Mobile-Phone Technology powers saving Surge in developing economies

More adults than ever in low- and middle-income countries now have bank or other financial accounts, leading to a rise in formal saving, according to the World Bank Group’s Global Findex 2025 report. This momentum in financial inclusion is creating new economic opportunities.  Mobile-phone technology played a key role in the surge, with 10 per cent of adults in developing economies using a mobile-money account to save, a 5-percentage point increase from 2021.

In 2024, some 40 per cent of adults in developing economies saved in a financial account in 2024, a 16-percentage-point increase since 2021 and the fastest rise in more than a decade. Higher personal saving, through banks or other formal institutions, fuels national financial systems, making more funds available for investment, innovation, and economic growth. In Sub-Saharan Africa, formal savings increased by 12-percentage points to 35 per cent of adults.

“Financial inclusion has the potential to improve lives and transform entire economies,” said World Bank Group President Ajay Banga. “Digital finance can convert this potential into reality, but several ingredients need to be in place. At the World Bank Group, we’re working on all of them. We’re helping countries get their people access to new or improved digital IDs. We’re constructing social protection programs with digital cash-transfer systems that deliver resources directly to those in need. We’re modernizing payment systems and helping to remove regulatory roadblocks—so that people and businesses have the financing they need to innovate and create jobs.”

Bill Gates, Chair of the Gates Foundation, one of the supporters of the Global Findex, on the occasion, said, “More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress. The case for investing in inclusive financial systems, digital public infrastructure, and connectivity is clear—it’s a proven path to unlocking opportunity for everyone.”

The Global Findex is the definitive source of data on global access to financial services, from payments to saving and borrowing. It highlights a major milestone in financial inclusion: nearly 80 per cent of adults worldwide now have a financial account, up from 50 per cent in 2011. But 1.3 billion adults still lack access to financial services. Mobile phones could help close this gap: about 900 million adults without financial accounts have a mobile phone, including 530 million with smartphones.

Investment in systems that enable instant money transfers, such as UPI in India or PIX in Brazil, could help expand financial usage. So could stronger consumer-protection frameworks and efforts to make phones and accounts more secure.

The Findex data also show that digital financial services are helping narrow the gender gap in account ownership: globally, 77 per cent of women have accounts compared with 81 per cent of men. In low- and middle-income countries, women’s account ownership nearly doubled, from 37 per cent in 2011 to 73 per cent in 2024.

For the first time, the report includes data on personal mobile-phone ownership and internet use.  Globally, 86 per cent of adults owned a mobile phone, including 68 per cent of adults with a smartphone, according to the Global Findex Digital Connectivity Tracker 2025 shows. The rising use of mobile phones for digital transactions, however, comes with new risks. Of the 4 billion adults in low- and middle-income economies who own a mobile phone, only around half use a password to protect their phone.

Across all developing countries, more adults are also using mobile phones or cards to pay merchants. In 2024, some 42 per cent of adults in low- and middle-income countries made an in-store or online digital merchant payment, up from 35 per cent in 2021. Three-quarters of adults, who receive government payments, and half of wage earners, receive their money into an account, a practice that helps reduce theft and ensure that money goes to the right person.

Regional Highlights

East Asia and Pacific: The region leads the world in digital connectivity and use of financial services: 86 per cent of adults have a smartphone and 83 per cent of adults have a financial account.

Europe and Central Asia: The region has the highest internet usage and social media engagement rates among developing economies. Mobile-phone ownership rates top 94  per cent.

Latin America and the Caribbean: About 70 per cent of adults have an account, and over half use their account digitally using a card or phone.

Middle East and North Africa: Account ownership rose to 53 per cent from 45 per cent in 2021. In 2024, some 17 per cent of adults save formally, up from 11 per cent in 2021.

South Asia: Nearly 80 per cent of adults own an account, although the high rate is driven by India, where 90 per cent of both men and women have an account and 65 per cent own a mobile phone.

Sub-Saharan Africa: Account ownership in Sub-Saharan Africa grew to 58 per cent of adults, up from 49 per cent in 2021. Use of mobile money accounts is at the highest levels in the world.

World Bank downgrades Nepal growth forecast to 4.5 per cent

The World Bank (WB) has downgraded the growth fore cast to 4.5 per cent in the fiscal year 2024-25, due to damage from floods and landslides, and to 5.2 per cent in the fiscal year 2025-26, as a result of persistent weakness in the financial system.

Amid increasing uncertainty in the global economy, South Asia’s growth prospects have weakened, with projections downgraded in most countries in the region, not only Nepal. Stepping up domestic revenue mobilization could help the region strengthen fragile fiscal positions and increase resilience against future shocks, says the World Bank in its twice-yearly regional outlook.

Likewise, Afghanistan economy is estimated to have grown by 2.5 per cent in the fiscal year 2024-25, slower than the pace of population growth and growth is forecast to increase only moderately to 2.2 per cent in 2025-26, whereas Bangladesh growth is expected to slow in the fiscal year 2024-25 to 3.3 per cent amid political uncertainty and persistent financial challenges, and the growth rebound in the fiscal year 2025-26 has been also downgraded to 4.9 per cent.

The World Bank has also downgraded the growth forecast of Bhutan to 6.6 per cent due to weak agriculture sector growth but upgraded in the next fiscal year to pick to 7.6 per cent due to expected strength in hydropower construction. 

Indian growth story is also expected to slow from 6.5 per cent to 6.3 per cent as in the next fiscal year, as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty, whereas the completion of a new airport terminal in Maldives will contribute to 5.7 per cent growth in 2025, although challenges in meeting external debt obligations continue to pose a downside risk, according to the World Bank.

In Pakistan, the economy continues to recover from a combination of natural disasters, external pressures, and inflation, and is expected grow by 2.7 per cent in the fiscal year 2024-25 and 3.1 per cent in the next fiscal year.

The Sri Lankan government has made further progress with debt restructuring, and a projected rebound in investment and external demand is expected to lift growth in 2025 to 3.5 per cent before it returns to 3.1 per cent in 2026.

Released today, the latest South Asia Development Update, Taxing Times, projects regional growth to slow to 5.8 per cent in 2025—0.4 percentage points below October projections—before ticking up to 6.1 per cent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space.

“Multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment,” said World Bank Vice President for South Asia Martin Raiser. “The region needs targeted reforms to address vulnerabilities such as fragile fiscal positions, backward agricultural sectors, and the impact of climate related shocks.”

Although tax rates in South Asia are often above the average in developing economies, most tax revenues are lower. On average during 2019–23, government revenues in South Asia totaled 18 percent of GDP—below the 24 percent of GDP average for other developing economies. Revenue shortfalls are particularly pronounced for consumption taxes but are also sizable for corporate and personal income taxes.

Tax revenues in South Asia are estimated to be 1 to 7 percentage points of GDP below their potential, based on existing tax rates, the report reads, adding that some of this shortfall is explained by the widespread informality and large agricultural sectors in the region. "However, even after taking this into account, sizable tax gaps remain, highlighting the need for improved tax policy and administration."

“Low revenues are at the root of South Asia’s fiscal fragility and could threaten macroeconomic stability, especially in times of elevated uncertainty,” said World Bank Chief Economist for South Asia Franziska Ohnsorge. “South Asian tax rates are relatively high, but collection is weak, leaving those who pay taxes with high burdens and governments with insufficient funds to improve basic services.”

The report recommends a range of policies to improve tax revenues by eliminating loopholes, streamlining tax codes, tightening enforcement, and facilitating tax compliance. This includes paring back tax exemptions; simplifying and unifying the tax regime to reduce incentives to operate in the informal sector; and using digital technology to identify taxpayers and facilitate collection. The report notes the potential of adopting pollution pricing, which could help address the high levels of air and water pollution while raising government revenues.

