Nepal Oil Corporation hikes petro-prices

Nepal Oil Corporation (NOC) has hiked the price of petrol, diesel and kerosene by Rs 2 per litre each to be effective from Saturday midnight.
With the revision in fuel price, petrol now costs Rs110 per litre and diesel and kerosene each costs Rs 97 per litre.
With the latest revision, the state-oil monopoly is expected to earn a profit of Rs 1.16 billion in 15 days, as the price in the international market is going down.
The price of aviation fuel and LPG – popularly known as cooking gas – has not been changed, according to the NOC, which has claimed that the fuel price was adjusted as per the new price list sent by Indian Oil Corporation (IOC), the sole supplier of the petroleum products for NOC.

Stock brokers can float margin lending

The Securities Board of Nepal (Sebon) has allowed stock brokerage firms to provide margin lending. The stock brokerage firms – currently allowed only to execute trading orders placed by their clients in the secondary market – will be able to provide marging lending to their investors to buy shares.
Issuing a circular today the regulator for the capital market – Sebon directed the Nepal Stock Exchange (Nepse) and brokerage firms – paved the way for brokerage firms to provide financing service to purchase stocks for their clients in the secondary market. "The interest rates will however be monitored by the Sebon and Nepse," the circular reads, adding that the brokerage firms will be free to set their interest rates on the margin loan but the interest rates should be mentioned in the contract. "The firms should also pre-inform Nepse and Sebon about the interest rates."
A panel formed by Finance Ministry last month has recommended margin lending by stockbrokers to address problems in the stock market. Margin trading allows investors to buy shares by borrowing money against stock as collateral. Investors need to have a margin account with a brokerage firm – to trade on margin – while the stockbrokers can fix the interest rate on such loans.
According to the Securities Board’s directive issued last year, stockbrokers with a net asset of Rs 50 million can offer margin trading service to investors. "Stockbrokers can issue margin loans amounting up to 50 per cent of the value of the shares based on the 180-day average price or the prevailing market price, whichever is lower," the directives read, adding that a potential investor has to deposit up to 50 per cent of the value of the stock to be purchased while the rest of the money is put up by the stockbroker.
Of the total 50 stockbrokers in the country, all are eligible to provide margin loans, according to the Stockbrokers’ Association of Nepal president Bharat Ranabhat.
It took the capital market regulator a year to finalise working procedure for implementation of the marging lending service also due to complication about who will monitor the interest rates, though the Sebon had first mooted the idea to introduce margin lending service from brokerage firms in November 2017.
Though the Nepse had drafted the working procedure on margin transaction service last May in line with a Sebon directive of November 2017, it could not be issued  due to disagreement between the Sebon and central bank – that is responsible for monitoring interest rates – over the issues of jurisdiction to monitor the interest rates.
Earlier, the central bank had said that the brokerage firms that wanted to provide margin lending service should get permission from the central bank, which is the regulator of financial sector. The Sebon has however informed the new arrangement including the working procedure and its earlier directive to the central bank.
The margin lending facility from brokerage firms will make the investors free from relying on bank and financial institutions (BFIs) for loans to buy stocks in the secondary market.

Government tries to boost investor confidence

The government is trying to make visible legal, policy and institutional reforms to boost the confidence of investors before the Investment Summit planned on March 29 to 30.
Briefing the diplomatic community in the presence of Prime Minister KP Sharma Oli in Kathmandu today, foreign minister Pradeep Kumar Gyawali said that the government is focusing on translating its motto of ‘Prosperous Nepal and Happy Nepali’ into reality by reforming the economic policy.
As Nepal needs huge financial resources – both from domestic and foireign investors – in productive sectors to realise the goal of economic transformation by modernising agriculture, building infrastructure, tapping energy potential, promoting tourism, developing human resources and generating employment opportunities, the government is hosting Investment Summit in March-end, he said, briefing the representatives of from diplomatic missions in Kathmandu. "The government will make all possible efforts to ensure a predictable, secure and attractive investment climate in Nepal," he added.
He also vowed to promote and protect inclusion, participation, accountability and transparency to ensure equality, respect and dignity for all Nepalis.
"In promoting national interests, our external engagements have two clear goals: promoting Nepal’s credentials as an open and progressive democratic state at the international level and the pursuit of effective economic diplomacy to contribute to development imperatives at home,” he said, adding that the government will uphold its motto of ‘amity with all, and enmity with none’ and pursue its goals, keeping principles of the Panchasheel, non-alignment, UN Charter, international law, and norms of world peace at the centre. "The government aims at deepening cooperation with immediate neighbours – India and China – by focusing on economic partnership and building on existing cooperation with major powers, development partners, labour receiving countries and other friendly countries.
The minister also vowed to continue active engagements in regional and multilateral forums and make efforts to revive the stalled SAARC process.

