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2009-01-24T19:07:00.000-08:00

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Shakya promises use of lokta paper

2009-01-20T17:56:00.000-08:00

Shakya promises use of lokta paper
Himalayan News Service
Kathmandu, January 20:Minister for Trade Astalaxmi Shakya has assured entrepreneurs that she will lobby for the use of Nepali handmade papers as the government documents."I will help in my capacity to fulfil your demand of using Nepali handmade paper as citizenship certificates," the minister assured them while inaugurating the Nepali handmade paper expo here.Nepal Handmade Paper Association (HANDPASS) has organised a handmade paper expo on the occasion of bagging a project ‘Enhancement of Sustainable Production of Lokta Handmade Paper Production in Nepal’.The European Commission (EC) has granted the largest ever grant of Euro1.4 million — in a single commodity — to operate the four-year project that starts from January 2009."As per the agreement with the EC on December 18, the project will be initiated from January 2009 and be concluded by the end of December 2012," informed the association.The project will focus onproper method of paper production in the hills and mountains making it environment-friendly industry and be alternative source of income for the marginalised farmers in the hills and mountains."It aims to cover 18 districts reaching about 30,000 farmers, who extract lokta — a shrub that grows at an altitude of 2000 metres to 4000 metres in the most coniferous froeforestst in Nepal," said Kiran Kumar Dangol, secretary of the association.The handmade paper is made of the inner bark of the Lokta shrub. Nepalokta is also registered in Europe as Nepal’s handmade paper that has employed more than 55,000 families in the rural areas.Out of the total production,40 per cent of Nepali handmade paper is exported. But there isstill a huge untapped market at home also."We want the government to use Nepali handmade papers in various official documents like citizenship certificates in spite of importing ivory paper that is not as durable in comparison to Nepali handmade paper," said Dr Milan Dev Bhattarai, president of HANDPASS.The government could also promote local product — by using as certificates in the universities — like the Pokhara University due to its durability that is unchallenged."Pokhara University uses Nepali handmade papers for its certificates," Purushottam Baskota, vice-chancellor of the university informed.Though some institutions like Nepalokta Cooperative and GTZ are helping the HANDPASS, the government seems unimpressed from the industry that can help reduce rural poverty.

Nepal leads in GRB in S Asia

2009-01-20T17:54:00.000-08:00

Nepal leads in GRB in S Asia
Himalayan News Service
Kathmandu, January 20:Nepal leads in gender responsive budget in South Asia. Similarly, Nepal is also in the club of 62 countries — out of 190 countries — that have gender responsive budget (GRB).Gender responsive budget is one of the most effective tools to mainstream gender in policies and planning to reddress inequalities and promote women’s economic and socio-political rights, said acting finance secretary (revenue) Krishnahari Ba-nskota, chairing the concluding session today."Nepal has always given priority in inclusiveness in the society," said finance minister Dr Baburam Bhattarai, yesterday inaugurating the ‘Integrated Gender Responsive Budgeting into the Aid Effectiveness Agenda’ that concluded here today.Chairing the inaugural session, finance secretary Rameshwor Khanal also told the two-day long seminar that Nepal has been very sensitive in the gender issue. "Nepal has done more in terms of gender sensitive budget," he added.Nepal has established Gender Responsive Budget Committee (GRBC) in 2005 and started implementing it since last fiscal year’s budget. The Parliament has passed a resolution for minimum of 33 per cent representation of women in all government mechanism.

ADBL waives off Rs 2bn loan, interest

2009-01-20T17:51:00.000-08:00

ADBL waives off Rs 2bn loan, interest
Himalayan News Service
Kathmandu, January 20:
Agriculture Development Bank Ltd (ADBL) has waived around Rs 2 billion under the government’s loan-waiver programme.It has received 74,492 application to waive loan upto Rs 30,000. The total amount waived stands at Rs 1.2 billion in principal and Rs 110 in interest.Similarly, the bank received 1,114 applications for the interest waiver of upto Rs 1,00,000 above Rs 30,000. The total interest amount waived stands at Rs 83 million, it said.The government has in its budget for the fiscal year 2008-09 spelled out the loan waiver programme upto Rs 30,000 and interest-waiver from Rs 30,000 upto Rs 1,00,000, for the conflict hit and natural disaster-hit farmers.Addressing the first formal programme — the 42nd anniversary of the ADBL — after his appointment as the 14th governor of the central bank, he said that in order to move towa-rds rural-oriented economy, "we need to sacrifice."The newly appointed governor urged employees to work honestly to achieve the double-digit economic growth rate.He also urged the banks to go to rural areas as the future of the country lies in development of villages.At present the bank has to work for agriculture development and compete with modern private commercial banks as well.It serves its over 4,00,000 clients from 241 branches and sub-branches.