WePOWER launches National Chapter in Nepal to strengthen women’s roles in energy sector

The South Asia Women in Power Sector Professional Network (WePOWER) Nepal National Chapter (NNC) has been today officially launched at the World Bank Country Office in Kathmandu.

WePOWER is a coalition of almost 50 energy sector stakeholders—including utilities, universities and professional associations—and has national chapters in Bangladesh, Bhutan, India, Pakistan and Sri Lanka. The launch of the Nepal chapter is a crucial step in promoting new national and regional partnerships to foster skills for advanced jobs and leadership roles for women in Nepal’s energy sector, claims the World Bank.

“The World Bank is proud to serve as the interim secretariat for WePOWER and we are committed to creating more jobs for women in Nepal,"  World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka David Sislen said, adding that they want to see more women in the workforce and more women engaged in the critical policy dialogues that are shaping Nepal’s future.

The WePOWER NNC has five Nepali partners: Alternative Energy Promotion Center, Institute of Engineering-Tribhuvan University, National Association of Community Electricity Users-Nepal, Nepal Electricity Authority, and Nepal Engineers’ Association Women’s Committee.

"WePOWER is not just a network, it is also a commitment to empower women in energy," said chair of the NNC Dr Sangeeta Singh. "Through WePOWER, we are helping to promote equal representation and create a brighter, more sustainable, and resilient future for all."

Since 2019, when the first WePOWER Regional Conference was held in Kathmandu, WePOWER partners in Nepal have been instrumental in launching a range of gender-related activities benefitting 3,215 female professionals and students. These include hiring 214 women professionals, providing internships for 225 female students, organizing professional workshops/training for 1,584 women professionals, and supporting 32 women-friendly policies that benefitted 1,124 women professionals. Moving forward, the NNC will continue to support the participation of more women professionals in Nepal’s energy sector through its work plan.

“This milestone brings vital opportunities for women in the energy sector to build networks, develop leadership skills, and advance their careers," Country Director of the Asian Development Bank Nepal Arnaud Cauchois said, adding that the ADB is proud to support efforts that close gender gaps and promote women’s participation in key sectors.

Representatives from key energy sector utilities, development partners, private sector organizations, and academia attended the launch event. The event also included a roundtable discussion on how the NNC can foster skills for advanced jobs and leadership roles for women in Nepal’s energy sector. The speakers highlighted that the NNC has the potential to be a collective voice to advocate for change and push for more affirmative policies on caregiving, behaviour change, and other aspects that affect women’s abilities to take up leadership roles.

Disaster experts from Bhutan, Nepal and Pakistan convene in Islamabad to increase regional capacity to manage and respond rising risk in mountains

Professionals from key disaster management agencies from Bhutan and Nepal are in Islamabad this week to learn pioneering disaster risk reduction strategies from counterparts in Pakistan.

Senior experts from Nepal and Bhutan visited Pakistan’s state-of-the-art National Emergency Operations Center (NEOC), the country's Pakistan Meteorological Department (PMD) and the Global Climate Change Impact Studies Centre (GCISC).

The visit, jointly organised by Nepal-headquartered International Centre for Integrated Mountain Development (ICIMOD) and Pakistan’s National Disaster Management Authority (NDMA) aims to provide countries with hands-on exposure to cutting-edge technologies and approaches used by NDMA Pakistan for proactive disaster risk reduction and management, and to increase the region’s capacities to manage disasters, according to the ICIMOD.

“The 2022 floods were a turning point for Pakistan’s disaster strategy, highlighting the need for a centralized, coordinated response,” said chairman of NDMA Lieutenant General Inam Haider Malik, briefing delegates on the country’s ‘360-degree’ disaster management mechanism which addresses disaster assessments, response, recovery, and rehabilitation.

Malik expressed interest in not just sharing Pakistan’s experiences and resources with neighbouring countries, but also in the potential for Pakistan to learn Nepal and Bhutan, for instance on management of climate-induced tourism risks. 

He outlined several potential areas for ongoing collaboration including:  forming technical working groups to address mountain-specific disasters; building an inventory of critical disaster equipment that might be shared across borders in the events of major events; capacity-building in search and rescue, building on Pakistan’s urban search and rescue teams and leveraging Nepal’s participation in the upcoming International Search and Rescue Advisory Group (INSARAG) Asia Pacific Earthquake Response exercise in Lahore.

“Nepal and Pakistan have experienced large-scale seismic and climate-induced disasters in recent years,” said chief executive of National Disaster Risk Reduction and Management Authority (NDRRMA) Anil Pokhrel.

“Exchanges such as this help us learn from NDMA Pakistan’s transformation in disaster response, including in its state-of-the-art national emergency operations," he said, adding, "Jointly we can further simulations for glacial lake outburst floods, a common climate change threat faced by both countries, while charting areas for collaboration on disaster risk reduction management.”

On the occasion, Arun Bahadur Shrestha, who leads ICIMOD’s Climate and Environmental Risks work, said the exchange visit would help participating countries cope with future disasters, and stressed the importance of strengthening regional cooperation on DRR.

“ICIMOD’s goal is to foster knowledge-sharing and create a strong network of disaster management professionals across the region, as the challenges we face are shared, and so must be our solutions,” he said.  

“This initiative exemplifies the importance of regional cooperation, and we look forward to applying knowledge gained here to strengthen disaster management efforts in our respective countries,” said executive engineer, Disaster Prevention and Mitigation Division, Ministry of Home Affairs, Bhutan, Sonam Tshewang.

The visit comes after another deadly monsoon in South Asia: with the serious disasters hitting Nepal including mudslides, waterlogging, glacial lake outbursts and damaged infrastructure. Nepal’s monsoon preparedness plan estimated close to 400,000 households would be affected. Bhutan’s capital of Thimpu, meanwhile, faced unexpected landslides and floods.

A joint Simulation Exercise (SimEx), led by NDMA, focused on Glacial Lake Outburst Flood (GLOF) scenarios, including the Badswat GLOF in Gilgit Baltistan, Pakistan, and the Imja Glacier in Khumjung, Nepal.

Delegates from Nepal, Bhutan, and Pakistan actively participated in interactive discussions, sharing best practices from their respective disaster management strategies in response to the simulated scenarios.

The visit concluded with a policy-action dialogue on future strategies to address climate-induced disasters in Pakistan jointly organised by ICIMOD, the Ministry of Climate Change (MoCC&EC) and Environmental Coordination and the Civil Society Coalition for Climate Change (CSCCC).

India to import additional 251 MW of power from 12 Nepali hydropower projects

India’s designated authority for cross border trade has approved an additional 251 MW of power exports from 12 hydropower projects in Nepal.

"For the first time Nepal would be exporting power to Bihar through a medium term power sales agreement," according to a press note issued by the Indian Embassy in Kathmandu.

This takes the total allowed quantum from 690 MW from 16 projects to 941 MW from 28 projects, it reads, adding that even before this 251 MW approval, Nepal had already become a net exporter of electricity and net revenue generator in the last fiscal year selling Rs 16.93 billion worth of electricity. "In October 2021, India had approved 39 MW power exports from Nepal to India for the first time."

In less than 3 years, this figure has grown by more than 24 times.

Nepal first began its power exports by selling in the Day Ahead Market of the Indian Energy Exchange (IEX). Since then, India has also granted access to the Real Time Market (RTM).

