Nepal Press Bulletin - 01 February 2022

1. COVID-19 Updates
Nepal logs 5,292 cases, 8,191 recoveries and eight deaths on Monday: Republica
When will people get booster shots?: The Kathmandu Post
Instructions to send the details of the vaccine: The Rising Nepal
Hetauda hospital starts oxygen production: The Rising Nepal
Japan provides aid to Nepal to strengthen vaccine cold chain system: The Kathmandu Post
Home Minister inquires about security situation, COVID-19 impact in 12 districts: The
Rising Nepal

2. Politics
MCC compact threatens coalition’s unity: The Kathmandu Post
Deuba, Oli in talks through various channels on MCC pact, leaders say: The Kathmandu Post
Dr. Bhattarai challenges Bhim Rawal to substantiate allegation against him: Khabarhub
How worthless wrangling is delaying MCC ratification in Nepal: Khabarhub

3. Transitional justice
Impunity behind disappearance cases in Nepal, finds report: The Himalayan Times

4. Human rights/rule of law

Election Commission submits annual report to President: Republica
SC orders to implement rights for Dalits: Khabarhub

6. Economy/development
Finance minister admits lack of development-friendly policy, structures: The Himalayan
Times
Regulatory crisis in Nepali banking: The Kathmandu Post
TBT, SPS and technical regulations: Time for Nepal to meet the requirements (Suman Kumar
Regmi writes - The Department of Food Technology and Quality Control (DFTQC) and concerned
ministry are responsible for the preparation, adoption and application of SPS measures in Nepal.):
The Himalayan Times
Handicraft exporters on the brink of collapse amid Omicron onslaught: The Kathmandu
Post
Suryodaya Municipality makes strides in education sector: The Rising Nepal
---

1. COVID-19 Updates

Republica
Nepal logs 5,292 cases, 8,191 recoveries and eight deaths on Monday

KATHMANDU, January31: Nepal recorded 5,292 new cases of COVID-19 on Monday along with
8,191 recoveries and eight deaths, according to the latest information provided by the Ministry of
Health and Population (MoHP).
As many as 16,088 swab samples (including RDT antigen data received from SMS & Email) were
tested for COVID-19 on the day. Of them, 3,472 PCR and 1,820 antigen tests turned out to be
positive for the deadly virus.
There are currently 79,610 active cases of COVID-19 across the country. Among them, 77,665 are
in self-isolation, 1,607 in institutional isolation, 288 in ICUs, and 50 on ventilators. Similarly, 141
people are currently in quarantine facilities. So far, 11,743 people have died of the viral infection
across the country.
Meanwhile, the Kathmandu Valley alone recorded 1,722 cases of the virus on Monday. Of them,
1,361 were recorded in Kathmandu, 90 in Bhaktapur, and 271 in Lalitpur districts.

The Kathmandu Post

When will people get booster shots?

KATHMANDU, February 1: When public health experts, epidemiologists and virologists stressed
the need for booster shots of the Covid-19 vaccine before the third wave hit the country, officials
at the Ministry of Health and Population had said that boosters will be started once 40 percent of
the total population is inoculated.
And as of Monday, 14,204,270 people have been immunised against Covid-19, which is 46.8
percent of the 30,378,055 population.
However, Nepal’s total population has been confirmed to be 29,192,480, according to the
preliminary figures of the 2021 census released by the Central Bureau of Statistics.
Going by the new numbers, around two percent more or 48.65 percent of the total population
has been immunised, but the government has not taken any decision on booster shots for the
general population.
“Some countries have already started fourth doses and several countries have started booster
shots,” Dr Biraj Karmacharya, an epidemiologist, told the Post. “We don’t know when the
authorities will start booster shots for the ordinary people.”
The Health Ministry started booster shots for frontline workers—doctors, nurses, paramedics, lab
technicians, hospital staff, female community health volunteers and ambulance drivers from
January 16.
Journalists, bureaucrats, lawmakers; those serving in diplomatic missions and financial
institutions; prisoners, people living in old-age homes and refugees, who were vaccinated in the
first phase of the immunistion campaign starting January 27 last year, are being administered
booster shots.
People above 60, who were jabbed with the Vero Cell vaccine, are also being provided with
booster shots.
Experts say Omicron, a highly contagious variant of the coronavirus, is neither the latest nor the
last variant, which has wreaked havoc throughout the globe. Even after the Omicron variant
spread around the world, new Omicron variant BA.2 is spreading in many countries including
Nepal.
The BA.2 is possibly a bit more contagious than the first Omicron variant called Omicron “BA.1”.
“The BA.2 has already become dominant in Nepal,” Dr Prabhat Adhikari, an infectious disease and
critical care expert, told the Post. “Omicron positive in S-gene positive swab samples means it is
Omicron BA.2.”
A whole-genome sequencing carried out by the National Public Health laboratory a few days ago
showed that out of 32 swab samples of infected people, 28 tested positive for the Omicron variant.
The study shows that the Omicron variant has been clearly displacing the Delta variant, which
caused devastation in the second wave of the pandemic in the country.
The laboratory tested the swab samples of the infected people, whose S-gene targets were found
positive. Earlier, the laboratory had only carried out whole-genome sequencing in swab samples
of infected people with S-gene dropout, one of the proxy indicators of Omicron. According to
doctors, swab samples in which the S-gene targets are missing are considered to be infected with
the Omicron variant. Laboratories use samples with S-gene missing for wholegenome sequencing
to determine the presence of the said variant. And confirmation of the Omicron variant in the
Sgene positive samples means infection is caused by the BA.2 variant. Doctors say virus variants
may not be mild like Omicron every time and the apathy for launching booster shots may have
serious consequences.
“The government’s apathy in times like these would have resulted in a large number of deaths if
the dominant virus variant was fatal like Delta,” Dr Keshab Deuba, a public health epidemiologist,
told the Post. “This time the virus variant turns out to be mild and the infection does not get
serious on many people due to vaccination.”
Experts say immunisation against the contagious virus is not an expenditure but investment,
which saves lives and money and keeps the economy afloat.
Meanwhile, officials at the Ministry of Health and Population said that no decision has been made
so far about booster shots against Covid-19.
“I don’t know when the booster shots will start,” Dr Roshan Pokhrel, secretary for the Ministry of
Health and Population, told the Post. “We do not have the vaccine to give as booster shots to the
general population. If the National Immunisation Advisiory Committee recommends one, the
government will start preparations accordingly.”
On Monday, 5,292 people tested positive for the coronavirus—3,472 in 10,368 polymerase chain
reaction tests and 1,820 in 5,720 antigen tests. In the last 24 hours, eight people died due to
complications related to coronavirus infection. Active cases across the country stand at 79,272.

The Rising Nepal

Instructions to send the details of the vaccine

KATHMANDU, January 31: The Ministry of Health and Population has instructed its subordinate
bodies to send the details of vaccines and vaccinations against corona virus. Today's meeting of
the committee formed to investigate the vaccine records of COVID-19 vaccine has directed the
management division of the health service department, health supply management centers of all
the seven provinces, all 77 district health offices and 753 local levels to send details of vaccine
stock and vaccinated persons, said the Committee Coordinator Dr Gunaraj Lohani.
The committee has directed to provide the details of all the vaccines by 4 pm on February 4. The
ministry had formed a five-member probe committee on Sunday under the coordination of Dr
Lohani, the ministry's chief expert, after a significant number of vaccines were found
undocumented.

