Wednesday, July 04, 2007

Roundup of Economic & Business News (Jun 24 - Jul 3)

June 24
‘My dream is to make Prisma a global player’-Ranjit Acharya (ekantipur.com)
NB Bank join hands with Western Union, Laxmi Bank issues Visa cards (ekantipur.com)
Interim plan aims to achieve 5.50 % economic growth rate, reduce poverty (nepalnews.com)

June 25
Parties for free energy from West Seti (ekantipur.com)
Truckers halt services in Mechi, Koshi (ekantipur.com)
Court bars NRB move against Pun (ekantipur.com)
KIST Merchant and Finance opens branch (ekantipur.com)
Revenue collection shoots up (ekantipur.com)
Oil crisis deepens (ekantipur.com)
Terai life hit hard by routine bandhs (nepalnews.com)

June 26
Job hopes in Karnali still unmet, Govt’s 1 family, 1 job program (ekantipur.com)
Overseas jobs see some rise (ekantipur.com)
‘Ensure smooth oil supply’ (ekantipur.com)
Clear policy sought to protect domestic industry (ekantipur.com)
Supply hit as truckers go on strike in eastern region (nepalnews.com)

June 27
Demands on budget threaten financial stability: Mahat (ekantipur.com)
35% demand met by domestic drugs (ekantipur.com)
Earnings of overseas workers dwindle (ekantipur.com)
Insurance policy for doctors (ekantipur.com)
Malika, SCT sign ATM deal (ekantipur.com)
‘Lot needs to be done to ameliorate RBB, NBL’ (ekantipur.com)
WorldLink expands its foothold (ekantipur.com)
Seven percent growth in foreign employment (nepalnews.com)
Consumption of antibiotics down by 8pc (nepalnews.com)

June 28
Work at Mid-Marsyangdi halts indefinitely (ekantipur.com)
Stock trading halted (ekantipur.com)
No action on CIAA's fiat over NMA (ekantipur.com)
Maoists call off indefinite bandh in Siraha (nepalnews.com)

June 29
NRB governor suspended, CIAA files case in Rs 24.54m scam (ekantipur.com)
Monsoon tourists relish ropain (ekantipur.com)
DDC, private dairies hike milk price (ekantipur.com)
Transport strike extends westward (ekantipur.com)
BIMSTEC members still divided (ekantipur.com)
Planned urbanization for better future: Minister Yami (Nepalbiznews.com)

June 30
Businesses hit hard by transport strike (ekantipur.com)
Coffee production rises by 40 pc (ekantipur.com)
Permanent Account Number (PAN) registration growing fast (ekantipur.com)
Emission reduction purchase agreement (ERPA) signed to provide energy (ekantipur.com)
CIAA action against governor adversely affects financial reforms, says FM (nepalnews.com)

July 1
India building 126MW hydro near border, Border residents fear submersion (ekantipur.com)
400 Nepali workers starnded in Oman (ekantipur.com)
Nearly 18,000 children doing mechanical work (ekantipur.com)
Fuel to petrol pumps stalled (ekantipur.com)
Three finance companies to merge (ekantipur.com)
Lawmakers want revolutionary policy in agriculture (Nepalbiznews.com)
NAC celebrates its 49th anniversary (nepalnews.com)

July 2
Dagmara hydel only being studied: India (ekantipur.com)
Transport strike over (ekantipur.com)
Petrol supply dwindles further, Private pumps receive no fuel (ekantipur.com)
Microsoft, Unlimited ink partnership pact (ekantipur.com)
Domestic airlines packed, passengers stranded (ekantipur.com)
Reform local tax system:Businessmen (ekantipur.com)
Manandhar appointed acting NRB governor (Nepalbiznews.com)
Govt extends Rs 1.70b loan to NOC (Nepalbiznews.com)