Nepal Electricity Authority (NEA) has also entered into medium term power sales agreements with discoms in Haryana and Bihar, the press note adds. 

India has also opened the provision of counting hydropower imports from Nepal as a part of Hydropower Purchase Obligation (HPO) for buyers in India, which further incentivises buyers to purchase power from Nepal.

The Agreement for Long Term Power between India and Nepal envisages the sale of up to 10,000 MW power from Nepal to India in the next 10 years. This is the first year of the agreement and around 1000 MW exports have already been reached.

With the new development, Nepal is on track to become the leading hydropower exporter of the South Asia region. An agreement for sale of 40 MW power to Bangladesh has also been finalised and was planned to be signed on 28 July 2024 but got postponed due to recent political developments in Bangladesh.

Nepal's banking industry leads the region in female representation but significant barriers remain in having more women in leadership roles: IFC Report

With 46 per cent female representation in its entry-level workforce, the banking industry in Nepal is ahead of other countries in South Asia in achieving gender parity. However, only 23 per cent of senior management roles are held by women, according to a new IFC report that examines gender diversity at six leading banks in Nepal.

The study—among the first of its kind in the region— identifies opportunities that can enable more women to advance to senior roles in the banking industry in South Asia.

This multi-country study, Women’s Advancement in Banking in Emerging South Asian Countries, focuses on commercial banks in Bangladesh, Nepal, and Sri Lanka, where women constitute 30 per cent of the banking sector’s workforce compared to the global average of 52 per cent, the report reads, underlining how several barriers—inequitable hiring, inadequate professional development, lack of fair evaluations, sociocultural constraints, and others—curtail women’s career growth prospects across the region.

“Diversity, equity, and inclusion are central to IFC’s work values," IFC country manager for Nepal, Bangladesh, and Bhutan Martin Holtmann said, adding that through nuanced, data-driven insights emerging from this new report, it is hoped to deepen the industry discourse around steps that need to be taken to improve the status of women in the banking workforce across South Asia.

In Nepal, women hold 42 per cent of all positions in surveyed commercial banks. Comparable figures for  Sri Lanka and Bangladesh are at 38 per cent and 18 per cent respectively. In senior management roles, women hold 23 per cent of executive positions in Nepali banks, compared to 20 per cent in Sri Lanka and 12 per cent in Bangladesh, the report adds.

Past studies have shown that commercial banks that have 15 per cent or more women in senior manager or higher roles, command up to 33 per cent higher return on equity than banks that do not. A growing body of evidence further links an increase in women’s representation in organizations to better performance on business metrics.

Accordingly, IFC's key findings and recommendations intended to help industry actors—executive managers in commercial banks, policymakers, industry bodies, and investors—direct their efforts to boost women’s representation in leadership in the banking industry.

The report recommends targeted efforts in four areas by banks and industry actors. These include establishing clear organisational commitments for gender diversity, the support system for women to reach leadership positions, policy changes to ensure workplace safety, and initiatives to support women's professional development and work-life balance.

“Nepal has a strong legal framework to promote women’s economic participation in the country. And these provisions are more comprehensive than other countries in South Asia,” said Holtmann. “While these progressive policies have allowed Nepal to be a leader in the region, more needs to be done to increase the number of women in leadership positions and to reach gender parity.”

IFC’s $56 million loan to Global IME Bank in February 2024 earmarked 25 per cent towards supporting women-owned small and medium enterprises (SMEs). Additionally, IFC investment in various banking and financial sector clients such as NMB Bank, Sanima Bank, and Siddhartha Bank  have been able to provide economic opportunities, and financial services to SMEs including those led by women.

World Bank approves $100 million to strengthen healthcare system

The World Bank’s Board of Executive Directors – on Friday – approved $100 million in financing for the Nepal Quality Health Systems Programme operation, 

The Programme will improve the quality of healthcare services and increase the coverage of health insurance, and enhance the capacity of the healthcare system to prepare for and respond to health emergencies in Koshi and Gandaki provinces, according to a press note issued by the World Bank, Kathmandu Office.

“By prioritising and investing in health, Nepal can reap multiple benefits including improved health outcomes, increased productivity, and economic growth,” World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos said, adding that the World Bank supports Nepal’s goal to put quality at the core of health system policy and planning and service delivery.

The Programme will be implemented by the Ministry of Health and Population with the coordination of the Health Insurance Board at the federal level, and provincial and local governments in Koshi and Gandaki provinces to help achieve the strategic objectives of Nepal’s Health Sector Strategic Plan, 2022-2030. “These include enhancing efficiency and responsiveness of the health system, promoting sustainable financing and social protection in health, and promoting equitable access to quality health services,” the press note reads.

“The Programme supports the implementation of federalism and builds on Nepal’s first Programme for Results in the health sector to address the challenges of access and quality and to build a resilient public health sector,” practice manager for Health, Nutrition and Population, South Asia Region Dr Feng Zhao said, adding that the results achieved under this Programme have the potential for scale-up to other provinces.

The financing for the Programme is complemented by a $3.84 million grant from the Health Emergency Preparedness and Response (HEPR) Trust Fund. The HEPR Trust Fund supports eligible countries and territories to improve their capacities to prepare, prevent, respond, and mitigate the impact of epidemics on populations.

Improved performance key for development results: ADB director general Yokoyama

The Asian Development Bank (ADB) director general for South Asia Kenichi Yokoyama said improved portfolio performance is key for timely delivery of development results and securing higher and sustained concessional resource allocations.

“The Finance Ministry is proactively addressing issues to improve project implementation,” he said, speaking at the opening session of a 2-day country portfolio review meeting organised by the government and ADB to assess the progress of ADB-supported development projects today.

“Nepal needs to achieve at least $350 million to $450 million disbursement per year to be considered for higher concessional resource allocations based on ADB’s performance-based allocation system,” he said, adding that higher disbursement is doable with collective efforts of the government and ADB by pursuing higher implementation disciplines.

Finance Minister Dr Prakash Sharan Mahat chaired a session on sector and project performance, attended by secretaries of the government, senior officials, project directors, and staff from ADB’s Nepal Resident Mission. 

“We appreciate ADB’s support to Nepal’s development over the years,” said the finance minister Dr Mahat. “The government is committed to overcome the challenges related to project implementation and disbursements and improve capital expenditure for development impact on the ground for Nepali people.”

At a special ceremony held in conjunction with the meeting, revenue secretary Ram Prasad Ghimire presented awards to ADB-supported projects for their excellence in effective project management, gender equality, and social inclusion, environmental and social safeguards monitoring. The projects that were awarded include Urban Water Supply and Sanitation (Sector) Project, Bagmati River Basin Improvement Project-Additional Financing, SASEC Highway Improvement Project, Rural Enterprise Financing Project, and Power Transmission and Distribution Efficiency Enhancement Project. 

As of December 31, 2022, ADB’s active portfolio in Nepal stands at around $3.2 billion supporting a broad range of key sectors: energy, transport, agriculture, water and urban infrastructure and services, rural development and natural resources, health, and education, according to the multilateral development partner. 

“In 2022, the overall portfolio performance in Nepal was lower than expected affected mainly due to insufficient project staff and high turnover, challenges in contract management, delays in environmental and land clearances, and disruption of construction supply chain,” said ADB country director for Nepal Arnaud Cauchois. “Following the review, Finance Ministry and ADB will agree on specific actions to overcome the challenges and we are hopeful that project implementation and disbursement will pick up pace.”

Since the start of its operations in Nepal in 1969, ADB has provided about $7.6 billion in financial and technical assistance to the country. 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region.