The Rising Nepal

Hetauda hospital starts oxygen production

BAGMATI, January 31: Hetauda Hospital has started producing medical oxygen to meet its
increasing demand for COVID-19 patients. Currently, it is producing 250 filled oxygen cylinders a
day.
It has set up three plants with the capacity of producing a total of 250 filled oxygen cylinders a
day. The Federal Ministry of Health with assistances from the Government of the United States of
America provided Rs 30 million for the project.
Similarly, the Association of Industries, Makawanpur and Hetauda Sub Metropolitan City have
provided funds for the project, said the hospital chair Rajesh Prasain. This project has provided
relief to COVID-19 patients visiting the hospital as the hospital often referred the patients to
elsewhere for want of oxygen, he said.
The hospital has readied 20 beds along with ventilators for COVID-19 patients, said hospital
medical superintendent Dr Ram Chandra Sapkota, adding that at present, nine COVID-19 patients
are receiving treatment at the hospital.

The Kathmandu Post

Japan provides aid to Nepal to strengthen vaccine cold chain system

KATHMANDU, February 1: Japan has provided grant assistance to strengthen the vaccine cold
chain system in Nepal through the United Nations Children’s Fund (UNICEF).
The vaccine cold chain systems include proper storage facilities such as cold rooms, refrigerators,
freezers in vaccine storage facilities, refrigerator containers for transportation, cold boxes, among
other supportive equipment.
Under its grant, Japan has provided nine walk-in-coolers, 38 solar-driven vaccine refrigerators,
1,109 long-range vaccine carriers and 53 cold boxes to ensure proper storage, management and
transportation of Covid-19 vaccines in Nepal.
These equipment have been delivered sequentially throughout Nepal since last year and the
delivery of all items was completed on January 30 this year. Along with providing support to
human resource development for the operation and maintenance of cold chain equipment, the
grant also reinforces monitoring efforts for effective management of routine and Covid-19
vaccines by UNICEF.
“Nepal is currently experiencing the third wave of Covid-19 with the Omicron variant, which
makes the vaccine drive one of the top priorities for the Government of Nepal,” said Ambassador
of Japan to Nepal, Kikuta Yutaka, in a press statement released by UNICEF on Monday.
“Proper vaccine storage is crucial in the vaccine campaign and this grant aims to drastically
increase the capacity for storage and distribution of vaccines across the country,” reads the
statement.
The walk-in-coolers are reportedly said to be transportable and can be installed relatively quickly
and inexpensively; the solar-driven refrigerators help tackle storage issues faced by regions with
interrupted electricity supply, and the carriers and boxes enable vaccine distribution to
communities inaccessible by vehicles.
“I hope this grant can expedite the process in reaching every person waiting for the vaccine, and
I sincerely hope the people of Nepal to regain normal, safe days, overcoming the challenges of
Covid-19 pandemic as soon as possible,” said Kikuta.
Japan has so far donated vaccines, ambulances, various medical and cold chain equipment to
strengthen the measures against Covid-19. Additionally, it recently decided to extend loan
assistance of up to 10 billion Japanese yen to the Nepal government for economic recovery,
growth and social resilience.
“We are grateful to the Government of Japan for its continued support to Nepal in critical efforts
to safely and effectively deliver and store vaccines across the country, particularly at a time when
Nepal is battling high numbers of Covid-19 infections during the current wave,” said Elke Wisch,
UNICEF Representative in Nepal. “The cold chain equipment provided through Japan’s generous
support will not only support Nepal’s current Covid-19 vaccination drive, but also reinforce
critical routine immunisation services to protect children against main childhood diseases. A
strengthened vaccination system will further contribute to ensuring that the health system is
robust enough in case of future crises so that children, families, and communities across Nepal
can be protected.”
UNICEF has been working for years with the Nepal government as partners to strengthen the
country’s vaccine cold chain systems for routine immunisation.
After the onset of Covid-19, UNICEF has been providing technical assistance to the government of
Nepal to strengthen in-country supply chains systems and to ensure that adequate cold chain
capacity is in place to accommodate Covid-19 vaccines. It has also been supplying syringes,
developing a Covid-19 vaccination rollout guideline, training health workers, and working with
communities in addressing misinformation and building trust in vaccines.

The Rising Nepal

Home Minister inquires about security situation, COVID-19 impact in 12 districts

KATHMANDU, January 31: Minister for Home Affairs Bal Krishna Khand today held telephone
talks with the police chief of 12 districts. The conversations focused on the security situation of
the respective districts, impact of COVID-19 in police service and ration meant for police
personnel.
The Home Minister held telephonic conversation with the police chief in Jhapa, Ilam, Panchthar,
Taplejung, Dhanusha, Saptari, Siraha, Sarlahi, Achham, Parsa, Makwanpur and Rautahat districts.
He mainly inquired about the impact of COVID-19 in the police service and in the entire district,
existing cold wave in the Terai, snowfall in the high hills, overall security situation in the district
and the government ration allowance meant for police personnel.
Following the conservation with the Home Minister in the Federal Government, Siraha Police
Chief Superintendent of Police Arjun Timilsina said, the former inquired him about the security
situation in the district, police ration allowance, impact of COVID-19 and cold wave and measures
taken against the adversities. Saptari’s Police Chief Abinarayan Kafle said the Minister took
information about the security situation in the district, scale of COVID-19 crisis and police ration
allowance.

