For the past year, the bearish sweeping red flooding the secondary market in Nepal has wreaked havoc on millions of investor portfolios. The declining trend has been caused by a number socio-political factors including political instability and liquidity crunch in the banking sector as well as BFIs being forced to give out large numbers of bonus and rights shares as a result of increased paid up capital requirement. In addition to the supply demand mismatch, a recent directive released by the Inland Revenue Department further triggered a drastic reaction from investors plummeting the market by 76.02 points to a closing at 1231.64 points yesterday (10th June 2018) . This nosedive tailed the first of its kind boycott by Nepalese investors protesting an increase in the capital gains tax on bonus and right shares at the companies’ market value. Continue reading
Part 5 of the Constitution of Nepal provides the structure of the state and the distribution of power among three orders of government. Each order of the government then can make laws, their respective annual budgets, formulate and implement their own policies and plans. This power is a core fundamental of the Federal principle. Continue reading
One of the major challenges faced by enterprises in Nepal is caused due to labour related issues. Due to the sectorial bargaining of the trade unions, the wage rate of labour has increased manifolds in the past. This sectorial bargaining which increased the wage rate is binding to all the firms in the industries including cottage and small. So, the wage rate of the labourers has been increasing in a regular time interval but labour productivity has remained the same. This trend has specifically inhibited the growth of carpet industry. Many cottage and small firms in the carpet industry have been forced to employ the labourers informally as they are unable to pay this increased wage to the formal labourers. Labour costs in Nepal are the highest in all of South Asia, with a total annual cost per worker of U.S Dollar (USD) 1,889, compared to a cost in Sri Lanka of USD 1,619, Pakistan of USD 1,052, India of USD 943, and Bangladesh of USD 789. Between October of 2010 and October 2011, labour costs have increased by 35% for carpet manufacturers in Nepal.
Read more here.
The International Labour Organization (ILO) has launched the third edition of Women and Men in the Informal Economy Report this week. As per the report, world’s two billion workers – about 61.2 percent of globe’s employed population – are in informal economy. This data for Asia-Pacific Region is even higher. The region houses 1.3 billion workers, 68.2 percent of region’s total workforce, who are in the informal employment. Globally, Africa tops the list followed by Arab States, Americas, and Europe and Central Asia where 85.5, 68.6, 40 and 25.1 percent of employment is informal respectively. In addition, 93 percent of globe’s informal employment exists in emerging and developing countries like Nepal. Also, men (63 percent) are found to be more into the informal employments than their women (58.1 percent) counterparts. Of 2 billion people employment informally, only 740 million are women.
नेपालको संविधानले राज्यको संरचनालाई संघ, प्रदेश र स्थानीय समेत गरी तीन तहमा विभाजन गरेको छ । प्रदेश र स्थानीय तहलाई उप-राज्यस्थरको संवैधानिक अधिकार प्रदान गरिएको छ जसमा राजनैतिक, आर्थिक र राजस्व सम्बन्धि अधिकारहरु पर्दछन् । संविधानको भाग ५ को धारा ५७, ५८, ५९ र ६० मा राज्यशक्तिको बाँडफाँट अन्तर्गत संघ, प्रदेश र स्थानीय तहको आर्थिक अधिकार र त्यसको प्रयोग कसरी गर्ने भन्ने बारेमा उल्लेख गरिएको छ । Continue reading