Nepal still one of the most corrupt countries

Though the country is mired with massive corruption, Nepal improved its position slightly in the annual Corruption Perceptions Index – an annual flagship publication of Transparency International – released today by the Transparency International-Nepal (TI-Nepal).

Whereas the index revealed in January 2022 had shown Nepal in the 117th position among 180 countries, the latest index places Nepal in the 110th position, according to the anti-corruption watchdog. Position-wise, it is a seven-step leap, but the score has improved just slightly, to 34 from 33, according to the report.

Despite some improvement in score, Nepal remains in the category of countries with rampant corruption, TI-Nepal’s press note reads, adding that in South Asia, Nepal has been ranked below Bhutan (25th), the Maldives (85th), India (85th) and Sri Lanka (101st). Pakistan (140th), Bangladesh (147th) and Afghanistan (150th) are the only countries behind Nepal.

According to the TI’s worldwide report, Nepal has not been able to control corruption.

“Despite the slight improvement, Nepal is still in the category of the countries where corruption is prevalent,” the anti-corruption watchdog’s Nepal chapter’s press note reads.

“Transparency International Nepal appeals to the concerned parties for addressing the conflict of interest, ending impunity, implementing laws and making controlling agencies more effective, thereby promoting good governance,” the press note reads, adding that an improvement in the Corruption Perceptions Index can be expected in the future, if such efforts are meaningful.

“The import and export were decreased in 2022 as compared to 2021,” chairperson of TI-Nepal Padmini Pradhananga at a programme organized here today by TI-Nepal. 

“Nepal got more points in the survey of World Economic Forum due to decline in corruption relating to import and export,” she said, adding that Denmark is in the first position with 90 points while Somalia is in the last position with 12 points. “Of the 180 countries, 58 countries have received more than 50 points.”

Six different international organisations – World Bank, World Economic Forum, Global Insight, Bertelsmann Foundation, World Justice and Varieties of Democratic Project (V-Dem) – had carried out survey of CPI in Nepal.

The survey was carried out on various topics including work performance of public office holders, access of civil society in information, import, export, public service, contract, judicial decision, trade, business, corruption, bribe, misuse of public post by the representatives of government, parliament, judiciary and security bodies for personal interest. 

Transparency Intentional (TI) unveils Corruption Perceptions Index every year.

TI uses a scale of zero to 100, where zero is the most corrupt and 100 is the least corrupt. A score below 50 is considered as having a relatively higher level of corruption in a country. 

The CPI global average remains unchanged at 43 for the eleventh year in a row, and more than two-thirds of countries have a serious problem with corruption, scoring below 50.

Denmark (90) tops the index this year, with Finland and New Zealand following closely, both at 87. South Sudan (13), Syria (13) and Somalia (12), all of which are embroiled in protracted conflict, remain at the bottom of the CPI.

In his message, chief executive officer of TI Daniel Eriksson said leaders could fight corruption and promote peace all at once. “Governments must open up space to include the public in decision-making, from activists and business owners to marginalised communities and young people.”

He expressed belief that in democratic societies, people could raise their voices to help root out corruption and demand a safer world for us all.

Urgent action urged in South Asia to curb deadly air pollution

South Asia is home to 9 of the world’s 10 cities with the worst air pollution, which causes an estimated 2 million premature deaths across the region each year and incurs significant economic costs. A new World Bank report shows that there are economically feasible, cost-effective solutions to achieve clean air in the region, but this requires countries to coordinate policies and investments.

‘Striving for Clean Air: Air Pollution and Public Health in South Asia’, released today, reads concentrations of fine particulate matter such as soot and small dust (PM 2.5) in some of the region’s most densely populated and poor areas are up to 20 times higher than what WHO considers healthy (5 µg/m?). Exposure to such extreme air pollution has impacts ranging from stunting and reduced cognitive development in children, to respiratory infections and chronic and debilitating diseases. This drives up healthcare costs, lowers a country’s productive capacity, and leads to lost days worked, it adds.

Large industries, powerplants and vehicles are dominant sources of air pollution around the world, but in South Asia, other sources make substantial additional contributions. These include combustion of solid fuels for cooking and heating, emissions from small industries such as brick kilns, burning of municipal and agricultural waste, and cremation.

Air pollution travels long distances – crossing municipal, state, and national boundaries – and gets trapped in large ‘airsheds’ that are shaped by climatology and geography.

The report identifies six major airsheds in South Asia where spatial interdependence in air quality is high. Particulate matter in each airshed comes from various sources and locations, for example less than half of the air pollution in South Asia’s major cities is produced within cities. 

“Persistently hazardous levels of air pollution have caused a major public health crisis in South Asia that demands urgent action,” World Bank vice president for South Asia Martin Raiser said, adding that curbing air pollution requires not only tackling its specific sources, but also close coordination across local and national jurisdictional boundaries. “Regional cooperation can help implement cost-effective joint strategies that leverage the interdependent nature of air quality.”

Several South Asian countries have adopted policies to help improve air quality, but their focus on mitigating air pollution generated within cities is yielding insufficient results.

The report shows that current policy measures will only be partially successful in reducing PM 2.5 concentrations across South Asia even if fully implemented. To achieve greater progress, the focus of policy makers should expand into other sectors, particularly small manufacturing, agriculture, residential cooking, and waste management.

The report analyses four scenarios to reduce air pollution with varying degrees of policy implementation and cooperation among countries. The most cost-effective scenario, which calls for full coordination between airsheds, would cut the average exposure of PM 2.5 in South Asia to 30 µg/m³ at a cost of $278 million per µg/m of reduced exposure, and save more than 750,000 lives annually.

“The economic benefits of policies to reduce air pollution in South Asia exceed the economic costs by a large margin,” World Bank chief economist for South Asia Hans Timmer. “But optimal solutions depend on several factors such as better monitoring systems, more scientific capacity, greater coordination between governments, and behavioral change among farmers, small firms, and households.”

To this end, the report offers a three-phased roadmap:

Phase 1: Sets the condition for airshed wide coordination by expanding the monitoring of air pollution beyond the big cities, sharing data with the public, creating or strengthening credible scientific institutes that analyze airsheds, and taking a whole-of-government approach.

Phase 2: Abatement interventions are broadened beyond the traditional targets of powerplants, large factories and transportation. During this phase major progress can be made in reducing air pollution from agriculture, solid waste management, cookstoves, brick kilns, and other small firms. At the same time, airshed-wide standards can be introduced.

Phase 3: Economic incentives are finetuned to enable private-sector solutions, to address distributional impacts, and to exploit synergies with climate change policies. In this phase trading of emission permits can also be introduced to optimize abatement across jurisdictions and firms.

Nepal to receive $8.5 billion in remittance: WB

Remittances to Nepal are expected to increase by a marginal 3.6 per cent to $8.5 billion in 2022, up from $8.2 billion in 2021, surpassing pre-pandemic levels, according to a report.

The main drivers are an increase in vaccinations and lifting of travel restrictions in the GCC, which is the main destination for Nepali migrants, paired with conducive conditions in the GCC, the Migration and Development Brief-37 (November 2022) titled 'Remittances Brave Global Headwinds', which has special focus on Climate Migration, and published on Wednesday by Migration and Remittances Team, Social Protection and Jobs of World Bank, in association with  Global Knowledge Partnership on Migration and Development (KNOMAD), reads.