2. Politics

The Kathmandu Post

MCC compact threatens coalition’s unity

KATHMANDU, February 1: Over the last few days, the $500 million Millennium Challenge
Corporation Nepal Compact has again shaken up the Nepali political landscape.
This time, the project that has become a major political agenda—more than a grant agreement—
has shaken the very foundation of the five-party ruling coalition led by the Nepali Congress. Prime
Minister Sher Bahadur Deuba sent shockwaves in the coalition by again pressing the partners,
especially the Communist Party of Nepal (Maoist Centre) and the CPN (Unified Socialist), to table
the MCC in Parliament without any further delay.
Both the Maoist Centre and the CPN (Unified Socialist) have been saying that the US compact
cannot be endorsed in its existing form, despite the MCC clarifying many of the questions sent by
the Finance Ministry.
“Prime Minister Deuba has been pressing the coalition partners to table the MCC compact in
Parliament saying that the Americans have said they would take the grant back if it is not
endorsed by February 1,” said Jhala Nath Khanal, a senior leader of the CPN (Unified Socialist)
who is leading a task force formed to study the MCC compact.
On December 19, the ruling coalition had formed the three-member panel including Narayan Kaji
Shrestha from the Maoist Centre and government spokesperson Minister Gyanendra Bahadur
Karki from the Nepali Congress as members, to study the US compact.
However, the task force has not made any progress as two of the members, Khanal and Shrestha,
are against ratifying the project without amendment while Karki has been lobbying to endorse
the compact in its given form.
Karki was finance minister when the US grant project was signed in September 2017. Then
jointsecretary Baikuntha Aryal and Jonathan Nash, acting chief executive officer of the MCC, had
signed an agreement in the presence of the then finance minister Gyanendra Bahadur Karki and
US Deputy Secretary of State John J Sullivan in Washington.
The US government agreed to provide $500 million in grants while Nepal would contribute $130
million for the project that prioritises energy and roadways. If endorsed, this will be the largest
grant Nepal has ever received.
There wasn’t much dispute over the compact until David J Ranz, assistant secretary for South Asia
at the US State Department, during his Nepal visit in May last year said that the MCC was a crucial
part of the Indo-Pacific Strategy.
“We have got more new documents of some 900 pages on MCC which need weeks to study,” said
Khanal, a former prime minister. “Still there are no similar views on MCC in the ruling coalition—
some want to endorse it as it is but we are saying that must be amended.”
Leaders close to Maoist Centre chair Pushpa Kamal Dahal have said the prime minister has been
pressing the coalition partners to table the MCC compact in parliament, and to avoid tabling it,
the meeting of the House of Representatives scheduled for Sunday was postponed for 10 days
under the pretext of Covid surge.
“Now the MCC is not limited to a grant project, it has become a hot political agenda,” said a central
committee member of the Maoist Centre asking not to be named. “Actually we are postponing the
meeting of parliament just to delay the tabling of the MCC.”
Recently the eighth national convention of the Maoist Centre had endorsed Dahal’s proposal to
pass the MCC only after revision although most of the party’s delegates had demanded that the
compact must be annulled because many of its provisions were against national interests.
Following media reports that the prime minister has been preparing to table the MCC compact in
parliament, the International Department head of the Chinese Communist Party Song Tao held a
one-to-one virtual meeting with Dahal on Saturday.
“It seems that China wants to stop the MCC from getting it through parliament with the help of
Dahal,” said the central committee member of the Maoist Centre.
Another central committee member of the party, Yubaraj Dulal, however, said it is Dahal who has
been stopping the passage of the MCC compact, otherwise it would have been passed long ago.
Except a handful of leaders almost all Maoist Centre and the CPN (Unified Socialist) leaders are
against endorsing the MCC in its present form, but former prime minister Baburam Bhattarai who
is a leader of another coalition partner Janata Samajbadi Party, has long been urging the coalition
partners to endorse it.
But despite deep divisions among the ruling coalition partners over the US compact, leaders of
the Maoist Centre and the CPN (Unified Socialist) say the MCC issue will not affect the coalition
government in any way as a breakup of the current coalition will cost Prime Minister Deuba his
chair.
Though some leaders have said the prime minister had pressed the leaders of coalition partners
to table the MCC in parliament during their meeting on Saturday, Madhav Nepal, chairman of the
CPN (Unified Socialist) claimed that he was not aware of such a discussion during the meeting.
Talking to the Post on Saturday evening, Nepal claimed that there was no situation to move ahead
with the MCC because the task force formed to study it has not submitted a report yet. The leaders
of the two parties–Maoist Centre and CPN (Unified Socialist)–have been saying that they would
better opt to remain out of the coalition than to endorse the compact ahead of the elections.
“I don’t think the prime minister will decide to break up the existing coalition by endorsing the
MCC at a time when major elections are round the corner,” said Jagannath Khatiwada, deputy
general secretary of the CPN (Unified Socialist) and the party’s spokesperson. “It is unlikely that
the two rivals Nepali Congress and the CPN-UML will form a new coalition before the upcoming
polls.”
Both the Maoist Centre and the CPN (Unified Socialist) also fear that they will not be able to
perform better in the upcoming elections if Deuba breaks up the alliance and they have to fight
the elections individually.
On Monday, again Dahal and Nepal held a meeting with the prime minister at Baluwatar. The three
leaders had discussed various contemporary issues with the MCC at the centre stage.
The Kathmandu Post
Deuba, Oli in talks through various channels on MCC pact, leaders say

KATHMANDU, February 1: Politics is a game of immense possibilities, they say.

As though national politics was not charged up enough over when to hold local level elections, the
Millennium Challenge Corporation-Nepal Compact has taken centre stage again, for an umpteenth
