Nepal Weekly Digest

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has expressed concern over the insufficient credit investment by banks despite a significant increase in deposit collections. Speaking at the 58th anniversary of the Agricultural Development Bank Limited, he emphasized the need to channel bank investments toward sectors that enhance production, productivity, and employment opportunities.

"In recent days, bank savings have increased, but credit has not increased as expected. This is a matter of concern. We should increase the bank's investment in areas that have the potential to increase production, productivity, and create employment," said Finance Minister Poudel.

He also directed the bank to adopt a more professional and competitive approach, stressing the importance of strong relations between management and employees for achieving the bank's objectives.

Governor Adhikari: Positive Economic Indicators Despite Challenges
Governor of Nepal Rastra Bank, Maha Prasad Adhikari, noted that the country's economic and financial indicators are improving, with liquidity in banks and decreasing interest rates. However, he acknowledged challenges in loan recovery due to bad debts and the non-payment campaigns by certain groups.

"Looking at the current economic and financial indicators of the country, the economy is improving overall. There is balance in the external sector. Although there is some pressure on inflation management due to floods and landslides, it is within the desired limits overall," said Governor Adhikari.

Achievements and Vision of the Agricultural Development Bank
Established on Magh 7, 2024 BS, with an authorized capital of Rs 50 million, the Agricultural Development Bank has been a cornerstone for rural and agricultural development in Nepal. As of now, the bank is 51% owned by the government and 49% by the general public, with approximately Rs 206 billion invested in loans to 151,000 customers and Rs 2059 billion mobilized from 2,034,000 depositors.

• Authorized Capital: Rs 25 billion
• Issued Capital: Rs 19,286,451,300
• Capital Fund Ratio: 13.14% as of last Mangsir
• Shareholders: Approximately 300,000

The long-awaited approval process for ordinary share issuance has finally begun in Nepal! 🏢 The Nepal Securities Board has granted permission to two companies—Crest Micro Life Insurance Limited and Om Megashree Pharmaceuticals—to sell ordinary shares. 💼

📊 Crest Micro Life Insurance can sell 2.25 million shares worth Rs 225 million, managed by NIMB Ace Capital. Meanwhile, Om Megashree Pharmaceuticals has been allowed to sell 1.8 million shares worth Rs 180 million, with Prabhu Capital overseeing the process. Together, these companies will raise a total of Rs 855 million from 8.55 million shares! 💰

🔧 In a big move for small and medium enterprises (SMEs), the board has implemented the Securities Issuance and Transaction Regulations, paving the way for more share sales in this sector. 📉 So far, the board has received applications for over 355 million shares valued at a whopping Rs 51 billion! 💵

In a dramatic move, Nepal's opposition political parties have united to demand the immediate convening of the winter session of parliament! ⚡ A powerful meeting, held on Friday at the Federal Parliament Building in New Baneshwor, saw key players from six major opposition parties, including CPN-Maoist Center, National Independent Party, Unified Socialist Party, and more, calling out the government's delay in holding the session. 🚨

Chairman of the main opposition, Pushpa Kamal Dahal, strongly condemned the government's move to issue ordinances instead of respecting the parliament. The opposition warned that this could lead to a "crisis in democracy and the rule of law." 😡 In a statement, Dahal emphasized, "The majority must respect the minority in a parliamentary system!" and vowed that if the government doesn't act immediately, they would demand a special session and even launch a "strong struggle." 💪

The opposition parties also slammed the government for its alleged corruption, economic mismanagement, and attempts to bypass the parliamentary process. With inflation soaring and public debt rising, the discontent among the people is palpable. 🌍💸 The government's continued reliance on ordinances has further strained their relationship with the people, as allegations of protecting the corrupt and stifling anti-corruption campaigns have surfaced.

The Kathmandu District Court has ordered the release of former Home Minister and President of the National Independent Party, Rabi Lamichhane, on a bail of Rs 6 million in connection with the Swarna Laxmi Cooperative fraud case. 💰

📜 The bench of Judge Madhav Prasad Adhikari issued the order after closed arguments were held today. The case involves allegations of irregularities exceeding Rs 1.19 billion in the savings of depositors at the cooperative located in Kalimati. 🚨

💡 Lamichhane submitted a bank guarantee for the bail amount, as confirmed by Information Officer Amar Bahadur Chand. Following this, he was officially released, marking a significant moment in the ongoing investigation. 📄🏦

🌟 Lamichhane, who previously served as Managing Director of Gorkha Media Pvt. Ltd., has been at the center of controversy surrounding cooperative fraud allegations. His release comes after extensive court deliberations and a detailed review of his statements and detention debate. 🗣️

The Government of Nepal has unveiled transformative provisions through a newly issued ordinance. These updates emphasize e-governance, investment facilitation, and improved service delivery. At a program hosted at the Office of the Prime Minister and Council of Ministers, Chief Secretary Ek Narayan Aryal highlighted the ordinance's key reforms.

Major Highlights: Introduction of the Citizen App to simplify public service access, government officials now face a 7-day decision deadline, retirement age increased to 60 years, easier processes for foreign and domestic investments, mandatory national ID cards to curb misuse, and streamlined processes for disaster management responses.

Amendments Across Sectors: 27 Acts updated focusing on economic growth, governance, and environmental protection. IT-based industries and startups now enjoy expanded tax exemptions and streamlined operations. Non-Resident Nepalis (NRNs) receive free 10-year visas and enhanced citizenship privileges.

Prime Minister KP Sharma Oli addressed the media, reaffirming that there is complete unity within the ruling party regarding the ordinance. "There is no disagreement anywhere in a single letter. The ordinances have come with complete consensus," the PM stated.

Nepal has received remittances worth Rs 640.43 billion by mid-Mangsir of the current fiscal year, marking a 4.4% increase in inflows compared to last year. While the growth is slower than the 24.2% rise in the previous year, the increase in US dollar inflows by 2.5% to Rs 44.73 billion is a positive sign. 📊💵

On the 303rd birth anniversary of Prithvi Narayan Shah, President Ram Chandra Poudel laid a wreath at the statue of the great leader, situated in front of the Singha Durbar main gate. The ceremony, commemorating both the birth anniversary and National Unity Day, was accompanied by a guard of honor from the Nepal Army. 🏅💐

Prime Minister KP Sharma Oli also paid his heartfelt tribute to Prithvi Narayan Shah on the occasion of his 303rd birth anniversary. Through a social media message, PM Oli expressed deep respect for Shah's leadership in unifying Nepal and honored all ancestors who sacrificed for the cause. 🙏💬

Israeli Ambassador to Nepal, Smulik A. Bass, paid a courtesy call on Prime Minister KP Sharma Oli at the Office of the Prime Minister in Kathmandu today. 🌏💬 The meeting focused on enhancing bilateral relations and fostering partnerships in key sectors such as information technology, investment, tourism, employment, agricultural modernization, education, and culture. 🤝💡

Also in attendance were National Assembly member Dr. Anjan Shakya, former Nepali Ambassador to Israel, and senior officials from the Ministry of Foreign Affairs. 🌐📚 The discussions reflect a mutual interest in deepening collaboration between the two nations. 🤗