July 3
Nepal signs labor pact with UAE (ekantipur.com)
NEPSE crosses 600-mark (ekantipur.com)
‘Operate Dhaka-Ktm bus service’-Hasan Mansur (ekantipur.com)
144 KL of petrol pumped out in Valley (ekantipur.com)
Consumer inflation eases (ekantipur.com)
Governor Bhattarai summoned, Pradhan freed on bail (Nepalbiznews.com)
No ‘on-arrival’ visas for seven countries (nepalnews.com)

Nepal signs labor pact with UAE

Nepal signs labor pact with UAE
eKantipur.com, 3-Jul-07
By PRABHAKAR GHIMIRE

Nepal on Tuesday signed a labor pact with the Gulf state, United Arab Emirates, to ensure the safety and rights of Nepali workers.

Dr Ali Bin Abdulla Al Kaabi, UAE Minister of Labor, and Ramesh Lekhak, Nepal's Minister of State for Labor and Transport Management, inked the agreement.

This is the first bilateral labor agreement Nepal has signed with another country.

The agreement, which comes into effective immediately, makes both governments accountable for safeguarding the rights of Nepali laborers, and provides for salary standards and compulsory health insurance for Nepali laborers.

"The agreement also provides Nepali laborers working in the UAE the legal status to fight for their rights" said Minister of State Lekhak after inking the deal, adding, "Nepali workers will get all the benefits and legal rights enjoyed by other foreign workers."

The UAE has shown readiness to import more Nepali workers, and with the establishment of a favorable working environment, the number of workers leaving for that country will definitely go up in the days to come.

Talking to the Post, Acting Secretary at the Ministry of Labor and Transport Management (MoLTM), Umesh Mainali, said the agreement also has a provision for setting up a bilateral mechanism to exchange visits and review the status of Nepali workers every six months.

"Both governments will maintain and exchange data on Nepali laborers working in the UAE on a regular basis to identify their status." Mainali said.

Speaking on the occasion, UAE Labor Minister Al Kaabi said the agreement will target protection of workers' rights.

"The agreement also seeks to prevent improper practices by private manpower agencies which tend to exploit the workers by demanding exaggerated fees, providing false information about their working conditions in the host country." Al Kaabi said, adding, "The pact confirms the importance of supply and recruitment of Nepali labor force in accordance with the laws and regulation in force in both countries."

Al Kaabi also expressed concern about ill practices by manpower agencies that mislead employers in the UAE regarding workers' qualifications, experience and documents.

He hailed the contribution made by Nepali workers in the economic development of the UAE. The continued economic boom in the UAE will provide further employment opportunities in construction, tourism and the manufacturing sector in the coming days, said Al Kaabi.

Foreign employment agencies have also hailed the agreement as historic for the benefit of Nepali workers in the UAE.

"It is a great achievement for Nepal to ensure the safety and benefit of Nepali workers in the UAE", Hansa Raj Wagle, General Secretary of the Nepal Association of Foreign Employment Agencies (NAFEA) told the Post. He predicted that the agreement could push up the number of Nepali workers heading for the UAE by more than 30 percent this year.

Nepal has proposed bilateral labor pacts with half a dozen other countries.

Though Nepal had signed a memorandum of understanding (MoU) with Qatar, the second most popular destination for Nepali labor, it is now dysfunctional since both the governments failed to ratify it within six months after signing the MoU.

During the first 11 months, 20,512 Nepali job seekers left for the UAE and more than 120,000 are currently working in this Gulf state.

UAE to establish labor office in Kathmandu

In a move to eliminate bad practices in laborer dealing, United Arab Emirates (UAE) is establishing a special labor office in Kathmandu soon said the UAE minister.

“Receiver and sender companies are cheating huge amounts of money from poor laborers through false promises and misleading documents in the absence of a proper mechanism,” he said at a function on Tuesday adding, “To eliminate such bad practices we are soon opening special office in Kathmandu to oversee labor issues.”

The office will be equipped with direct electronic networking to verify the misleading documents, he said.