While high global inflation did not spare Nepali households in Nepal, thanks to strong market price support policies in the GCC, Nepali migrants enjoyed low inflation and maintained a steady flow of remittances to Nepal in the year, it reads, adding that remittance growth was aided by high oil prices ($98 a barrel) and employment opportunities in the construction projects for the FIFA World Cup 2022 in Qatar. “Considering the centrality of remittances in the Nepali economy, the government offered an incentive for remittances of an additional 1 per cent in interest on remittance deposits, increased the daily threshold for money remitted from abroad from Rs 1 million to Rs 1.5 million, and allowed Non-Resident Nepalis (NRNs) to open foreign currency savings accounts in Nepal.”

Historically, the GCC countries have been the main destination for migrants from South Asia but a gradual structural shift is occurring in favour of higher-income countries for Indian migrants. For the majority of the migrants from other South Asian countries, the GCC is still the main destination. They have temporary contracts for low-skilled jobs mostly in the construction and other labor-intensive sectors (Ahmed and Bossavie 2022). In 2019, about 50 per cent of emigrants from Pakistan and 42 per cent from Bangladesh were in GCC countries. Saudi Arabia employed more than 25 per cent of Sri Lankan emigrants and 20 per cent of Nepali emigrants (UNDESA 2019). Every year 400,000 Nepalis leave for Kuwait, Saudi Arabia, and the United Arab Emirates. Since 2010, every fourth Nepali leaves for Qatar.

Nepal recently started checking those who leave as migrant workers and created job contracts and made salaries public information to prevent recruiters from scamming migrant workers. About 8 per cent to 10 per cent of the South Asian emigrants work in countries within South Asia, the report reads, adding that remittance flows to South Asia are expected to grow by 3.5 per cent to reach $163 billion in 2022, a notable slowdown from the 6.7 per cent gain of 2021, but benefiting from strong performance in India and Nepal. “Overall remittance growth in South Asia (3.5 per cent in 2022) masks a large disparity across country results, from India’s gain of 12 per cent, Nepal’s increase of 4 per cent, to an aggregate decline of 10 per cent for the remaining countries of South Asia.”

Growth of private schools fails to close widening gap between richer and poorer students

According to a report, increase in private educational institutions in Nepal has failed to bridge the gaps between the richest and poorest.

The report launched today at an event at Institute for Integrated Development Studies (IIDS) in Kathmandu also provides a comprehensive and invaluable analysis of the role of non-state actors in the education system of Nepal, and across South Asia. Produced by UNESCO’s Global Education Monitoring Report and Institute for Integrated Development Studies (IIDS) Nepal, the study ‘Who Loses, Who Chooses,’ reveals the inequalities in education experience and learning outcomes which have resulted from a rapid growth in the private education sector.

There has been rapid growth in access to education in Nepal in recent decades. If late enrollment is included, 95 per cent of children reached the last year of primary school, meaning Nepal almost achieved universal primary completion within a generation. As across the whole of South Asia, where private education has grown faster than any other region, much of this expansion has been in privately provided schools. Half of children in pre-primary and one quarter of students in primary and secondary education in Nepal attend privately funded schools, according to the report.

But the report warns that education quality is suffering. Learning levels are growing more slowly in South Asia than in the rest of the world, it reads, adding that only 39 per cent have minimum proficiency skills in reading by the end of grade 5 in Nepal. The report also calls for greater oversight of the quality of all schools by the government, whether schools are state or non-state provided. It notes the prevalence of unregistered madrasas and Buddhist and Hindu schools in Nepal. “Up to 3,000 madrasas may be operating unregistered,” it adds.

“Governments need to collaborate with the range of private and other non-state schools and universities in Nepal to ensure fruitful regulations and financing across the full system,” GEM Report senior policy analyst Priyadarshani Joshi, said on the occasion.

The report acknowledges that Nepal and India prohibit profit making in education in the country. However, it notes that the rise of private education has increased financial burdens on households all the same. Household incomes currently account for 63 per cent of total spending in pre-primary education. Due to stigma regarding the quality of state education, individuals are more likely to invest in and support private industries. The report finds that in two districts, even the ‘best’ public schools struggled to attract students from wealthier backgrounds.

Growing competition in the labour market has also resulted in an increase in the demand for private tutoring, adds the report, citing that the positive example in Nepal of regulations on tutoring for other countries in the region, including the quota for tutoring for marginalised groups, the caps on fees and the necessity of a government permission for private tutoring classes to be established. Nonetheless, as with tutoring across the whole region, the report warns about the practice continuing to widen education gaps between the richest and poorest.

The also recommended five policies to enhance the quality and equity of education in South Asia:

1. Fulfil the commitment to make 1 year pre-primary and 12 years primary and secondary education free. Most countries in the region are not nearly reaching the necessary minimum funding to ensure free access to education.

2. Set quality standards that apply to all state and non-state education institutions and improve state capacity to ensure their implementation. Governments should work to establish universal standards for quality of education in both state and non-state schools to promote more equitable outcomes for all learners. Governments should dedicate funding to frequent school inspections and assessments to ensure parity across sectors.

3. Establish common monitoring and support processes that apply to all state and non-state institutions through a system of clear and standardised regulations on teacher training, curriculum, and testing. This will help to ensure that students in all education systems receive a more equitable education.

4. Facilitate the spread of innovation through the education system for the common good.

Mistrust between governments and non-state actors has negatively impacted both standardisation and student performance. Governments should recognise good practices used by non-state actors and work to incorporate them into public education systems.

5. Maintain the transparency, inclusivity, and integrity of public education policy processes. Open communication between all actors should be prioritised, with the common goal of increasing education quality and access of all learners at the heart of discussions.

South Asia must reform debt-accumulating state-owned banks and enterprises to avert next financial crisis

South Asia’s heavy reliance on state-owned commercial banks, state-owned enterprises, public-private partnerships (PPP) and other national and sub-national public entities conceals its vulnerability to accumulating unsustainable levels of debt, according to a new World Bank report, 'Hidden Debt: Solutions to Avert the Next Financial Crisis in South Asia,' released today.

Claiming that South Asia is more exposed to the risk of 'hidden debt' from state-owned commercial banks (SOCBs), state-owned enterprises (SOEs) and public-private partnerships (PPPs) because of its greater reliance on them compared to other regions, the report offers key areas for policy actions and concrete reforms that can help governments leverage public capital more responsibly through these types of entities to advance economic development.

"The Covid-19 pandemic has highlighted South Asia’s rising levels of public debt," World Bank Vice President for South Asia Hartwig Schafer said, adding that the region is more exposed to the risk of hidden debt because it relies heavily on the governments’ involvement in markets to aid economic development. “But the crisis demonstrates the critical importance of the judicious use of debt-financed public commitments and debt transparency to build back better, more sustainably, and more equitably.”

Hidden Debt studies the trade-offs between addressing development challenges directly through state presence in the markets and the risk of accumulating high levels of debt due to economic inefficiencies of off-balance sheet operations. It focuses on SOBCs, SOEs and PPPs and their contingent liabilities—obligations incurred by governments off their balance sheets that have triggers for payment. Over time, part of the debt is revealed as it hits the central government budget and debt stock, but a large part remains hidden under the radar of existing financial disclosure standards.

"The efficiency of South Asian state-owned banks and other state-owned enterprises is well below the international benchmark,” World Bank chief economist for South Asia Hans Timmer said, adding, "As governments rebuild from the shock of the Covid-19 pandemic and strive to avert future financial crises, they should clearly separate the social and commercial objectives of these enterprises in order to reduce inefficiencies, while maintaining socially beneficial investments.”

Governments often promise SOEs subsidies to run programmes such as advancing access to electricity to underserved populations and small enterprises. SOCBs are asked to run government programmes to promote financial inclusion or lend to under-served or riskier small and medium enterprises, often without compensation for losses that private markets avoid. They are also asked to stimulate economies during downturns or financially support large PPPs that have concentrated risks. These hidden mandates are based on requests that are often made ad hoc and without consideration of risks or costs.