Dr KC ends his 24-day-long hunger strike, slams government for policy level corruption

Senior orthopedic surgeon Dr Govinda KC has ended his 16the hunger strike on the 24th day today evening, a day after the upper house endorsed the controversial National Medical educational Bill without favouring amendments.
Organising a press meet at Tribhuvan University Teaching Hospital, Dr KC announced the end of his hunger strike by drinking juice from the hand of sanitation staffer at TU Teaching Hospital Amrit Puraji, former Chief Justice Sushila Karki and former Speaker Damannath Dhungana.
He, however, said that he would continue his protests in a different way for reforms in Medical Education Bill. Warning that he would stage the 17th hunger strike again if his demands were not fulfilled by the government, he also alsmed the Prime Minister KP Oli for betraying not only the Mathema report and medical students but the entire 30 million Nepali citizens.
Saying that he would not accept the bill that was forcefully endorsed by the Parliament the surgeon expressed that he would continue his struggle against the policy-level corruption that has gripped the medical education sector. "I will fight until I initiate reform in the medical education sector,” he said prior to being transferred to TUTH Intensive Care Unit for further treatment.
Earlier today, former President Ram Baran Yadav, former Speaker Daman Nath Dhungana and Former TU Vice-Chancellor Kedar Bhakta Mathema reached TUTH to urge Dr KC to end his hunger strike.
Yesterday, former Chief Justice Sushila Karki, Nepali Congress president Sher Bahadur Deuba and leader Gagan Thapa visited Dr KC at the hospital. They urged him to end his hunger strike saying that the incumbent government is 'merciless and irresponsbile'.
Earlier, Ministry of Health and Population warned to jail doctors, who shut down all health services supporting the agitating surgeon.
Though Dr KC had been staging the hunger strike demanding that the National Medical Education Bill be endorsed in the Parliament as per the agreement signed with him in the 15th hunger strike by the incumbent Prime Minister K P Sharma Oli, the government turned its blind eye to his hunger strike and tabled the bill. The bill has already been endorsed from the federal House of Representatives and National Assembly by a majority.
Dr KC begun his 16th hunger strike in Ilam from January 9 after the government failed to endorse the Medical Education Bill in line with the agreement signed with him earlier. Later, he was brought to Kathmandu after his health deteriorated.

US envoy 'absent' in the government briefing

US ambassador to Nepal Randy Berry today skipped the government’s briefing to foreign diplomats based in Kathmandu. Instead deputy chief of Mission of the US Embassy Michael C Gonzales was presented in the government briefing – the third of its kind after the KP Sharma Oli-led government was formed almost a year ago – where ambassadors and deputy chiefs of missions from all diplomatic missions were present, according to the Foreign Ministry.
US ambassador to Nepal Berry’s 'conspicuous' absence to the government briefing has, however, made some eyebrows raised due to latest tension between US and Nepal on Venezuela.
The ruling party’s co-chairman Pushpa Kamal Dahal on January 25 issued a statement against the US 'involvement' on Republic of Venezuela’s current state-of-affairs. The US – through the Embassy in Kathmandu and also in Washington – sought the government's official view following the Dahal's statement as he is the co-chairman of the ruling party. The government, though, issued another formal statement – on January 29 – arguing that Nepal still follows the no aligned policy but the statement was almost in line with the Dahal's statement.
The US State Department had sought an explanation from Nepali ambassador to US Arjun Karki – in the Washington DC – following Dahal's statement that supported Venezuelan President Nicolas Maduro and denounced ‘intervention in internal affairs’ of Venezuela by the US and its allies. Senior officials from the Bureau of South and Central Asian Affairs at the State Department asked Nepali envoy Karki in Washington DC to submit clarification as – according to the US official – the US did not expect such statement from the leader of the ruling NCP (NCP) without any background on the internal affairs of Venezuela.
Though, the government tried to make its position clear in the issue of political crisis in Venezuela, the US has not been convinced.
The absence of the US envoy today in the government briefing in Kathmandu is diplomatic answer of the US to Nepal, according to a foreign policy expert. The US Embassy has currently been engaging with political leaders, high-level government officials and media to discuss the US government’s position on Venezuela also due to the government’s weak attempt to clarify its position.

