Kathmandu, July 20 - The government has approved the proposal to form an infrastructure development bank under Chinese investment.

A Cabinet meeting recently agreed in principle to form such a mega bank under Chinese investment, which will have paid-up capital of Rs 100 billion, informed Rajan Khanal, secretary at the Ministry of Finance (MoF). Following the Cabinet’s nod, MoF is currently holding bilateral discussions with China to set up the bank as soon as possible.

“Mega banks especially dedicated to infrastructure investment and development are necessary in Nepal to address the infrastructure deficit issues,” said Khanal, adding that the government will promote such banks with foreign investment in the country.

However, the Chinese-investment bank needs to have at least 20 per cent domestic share.
“As we will have Rs 20 billion responsibility in the planned infrastructure development bank under Chinese investment, we are currently discussing the possible modality of investment from Nepal’s side,” added Khanal. As lack of infrastructure financing has been a major bottleneck for the country’s development process, establishment of such infrastructure-dedicated banks will assure necessary resources for mega-infrastructure projects.

In August last year, Nepal Rastra Bank (NRB) had brought ‘Licensing Policy for Infrastructure Development Bank 2017’ opening licence for Nepal Investment Development Bank (NIDB), which will have paid-up capital of Rs 20 billion.

As per the central bank’s mandate, different domestic promoters of NIDB have already deposited 45 per cent of the paid-up capital of the proposed bank.

Likewise, MoF officials informed that Indian investors have also expressed interest to set up an infrastructure development bank in Nepal.

Meanwhile, Finance Minister Yubaraj Khatiwada today said that the government’s top priority in the ongoing fiscal year will be to increase investment, especially in the infrastructure sector. He mentioned that government will be able to inject only one-third of the total necessary investment in the country’s infrastructure, with the rest needing to come from the private sector.

“Establishment of two mega banks to finance big infrastructure projects will assure the availability of resources for the infrastructure sector. It is only through investment in infrastructure that Nepal can achieve competitive development growth,” said Khatiwada. According to him, the government will improve its mechanism to facilitate investments (both domestic and foreign) and partner with the private sector in the journey of growth.

Meanwhile, Khatiwada also informed that the government will make Investment Board Nepal (IBN) more active and ease investments and doing business environment in the country by reforming the existing laws.

Source: The Himalayan Times

Corporate News

Country’s forex reserves slump to 32-month low

Kathmandu, December 24- Nepal’s foreign exchange reserves have slumped to a 32-month low despite robust growth in remittance income and downward revision in foreign exchange facility for Nepalis visiting overseas, raising the spectre of the country facing a balance of payments crisis if the problem continues to grow.

Read more ...

Doha Bank opens representative office in Nepal

Kathmandu, December 19 - Doha Bank, one of the largest commercial banks in Qatar, has opened its liaison office in Nepal as per the permission granted by the central bank about six months ago.

Read more ...

Parliament body asks govt to solve problem of multiple taxation

KATHMANDU, Aug 15: Parliament’s Finance Committee on Tuesday issued directions to the government to take the lead in solving the chronic problem of multiple taxation by the three tiers of government, as well as the exorbitant hike in tax rates.

Read more ...

Trade deficit surged five-fold in last decade

Kathmandu, August 5 - The country’s trade deficit jumped five folds in the last decade as imports have been skyrocketing and exports have slowed to a crawl in the review period.

Read more ...
Symbol % Change Last Price Turnover
CHLBS 9.9515 453.0 17,730.0
HDL 3.8314 1,355.0 26,860.0
SWBBL 3.6269 800.0 147,840.0
NABILP 3.1768 747.0 24,392,564.0
PICL 2.4242 676.0 724,970.0
Symbol % Change Last Price Turnover
WMBF -9.0909 80.0 35,580.0
GHL -6.6667 280.0 16,950.0
NNLB -5.7143 462.0 361,156.0
NBBL -5.4348 609.0 772,848.0
KADBL -5.3333 142.0 997,594.0
Symbol % Change Last Price Turnover
NABILP 3.1768 747.0 24,392,564.0
NABIL -2.9740 783.0 23,363,212.0
UPPER -2.2124 221.0 11,492,149.0
NMB -0.9709 306.0 10,563,087.0
PRVU -1.9048 206.0 8,938,365.0