“In episodes of systemic shock—such as the global financial crisis or the Covid-19 pandemic—when many banks experience distress simultaneously, private banks deleverage and curtail lending, while state-owned commercial banks receive capital and debt support from the state to continue or increase lending,” World Bank lead economist and author of the report Martin Melecky said, addinf that this short-term stabilising function but comes at the cost of crowding out other social spending as public funds get spent on bank recapitalization and significant credit misallocation—away from successful firms and especially small and medium enterprises—making for an unequal recovery.

The report estimates that a systemic macro-financial crisis can trigger PPP failures that would cost South Asian countries more than 4 per cent of revenues, and the potential costs from distressed SOEs have been even more overwhelming. In Pakistan, the total liabilities of chronic loss-making SOEs have been 8 per cent to 12 per cent of GDP in recent years, several times more than the country’s public spending on education in the fiscal year 2019-20. In Sri Lanka, liabilities of loss-making SOEs have been around 4 per cent to 5 per cent of GDP. In every country studied, the top 10 loss-making SOEs account for more than 80 per cent of the total losses in the SOE sector.

Distressed public agents at the sub-national level also inflict substantial costs on the real economy and local business. When a subnational government is hit by a contingent liability shock, local investments suffer for several years. For example, local investments in the Indian states fall significantly in the year of a contingent liability shock, continue to decline in the year after, and remain significantly below the trend for three years after the event.

These downside risks of leveraging public capital can be mitigated and the upside benefits enhanced through four key avenues for reform including purpose, incentives, transparency and accountability.

Purpose : Clearly defining the purpose of SOCBs, SOEs and PPPs by spelling out their social versus commercial mandates.

Incentives : Structuring institutions, rules, and contracts in a way that creates proper incentives to perform in a manner consistent with the defined purpose. Importantly, the nature and extent of operational costs for SOCBs, SOEs, and PPPs—which often exceed market costs—need to be determined and linked to the government’s budgetary and debt management frameworks up front so that central governments can enforce greater financial discipline—including through hard budget constraints. 

Transparency : Ensuring debt transparency and data collection so that both central and subnational governments can understand how SOCBs, SOEs, and PPPs shape the fiscal space and contribute to overall public debt—including direct obligations and explicit and implicit guarantees. Economic transparency is also needed, starting with public disclosure of the purpose of SOCBs, SOEs, and PPPs, the theory of change behind their operations, and robust monitoring and evaluation frameworks to demonstrate their developmental impact.

Accountability : Engaging financial markets, industry associations, the media and civil society in demanding the accountability of government for leveraging public capital responsibility in its off-balance sheet operations so it cannot use them for political self-interest or side deals.

International rights bodies demand withdrawal of ordinance

 Global rights bodies asked the government to withdraw ordinance that undermines the independence of constitutional human rights bodies and rescind recent appointments.

Issuing a joint press note today, Human Rights Watch, the International Commission of Jurists, and Amnesty International asked the Nepal government to immediately withdraw an ordinance that undermines the independence of constitutional human rights bodies and rescind recent appointments that were made without consultation or parliamentary approval.

These government  actions undermine public trust and confidence in the integrity of the judiciary and other constitutional bodies such as the National Human Rights Commission and the Election Commission, it reads, adding that the illegitimate appointments process is not simply an abstract irregularity but will lead to ineffective and weak implementation of critical mandates to protect human rights and other rule of law objectives.

"The government’s actions are a severe dent in Nepal’s long struggle for a rule of law-based constitution, which was finally adopted in 2015 to guarantee human rights," South Asia director at Human Rights Watch Meenakshi Ganguly said, adding that it is sad to see some of the same politicians who drafted the Constitution playing fast and loose with the charter just a few years later.

On December 15, 2020, President Bidya Devi Bhandari endorsed an executive ordinance to amend the law governing the Constitutional Council, which makes appointments to the judiciary, the National Human Rights Commission (NHRC), and other constitutional bodies including the Election Commission. Under the Constitutional Council Act, five out of six members must be present, but under the ordinance a simple majority is sufficient. Because one seat on the council is vacant the quorum has been reduced to three.

The Constitutional Council met the same day with a newly reduced quorum. Three council members made 38 nominations to vacant positions on constitutional bodies at that meeting. They included all five seats on the National Human Rights Commission (NHRC), as well as nominations to bodies established to protect the rights of Dalits, women, and marginalised minorities, and to investigate corruption allegations.

Under the Constitution, appointments to these key institutions are supposed to be vetted by parliament. However, parliament was abruptly dissolved  on December 20, five days after the appointments were announced. The nominees were sworn in on  February 3, 2021,  despite legal challenges in the Supreme Court  to the constitutionality of the nominations and the dissolution of parliament. On February 23, the Supreme Court ruled that the dissolution of parliament was unconstitutional.

"In a context where repeated calls for institutional reforms have gone unheeded for decades, this move by the government further weakens the effectiveness of constitutional bodies that are supposed to be beacons of hope for victims of human rights violations and abuses,” senior international legal adviser at ICJ Mandira Sharma said, adding that independence, impartiality and legitimacy are preconditions for these bodies to effectively and efficiently deliver their mandates. 

The Human Rights Commission, until recently, had played an important role in calling for accountability, including by releasing the names of people allegedly responsible for serious human rights violations such as torture and extra-judicial killing and recommending that they should be prosecuted. It is currently graded ‘A’ by the Global Alliance of National Human Rights Institutions (GANHRI) for its compliance with the Paris Principles, which were adopted by the UN General Assembly as the basic standards governing the mandate and operation of effective national human rights organisations. Core among the Paris Principles is that a national human rights institution must be independent and that its independence must be guaranteed by law. The organisations are concerned that following the new appointments the commission no longer meets those standards.

Among the other constitutional bodies to which new commissioners have been appointed in the same manner are the Election Commission and the Commission for the Investigation of Abuse of Authority (CIAA), Nepal’s anti-corruption agency. The Election Commission is seen by many people as playing an important role in efforts to achieve a society based on the rule of law and respect for human rights , while the CIAA has the authority  to bring corruption cases against politicians.

Numerous appointments have also been made to commissions with mandates to protect the rights of people from vulnerable groups, including the National Women’s Commission, National Dalit Commission, and National Inclusion Commission. Many of these positions had lain vacant for years.

At least two Supreme Court petitions have been filed challenging the ordinance amending the Constitutional Council Act, and the new appointments to constitutional bodies. The chief justice, Cholendra Shumsher Rana, who sits on the constitutional bench of the Supreme Court, participated in the three-member Constitutional Council meeting that made the disputed nominations, and he administered the oath of office to the new commissioners on February 3.

"The doubts over the independence and integrity of the NHRC and other commissions will endanger the protection of human rights in Nepal,” deputy South Asia director of Amnesty International (AI) Dinushika Dissanayake said, adding that the government must immediately reverse these appointments and start a new process in consultation with the civil society and rights holders in Nepal.

The Accountability Watch Committee, a group of prominent human rights defenders in Nepal, issued a statement on February 12 announcing that they would not 'cooperate and engage with the NHRC and other constitutional bodies until the Supreme Court's decision.' Accountability Watch also called upon 'the United Nations, diplomatic missions in Nepal and international organisations not to give legitimacy and cooperate with this appointment process which is currently sub-judice at the Supreme Court of Nepal.'

Foreign development partners that have previously engaged with the NHRC, and with the other commissions affected by this process, should stand clearly for a proper, open, and transparent appointments process that is based on international standards, Human Rights Watch, ICJ, and Amnesty International said.