Urge to focus on quality of audits to improve trust

Accountancy professionals urged the accountants to improve the quality of audit for enhancing public trust on audit reports issued by them.
Speaking at a session on ‘Enhancing Quality of the Audit to Meet Expectations of Stakeholders’ during a day long ‘Conference on Accounting Profession and Way
Forward' – organised by the Institute of Chartered Accountants of Nepal (ICAN) – in Kathmandu today, they said that chartered accountants should conduct audit of corporate and public enterprises in accordance with auditing standards prescribed by the regulators.
ICAN – an autonomous body to regulate chartered accountancy in Nepal – has organised the conference on the occasion of its 22nd anniversary.
Experts and practitioners, on the occasion, presented and commented on technical papers in four sessions during the conference, where they discussed on Blockchain and Financial Market, Corporate Governance Reporting and Role of Professional Accountants, Experience in Implementation of Nepal Financial Reporting Standards in Nepal.
Over 250 participants, including ICAN members, government officials, corporate executives, regulators and chartered accountants, participated in the conference, where finance minister Dr Yuba Raj Khatiwada also addressed. 

World Bank to help scale up renewable energy options in Nepal

The World Bank today approved Strategic Climate Fund (SCF) Grant in the amount of $5.61 million and SCF Loan in the amount of $2 million to help Nepal diversify its energy sources to renewable. The SCF grant and credit support the private sector-led Mini-Grid Energy Access Project, which aims at mobilising energy-service companies in selected regions of the country to increase capacity of renewable energy mini-grids.
"One component of the project will provide credit facility to the private sector to support renewable mini-grid sub-projects, and help this sector prosper and expand,” said World Bank senior energy specialist and task team leader of the Project Subodh Adhikari. "The second component will provide technical assistance to the mini-grid sector, energy-service companies and partner banks to ensure smooth and sustainable implementation," he added.
The Project is aligned to the efforts of the government to address barriers to private sector participation in the renewable energy mini-grid sector. The Project will aim to address these barriers by successfully demonstrating new approaches that will promote public-private partnerships (PPPs). Private entities and cooperatives will be mobilised to provide electricity services to rural areas as 'energy service companies' (ESCOs). These specialised ESCOs will crowd-in the necessary technical expertise and financing capacity to develop, build, own and operate renewable mini-grid projects. They will have access to better credit terms and stronger project development support through the Project.
“This Project will tap into the vast business opportunities and technical potential for the private sector to provide more efficient and sustainable energy services in Nepal,” said World Bank country manager for Nepal Faris Hadad-Zervos. "It is directly linked to the Nepal government’s effort for greater private sector management and commercial financing through public-private partnerships, and the World Bank’s mission of maximizing all financial opportunities for development,” he added.
The Project aims at improving the overall energy supply situation in Nepal by promoting renewable energy solutions, including the opportunities to capture private sector efficiencies through PPPs. This is consistent with the World Bank Nepal’s Country Partnership Framework (CPF) that has identified unavailability of energy supply to be one of the major obstacles in investment, productivity, and livelihood opportunities. The Project will introduce conditions to gradually shift from subsidised model to a commercial business model in mini-grids, pushing for a vibrant and long-term energy market to combat it.
While enhancing the market, the Project ultimately aims at supporting rural residential and nonresidential customers, who will gain access to new or improved energy services in rural areas through renewable energy mini-grids.