time. And Prime Minister Sher Bahadur Deuba is in the eye of the storm.
Deuba’s position on the MCC compact, the $500 million grant from the United States, has always
been clear—that it must get through Parliament. The catch, however, is he has two key partners
in his coalition government that are against the parliamentary passage of the US assistance, which
Nepal signed in September 2017.
Since Washington has been building pressure on Nepal in its own manners and styles, Deuba is
learnt to have been trying to seek support of the main opposition CPN-UML.
The UML, which was in favour of passing the MCC when it was in power until July 12, has
maintained that it currently has no position on the American grant.
Multiple leaders from Deuba’s Nepali Congress and the UML told the Post that the prime minister
is exploring several options, including seeking the main opposition’s support.
“Deuba and Oli have been talking through formal and informal channels,” said Min Bishwakarma,
a leader close to Deuba. “The prime minister wants to build national consensus on holding local
elections and ratifying the MCC.”
After widespread criticism of the ruling alliance’s exercise to delay local polls, the alliance made
a turnabout, agreeing on conducting them by mid-June. The UML, however, has said that local
level elections must be held latest by the third week of May. Deuba wants a broader agreement
on local elections and the MCC.
Deuba’s bid to seek UML support for MCC comes with a risk. Such a move could lead to breaking
of the alliance.
If the Maoist Centre and the CPN (Unified Socialist) decide to pull out support, the current
coalition will collapse. But the bigger danger for Deuba is—what if a new left alliance emerges. In
2017, the Maoist Centre broke up with Congress and sided with UML. Congress faced a drubbing
in the elections.
Deuba and Oli last met on January 8, and it was the first since the former took over from the latter
on July 13 last year. Deuba had reached Oli’s residence for the meeting.
Oli in the past snubbed calls for meetings. He even boycotted at least two all-party meetings called
by Deuba—on September 30 and December 19.
The main opposition leader holds contempt for the ruling alliance as he believes the current
government lacks the people’s mandate and was installed through a court order.
Deuba has consistently sent his emissaries to meet Oli in signs of overtures.
Even on Monday morning, Gyanedra Bahadur Karki, minister for communication and information
technology, met with Oli.
“It’s obvious. He was carrying Deuba’s message, or else why would he meet Oli?,” a Nepali
Congress leader said. “The discussion revolved around ratifying the MCC from Parliament and
opening the House obstructions. But the UML is adamant on not letting the House function.”
The UML has been obstructing the House proceedings since October. But unlike in normal
conditions—when the opposition doesn’t not let the House function over some issues with the
government—the UML’s only gripe is that Speaker Agni Sapkota refused to take cognizance of the
party’s decision to expel 14 of its lawmakers in August last year. Those “expelled” leaders later
formed the CPN (Unified Socialist) under Madhav Nepal.
Leaders from the Nepali Congress and the UML said that even Oli is of the view that his party
won’t extend support to Deuba’s MCC bid as long as the current alliance exists.
According to the leaders, the UML will rescue Deuba on MCC and let him continue as prime
minister even if the alliance breaks down, by not staking claim to the government. But what’s the
guarantee?
Leaders say there’s no guarantee in politics.
Deuba’s government was formed under the last of the available constitutional provisions—
Article 76 (5)—for constituting the Council of Ministers. If the prime minister elected under this
provision fails a vote of confidence, it leads to House dissolution.
If new elections are declared after such a House dissolution, Deuba will continue.
“If other ruling parties object to the passage of the MCC, then naturally the UML will come forward
to support the Deuba government. That much assurance Deuba has received from Oli,” said
Bishwakarma, the Congress leader.
The UML has maintained that it will make its position clear on the MCC once the coalition
government makes its position clear. The MCC Nepal compact has been in Parliament since July
2019 and the Speaker needs to put it to vote.
The incumbent Speaker Sapkota is a long-time ally of Maoist Centre chair Pushpa Kamal Dahal,
and many believe he is unlikely to move the American grant unless he gets the nod from Dahal
who is opposed to MCC’s parliamentary ratification.
The UML in a statement on January 23 said that the ruling alliance was making ludicrous and
childish moves such as constituting a task force to study an agreement that they themselves had
signed
When the MCC was signed in 2017, then also Deuba was the prime minister backed by Dahal. The
current government has formed a task force of Jhala Nath Khanal from the CPN (Unified Socialist),
Narayan Kaji Shreshtha from the Maoist Centre and Minister Karki.
Both Khanal and Shrestha represent the parties that are dead against MCC’s passage from
Parliament.
According to Bishnu Rijal, deputy chief of the UML’s publicity department, Oli during his last
meeting with Deuba had said that the government should first table the MCC in the House. “Our
party chair also told the prime minister that there was no need to form the task force,” said Rijal.
“How do you expect to get the right recommendations from people who are against the
ratification of the MCC?”
Another UML leader confirmed to the Post that Deuba and Oli have been in talks lately through
different channels and interlocutors.
“If the present alliance breaks down, the UML will be there to rescue the Deuba government,” said
UML’s Secretary Padma Aryal. “Our position on MCC is clear. We will show our cards only after
the government moves it forward in Parliament. If the Deuba government falls into a minority
over the MCC, we are not going to join the government; we will rather support it from outside.”
But Deuba is aware of the pitfalls.
According to leaders from his orbit, Deuba does not want to let the current coalition break apart.
The prime minister believes the Maoist Centre and the CPN (Unified Socialist) would support the
MCC, according to a Congress leader.
“But in politics, everyone keeps different options open,” said the leader. “And so is Deuba, or any
other leader for that matter.”