Global investment down by 42 per cent

 Global foreign direct investment collapsed in 2020, falling by 42 per cent to an estimated $859 billion from $1.5 trillion in 2019, according to a report of the UNCTAD. 

The FDI finished 2020 more than 30 per cent below the trough after the global financial crisis in 2009 and back at a level last seen in the 1990s,” the 38th Global Investment Trends Monitor published by UNCTAD today reads.

“The decline was concentrated in developed countries, where FDI flows fell by 69 per cent to an estimated $229 billion,” it reads, adding that flows to Europe dried up completely to -4 billion, including large negative flows in several countries. “A sharp decrease was also recorded in the US (-49%) to $134 billion.

The decline in developing economies was relatively measured at -12% to an estimated $616 billion. The share of developing economies in global FDI reached 72 per cent. But China topped the ranking of the largest FDI recipients. FDI in China, where the early phase of the pandemic caused steep drops in capital expenditures, ended the year with a small increase (+4%), whereas FDI in India rose by 13 per cent, boosted by investments in the digital sector. But FDI in ASEAN – an engine of FDI growth throughout the last decade – was down by 31 per cent.

The fall in FDI flows across developing regions was uneven, with -37 per cent in Latin America and the Caribbean, -18 per cent in Africa and -4 per cent in developing countries in Asia. East Asia was the largest host region, accounting for one-third of global FDI in 2020. FDI to transition economies declined by 77 per cent to $13 billion. 

Looking ahead, the FDI trend is expected to remain weak in 2021 too. Data on an announcement basis, an indicator of forward trends, provides a mixed picture and point at continued downward pressure:

Sharply lower greenfield project announcements (-35 per cent in 2020) suggest a turnaround in industrial sectors is not yet in sight, the report reads.

World Bank reaffirms economic growth to limit at 0.6 per cent

 The World Bank (WB) reaffirmed its earlier projection of Nepal’s economic growth to be 0.6 per cent in the current fiscal year, though the government has – in the budget that it announced in June – projected a 7 per cent economic growth.

In October too, the development partner had projected Nepal’s economic growth to be remain 0.6 per cent in the fiscal year 2020-21. “The low growth rate is due to the economic impacts of the Covid-19 pandemic in the economy that depends heavily on tourism and travel,” the Global Economic Prospects released today reads, adding that the growth for the next fiscal year could be 2.5 per cent. “The tourism revenue is likely to remain significantly below pre-pandemic levels because of depressed demand as potential tourists remain wary of social interactions and continued restrictions on international travel, although recent vaccine news offers hope.”

With this reason, the recovery is likely to remain modest, it adds.

According to Global Economic Prospects, the South Asian region is projected to grow by 3.3 per cent in 2021. “Weak growth prospects reflect a protracted recovery in incomes and employment, especially in the services sector; limited credit provisioning constrained by financial sector vulnerabilities, and muted fiscal policy support,” it reads, adding that the forecast assumes that a vaccine will be distributed on a large scale in the region starting the second half of 2021 and that there is no widespread resurgence in infections. “In South Asia, Maldives could log the highest economic growth as it has opened up for tourism.”

According to World Bank, the global economy contracted by 4.3 per cent in 2020. But the global economy could expand by 4 per cent in 2021 given that an initial Covid-19 vaccine rollout becomes widespread throughout the year. 

NOC’s profit increases by Rs 4 billion despite the pandemic

 Welcome to the journey towards socialism as the state-owned entity earns hefty profit – where consumers get nothing – and private enterprises are directed to share their profit and spend in corporate social responsibility (CSR).

The state-owned Nepal Oil Corporation (NOC) has earned Rs 12.87 billion profits in the last fiscal year 2019-20 – compared to Rs 8.75 billion profit in the fiscal year 2018-19 – though consumers get nothing from the hefty profit of the state-oil monopoly.

The corporation last fiscal year paid Rs 66.88 billion as revenue – by trading fuel – to the government. It has last fiscal year imported 2.5 million kiloliters (kl) of fuel worth Rs 205 billion, which is 11 per cent less than a fiscal year ago. “Of the total collected taxes under different headings, the NOC has collected Rs 4.99 billion from consumers as road maintenance charge in a period of five years. Likewise, Rs 2.94 billion has been collected as pollution tax and Rs 13.98 billion as infrastructure development tax, which all went to the government coffer.  

The state-oil monopoly attributed increase in profit to savings in transportation cost by importing fuel from cross country petroleum pipeline – the first one in the South Asia – and also earnings from the interest on the previous year's profit.

Most of the trade and businesses were hit by the corona pandemic as the country came to a standstill for four months, and subsequent prohibitory orders then after for almost one month to follow with restriction on vehicular movements till last month, the NOC pocketed decent profit.

The corporation – technically bankrupt couple of years ago – has started making profit since the fiscal year 2017-18 due to the fall in fuel prices in the international market and also the implementation of automatic pricing system. The corporation claimed that it saved Rs 0.47 billion by pumping diesel through the pipeline, whereas it has earned Rs 1.77 billion from interest in last year's profit from the banks alone.

Encouraged by the first cross border pipeline, and its benefits, the corporation is also planning a second cross border pipeline project. The corporation is also planning to increase in storage capacity in all the seven provinces from the profit. Likewise, the corporation has prepared a balance sheet according to the Nepal Financial Reporting Standards (NFRS) for the first time, the NOC claimed, adding that the corporation has also increased its paid up capital from Rs 290 million to Rs 11 billion in the fiscal year 2018-19.

South Asia discusses impact of Covid-19 on tourism and revival strategies

 The travel industry veterans from South Asia agreed that in the new reality where there are severe barriers to long distance travel, the countries in South Asia should focus on promoting regional tourism to revive tourism.

They also suggested creating a regional body to work on the ease of travel between the countries in South Asia. Speaking during a a virtual meeting ‘Impact of Covid-19 on tourism and revival strategies of South Asian countries’ organised by South Asia Watch on Trade, Economics and Environment (SAWTEE) in association with Biruni Institute, Afghanistan; Centre for Policy Dialogue (CPD), Bangladesh; Research and Information System for Developing Countries (RIS), India; Sustainable Development Policy Institute (SDPI), Pakistan; and Institute of Policy Studies of Sri Lanka (IPS), Colombo.

Former minister of Tourism Yankila Sherpa and advisor of the Tourism Recovery Task Force (TRTF), delivering the keynote speech, noted how the first six months in 2020 have seen a 60 per cent fall in global tourist arrivals. Countries like Maldives and Nepal, the latter having faced closure of 2,600 trekking firms, are disproportionately impacted given the economic significance of the sector, she said, adding that regional collaboration, for instance, on smooth movement, destination infrastructure upgrade, testing and exploiting regional tourism potential like the Buddhist circuit, will aid in swift revitalisation of tourism in South Asia.  “The public-private mechanism is tasked with synergising efforts to revive the travel and tourism sector in Nepal.”

Sherpa, who is also part of Nepal’s Tourism Recovery Task Force (TRTF), also informed that the TRTF has come up with strategies such as Desh Darshan to promote domestic tourism in Nepal.

Likewise a widely regarded academic from the Indian Institute of Management, Bangalore (IIMB) Prof Rupa Chanda observed how each actor in the tourism value chain, from trekking firms, porters and guides, a significant proportion of which are in the informal sector, have been dealt a body blow by the pandemic. Prof Chanda suggested that while identifying and developing safe zones, including corridors, in the region, is a potential revival strategy, its effectiveness will hinge on whether Covid-19 safety rules are enforced. She added that several regulations need to be developed and credibly implemented.   

