CorporatePay transaction crosses Rs 100 billion

 CorporatePay system has been able to process landmark transactions of more than Rs 100 Billion during the current fiscal year.

The system has been in operations as a business payments platform, since a year again, for the institutional customers of the member bank and financial institutions (BFIs) with specific focus on small and mid-size enterprises and institutions, claims the company. “The acceptance of the CorporatePay system has considerably increased, as it is now available from more than 48 BFIs with almost 3,600 institutional customers of the BFIs have been using the system for their business payments,” it adds.

Government cuts civil servants’ fuel allowances by 20 per cent

To reduce the fuel imports, the government has cut down fuel allowances of civil servants by 20 per cent. The reduction of import of petroleum products is expected to put less pressure to the depleting foreign currency reserves.

The Finance Ministry, sending a circular to all government offices on Monday, said that it is trying to reduce expenses incurred on fuel from Monday till three months, throughout the current fiscal year.

The ministry press note  reads that a cabinet meeting on Wednesday had decided to cut the expenses on petroleum products of all the government offices and public enterprises. 

The government move is expected to cut down the expenses on fuel to save the foreign currency reserve. “The government offices will have to spend only 80 per cent of their fuel budget,” a Finance Ministry source claimed, adding that the provision will, however, not applicable for the development projects, securities, essential services and those part of the local elections.

The government currently provides 207 liters of fuel to minister-level, 100 liters each to secretaries and 70 liters for joint secretary-level government employees. Nepal has imported around 200 billion worth petroleum products from India. But with increasing petroleum prices due to Russia-Ukraine war, the Nepal Oil Corporation (NOC) is bankrupt also due to free fuel to various former ministers and political cadres.

IMF residential office returns to Kathmandu, after 12 years

After 12 years of closing its unit in the country, the International Monetary Fund (IMF) is reopening its residential office in Nepal.

The IMF has appointed Teresa Daban Sanchez as the resident representative for Nepal, according to the IMF that has been looking after Nepal affairs from the Delhi-based office currently. “The Delhi office of the IMF has been looking after the affairs of Nepal, India and Maldives,” it added.

Earlier, the IMF office left Nepal citing its own financial problem.

Recently, the multilateral development partner has also approved loans of $ 398.50 million under Extended Credit Facility (ECF) to Nepal as the country battles to maintain its foreign currency reserves.

With the return of IMF office in Kathmandu, the foreign direct investment is expected to get a boost, apart from building confidence for the domestic investors also, as it will help Nepal with budgetary assistance to push the depleting foreign currency reserve (forex reserve) up.

ADB vice president reaffirms partnership with Nepal

Asian Development Bank (ADB) vice president Shixin Chen met with Prime Minister Sher Bahadur Deuba today and reiterated ADB’s commitment to further strengthen its partnership with Nepal.

In his meeting with the Prime Minister Deuba, Chen reaffirmed ADB’s commitment to continue to support Nepal, focusing on the government’s reforms and investments in infrastructure and human development while promoting gender equality and social inclusion and addressing climate change impacts. “ADB will also continue to assist with the implementation of federalism for more effective and efficient delivery of services, including those devolved to subnational governments,” he added.

“ADB’s operations in Nepal are aligned with the government’s Green, Resilient, and Inclusive Development (GRID) Strategy, and we stand ready to support the government’s commitment of achieving net-zero climate emission target by 2045,” he said, acknowledging the government’s leadership in managing the coronavirus disease (Covid-19) pandemic. He commended the government on the completion of Nepal’s second international airport, the Gautam Buddha International Airport in Bhairahawa in western Nepal, which is expected to enhance air connectivity and boost tourism.

In his meeting with finance minister Janardan Sharma, Chen noted the government’s efforts in accelerating the implementation of development programmes and reforms as well as project readiness to ensure that planned commitments are implemented on time. He further noted that it is imperative for Nepal to enhance the competitiveness of its economy, including greater facilitation of foreign investment and innovative solutions.

