Author: space4knews

The Non-Resident Nepali Association (NRNA) has called on the Government of Nepal to immediately establish shelter houses in various countries to aid the rescue of migrant workers facing difficulties abroad. NRNA Vice President Khagendra Nyaupane emphasized the need for the government to provide official recognition to the association’s representatives overseas and appoint them as unpaid labor envoys. Participants at the conference stressed that foreign employment should be dignified, mandating compulsory skill-based training for workers before deployment abroad and ensuring reintegration support for returnee workers. (Saugat 31, Kathmandu)

In countries with large Nepali labor populations, the NRNA has requested the government to set up shelter houses to provide immediate rescue and safe accommodation for workers in distress. During the “Safe Foreign Employment and Reintegration” session of the ongoing NRNA Asia Pacific Regional Conference held in Guangzhou, China from Saturday, participants highlighted the lack of safe emergency housing for workers in crisis. This deficiency complicates rescue efforts, including those led by NRNA representatives, thus underlining the urgent need to establish shelter houses.

Furthermore, to ensure foreign employment is safe, organized, dignified, and rights-based, demands were raised to address issues related to worker security, fraud, human trafficking, exploitation, and unsafe migration in West Asia and other Asian countries hosting Nepali workers. Recommendations included implementing information dissemination, legal aid, and protection programs; establishing shelters, hospitals, and skill training centers in major destination countries such as Malaysia; and making effective use of the Foreign Employment Relief Fund. Vice President Khagendra Nyaupane underscored that governments in countries with significant Nepali labor populations should take direct responsibility for establishing these shelter houses.

He further stated that Nepali workers must receive skill training before being sent abroad. Although NRNA representatives have been providing immediate support, the absence of formal legal recognition presents challenges. Therefore, they have urged the government to officially recognize NRNA representatives as unpaid labor envoys. NRNA Chair Dr. Hemraj Sharma pointed out that ongoing discussions on expanding efforts in the foreign employment sector require comprehensive dialogue on these critical issues.

Thanks to Nepal Rastra Bank’s accommodative loan policies and enhanced recovery processes, commercial banks have seen their net profits increase by 24.59 percent in the last fiscal year, reaching NPR 6.593 billion. The amount set aside for loan loss provisions fell by 23 percent, positively impacting banks’ profitability. Kumari Bank reported a profit increase by recovering NPR 143 million. In the last fiscal year, Nabil Bank led with a profit of NPR 790 million, while Prabhu Bank registered a negative profit of NPR 243 thousand. The data is as of 31 Shrawan, Kathmandu.

The banking sector has experienced improvements in loan defaults and recovery issues. The easing of loan regulations by Nepal Rastra Bank has led to better recoveries, reflecting positively on financial indicators of banks. According to last fiscal year’s data, the actual net profit of 20 operating commercial banks stood at NPR 6.593 billion, marking a 24.59 percent increase compared to the previous year’s net profit of NPR 5.292 billion.

The overall profit reported by banks was NPR 7.01 billion for the period. This profit figure includes accrued but uncollected interest income. Outstanding interest amounted to NPR 416 million in the fiscal year, representing approximately 5.94 percent of banks’ net profits. In the prior fiscal year, banks had recovered NPR 1.335 billion from outstanding interest. Banks and financial institutions prepare their financial statements in accordance with Nepal Financial Reporting Standards.

The main factors behind profit growth were lower provisions for loan losses and increased loan recoveries. However, only modest improvement was observed in banks’ primary income source: interest income. Although interest rates declined in the financial sector, banks’ net interest income rose by just 1.27 percent. One bank noted that higher liquidity in the financial system and reduced loan demand during the same period restrained growth in interest income.

The government’s charge sheet reveals that Nepal Investment Mega Bank (NIMBMB) auctioned Smart Cell’s collateral and recovered loans under the directive of the regulatory authority, Nepal Rastra Bank, and in accordance with prevailing laws. Former governors state that, as per the Bank and Financial Institution Act and the Secured Transactions Act, the bank sold mortgaged assets to protect depositors’ interests. Concerns have been raised by stakeholders over police actions against those involved in the auction after the Nepal Telecommunications Authority failed to manage the assets promptly, prompting the Rastra Bank to exercise its legal rights.

Dated 31st Shrawan in Kathmandu, the report by Nepal Police’s Central Investigation Bureau (CIB) and the charge sheet submitted by the government prosecutor’s office to the district court clearly state that Nepal Investment Mega Bank auctioned Smart Cell’s towers and equipment to recover loans under pressure from Nepal Rastra Bank. The charge sheet cites that Rastra Bank exerted pressure to write off Smart Cell’s long-defaulted loans.

It is evident that NIMBMB conducted the collateral auction following the Central Bank’s recommendations and in accordance with the Secured Transactions Act and the Bank and Financial Institutions Act. However, despite following regulatory directives and Nepali law, the government has filed cases against the bank’s chairman, directors, CEO, and some employees involved in the collateral auction. They are accused of fraud, organized crime, and offenses related to banks and financial institutions, alleging unauthorized sale of public assets. The bank, however, asserts that following the loan default, it sold the collateral to recover the loans.