Biz Briefs of January 21

2009-01-20T17:49:00.000-08:00

SAFTA CoE meetingKATHMANDU: The Committee of Experts (CoE) of South Asian Countries met here on Tuesday to discuss service trade under SAFTA. Earlier in November 2008 they had a meeting and its the second one held to discuss service trade among the South Asian neighbours. Nepal has urged to be more liberal to expand regional trade, said an official. Nepal has not been able to take any advantage under the SAFTA as it has not yet exported a single item under SAFTA till date. — HNSRBB reinstate branchKATHMANDU: Rastriya Banijya Bank (RBB) reinstated its Sunuwal branch office on Tuesday. According to a press note, the branch office was shifted to Parasi during conflict. Janardhan Acharya, CEO of the RBB re-inaugurated the 120th branch at Sunuwal on Tuesday. — HNSCitizens RemitKATHMANDU: Citizens Bank International has started its remittance service, ‘Citizens Remit’. "People can get remittance facility of Citizens Bank also from 500 counters of City Express Transfer, apart from bank branches, states a press release. — HNSMalakar nominatedKATHMANDU: Surendra Bir Malakar, president of NCC has been nominated in the team formed to access impact of global financial crisis. — HNS

Nepal-Lanka ASA review

2009-01-19T14:07:00.001-08:00

Nepal-Lanka ASA review

Himalayan News Service
Kathmandu, January 19:

Nepal and Sri Lanka are reviewing their Air Sevices Agreement (ASA). Nepali authorities and a Sri Lankan team will hold talks on Thurday, said an official at the Ministry of Tourism and Civil Aviation (MoTCA).
Nepal Airlines has long stopped its flights to Colombo due to various reasons. “Our side is busy preparing for the talks, and the full operationalisation of the ASA may top the agenda,” the ministry sources said adding that the two South Asian countries’ officials are meeting on January 22 in Kathmandu. MoTCA secretary Ramchandra Man Singh confirmed that the talks between the two countries have been scheduled for January 22.
Nepal and Sri Lanka had earlier also renewed the ASA to allow direct air services between the two countries. The agreement signed in Colombo allowed designated airlines to operate four weekly flights between Kathmandu and Colombo and points beyond. However, Nepal Airlines (NAC), then Royal Nepal Airlines (RNAC), stopped its flights to Colombo since almost eight years.
The previous agreement allowed only a limited number of passengers and the number of flights by each airline was restricted to two per week.
Nepal has signed ASAs with 35 countries. However, it has been renewing the ASAs and also increasing flight frequencies for mutual benefit.
On December 29 in 2008, Nepal and Bahrain renewed their Air Services
Agreement (ASA) and signed a Memorandum of Understanding (MoU) to increase flight frequency and develop skilled manpower resources. According to the renewed agreement, both countries can now operate 28 flights per week.
Earlier, the agreement between the two countries was that they could operate only 14 flights per week. Meanwhile, Nepal is also likely to review Air Services Agreement (ASA) with India to scrap the existing restrictions on seat allocations. It is hoped that the proposed change in the ASA will allow Nepali airlines to operate unlimited number of flights to various Indian cities.
As per the existing ASA between the two South Asian neighbours, each is restricted to only 6,000 seats per week. The limit on the number of seats has impeded Nepali Airlines’ efforts to operate flights to Indian cities. After the 1990s open air policy, Nepali private airlines have also started spreading their wings. Private airliners are requesting the government to allow them to fly to various Indian cities with unrestricted number of seats.

Drowning industry, keening workers

2009-01-19T14:06:00.002-08:00

Drowning industry, keening workers

Himalayan News Service
Bhaktapur, January 19:

For the past three days, workers at Bhaktapur Craft Paper Industry are staging a protest but the management does not seem concerned about their demands.
According to worker Kamala Giri, they want the ouster of the managing director (MD) and the board manager.
“This MD has never shown concern for the industry and we are suffering because it is in loss. We have not got salary,” Giri said. Aside from demanding the MD’s and board manager’s resignation, workers also alleged that during the annual general meeting (AGM) of the industry on January 13, the MD presented annual statistics and a report whose veracity they doubt.
“Bhaktapur Craft Paper Industry was formed in 1981 by UNICEF to help women, children and 40 per cent of it is meant for the community but later UNICEF handed over the industry, with the 109 workers becoming shareholders. We are also among them,” said Giri.
Voicing concern at the industry going downhill, she said, “We used to export craft paper to the US, Japan and Australia through UNICEF, but it is three years that we are suffering huge losses as there are no orders.”
Workers said craft paper worth Rs 22-25 lakh was lying in stock. The minimum salary of a worker is Rs 5000 and the management is unable to give it.
A representative of the management said they had urged the workers to form a talks team to solve the problem. The workers admitted that they did not have a talks team, and insisted on the resignation of the MD anyhow.
Another worker accused the MD of creating false hopes among them and making them work without pay. “Orders have dried up, but we are asked to work. It costs Rs 3600 to make one frame of paper. Whatever we produce is just getting stocked here. This has resulted in complete decline of the industry.”