Chen also met with private sector representatives and said that ADB is seeking opportunities to expand its private sector operations in the country and provide assistance to small, medium, and women-led enterprises; climate-smart agriculture; and digitalisation.

He visited ADB-supported Bagmati River Improvement Project, Kathmandu Valley Wastewater Management Project, Melamchi Water Supply Project, and Rural Enterprise Financing Project. He also visited an energy sector project in Kavre and interacted with women entrepreneurs of Electricity Users’ Cooperatives.

During his 7-day visit to the country from April 13 to 19, Chen will meet with minister of Urban Development Ram Kumari Jhakri; minister of Energy, Water Resources, and Irrigation Pampha Bhusal; minister of Education, Science, and Technology Devendra Poudel; and the secretaries of these ministries, according to the ADB. “He also met with Nepal Rastra Bank acting governor Neelam Dhungana, and is set to meet other senior government officials, and development partners.”

ADB’s cumulative assistance to Nepal since 1969 stands at $7.3 billion as of December 31, 2021. ADB’s operations in Nepal is growing and as of the end of 2021, ADB’s active portfolio in the country stands at around $3.4 billion with 30 investment projects.

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 Airlines to start regular flights to Saudi Arabia from April 22

 The national flag carrier is flying to Saudi Arabia on a regular basis, for the first time, from April 22.

The Civil Aviation Authority of Nepal (CAAN) has already permitted Nepal Airlines Corporation (NAC) to operate flights to Riyadh, Dammam and Jeddah in Saudi Arabia, the authority confirmed.

The NAC is starting regular flights on Kathmandu-Riyadh-Kathmandu sector according to its business plan, the national flag carrier also confirmed, adding that it had been preparing to fly on the route for a quite long time but was not granted permission.

Earlier, only a private airliner, Himalayan Airlines, was allowed to operate flights to Saudi Arabia. Now that the NAC has regular flights, it is expected the fare on the route to come down to benefit the passengers.

NRNs urged to open account with 100,000 in Nepal

Finance Minister Janardan Sharma has urged Nepali expats to open dollar accounts in Nepali banks and invest in the home land.

Speaking at a virtual interaction organised by the Non-Resident Nepali Association (NRNA), the minister said that opening dollar accounts in the Nepali banks by NRNs will help the country’s economy. “There will be no shortage of liquidity, if 100,000 NRNs open bank accounts in Nepal with 10,000 dollars,” he said, adding that the government has enough foreign currency reserve to buy goods and services for 6.7 months. “According to a report published by the Nepal Rastra Bank (NRB) only yesterday, we have $9.58 billion.”

“As the price of petroleum products has increased, millions of dollars have to be sent out from the country to buy fuel,” the minister said, adding that the proper policy process for the dollar account has been prepared to benefit NRNs.

Likewise, the minister also said that discussions are underway on providing free visas to tourists coming to Nepal, which will make it easier for NRNs as well. He also informed the diaspora that the government is planning to formulate a policy to allocate certain percentage of primary issue.

On the occasion, president of NRNA Kul Acharya said that opening dollar accounts is also a means of connecting NRNs with Nepal. He also thanked the government for amending the policy to make it easier for Nepalis living abroad to open foreign currency accounts in Nepal.

Currently, the banks are offering one percentage interest rate more to the NRNs, if they open a remittance account in Nepal.

Insurance Board sets two-term limit for board members of insurers

The regulatory authority of the insurance sector barred the board members of insurance companies from assuming the position for more than two terms.

Revising a directive on the ‘institutional corporate governance’ of the insurers, the Insurance Board (IB) has enforced the new provision.

A single term of a board member has been fixed at four years, which means a board member cannot assume his position more than 8 years.

Likewise, individual board members cannot purchase shares and debentures issued by the insurance companies, where he or she is a board member, the new amendment reads, adding that they cannot even be involved in the transaction of the company’s shares and debentures for up to one year after the termination of their contracts.

Insurers will have to assess the effectiveness of their annual plans and policies on a quarterly basis,  it reads, adding that the companies will also have to conduct the due diligence audit every five years and report the regulator within a fixed time period.