Bhutan has been among the least affected countries from the Covid-19 not just in the region but also globally. Yet, since its source markets have been ravaged by the pandemic, Bhutan‘s travel and tourism sector has been severely affected. Director-General at the Tourism Council of Bhutan Dorji Dhradhul, on the occasion, argued that with the pandemic, Bhutan’s low-volume high-value tourism strategy could be a model for other countries to follow. Dhradhul observed that potential revival strategies in the sector should seriously consider issues like personal safety and health and that tourists will travel only if they perceive that destinations are safe. On revival strategies, Dhradhul highlighted that the key steps in Bhutan have been development and upgrade of physical as well as digital infrastructure such as contactless payment, skilling of tourism sector workers into providing better services and promotion of domestic promotion.

Likewise, managing director at the Maldives Marketing and PR Corporation Thoyyib Mohamed emphasised that while revival of tourism is critical given its significance for the Maldivian economy, equally important is to avoid explosion of infection. Mohamed outlined how the island nation’s unique geography has enabled it to come up with strategic concepts like ‘one island, one resort’. The concept essentially means that each resort would be a self-contained facility which potentially minimizes physical contact with those outside the island.

On self-contained and isolated destinations, speakers from Bhutan and Nepal highlighted how rural mountainous areas could be a pull for tourists.

The past president of Tourist Hotels Association of Sri Lanka Srilal Miththapala discussed the Sri Lankan case, on the occasion. While the sector has been badly hit, domestic tourism remains open in Sri Lanka, he observed, suggesting that hotel certification schemes, wherein hotels are audited for adherence to Covid-19 safety protocols, have helped tourists as well as the government to minimize infection risks.

SAWTEE, in association with other prominent think-tanks in the region, has been hosting a series of webinars from September 22 to October 16 to deliberate on various socio-economic aspects of the Covid-19 pandemic, how they relate to South Asia and what should be the future course of action for South Asian countries.

Asia Pacific health and finance ministers commit to building stronger health systems

 Building on the learnings from the ongoing global Covid-19 pandemic, ministers of health and finance from Asia Pacific countries, including from the WHO South-East Asia Region have committed to build and finance resilient health systems with Universal Health Coverage at the centre of it.

"For every dollar invested in universal health coverage, the return is delivered many times over – first, due to increases in overall population health and well-being and the productivity, jobs and poverty-reduction they promote; and second, because when the quality and reach of health services improves, health systems become more resilient and can better mitigate or manage acute threats while maintaining essential health services’ said WHO South-East Asia Regional director Dr Poonam Khetrapal Singh.

Health and finance ministers from the Asia Pacific Region met at a virtual meeting organised by WHO, the Government of Japan and the Asian Development Bank (ADB) to discuss ways and means to accelerate universal health coverage (UHC) or health for all and mobilise financing for healthcare amidst and beyond the Covid-19 pandemic.

The WHO South-East Asia Region, which was represented by health and finance ministers from several Member countries, has been focusing on UHC as one of its flagship initiatives. The region has adopted two key ministerial declarations on building resilient health systems, the 2019 Delhi Declaration on Preparedness and last week the Region’s Declaration on Collective Response to Covid-19. Both these declarations commit to investing in preparedness and Regional solidarity to make health systems stronger amongst the 11 member countries.

“Across the WHO South-East Asia Region, across Asia and across the world, countries that have made sustained, long-term investments in UHC have health systems that are more resilient, and which have more effectively minimised the spread of Covid-19, maintained essential health services, and mitigated economic shock,” the regional director said.

Since the start of the pandemic almost nine months ago, countries in the region have demonstrated how strong health systems can effectively respond to global health emergencies. Bhutan, the Republic of Korea and Malaysia have provided free testing for Covid-19 and care, which resulted in timely diagnosis and treatment. Bhutan, strongly committed to UHC, has one of the world’s highest testing rates and as of September 17, is yet to report a Covid-19 death. Countries in the region with a strong primary health care infrastructure and human resources have been able to repurpose health workers and respond to the pandemic as well as ensuring continuity of essential health services. Sri Lanka with one of the highest numbers of health workers in Asia has reported only 13 deaths due to Covid to date.

“Countries that are committed to UHC have logistics and supply chains that are more secure, efficient and transparent, and can rapidly meet surge needs, for example by increasing testing capacity, procuring personal protective equipment, or maintaining access to essential medicines and medical products,” Dr Khetrapal Singh said, adding that they are also better able to rapidly roll-out key innovations. “Crucially, countries that are committed to UHC have successfully mobilised the whole-of-government, whole-of-society buy-in required to effectively respond to the pandemic.” Thailand, with a strong investment in public health over the years has managed to keep Covid-19 transmission rates low.

She made a strong plea for prioritising health in government budgets for the short and medium term, for improving investment in primary health care and a better targeting of resources for the poor and the vulnerable, and mobilising domestic revenues for health via pro-health taxes eg on tobacco, alcohol, sugar sweetened beverages.

EU provides €1.65 million to support victims of the devastating South Asia floods

 In response to severe flooding that have affected South Asia – most notably Bangladesh, India and Nepal – the European Union (EU) is providing €1.65 million in humanitarian aid funding.

The support comes on top of the €1.8 million announced earlier this year to support families affected by a series of disasters, including Cyclone Amphan that ravaged India and Bangladesh in May, bringing the total EU support to victims of disasters in the region to €3.45 million.

The flooding has affected some 17.5 million people, wiping out homes, livelihoods such as livestock and agricultural lands, and destroying vital infrastructure including roads, hospitals and schools. 

“The monsoon rains across South Asia have been particularly devastating this year and this urgent contribution will help our humanitarian partners on the ground in providing crucial support to those who have lost their shelters, belongings and sources of livelihood,” said Taheeni Thammannagoda, who oversees EU humanitarian programs in Asia and the Pacific. “Focusing on the worst affected countries, we are providing the means for people to survive through this difficult time so that they can get back on their feet as soon as possible.” 

Out of the total funding, €1 million will be dedicated to addressing the urgent humanitarian needs in Bangladesh, where over two million people are in need of food assistance, water, sanitation, hygiene and emergency shelter. Some 850,000 remain displaced, a figure expected to increase as rains continue. 

A further €500,000 will be used in India to provide food and livelihood assistance, emergency relief supplies, and water and sanitation services. So far, this year’s monsoon rains have impacted at 10.9 million and has amplified people’s vulnerabilities as they struggle to tackle the consequences of the global coronavirus pandemic. 

In Nepal, €150,000 will be used to address the pressing need for water and sanitation, shelter and essential household items following the displacement of thousands of people after the rains unleashed devastating landslides across the country. 

The funding is part of the EU’s Acute Large Emergency Response Tool (ALERT). Measures to prevent the spread of the coronavirus will be incorporated in all programming.

With the onset of the annual monsoon in June, heavy and sustained rains have caused massive floods and landslides across South Asia, killing hundreds and affecting over 17.5 million people. The disaster has decimated people’s livelihoods and food resources. The poor access to clean water risks increasing the spread of disease - especially worrying during the coronavirus pandemic.

The European Union, along with its member states, is the world’s leading donor of humanitarian aid. Through its European Civil Protection and Humanitarian Aid Operations (ECHO), the European Union (EU) helps over 120 million victims of conflicts and disasters every year. The acute large emergency response tool (ALERT) is used to respond to large natural disasters where over 100,000 people or over 50 percent of the population are affected. Depending on the type of disaster, the aim is to allocate funds within 24 to 48 hours of the onset of the emergency.