be a huge burden on state coffers and suck huge resources, all the successive governments including the ones led by NC couldn’t stop the programme. The elderly allowance programme – over the time – ha widened the areas of the social security schemes introduced by Adhikari, and increased the allowance. The elderly allowance has become Rs 2,000 as of the current fiscal year.
Likewise, the 'Aafno Gaun Aafai Banau' programme was also a signature programme of the then CPN (UML) – currently Nepal Communist Party (NCP) – that has been cashed by the party even in the last election after almost two decade-and-a-half to gain the overhealming majority to form the incumbent KP Sharma Oli led government. Though the programme was a counter to Nepali Congress that had allocated 80 per cent budget to the village, it gave power to the local authorities to exercise their right to develop their place by themselves.
Adhikari also played an important role as a member of the constitution drafting committee in 1990 and was actively involved in drafting the Interim Constitution of 2007.
A liberal and moderate leader, Adhikari became full-time party leader after the 1990-movement, shifting his base from his native town of Biratnagar to Kathmandu. In Biratnagar, Adhikari used to practice law.
A Standing Committee member in then CPN-UML, Adhikari has announced his retirement from active politics in 2014 as the party – during the 9th General Convention – put 70 years of age limit to be involved in the active party politics.

US dollar above Rs 100, imported products to be more expensive

Imported products are again going to be more expensive as the US dollar again started becoming stronger against the Nepali currency.

The central bank has fixed Rs 100 per US dollar as reference exchange rate for selling for Tuesday. Likewise, the buying reference rate has been fixed at Rs 99.40.
Earlier, the greenback was as strong as Rs 100 on December 4 but Nepali currency had started gaining and remained below Rs 100. However, Nepali currency is pegged to Indian currency that has started losing ground against the greenback recently due to disappointing performance of Indian stocks, and stronger economies in the Asian region.

Share market rejoices over CA election results

Though it might take a week to announce the complete Constituent Assembly (CA) election results, the share market has already started reacting positively to the early results that has indicated liberal parties led-government.

Nepal Stock Market (Nepse) index jumped up by 33.88 points or 5.64 per cent to to close at 634.3 points today after the election results boosted the investors confidence.

"The market reacted positively to the election results," said Stock Brokers' Association Nepal president Narendra Raj Sinjapati.

"The sustained growth will however depend on the complete results that is expected in a week," he said, adding that the market also reacted positively due to the projection of liberal government.

From today's result, Nepali Congress (NC) is leading followed by CPN-UML, whereas the UCPN-Maoist that is not liberal towards capital market seems to become the third largest party.

However, the Nepse today suspended the day's trading after third circuit breaker, according to the regulation. The Nepse index jumped up over three per cent, immediately after the market opened, attracting the circuit breaker for 15 minutes. Likewise, the market again jumped up over four per cent and attracted the second circuit breaker for half an hour. The Nepse suspended the trading for the day after the index jumped up over five per cent.

"The peaceful CA election and indication of liberal parties-led government as the early results started coming from today morning brought confidence back to the investors," according to the market analyst Rabindra Bhattarai.

The insurance sub-group gained the highest 78.36 points to close the market at 1605.43 points, whereas hydropower subgroup gained 65.89 points followed by others sub-group 51.68 points and banking sub-group 38.42 points.

The shareholders of Bank of Kathmandu, NLIC and Nepal Bangladesh Bank earned some 10 per cent, whereas Nabil Bank's shareholders earned 9.96 per cent today.

Earlier the market index that was at the all-time high of 1175.38 points in August 2008 started plunging after the formation of UCPN-Maoist government led by then prime minister Puspa Kamal Dahal and finance minister Dr Baburam Bhattarai, who irresponsibly compared the stock market to 'gambling'.