Handicrafts promo ad hoc panel:
KATHMANDU: With the aim of promoting handicrafts, handicraft entrepreneurs led by FHAN president Pushkarman Shakya and Lamjung Industry and Commerce Association president Pramod Kumar Shrestha formed Handicraft Industry Association ad hoc committee at Lamjung with nine members.
The committee was formed on January 17, said a release. Meanwhile, according to another FHAN release, a team of representatives of the Federation of Handicraft Association of Nepal (FHAN), under the leadership of Yagyaman Shakya conducted a monitoring and observation campaign of the Chitwan Mahotsav that had been organised from January 15 to 18. — HNS

NTY 2011 body’s pilot meeting held

2009-01-19T14:06:00.001-08:00

NTY 2011 body’s pilot meeting held

Himalayan News Service
Kathmandu, January 19:

To develop plans and policies for Nepal Tourism Year (NTY) 2011, the first meeting of the main organising committee was held yesterday.
Minister for Tourism and Civil Aviation Hisila Yami said, “We are flexible about the formation of tourism policy but there is need for great observation. For NTY 2011, the main committee should also have the presence of new organisations.”
The main committee has a facility of 61 members in it. It has forwarded a proposal to form 12 sub-committees. The sub-committees will attend to Policy Level Suggestions, Physical Infrastructure Coordination, Improvement and Development of Tourism, Festival and Programme Management, Market Management, Promotion and Preservation, Human Resources and Quality Enhancement
There will also be sub-committees for Aviation and Transportation Coordination, Source Implementation and Observation, Culture and Heritage, Law Management and Coordination and Political Coordination.
“Tourism industry is the a vital sector in the development of Nepal. Constituent Assembly members belonging to different regions with different caste people and languages are
also eager to showcase their respective places’ uniqueness,” said Yami.
The main committee will have representation from invited members of Adventure Sports Association of Nepal, Association of Media Houses, Association of Trans Himalaya Tour Operators, Nepal Municipality Association, District Development Committee Association, and Computer Association of Nepal.
Sub-committees for the five geographical regions have also been formed and the Nepal Tourism Board building has been selected as the secretariat office for NTY 2011.
NTY 2011 has a target of attract 1million tourists. The main aims of NTY 2011 is establish Nepal as the best tourist destination at the international level, enhancement of infrastructure development for tourism, increasing the tourist capacity of Nepal, promoting internal tourism and subsequently providing the tourism industry permanency.

Kohalpur fest in Feb

2009-01-19T14:05:00.001-08:00

Kohalpur fest in Feb

Rastriya Samachar Samiti
Nepalgunj, January 19:

The Mid-regional Industrial and Tourism Festival-2065 will be organized in Kohalpur of Banke from, February 5 to 12.
The festival will feature elephant safari, concerts by national and local artistes, dance competition, folk duet competition, comedy shows and industrial and cultural processions. It will have 115 stalls displaying technology, products and services. A sale proceed of 50 paisa per ticket will provided to the proposed Mid-regional University, scholarship for poor and Gyanodaya School library.

Brand watch : Bully of a bulldozer

2009-01-19T14:04:00.000-08:00

Brand watch : Bully of a bulldozer

Himalayan News Service
Kathmandu, January 19:

Continental Trading Enterprises Pvt Ltd, the authorised distributor of Komatsu construction & mining equipment for Nepal, has launched its latest D39EX bulldozer in the market.
It is highly efficient and loaded with Hydro Static Transmission Technology. D39EX has an electronic monitoring system which sends out warning signals for even the minutest malfunctioning of any internal component, helping save the machine from any substantial damage.
Equipped with large blades, it is also very easy to operate as it has Palm Command Control System (PCCS). It is more fuel-efficient, has excellent stability, exceptional blade visibility, superb steering accuracy, low noise design (78 db), automatic gears and fully adjustable suspension seat for the comfort of the operator.

Work harder, faster: Shakya

2009-01-19T14:03:00.000-08:00

Work harder, faster: Shakya

Himalayan News Service
Kathmandu, January 19:

The progress report of the first four months of the fiscal year 2008-09 of different departments, development projects and programmes under the Ministry of Industries (MoI) was presented today.
Heads of concerned departments, projects, and programmes presented their reports and pointed out different problems and solutions.
According to statistics, 12 projects and programmes under the MoI in the first four month of the present fiscal year achieved an average of 83.6 per cent physical progress and 68 per cent financial progress.
Eight are Priority One projects while four are Priority Two projects.
Minister Shakya pointed out that plans were not being implemented according to policies. MoI secretary Tana Gautam said, “There should be transparency in our plans and policies. The work implementation is going on but the real result hinges on customer satisfaction. Special attention should be paid to that aspect.”

ICC Nepal urged to play larger role

2009-01-18T18:41:00.004-08:00

ICC Nepal urged to play larger role

Himalayan News Service
Kathmandu, January 18:

Asta Laxmi Shakya, Minister for Industry today urged the International Chamber of Commerce (ICC) Nepal to create awareness about itself and ICC arbitration.
Speaking at an interaction programme on ‘Role of ICC Arbitration in settlement of Business Disputes’, Shakya said,”Disputes are unavoidable. Each organization has its own limitations, which can create hazards during work. Ionly people get to know about ICC Nepal and its programmes, it would do wonders.”
The minister said, “We should trust our mediators, and our country has qualified mediators who can resolve disputes in different contracts. ICC Nepal while fulfilling international norms should play a vital role,” she said.
The ICC of world business organisations, based in Paris, is global leader in the development of standards, rules and reference guides for international trade. ICC has three main activities: Rules setting, arbitration and policy.
According to ICC Nepal, ICC arbitration plays a vital role in settling business disputes. This is institutional arbitration, which is held under the Arbitration Rules of the International Court of Arbitration under the ICC.
ICC’s International Court of Arbitration is the most trusted system of commercial arbitration in the world, having received more than 14,500 cases since its founding in 1923.
“ICC arbitration can be the system of resolving disputes even in the banking sector,” said Radhesh Pant, president of Nepal Bankers’ Association (NBA).
According to Pant, if there is representation of Nepal in ICC, disputes in different contracts both in government sector and the private sector can be resolved at minimum cost.
“Even the banking sector has a number of disputes in various contracts. Being a part of ICC we can settle disputes regarding money laundering and abuse of letter of credit,” said Pant adding, ICC arbitration can create uniformity, make guidelines and standardize rules and regulation.
ICC Nepal chairman Rajesh Kaji Shrestha said, “The business sector here is still unaware of ICC’s functions and unaware of international market strategies. Here, information about arbitration is lacking and the business sector is also not aware of how ICC Nepal can help related bodies by settlement of disputes.”
For business-related bodies here, arbitration in foreign countries is time-consuming and very costly. ICC Nepal can help them show the easy way out, said Shrestha. He also urged business sector and its organisations to become a part of ICC.
“ Not only the private but the government sector also has disputes in contracts. ICC arbitration can be useful to everyone,” said Pant.
According to ICC Nepal, there may be one or more arbitrators depending on the parties’ agreement and the value of the claims or disputes. If the agreement is silent as to the number of arbitrators, either ICA or the ICC will ordinarily appoint a sole arbiter. The panel of arbitrators for ICC Nepal consists of ten arbitrators.

Durable fabrics from agri-waste, fowl feathers

2009-01-18T18:41:00.003-08:00

Durable fabrics from agri-waste, fowl feathers

Himalayan Newsw Service
Sydney, January 18:

How would you like to snuggle up in a warm, cozy pullover made from chicken feathers or jeans fashioned from wheat - fabrics that are green and eco-friendly?
Researchers are optimistic that new advances are paving the way for materials from agri-waste or byproducts to hit stores as alternatives to the 38 million tonnes of synthetic fabrics produced worldwide each year.
They reviewed research on the development of these next generation eco-friendly fibres, which will give a conventional feel, in the journal Biomacromolecules.
In the study, Andrew Poole, Jeffrey Church and Mickey Huson noted that scientists first produced commercial fabrics made of nontraditional materials — including milk proteins, peanuts, and corn - almost 50 years ago. Although these so-called “regenerated” fabrics had the look and feel of conventional protein-based fabrics such as wool and silk, they tended to perform poorly when wet. This problem, combined with the advent of petroleum-based synthetic fibers, caused the production of these unusual fabrics to stop, the researchers said.
Amid concerns about the environment and consumer demand for eco-friendly products, renewable fabrics made from non-traditional agricultural materials are now poised for a comeback.

Arab summit to launch mega customs union

2009-01-18T18:41:00.001-08:00

Arab summit to launch mega customs union

Agence France Presse
Kuwait City, January 18:

Arab leaders are to approve a customs union — the first step to a common Arab market — as well as a power grid and a rail network at their first economic summit in Kuwait, according to documents made available yesterday. The projects were approved along with other resolutions at a joint meeting of Arab foreign and finance ministers late Friday.
One draft resolution calls for “taking the necessary measures to announce the launch of an Arab Customs Union in 2010 and which will be completed in 2015.” The union will pave the way to set up a common Arab market in 2020.
The union and common market are aimed at boosting inter-Arab trade and luring investments from rich Arab states to poor countries.
Arab League figures show that inter-Arab trade only makes up between 10 per cent and 12 per cent of the total volume of Arab trade while inter-Arab investments have remained a small fraction of total Arab foreign investments.
Arab countries launched the Pan-Arab Free Trade Area about three years ago, but it did little to boost commerce among the 22 Arab League members.
At their summit today, the leaders are also expected to approve a resolution calling for the launch of an Arab rail network.
The resolution states the project will be implemented on a commercial basis and financing arranged through Arab, regional and international financial institutions and banks.

Hadikhola hydel project nears completion

2009-01-18T18:40:00.003-08:00

Hadikhola hydel project nears completion

Rastriya Samachar Samiti
Chautara, January 18:

The Upper Hadikhola Micro Hydro Project at Thangpaldhap of Sindhupalchock district
is to be completed before February 16.
Hydropower project managing director Umesh Kasaju said the project to be completed at a cost of Rs 160 million with private investment would produce one megawatt (MW)
electricity. Construction work of the project was begun in November 2007.
It is said the project and the Hydropower Development Division have already agreed to the purchase of electricity at Rs 4.44 per unit.
After completion, the power produced in the project would be linked to the national transmission line. A dozen VDCs of Sindhupalchwok and some others of Kavre district will benefit directly from the project. Managing director Kasaju said most of the work in the project, including 5-km transmission line, has been completed.

You’ll still get a job in India...

2009-01-18T18:40:00.001-08:00

You’ll still get a job in India...