Khabarhub
Dr. Bhattarai challenges Bhim Rawal to substantiate allegation against him

KATHMANDU, February 1: Former Prime Minister Dr. Baburam Bhattarai has challenged
CPNUML leader Bhim Rawal to authenticate his allegation against him on the issue of Millennium
Challenge Corporation (MCC).
Taking to social media, Dr. Bhattarai warned Rawal to confirm his claim that Dr. Bhattarai had
reached a secret deal with the United States on Millennium Challenge Corporation (MCC) when
he was the Prime Minister.
“Dr. Bhim Rawal hangs Ph.D. in front of his name. If I have made a secret deal, then he has to
disclose it,” Dr. Bhattarai has said raising suspicion over the authenticity of Rawal’s Ph.D.
Bhattarai challenged Rawal to confirm allegations that he had “secretly signed the MCC
agreement” when he was prime minister.
“We were busy finalizing the constitution and the peace process. Baburam had secretly signed the
MCC agreement,” Rawal had said on Monday.

Khabarhub
How worthless wrangling is delaying MCC ratification in Nepal

KATHMANDU, February 1: A proposed US$500 million (around Rs 60 billion) Millennium

Challenge Corporation (MCC) Compact is still a key political issue in Nepal waiting for
implementation even after four years of signing the grant agreement.
The MCC Nepal Compact, which had to be implemented long back, is still an issue of discussion.
As per the provision that the final process for the implementation of MCC should be ratified by
the parliament, the then government led by KP Sharma Oli registered it in the parliament on July
15, 2019.
The MCC proposal, which has been registered in the parliament, instead of bringing it for
discussion with priority has been entangled in baseless rumors and internal politics.
Even though the Prime Minister and Nepali Congress (NC) President Sher Bahadur Deuba has
pledged to ratify the MCC Compact from the ongoing session of the parliament, the process has
not started yet due to various internal reasons — mainly political bickering.
The government’s failure to move the process forward in parliament has courted further
confusion, controversy and debate over the MCC.
Nepal’s failure to take a decision on the Compact even after thematic discussion in the parliament
has raised a serious question mark on the country’s decision-making capacity, credibility,
diplomatic ability and balance.
It is time for Prime Minister Deuba, who should be sensitive to decide the fate of MCC from the
parliament, to take it to the parliament to decide.
Contrary to the intent of the agreement, the exaggeration and misinformation have not only
increased confusion about the MCC but have also been aimed at giving birth to a wrong intention
to tarnish Nepal’s relations with the United States.
Despite repeated commitments by the government, there is not much time left for its practical
implementation. The United States has responded to the questions sent by the government to
dispel possible illusions in the political leadership.
Officials from the US Embassy in Nepal, MCC officials along with US Assistant Secretary of State
for South and Central Asian Affairs Donald Lu, Deputy Assistant Secretary of State Kelly Keiderling
and MCC Vice President Fatima Sumar also visited Nepal to clarify the confusion. The United
States, which has been patient for years, is not in a position to wait indefinitely for the project to
be implemented under this or that pretext.
It is the responsibility of the government to start the process for the implementation of MCC.
Prime Minister Deuba has the responsibility to take it to the parliament even if there is no political
consensus and to table it in the parliament to provide freedom of discussion and decision by the
parliamentarians.
If the MCC is withdrawn, it will be due to the inaction of the government and Prime Minister
Deuba’s failure and irresponsibility in the name of not splitting the ruling alliance.
The MCC should at least be discussed in parliament and the coalition should not carry out
irresponsible acts that would deprive parliamentarians of the right to make independent
decisions.
The Parliament has the right to accept or reject the financial support for power transmission lines
and road infrastructure, which has been mentioned clearly in the agreement, based on the points
of the agreement and not on the basis of rumors.
While energy experts, the private sector, investors and independent analysts have categorically
stated that the MCC could help Nepal to make a big leap in the power sector, the MCC has been
discredited in the interest of some people and elements.
The MCC grant agreement between the Government of Nepal and the United States of America is
now a matter to be decided by the people’s representative body rather than delaying on this or
that pretext, pointing out internal reasons and demanding amendments.
In the past, when the Arun III Project was sent back in the name of national sovereignty, Nepal
was pushed fifteen years back in energy development.
The government also formed a three-member task-force under the leadership of the Unified
Socialist party Jhala Nath Khanal to suggest the government on MCC.
Narayan Kaji Shrestha, vice-chairman of the CPN-Maoist Center and Gyanendra Karki, Minister
for Information and Communication are members of the three-member study task force. The task
force may be looking for suggestions rather than an exit, but has not been given any authority to
influence the process of taking it to the parliament.
Forming a committee is nothing but prolonging the time and taking the issue out of the
parliament. Coordinator Khanal’s attitude and bias towards MCC have become already clear. The
MCC was used as a political weapon against the then Prime Minister KP Sharma Oli in the dispute
within the then Nepal Communist Party.
The formation of the committee under the leadership of Jhala Nath Khanal is nothing but a waste
of time. The NCP-led government had on February 2, 2020, formed a three-member task force
headed by senior leader Jhala Nath Khanal, then Foreign Minister Pradip Gyawali, and party’s
Standing Committee member Bhim Rawal to study and suggest the government on the pros and
cons of MCC.
The issue got further baffling leading to a political whirlwind when the task force submitted the
report to the government on February 21, 2020.
Although the task force member and the then Foreign Minister Pradip Gyawali had a 15-point
difference of opinion, the MCC was thrown into a dispute with the intention of using it as a weapon
to attack the government. The MCC is in sharp political turmoil due to Chinese influence amidst
the then power struggle within the NCP, internal rift and incongruities. Even though Nepal has
already completed all the procedures, there has been an unnecessary delay to ratify the MCC
Compact from the parliament.
Nepal will not get any benefit from the Chinese desire to harass the US from Nepal, but will
definitely encourage foreign interference in Nepal’s internal affairs.
Whether MCC is in Nepal’s interest or not is a matter for Parliament to decide. Since the MCC is
completely transparent with absolutely no hidden intention, the issue has been made deliberately
controversial due to China’s direct interest, influence and pressure sending a negative message to
the international community that Nepal is not capable of making its own decision.
It is time for Prime Minister Deuba, who should be sensitive to decide the fate of MCC from the
parliament, to take it to the parliament to decide.
The MCC grant agreement between the Government of Nepal and the United States of America is
now a matter to be decided by the people’s representative body rather than delaying on this or
that pretext, pointing out internal reasons and demanding amendments.
The MCC has been further embarrassed by the government’s commitment to ratify but not
proceed with the process accordingly.
Even after so many years of agreement to implement it, obstructing the process without any
discussion in the parliament and raising the issue of amendment or revision is a double standard
political character.
It is up to the political parties and the parliament to decide whether to approve or reject the MCC
otherwise it will be detrimental to Nepal. It is nothing but an irony on the part of the ruling
coalition to tarnish Nepal’s credibility and image.
It is crystal clear that the Nepali Congress does not have the required majority in the parliament,
and failing to take a bold decision by taking it to the parliament for discussion (even if it is not
endorsed) will send a clear message that Prime Minister, too, is not ready move forward MCC in
the parliament. This will further tarnish PM Deuba’s image.
Once the MCC is in the business of Parliament, the other parties can make their own decisions,
and the Parliament has every right to either approve or reject it. But the prime minister’s
credibility cannot be established by his mere commitment of endorsing it but not taking the
initiative to take it to the parliament for discussion.
The House of Representatives can only bail out the issue now. While the task force’s report is
certain to further complicate and polarize the MCC, it now appears to be taking the debate in
parliament to the next level and discrediting the United States.
The MCC agreement was chosen by Nepal after fulfilling the criteria through open competition.
The United States has not agreed to any other defense, security, or military agreement for the MCC
grant. As this scheme is completely transparent in itself and is related to intensive development,
its money cannot be spent on any military activity.
For Prime Minister Deuba, who has been making public commitments, now is the crucial time to
move forward with the MCC and make a commitment or create an atmosphere of discussion
within the parliament.
Now questions arise: What is barring the representatives who have won from the people’s vote
from holding intensive discussions and making a decision?
Why isn’t the voice being raised when China is playing in Nepal-US relations and holding Nepal’s
self-determination capacity hostage? Why is the process of blocking and moving the time being
done by looking at the relations with the US from the Chinese point of view? Nepal will not get
any benefit from the Chinese desire to harass the US from Nepal, but will definitely encourage
foreign interference in Nepal’s internal affairs.
The MCC has been embroiled in unnecessary controversy since Prime Minister Deuba failed to
take decisive political action amid a public commitment to get the MCC passed by parliament. Yes,
everyone is well aware of Nepal’s geopolitical situation, constraints and complexities, but it is
important to convey the message that Nepal is an independent nation and its decisionmaking
capacity cannot be held hostage by China. To repeat, the Parliament has the power to approve or
reject the MCC.
Since the signing of the MCC agreement between the Government of Nepal and the United States
on September 14, 2017, the implementation of the agreement has been delayed each day, but no
agreement has been reached between the political parties nor has it moved forward in the
parliamentary process.
Representatives of the private sector have also submitted a joint memorandum to the government
urging it to ratify the MCC as soon as possible.
Energy sector entrepreneurs have warned the government that Nepal would incur a loss of Rs
142 billion every year if the transmission line is not built in the energy sector.
Many hydropower projects are currently under construction in the Mid-Hills, and investors are at
high risk of losing if the government did not build a transmission line under the MCC project. Due
to the lack of confidentiality and transparency of the dialogue between the Chinese leaders and
the Nepali communist leaders, the topics of discussion have not been divulged
The government of Nepal is not in a position to build another transmission line immediately and
even though it starts building it, there is no project that has been completed in the stipulated
amount and time.
If the transmission line — the backbone of electricity — is not constructed, besides the country’s
hydropower investors, the banks that have given billions of rupees in loans, too, would suffer. In
fact, the country will be plunged into a major economic crisis in the future. That is why the energy
sector businessmen are constantly urging the government to build the transmission line by
approving the MCC without any delay.
For Prime Minister Deuba, who has been making public commitments, now is the crucial time to
move forward with the MCC and make a commitment or create an atmosphere of discussion
within the parliament.
Along with Prime Minister Deuba’s proposal to move the MCC forward from this Parliament
session, Chairman of the Maoist Center Pushpa Kamal Dahal “Prachanda” has already held virtual
talks with Song Tao, Chief of Foreign Affairs of the Communist Party of China. The content of
Saturday’s video chat has not been made public.
In the meantime, the discussion of MCC in Nepal, the activism of Chinese leaders and the direct
dialogue with the communist leaders is not a secret issue anymore.
Due to the lack of confidentiality and transparency of the dialogue between the Chinese leaders
and the Nepali communist leaders, the topics of discussion have not been divulged.
Meanwhile, Chinese diplomatic activism in Nepal has also increased lately. Therefore, the Prime
Minister must now make a political decision to take Nepal’s independent foreign policy out of
China’s strategic grip.
The decision to accept or reject the MCC should not be delayed. The sovereign Parliament has
every right to decide.