Regarding the auction of collateral due to Smart Cell’s failure to pay installments on time, former Nepal Rastra Bank governor Dipendra Bahadur Kshetri commented, “The funds loaned by banks are actually the deposits of the general public. To safeguard depositors’ money, the bank took necessary actions and is not at fault. Even if the collateral belongs to the government, since the government failed to manage it within the stipulated time, the bank acted within the law to protect depositors.”

A management committee was also formed under the coordination of the Nepal Telecommunications Authority, including representatives from the Communications, Finance, and Law Ministries. This committee was tasked with evaluating assets and liabilities and devising a plan to settle accounts within six months; however, the charge sheet states that this was not accomplished.

The Nepalese market is experiencing a shortage of sugar, with retail prices rising up to NPR 120 per kilogram. Retailers and wholesalers accuse manufacturers of creating an artificial shortage, a claim the industrialists have denied. A significant portion of the sugar import quota from India has yet to arrive, which could exacerbate the shortage during the upcoming festival season. Kathmandu, 31st Shrawan – Following India’s decision to impose restrictions on sugar exports, fears arose over a potential shortage in Nepal’s sugar supply. However, the Nepal Sugar Industry Association reassured consumers that sufficient sugar stocks were available domestically. Despite this, after three months, sugar scarcity in the market has increased.

Retail sugar prices have surged from NPR 95 to NPR 120 per kilogram. Chandrakala Bhandari, a housewife from Shankhamul, Kathmandu, asked a retailer why prices had risen. The retailer explained that wholesalers had received only limited sugar supplies at higher costs. She commented, “With the festival season approaching, black marketing and price gouging by industrialists and traders have already begun.” Traders have reported that sugar supplies have become irregular. Dev Shrestha, a retailer from Budhanagar, recounted that wholesalers have been delaying supply, claiming sugar is not arriving.

The Retail Traders Association refutes the notion of an actual shortage, asserting instead that price hikes are being manipulated artificially. Association President Pavitra Man Bajracharya accused major traders and manufacturers of deliberately increasing prices. He stated, “Taking advantage of rumors about India’s sugar export restrictions, prices have been raised opportunistically.” While wholesalers blame industrialists, the latter deny any shortage. In response, Shashikant Agrawal, President of the Sugar Producers Association, suggested that traders may be hoarding stocks to create scarcity.

Currently, no verified data is available regarding sugar inventories. Industrialists claim stocks have been exhausted, whereas the Association asserts that sufficient sugar remains available. A considerable portion of the sugar import quota from India is still pending arrival, which has disrupted supply chains. Given the heightened sugar consumption during festivals, it is anticipated that existing stocks may not be adequate to meet market demand.

The Auditor General’s Office report highlights that delays in the construction of the Pushpalal Mid-Hill Highway have caused the project costs to exceed initial estimates by NPR 5.1 billion. As a national pride project, the total cost of this highway has surged by 152.78 percent, reaching NPR 8.433 billion. With only 82 percent physical progress achieved, challenges such as the absence of a detailed project report and compensation disputes have continually disrupted construction activities.

The Pushpalal Mid-Hill Highway, initiated to connect districts in Nepal’s mid-hill region to the transportation network, has faced cost overruns exceeding NPR 5.1 billion even before completion. This project, linking to the East-West Highway, commenced in fiscal year 2064/65 (2007/08) and was initially targeted for completion in fiscal year 2074/75 (2017/18). The original estimated cost was NPR 3.336 billion; however, the revised cost estimate has escalated to NPR 8.433 billion, according to the Auditor General’s performance audit report.

The report states that incomplete works within the scheduled time frame led to a 152.78 percent increase in costs. By fiscal year 2081/82 (2024/25), NPR 7.09 billion has already been spent. Initially planned to span 1,776 kilometers, the project length has now expanded to 1,879 kilometers due to route realignments, contributing further to cost increases. After years of fluctuations, the Auditor General has directed enhanced efficiency to ensure timely completion of the project moving forward.

The Nepal Bar Association has strongly opposed the Supreme Court’s decision to transfer cases related to the Assets Investigation Commission to the Constitutional Bench. Bar President Dr. Vijay Prasad Mishra accused the Chief Justice of making an administrative decision that contradicts judicial principles and established traditions. The Bar concluded that shifting matters meant to conclude in court sessions through administrative interference poses a challenge to the independence of the judiciary.

Following the Supreme Court’s announcement to bring cases against the Assets Investigation Commission before the Constitutional Bench, the umbrella organization of legal professionals immediately launched protests. The Bar expressed surprise at the Chief Justice’s remark that issues of national importance are being placed before the Constitutional Bench, considering that traditionally cases are discussed on the day they are filed before the court session.

The Bar rejected the Chief Justice’s decision as contrary to the judiciary’s well-established norms. Bar President Dr. Vijay Prasad Mishra stated, “Subjects that require open session discussion cannot be advanced by court administration, nor is it the authority of court administration.” Furthermore, the Chief Justice remarked that it is inappropriate to review facts and evidence of cases not yet submitted to a court session or to secretly request and examine files, a practice he deemed misguided.