Himalayan News Service
New Delhi, January 18:

The “India Shining” story may be under stress by the ongoing economic crisis, but some sectors and career options still hold promise for job seekers this year, according to human resource experts.
Leading advisory Boston Consulting Group says India will have a demand for 85-90 million people across various sectors, and the majority of the demand will come from high-growth industries like IT, outsourcing, banking, retail and healthcare.
Similarly, a survey by HR consultancy Manpower India projects hiring to rise steadily by around 18 per cent from this quarter in many sectors, signifying that jobs in India may not be entirely affected by the financial turmoil in rich nations.
“India poses a far more positive outlook as compared to what has been happening across the world,” said Cherian Kuruvilla, director operations, Manpower India, adding that seven per cent gross domestic product (GDP) growth for the country showed that the economy remained healthy.
“Employers in the mining and construction industries as also services sector are especially looking to scale up,” Kuruvila said, but added that new jobs would not be distributed evenly through all the regions and all industries.
India has a workforce of 484 million people, of which 273 million work in rural areas, 61 million in manufacturing and about 150 million in services, says the Boston Consulting Group that recently conducted a study on the country’s
services sector. “Going forward, the Indian economy is likely
to be overwhelmingly dependent on the growth of services. More than 70 per cent of India’s incremental GDP and 60 per cent of new jobs over the
next five years are expected to be generated by services.”
A survey across the Asia-Pacific region by TNS, a market research and business analysis firm, with Gallup International, a global human resource consulting firm, also threw up interesting findings. Sixty-two
per cent of the Indians polled felt they would be able to
hold on to their jobs in 2009 and the 57 per cent who expected unemployment to rise did
not not consider they would be the ones affected.
“It seems, despite the slowdowns and reports of downsizing, there is an overall confidence among the employed in India that ‘My job is secure! Difficulties, if any, are for others, not me’,” said TNS India executive director Chhavi Bhargava.
Experts concede that the present financial meltdown has raised doubts over the performance of some industries and its impact on salaries and perks, but hope that Indian businesses will come out of the slump more speedily than their counterparts overseas.
“The impact on salary was felt in 2008 and it may continue till some time. The payouts were significantly lower than the 15-200 per cent bonus payouts in 2007,” said chief executive of Absolute HR Services, Kunal Banerji.
“Gone are the days of experimentation with jobs. I would advise employees not to be adventurous checking different jobs. Stability is the mantra,” said Confiar Consultants managing director Vivek Ahuja.
Apart from advising employees to keep their jobs this year, HR consultants also feel these are also the times when people will turn to age-old values and ethics and play by the book.
“The old adage like no substitute for hard work for success is back in vogue,” Banerji said. “Stay hungry for work or stay hungry is the mantra for corporate India,” he added.

Biz Briefs of January 19

2009-01-18T18:39:00.000-08:00

NIBL’s 25th branch
KATHMANDU: Nepal Investment Bank Ltd is opening its 25th branch at Hetauda on Monday. It opened its 24th branch in Boudha on January 8. Both branches will provide world class services to the residents and business community of Boudha and Hetauda and surrounding areas, said a press release. Both branches will be linked through ABBS (any branch banking services) to all other 23 branches. Key services include deposit & lending, foreign exchange, retail banking, import, export, letters of credit and guarantees and remittance facility. The bank has installed at an ATM on the Boudha branch premises for customer convenience. Both branches have locker facility. — HNS

HBL turns 16
KATHMANDU: Himalayan Bank Ltd (HBL) completed 16 years of its establishment. The bank registered a deposit of Rs 32.46 billion and loan of Rs 21.42 billion till January 13,
with an operating profit of Rs 598 million, according to a press statement. The bank’s net profit during the fiscal year 2007-08 was Rs 635.9 million. — HNS

New NACCI panel
KATHMANDU: Nepal-Australia Chamber of Commerce and Industry (NACCI) has formed its new working committee. According to a press statement on Sunday, Akhil Kumar Chapagai has been chosen as committee president. — HNS

Fruit farmers glum
BABIYACHAUR: Fruit farmers in Myagdi are worried as the oranges that they had grown rotted in the groves due to the lack of market. There was no market for the oranges produced in Mudi, Takam, and Devistan of the district. Farmer Sukadal Fagami of Takam said though the harvest was bigger this year as compared to last year, most of it rotted in the trees. More than 50 farmers faced this problem and incurred loss of millions of rupees due to lacking of proper storage facility. — RSS

Fresh EU forecast
BRUSSELS: The EU economy faces a new round of bad news on Monday when the European Commission issues new forecasts against the backdrop of a worsening recession and spiraling public deficits. The EU executive arm will shed new light on Europe’s clouded economic outlook with fresh forecasts of just how deep the economy has slumped into recession. In the wake of the new estimates, EU finance ministers will also meet on Monday and Tuesday for talks focused on whether EU governments are doing enough to keep the recession from getting deeper. — AFP

FM assures of yanking down price rise spiral

2009-01-17T20:12:00.001-08:00

FM assures of yanking down price rise spiral

Himalayan News Service
Kathmandu, January 17:

Finance Minister Dr Baburam Bhattarai today vowed to intervene in the market anytime if the prices don’t come down soon.
“The government will intervene in the market anytime, if prices don’t come down,” he said adding that even after international prices have come down, prices in the domestic market had not come down.
The fuel price has been lowered four times since October 25 but transport fares have not come down, a factor which is pushing market prices higher, said Dr Bhattarai blaming the transport entrepreneurs’ syndicate. He also suspected that some of the traders were making money at the people’s expense.
The central bank has targetted 7.5 per cent inflation but it is at 14.1 per cent, double the target and threatening the government for its ineffectiveness in controlling the price hike.
“The government has also been not able to spend more on development projects due to delay in budget presentation by two months and procedural hassles,” the finance minister admitted. “The government will speed up its development activities from this month.”
Revenue collection has been considerably satisfactory, as it is 35.4 per cent in the first four months and 33.1 per cent in the fifth month of the current fiscal year. Since six months of this fiscal year have already passed, the government has only six months left to prove itself.
Apart from this, the treasury is positive. “The government has Rs 13.22 billion surplus,” he informed. But that’s because there has been no development expenses in first six months.
The Nepal Development Forum (NDF) meeting - considered important for attracting foreign aid - is planned for March or early April, he said adding that the government was preparing a vision paper for the meet.
This government has been blamed for not creating any jobs. But, Dr Bhattarai is hopeful that the Self-Employment Programme will help create jobs
in the country. “Last week’s cabinet meeting has given the nod to this programme’s regulation,” the rebel-turned-minister said, adding that any Nepali youth can now avail of Rs 2 lakh without collateral.
“The government will give guarantee to the banks,” he said.
The government has also prepared to open cooperative shops — popularly known as cheap-priced shops — for the poor in VDCs but there are doubts that without a smooth supply system people won’t benefit from such shops even though the finance minister has promised to make the supply system smooth.
Apart from various development activities waiting to get a kick-start, he also said the much-touted Investment Board regulation and other procedural hurdles are being cleared for attracting more investment and the government is moving forward in the right direction for fulfilling the people’s aspirations. Dr Bhattarai has returned one of his official vehicles so as not to burden the national coffers.

Shaky trust bloops Nepse index

2009-01-17T20:11:00.002-08:00

Shaky trust bloops Nepse index

Himalayan News Service
Kathmandu, January 17:

It was a lacklustre week, with the Nepal Stock Exchange (Nepse) index plunging by 23.10 points to drop to 651.22 points from last week’s closing of 674.32 points.
The sole secondary market also witnessed a drop in transaction amount — of 67 companies — by 11.71 per cent to rest at Rs 234.47 million against last week’s 28.65 per cent fall.
Shareholders of commercial banks, development banks, finance companies and insurance companies groups — except hydropower companies group — lost this week too.
Analysts believe that a crisis of confidence, more than finances, is making Nepali investors act in such a haphazard manner, pulling Nepse down by the day.
The sensitive index — a barometer of Group-A companies — plunged by 7.82 points to drop to 169.20 points from last week’s closing of 177.02 points. Similarly, the float index — calculated on the basis of real transactions — lost 2.05 points to drop to 63.55 points from last week’s closing of 65.60.
Nepse closed in the red zone this whole week as Wednesday was a public holiday and the domestic secondary market saw only four-day trading. The market opened in the red on Sunday at 664 .02 points from last week’s closing of 674.32 points. The index continued its downward ride the whole week, closing trading at 651.22 points.
Analysts have also blamed the non-renewal policy of margin lending for this bearish trend as this is the time that investors renew their loans.
The commercial bank group went down to 611.17 points, development bank group to 997.86 points and finance companies group to 897.41 points. The insurance companies group,
the only gainer this week, gained 7.10 points to 682.85 points. The hydropower companies group witnessed no change in its index from 916.24 points of last week’s closing.
This week saw heavy selling of NB group institutions. Nepal Credit and Commerce Bank (with Rs 54.92 million), National Hydropower Company (with Rs 43.26 million), Nepal Development and Employment Promotion Bank (with 19.70 million), Nepal Bangladesh Bank (with 19.12 million) and Standard Chartered Bank Nepal (with Rs 13.17 million) were the top scorers in terms of transaction amount.
In terms of number of share units traded, NCC Bank topped the chart with 3,40,000-unit shares while in terms of number of transactions National Hydropower Company topped with 584 transactions.
This week, Nepse banned the transaction of Infrastructure Development Bank Ltd’s (IDBL) shares as its capital plan has drawn critism from the central bank, the regulatory authority of financial market.
“After Nepal Rastra Bank’s instruction, Nepse banned the transaction of IDBL’s shares,” said a Nepse press release.

Outsourcing labour a compulsion: Minister

2009-01-17T20:11:00.001-08:00

Outsourcing labour a compulsion: Minister

Himalayan News Service
Kathmandu, January 17:

At an interaction at Reporters’ Club here today, Minister for Labour and Transport Management Lekh Raj Bhatta said that sending workers abroad for employment was a compulsion as employment opportunities in the country are not sufficient created in the country. Data reveals that 656 Nepalis leave for various destinations daily in search of greener pastures due to lack of job opportunities back home.
“Foreign employment may be an alternative but not long term solution as the development of the country depends on the creation of more jobs at home,” he said adding that in such a situation the young generation is compelled to go abroad as migrant workers.
He pointed out that manpower companies should be mindful of the financial and physical security of the workers they send abroad. “News of deaths of Nepali workers has been regular in recent days,” he said adding that the manpower companies and embassies should be more responsible. “There are 518 Nepali women in Tihar jail of India due to fraudulent manpower agencies,” he said.
Bhatta also criticised the Nepali embassies abroad. “Though some embassies are performing well, others are reluctant to resolve Nepali migrant workers’ woes,” he added.
The minister said the problem could be solved if Labour Attaches were appointed in the embassies. But even after the cabinet go-ahead two weeks ago to appoint Labour Attaches in embassies in Qatar, Saudi Arab, Malaysia and Dubai where there is high concentration of Nepali migrant labourers, the attaches are yet to posted there, it could not be implemented. “The ministry will send all four Labour Attaches within two weeks,” he promised.
Nepali labourers find Gulf countries more attractive but due to global financial crisis some of the big contractors in Gulf countries have stopped taking new employees. Israel is yet another lucrative but troubled destination.
Apart from that, Japan is being seen as a new lucrative destination for Nepali migrant workers. “The government has given the responsibility of sending Nepalis to Japan to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).” he said.
On December 3, 2003, FNCCI and Japan International Training Cooperation Organisation (JITCO) had signed a preliminary agreement on sending Nepali migrant workers to Japan. But even after almost five years, not a single Nepali worker has gone to Japan. Japan has started taking foreign workers in agriculture, construction, food processing, fishery, electronics and garments sectors from 14 countries. Bangladesh is the 14th country it has entered into an agreement.
On the occasion, some Japanese employers said that they were willing to take Nepali workers if the government permits. According to available data, between 1992 to 2003 — a 12-year duration — 2,202 Nepalis went to Japan.