3. Transitional justice

The Himalayan Times

Impunity behind disappearance cases in Nepal, finds report

KATHMANDU, January 30: A recently released research-based book titled 'The Disappeared:
Enforced Disappearance and Human Rights Violations during Armed Conflicts' by Deb Bahadur
Bohara, a PhD holder, depicts how the human rights of ordinary people in Nepal were curtailed
and violated during the decade-long armed conflict that erupted in 1996.
It focuses mainly on cases of disappearance, analysis of its complex nature and gross violation of
human rights.
According to Bohara, this is an analytical and exploratory research-based book of qualitative as
well as quantitative nature. Primary information was collected through opinion survey of 230
samples using judgemental sampling method from different groups, including civil servants of the
Government of Nepal and security forces, human rights and civil society sectors.
Eighty-five per cent of the respondents were males. Likewise, 50 per cent of the respondents
belonged to the age group 30-40 years.
"It is a well-known fact that disappearance is a crime against humanity and a global human rights
violation. The United Nations adopted legal provisions such as the Rome Statute of the
International Criminal Court in 1998 and the International Convention for the Protection of All
Persons from Enforced Disappearance in 2007. However, Nepal has not ratified either convention
so far," it reads. In order to settle the issues of disappearance cases, Nepal has already constituted
Truth and Reconciliation Commission and Commission of Investigation on Enforced Disappeared
Persons.
Documentation of data of ICRC, National Human Rights Commission and the Government of Nepal
illustrates 193, 133, and 212 cases of disappearance per year in a decade on average respectively.
There were 1,275 cases of disappearance recorded during the period of conflict in Nepal. About
8.7 per cent of the disappeared people were women and nearly 0.4 per cent were children below
the age of 13.
Comparison among all the districts shows that Bardiya had the highest number of disappeared
people (251) from 2001 to 2006. Similarly, Dang (108) and Banke (107) hold the second and third
position in terms of number of disappeared people. There were 34.3 per cent of disappearances
reported from an unknown age group.
Data shows that 94 per cent stakeholders believed that the state did not honour human rights and
73 per cent believed that the government was responsible for human rights violation.
Approximately, 82 per cent of the respondents stated that frequent political interference was
responsible for lack of justice in cases of disappearance.
The study reveals that the most responsible factors for non-implementation of fundamental rights
of citizens were lack of political will (73.96 per cent) and the then government (73 per cent) which
was compelled to use force, giving rise to human rights violation during the insurgency period.
Bohara said comparative studies of national and international disappearance cases revealed that
the nature of most cases of disappearance seemed similar. In most cases, it seems that the court
has taken a serious stand and summoned the government to take strict and strong actions against
the perpetrators, and has asked the state to provide better opportunities to the victims and their
relatives. The research finds that the impunity is at the crux of disappearance cases in Nepal as
people of this nation pay no regard to the principle of the supremacy of law. The research
recommends that the government take initiatives to improve the situation while facilitating and
removing obstacles for all mechanisms of investigations in cases of disappearance.

4. Human rights/rule of law

Republica
Election Commission submits annual report to President

KATHMANDU, January 31: The Election Commission (EC) has submitted its annual report for the
fiscal year 2077-78 BS (2020-21) to President Bidya Devi Bhandari.
Chief Election Commissioner Dinesh Kumar Thapaliya today presented the report before the
Head-of-the-State in accordance with the Article 294 (1) of the Constitution.
The submission took place amidst a ceremony at the Office of the President. Similarly, the National
Assembly election 2078 BS election report along with results was presented before the President
in accordance with the Clause 60 of National Assembly Member Election Act-2075 BS today itself,
according to Spokesperson for the Office of the President Sagar Acharya.

Khabarhub
SC orders to implement rights for Dalits

KATHMANDU, January 31: The Supreme Court (SC) on Monday issued an order in the name of the
government to ensure rights for Dalits, which is the fundamental right, as stated in Article 40 of
the Constitution of Nepal and make short-term, mid-term and long-term plans within three
months.
A division bench of Justices Dr Ananda Mohan Bhattarai and Prakash Kumar Dhungana gave the
order in the name of the government and the federal parliament to effectively implement the plan
by making needed mechanisms within three months.
The Justices have also asked to review, reform and strengthen the existing policies and laws in
consultation with the stakeholders for the effective implementation of rights ensured by Article
24 and Article 40 of the constitution.
Advocate Prakash Nepali had filed a writ petition demanding provisions for equality,
nondiscrimination, equity, inclusion, right to participation and social justice to the Dalit
community and members of the Dalit community.

5. Economy/development

The Himalayan Times

Finance minister admits lack of development-friendly policy, structures

KATHMANDU, January 31: Finance Minister Janardan Sharma has admitted the lack of
development-friendly policy and structures to make the national economy dynamic.
During a meeting with economic experts here today, Minister Sharma said, "Inadequacy of
appropriate policy and necessary structures has hindered development." "There is no clear
economic policy in line with the constitution.
It has direct bearing on the national economy.
"Minister Sharma further said politics was the root cause behind several problems, adding that
consensus among political parties was imperative. He underscored that it was necessary to frame
an appropriate economic policy.
Experts said although the national economy was not pushed to tailspin, certain measures should
be adopted to avert the worsening situation. "The restriction on import should be continued till
the balance of payment is normalised for foreign currency reserve. Capital expenditure must be
increased, agricultural products upped and debt in unproductive sectors discouraged to make the
economy dynamic," they suggested.
The discussion was attended by former vice-chairperson of the National Planning Commission
Shankar Sharma and Min Bahadur Shrestha, Prof Bishwambhar Pyakurel, former ambassador to
India Durgeshman Singh, political and economic analyst Hari Roka and Ram Kumar Phunyal.