Pig farmers have fat piggy banks

2009-01-17T20:10:00.003-08:00

Pig farmers have fat piggy banks

Rastriya Samachar Samiti
Hetauda, January 17:

Pig rearing has made farmers of Karra Tole of Hetauda-10 in Makwanpur district affluent.
The farmers, who started rearing pigs with assistance from the District Livestock Office in 2053 BS, are fully involved in this occupation. These farmers formed a group and started this occupation. The group has 26 members. The pigs reared here are exported to different parts of the country such as Dharan, Birgunj, Butwal and Kathmandu, said group member Usha Ranjit.
According to Krishna Bahadur Moktan, another member of the group, a mature pig is sold for Rs 20,000 whereas the price of a pair of piglets is Rs 3,000. A pig has a litter of 15-16 piglets at one time and they are sold at Rs 1,700 each.

Gold price trots on heels of global market trend

2009-01-17T20:10:00.001-08:00

Gold price trots on heels of global market trend

Himalayan News Service
Kathmandu, January 17:

Taking a cue from the international market, this week gold in the domestic market closed Rs 420 lower per 10 gram to drop to Rs 21,100 from the opening price of Rs 21,520 on Sunday.
Gold was traded at Rs 21,520 per 10 gram in the domestic market on Sunday. Monday witnessed a climb of Rs 130 to Rs 21,650 per 10 gram. However, a sharp decline of Rs 390 was noted in the price on Tuesday as gold was traded at Rs 21,260.
On Wednesday, it further decreased to Rs 21,220 while on Thursday the price came down to Rs 21,005 per 10 gram — the lowest this week.
However, gold closed in the domestic market at Rs 21,100 — an increase of Rs 95 per 10 gram. The global market experienced fluctuations in the price of the precious yellow metal due to the global financial crisis, said Nepal Gold and Silver Dealers’ Association.
According to NEGOSIDA, in the international market gold priced at $819 per ounce this week which was $852 per ounce last Friday.
This week gold rose to $854 per ounce but later fell to $819 per ounce on Friday.
However, on Saturday, the last day of trading in the international market, it crossed $843 per ounce.
Meanwhile, silver opened at Rs 303 per 10 gram on Sunday. The price remained constant on Monday at Rs 303. On Tuesday, it decreased by Rs 3 to Rs 300. On Wednesday, it further dropped by Rs 2 per 10 gram to Rs 298.
Silver was traded at Rs 296 on Thursday and closed at the same price on Friday, the last day of trading in the domestic market.

Experts fork out public sector mantras

2009-01-17T20:08:00.000-08:00

Experts fork out public sector mantras

Himalayan News Service
Kathmandu, January 17:

The Centre for Empowerment and Development-Nepal (CEMID- Nepal) has brought out its second publication, Sarbajanik Chhetraka Bahuaayamik Pakchhyaharu (Multidimensional aspects of the Public Sector).
The volume covers a wide range of comtemporary issues — economic and social — in 28 articles penned by experts having long academic and professional experience.
Dr Champak Pokharel has reviewed the much-discussed Three Year Interim Plan whereas Dr Chiranjibi Nepal has analysed the Public-Private Partnership in Economic Development where he writes that economic growth without social justice is inhuman, but social justice without economic growth is impossible.
Tula Raj Basyal has analysed the White Paper on Economy and Prof Dr Gopal Prasad Pokharel gives the reader an insight into New Nepal’s economic diplomacy.
Bimal Wagle, a senior bureaucrat, has delved into Economic Liberalisation and Financial Sector Reforms in Nepal.
At a time when everyone is pondering whether the global financial crisis will hit Nepal or not, Dr Govind Bahadur Thapa takes a serious look at the global crisis and its possible impact on Nepal and prescribes solutions as well.
The articles on Foreign Aid and challenges therein by Madhav Prasad Ghimire, Revenue Mobilisation and its challenges and possibilities by Balgovind Bista, Advantages and Disadvantages of Foreign Employment by Sthaneshwor Devkota, Local Government and Performance-based Funding in Nepal by Krishna Babu Joshi and State Restructuring by Dr Surendra KC are interesting and academic reads in the book that promises to provoke debate.