The Kathmandu Post

Regulatory crisis in Nepali banking

KATHMANDU, January 31: Nepal's banking industry is walking a precariously risky road not only
because of a seasonal and often recurrent loanable funds crunch but due to a combination of
factors ranging from poor regulation and supervision by the monetary authority to blatant
compromises in corporate governance practices by the bank and financial institutions themselves
in their operation and business.
A recent report by the International Monetary Fund (IMF) has categorically pointed to the
ineffective regulatory and supervisory role of the country's monetary authority, Nepal Rastra
Bank, resulting in a lack of "accurate assessment of the asset quality of banks and that better
captures existing risks". It has also referred to the central bank's failure to fully implement the
first phase of the Supervisory Information System aimed at class A (commercial) banks and
proceed to the second stage and extend it to class B (development banks) and class C (finance
companies).
Lack of proper data to enable effective (online) supervision and methods of calculating the
nonperforming loans were also detected by the visiting IMF delegation which finalised the IMF
extended credit facility (loan) of about $396 million to Nepal. Interestingly enough, fiscal and
financial sector stability is one of the three components where the loan amount will be utilised.
Such a loan with a very short payback period of only three years should have ideally been utilised
in more productive sectors of the economy than in reform-type expenditures.
Regulatory shortfalls
Over the years, Nepal's financial sector has substantially expanded. According to the latest Nepal
Rastra Bank data, Nepal's financial system has 27 commercial banks, 17 development banks, 17
finance companies, 67 microfinance financial institutions and one infrastructure development
bank under the central bank's supervision radar. The number of bank branches excluding those
of microfinance institutions is 6,154, or more than 50 percent. Timely and effective supervision
of them all, particularly on-site, is indeed a Herculean responsibility for an under automated
supervisor like Nepal Rastra Bank with only 50 percent officer-level staff among some 1,000-plus
employees.
Apparently, the poor regulatory framework has alarmingly increased incidences of regulatory
arbitrage. Such phenomena are manifested in different forms. The provisionally reported profit
of the 27 commercial banks during the first half of the current fiscal year has crossed Rs33 billion.
The annual rate of return on the Rs285 billion total paid-up capital of these class A banks will
cross 25 percent by the end of the fiscal year. The only interpretation of such high earnings of
banks, despite the Covid-19 pandemic and incessant whining about a liquidity crunch, could be
that the regulator of the monetary system, in essence, has failed to tame them. There are larger
structural issues that are blunting the regulatory teeth of Nepal Rastra Bank. The central bank as
a federal entity exercises the sole authority of implementing Schedule 5 (5) of the constitution
with regard to money and banking, and monetary policy. The central bank at present is
performing a dual role of monetary authority and also the regulatory and supervisory authority
of the country's financial system. The exercise of the powers of a monetary authority as an
independent (of political interference) central bank is beyond question and in line with the best
global practices. It is, however, a different matter of inquiry, as indicated by the aforementioned
IMF report too, whether Nepal's central bank has positioned itself and behaved as a fully
autonomous institution.
But regarding regulatory and supervisory functions, the monetary authority has badly bungled
and exhibited the "I-control-everything" mindset of pre-reform era central bankers. Many
economies have bifurcated the monetary policy function and regulatory functions and created
separate dedicated institutions for each of these two distinct tasks so that the monetary
authorities can more effectively focus on core central banking functions of inflation targeting and
systemic risk analysis. This practice is proving to be more robust than the earlier one, thus it is
rapidly gaining currency. But, in Nepal, even a meaningful discussion is yet to begin in that
direction. The relevant authorities appear to be unaware of this necessity. The unwillingness of
central bank mandarins to relinquish its traditional role as regulator and supervisor (as well) is
at the heart of this inertia
It is perhaps for this reason that Nepal Rastra Bank, while updating its laws and regulations after
the country restructured into a federal policy, did not even consider creating adequate legal space
for provincial governments to collaborate and provide support in its regulatory functions. This
certainly would have created more desirable results in financial governance.
Crisis in banking
Despite the proud claims of industry players as the "most transparent" business in Nepal,
primarily due to the fact that they are obligated to publish quarterly provisional balance sheets
and trading on stocks report, the Nepali banking sector is gradually converting itself into a mere
usury cartel—compromising almost all norms of corporate governance. Massive insider lending,
utter disregard for apparent conflict of interest, "doctoring" books of accounts and pervasive
corrupt practices in lending even in private sector banks are some of the perversions that have
put the entire financial architecture at imminent risk of collapse.
Just to cite a burning example, the current crisis of loanable funds has been caused not only by the
government's far less than expected level of capital expenditure (so far, only 15 percent of the
allocation) but also irresponsible lending by the banks themselves. Their avarice is evidenced by
the "fantastic" level of profits earned by exhausting all lending scope beyond selfmanageable
liquidity risks. The true extent of their over-exposure in speculative sectors like real estate largely
remains unaccounted, even to the regulator. In the long run, the cumulative outcome of all these
is bound to be suicidal to the entire industry. When private businesses in particular resort to
unethical practices as such, the free-market economy suffers defamation for no fault of its own.
Both the regulator and the industry must learn at least some lessons from the crisis the Nepali
economy has already encountered.

The Himalayan Times

TBT, SPS and technical regulations: Time for Nepal to meet the requirements
By Suman Kumar Regmi
The Department of Food Technology and Quality Control (DFTQC) and concerned ministry are
responsible for the preparation, adoption and application of SPS measures in Nepal.

KATHMANDU, January 31: The World Trade Organisation (WTO) has adopted disciplines on
standards and regulations, which it does not view as creating unnecessary trade barriers as long
as they are based on internationally agreed standards. Regulations and standards differ in terms
of compliance.
While regulations refer to a set of rules and norms where compliance is mandatory, standards
refer to guidelines that are not mandatory. Two WTO agreements govern technical barriers to
trade (TBT) and sanitary and phytosanitary (SPS) agreements.
The TBT agreement views that technical regulations and standards, including packaging,
marketing and labeling requirements, do not create unnecessary obstacles to international trade.
The agreement covers all industrial and agricultural products.
Its implication is applied to product and process standards to produce quality products.
The TBT provisions provide for conformity assessment required for all regulations and standards.
The conformity assessment can take the form of testing of products, certification of products after
inspection, assessment of quality management systems, and accreditation procedures.
Technical regulations to be followed in the areas of machinery and equipment include boilers,
electric construction and assembly tools, metal and wood carving equipment, medical equipment
and food-processing equipment.
Consumer articles to be followed for technical regulations are pharmaceuticals, cosmetics,
synthetic detergents, video and TV sets, cinematographic and photographic equipment,
automobiles and toys. Technical regulations also apply in the areas of raw materials and
agricultural inputs such as fertilisers, insecticides and hazardous chemicals.
Another basic principle of TBT agreement is scientific-based standards and regulations with
technical information. Given the circumstances associated with product testing and inspection
from exporters' point of view, the agreement encourages acceptance of conformity assessment
tests carried out in the exporting countries.
The agreement also requires countries to accept and comply with the code of good practice for
the preparation, adoption and application of standards.
Nepal Standards Certification Act and Standards, Weights and Measures Act are legal instruments
governing Nepal's standards.
The authority determining the standards in relation to any goods, processes or services lies with
the Nepal Council of Standards (NCS). A technical committee under the NCS sets standards based
on internationally recognised parameters and national requirements.
If there are no international standards, Nepal Bureau of Standards and Metrology (NBSM)
elaborates the national standards. NBSM, a government agency under the Ministry of Industry, is
responsible for all standards except for health and food products. During the WTO accession
negotiations, Nepal had offered to introduce legislative and institutional measures by 2006, but
these have not fully happened till now. The major objective of WTO SPS agreement is to minimise
the negative effects of SPS measures on international trade. Such measures for protection include
human or animal life from foodborne risks, human health from animal or plant carried disease,
and animals and plants from pests and diseases. Products that are often related to SPS measures
include fresh fruits and vegetables, fruit juices and other fruit preparations, meat and meat
products, dairy products, and processed food products.
Unlike, the TBT agreement, the SPS agreement allows countries to deviate from the MFN principle
in the sense that SPS measures may be applied to imports depending on the prevalence level of
specific diseases or pests. Exporting countries are obliged to provide reasonable access to testing
and other procedures for inspection. Like the TBT agreement, the SPS agreement recognises the
difficulties of developing countries in complying with its provisions.
The Department of Food Technology and Quality Control (DFTQC) and concerned ministry are
responsible for the preparation, adoption and application of SPS measures in Nepal.
The export and import of plant and plant materials, such as seeds, saplings and seedlings are
subject to phytosanitary measures at the border checkpoints.
These measures are based on the Plant Protection Act, Plant Protection Rules, and Seed Act. The
Contagious or Infectious Diseases Act authorises the government to intercept any person, animal,
animal products and feeds suspected of carrying an infectious diseases or agent at entry points.
In order to govern animal quarantine, Animal Health and Livestock Services Act was enacted and
enforced in 2000.
Minimum standards or specifications have been fixed for certain categories of agricultural
products, food products – processed and unprocessed – and animal feeds under the Food Act,
Food Riles, and Animal Concentrates Act. The export and import of such products must comply
with the fixed standards.
Like the TBT agreement, Nepal had agreed to implement the SPS agreement by the end of 2006.
Yet some acts and infrastructure have not been completed.
Many developed countries have adopted SPS measures on the import of primary and processed
agricultural products. Such measures include pest risk assessment requirements, pet food import
requirements, food safety regulations on agricultural products that have used modern
biotechnology, zero tolerance for e-coli, pesticides and antibiotic limits on honey, and foot and
mouth diseases control measures on dairy products.
Nepal's export basket in this sector, among others, include medicinal herbs, ginger, brooms, rosin,
cardamom, cattle fodder, biscuits, noodles, vegetable ghee, raw jute, pulses, catechu, turmeric, tea
as well as sugar, spices, uncooked pasta, edible preparation of animal or vegetable fats, wheat,
plants and beer.
Given the country's difficulty in meeting internationally standards, these products could be
denied market access in the developed countries.