Book: Sarbajanik Chhetraka Bahuaayamik Pakchhyaharu
(Multidimensional aspects of
the Public Sector)
Publisher: CEMID-Nepal
Price: Rs 335
Pages: 346

Chhetri takes charge of NRB

2009-01-16T18:53:00.003-08:00

Chhetri takes charge of NRB

Himalayan News Service
Kathmandu, January 16:

The central bank has got a full-fledged governor after a hiatus of almost two years. Deependra Bahadur Chhetri took charge here today as new governor of Nepal Rastra Bank (NRB). He is the 14th head of the regulatory authority of the monetary market.
Talking to scribes after assuming charge, Chhetri promised action against wilful defaulters, saying, “We’ll soul-search and go after such ones.” He opined cooperatives should be under NRB and financial institutions should be encouraged to go to rural areas.
“Cooperatives should be brought under the NRB scanner as they are into monetary transactions,” he said adding that it was NRB’s responsibility to monitor and supervise the monetary market. “There has long been a demand for a second tier institution,” added Chhetri, who began his career on Asad 1, 2034 BS from the same institution he heads.
He also vowed to take note of the price hike. The monetary policy has targetted inflation at 7.5 per cent. Though economists claim that Nepal’s inflation is imported, India’s inflation has in these past two months gone down by half.
However, according to the first five months’ data, inflation is at 14.1 per cent — double the target — and does not seem to be going down.
The present liberal monetary policy is blamed for the price hike. Chhetri, however, put the blame for the price hike on the supply system. Opining that tightening the monetary
policy could hurt the private sector, he added that the central bank was in no mood to review the present monetary policy. “A tight monetary policy at the cost of the private sector will not be suitable,” he said.
The number of financial institutions is increasing in a small economy like Nepal. Due to increasing number, on one hand there is unhealthy competition while on the other the central bank is accused of lack of monitoring system and manpower. Some economists and bankers even want the central bank to stop issuing licence to new financial institutions.
“The central bank will not stop issuing licence to new financial institutions,” he said adding that competition will help financial institutions to go to uncharted areas in the rural sector.
“The central bank will provide facilities and encourage financial institutions to go to rural areas,” said Chhetri, who was a trade union leader during the 1990s movement.
Admitting that NRB faces several national and global challenges he said that there may be weaknesses on part of NRB also. The trade unionist-turned governor was also sacked by the central bank in 1994 for anti-government publications. He was founder-president of NRB employees’ union in 1990.
He worked in National Trading Ltd and Agriculture Development Bank before being appointed a member of National Planning Commission (NPC), the government think-tank, last year. He retired from the central bank as executive director of the currency management division two years ago.
The cabinet yesterday named Chhetri the 14th governor as the CIAA had indicted former governor Bijaya Nath Bhattarai two years ago. Since then, Krishna Bahadur Manandhar had been heading the central bank as the acting governor.

Remittance best foreign currency earner

2009-01-16T18:53:00.001-08:00

Remittance best foreign currency earner

Himalayan News Service
Kathmandu, January 16:

Contrary to popular belief that tourism, carpet or the readymade garments sector is the largest foreign currency earner, it is remittance that is the largest foreign currency earner.
“Remittance contributes to 50 per cent of the total foreign currency earnings,” said Ramji Regmi, executive director of Nepal Rastra Bank (NRB) speaking during Sunrise Bank Ltd’s new product ‘Suryodaya Remit’ launch programme.
“The contribution of exports stands at a mere 22 per cent,” he said adding that in recent years remittance has become the lifeline of Nepal’s economy. “Though it’s not good for the health of the country’s economy in the long run.”
“In South Asia, Nepal is the only country where remittance is invested in unproductive sectors like buying house and land,” Regmi added. He was of the view that the central bank has facilitated the remitters.
However, manpower agencies complain that the government does not recognise their contribution in bringing remittance that has kept the country’s economy afloat.
L P Sanwa Limbu, immediate past president of Nepal Foreign Employment Agencies’ Association, said the country needs to recognise their contribution.
However, of the total remittance - except for that from India - only 60 per cent comes through banking channels. The rest 40 per cent still comes through non-banking channels despite the fact that there are 39 remmittance agencies.
“To channelise remittance through banking channel,s Suryodaya Remit will be helpful apart from that that a customer can avail of various facilities and benefits with Suryodaya
Remit,” said chief executive officer of Sunrise Bank Kishore Maharjan.
The bank has assigned KRS Solutions — with 250 outlets across the country — as its authorised agent.
“The global financial crisis has yet not hit the remittance business in Nepal,” Maharjan said adding that the increase in flow of people going abroad also had not yet gone down drastically. Remittance will decrease only if there is a mass return of Nepali migrant workers due to global financial crisis in countries where they are working at present. “Till yet, the situation is not so serious,” he added.
Remittance increased by 16 per cent during the fiscal year 2006-07 whereas it increased by 25 per cent in the fiscal year 2007-08. In the first five months of the fiscal year 2008-09, it has posted an increase of 69 per cent in comparison to the same period in the last fiscal year.
Sunrise Bank started channelling money from Malaysia from today and within a week, it will start channelling from the Gulf and other countries. Till January 13, the bank was able to generate a total deposit of Rs 8.64 million and a total loan amount of Rs 8.78 billion. The bank has plans to open branches at Pharping and Chahabhil within the valley and also at Birgunj outside the valley.