The Kathmandu Post

Handicraft exporters on the brink of collapse amid Omicron onslaught

KATHMANDU, January 31: Carpet trader Chhatra Lal Shrestha had never imagined in his nearly
three decades in the business that export orders would plunge to such lows as they did during the
pandemic.
“Shipments of woollen carpets, one of the key foreign exchange earning products, have fallen by
more than 40 percent since Covid-19,” moaned Shrestha, proprietor of Bivek Carpet Udyog.
Businesses were still reeling from the blow dealt by the Delta variant when they were hit by the
Omicron outbreak, traders said.
For many Nepali traders, China is the major buyer of their carpets. After shipments by overland
transport dried up, they have been dispatching their products by air.
“It is expensive and not easy at all,” Shrestha told the Post.
Despite a rise in the cost of production, Shrestha has not been able to increase prices for fear that
higher price tags would push down demand further. “We are in trouble financially,” he said. “We
even have to send goods on credit sometimes.”
Shrestha has around 70 employees, and has been managing to pay his office overheads and staff
salaries by taking loans.
“We cannot operate without taking loans. But with rising interest rates, we are having great
difficulties,” he said.
Shrestha used to export his products not only to China but also Germany, the United States and
France before the pandemic. He imports wool and other raw materials from China, India and New
Zealand.
The export of woollen carpets has increased in terms of value but the quantity has gone down.
According to the Trade and Export Promotion Centre, the export value of woollen carpets swelled
by 24.66 percent to Rs4.37 billion in the first half of the current fiscal year from midJuly 2021 to
mid-January 2022 compared to the same period in the last fiscal year.
In terms of volume, shipments totalled 221,603 square metres of carpet, down from 265,948
square metres during the first half of the last fiscal year.
The never-ending coronavirus outbreak has increased shipping costs and prices of raw materials,
resulting in a decline in demand in overseas markets. Carpet entrepreneurs say they are battling
for survival.
Dharma Raj Shakya, former president of the Federation of Handicraft Associations of Nepal, said
that the handicraft business was yet to determine the effects of the emergence of the Omicron
variant, but exports had gone into a downward spiral.
“The Omicron outbreak may have slashed business by more than half,” Shakya said.
The handicraft business too was reviving after the second wave, but received another wallop. “It’s
again suffering.”
Nepal exported handicraft goods worth around Rs6 billion before the pandemic in the fiscal year
2019-20 which declined to Rs3 billion in the last fiscal year.
"As traders started to clear their backlog of orders, exporting more than Rs4 billion worth of
handicraft products in the first six months of the current fiscal year, the Omicron outbreak has hit
export growth again,” Shakya said. “We don’t know to what extent it will ruin the business.”
According to Shakya, most of the raw materials used to make handicraft goods like pashmina, felt,
gold and silver jewellery and metal craft are imported.
Shakya, who deals in stone carvings, said that exports had declined drastically with little local
demand.
As per official data, exports of paintings and statues in the first six months of the current fiscal
year fell by 6.46 percent year-on-year to Rs280.22 million.
Local and international trade fairs used to provide a big boost to sales and export orders, but not
one trade fair has been held since the pandemic, handicraft entrepreneurs said.
“Trade fairs used to be organised internationally like in China before the pandemic, and we used
to sell lots of goods. We used to get a good return and increased business with the government
subsidising our trips,” Shrestha said.

The Rising Nepal

Suryodaya Municipality makes strides in education sector

ILLAM, February 1: Suryodaya Municipality of Ilam has made huge progress in education sector
in a short period. The municipality which is rich in tourism has also launched different campaigns
to improve the quality of education and materialise its plans.
The municipality has made its schools technology-friendly as time demands. In order to make
public schools competitive with private ones, the municipality is working to improve the quality
of education by expanding the technology in all community schools.
The municipality has expanded internet, introduced e-attendance, computer lab, science
laboratory, e-library, and interactive board and student-parent identity cards to run schools.
Yoganidhi Bhattarai, education section head of the municipality, said that the municipality has
started distribution of identity cards to the parents of students. According to him, the identity
cards have been distributed with an objective to keep the record of students in such parents'
cards. According to Bhattarai, parents should visit school compulsorily four times a year to know
regularity and learning achievement of their children.
Arrangement has been made to send the report of students and guardians to the municipality
office after being approved from the schools' headmasters. The municipality will reduce the
facilities to students if the parents fail to visit their children's school four times a year.
According to the data of the municipality, a total of 11,225 students are studying in 66 community
schools in the municipality including secondary and basic schools. The figure shows 60 per cent
of the students of the municipality are studying in community schools.
The work of managing computer lab, e-attendance, e-library, science laboratory and internet in
remaining schools is going on in full swing to make technology-friendly in the schools for
educational reform.
A model building and computer lab had been constructed at Fikkal Secondary School in Fikkal at
a cost of Rs. 45 million last fiscal year. The school's additional physical infrastructure
development has been done at Rs. 7 million investment in the current fiscal year.
Ganga Bahadur Mahat, headmaster of the school, said more than 900 students are studying in this
model school. "Schools should have an environment where teachers can teach and students can
learn happily. We have created that environment," headmaster Mahat said.
Similarly, the municipality has an educational centre at Karfok where training class, computer lab,
playground, hostel, teacher accommodation building and technology-friendly teaching classroom
have been constructed. It has also run only one campus of the centre.
Scholarships have been provided to 120 students under the daughter-in-law education
programme run by the municipality at Karfok Bidhya Mandir.
Mayor Rana Bahadur Rai informed that the city had already approved the local curriculum of class
1-8 and implemented now in class 1-5. Computer training has also been given to 300 teachers
working in the city to increase the capacity of teachers.
The city has also been signing performance agreements between the headmaster and the head of
the education department. Mayor Rai himself has been conducting math and science learning
campaigns at the school. Including these, the municipality has introduced different programmes
in order to improve quality of education.
In the current fiscal year, Rs. 260,500,000 has been allocated for the education sector in
Suryodaya Municipality from federal government, Rs. 1,800,000 from Province 1 and Rs.
45,081,000 from the municipality.
Mayor Rai said that education should be improved for the development of the city.
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