“We don't want the agreement to remain only in writing, we want action.” he added.

He was speaking at a function organized by Nepal Association of Foreign Employer Agencies.

Coffee production rises by 40 pc

Coffee production rises by 40 pc
eKantipur.com, 30-Jun-07

As farmers aggressively pursue commercial cultivation of coffee, Nepal recorded a whopping 40 percent rise in organic coffee production compared to last year, said officials.

Raghupati Chaudhary, acting chief of National Tea and Coffee Development Board (NTCDB), western regional office, said that coffee production this year has soared to 391 tons from 278 tons of last year.

Moreover, of the total production, Nepal exported 91.50 tons of coffee to countries such as Japan, USA, UK and South Korea, among others, this year.

“The export fetched the producers and marketers a total of Rs 5.6 million,” said Chaudhary, adding that Nepal had exported a mere Rs 2.45 million worth of coffee five years ago.

Coffee is produced in 40 districts in Nepal. Among them, eleven districts of western region alone produced 163 tons of coffee this year, shows the data of NTCDB.

Palpa, Gulmi, Arghakhanchi, Syangja, Kaski, Parbat, Tanahun, Baglung, Lamjung, Gorkha and Myagdi are the western districts where commercial coffee cultivation is practiced. A total of 12,393 farmers in eleven districts of the region are actively involved in coffee farming.

Farmers into coffee production, meanwhile, urged the government to extend technical cooperation, subsidy on seed and pesticide along with market development activities.

“The government should bring in coffee policy on time so as to support the farmers and facilitate exporters,” said Mona Bhattarai, a coffee farmer, adding that scores of farmers could easily earn their livelihood easily from coffee production if the government supported it.

However, she stated farmers presently are not getting even bio-medicines on time to control diseases.

DDC, private dairies hike milk price

DDC, private dairies hike milk price
eKantipur.com, 29-Jun-07

Dairy Development Corporation (DDC), a major state-owned dairy supplier and private dairy operators have increased milk price to Rs 29 per liter for the lean season (mid-February to mid-August) across the country effective from Saturday, a concerned official said.

They also decided to fix the milk price at Rs 28 per liter for flush season -during mid-August to mid February. National Dairy Development Board (NDDB), an apex policymaking body of the dairy sector, had recommended milk price last month at Rs 28 per liter for flush season and Rs 29 for lean season from existing Rs 26 per liter. But DDC had defied the recommendation and had increased the milk price at one rupee less per liter than what was recommended.

“We decided to increase the price of milk by Rs 2 or Rs 3 per liter depending on the seasons” said Ram Kumar Khadka, president of Nepal Dairy Association (NDA), an umbrella organization of private dairy operators. He ruled out the possibility of increasing the price of milk products soon as their prices was increased just a couple of months back. Private dairies reached the decision to hike milk price at a gathering held in Kathmandu on Friday.

A meeting of board of directors of DDC has also decided to increase the price to Rs 29 per liter from Rs 28. Likewise, the price of whole milk has been set at Rs 32 per liter for flush season and Rs 33 for lean season.

In the earlier decision, DDC had increased only Rs 2 per liter from existing Rs 26 per liter for all seasons effective from June 15th for Kathmandu Valley, while keeping the price unchanged outside the Valley.

The new adjustment was made in response to the government's decision and increased purchase price of milk, said Raghav Kishore Bhattarai, acting deputy general manager of DDC.

A government initiated meeting of stakeholders including high-ranking government officials held on June 21st at Ministry of Agriculture and Cooperatives (MoAC) had decided to maintain price uniformity and had asked DDC to rollback its previous decision to increase the price that was one rupee less per liter than the recommendation.

While private dairies also kept the milk price unchanged at Rs 26 per liter as a protest against DDC's decision, they exerted pressure on the government to intervene in the market. DDC, private dairies hike milk price

Seven percent growth in foreign employment

Seven percent growth in foreign employment
Nepalnews.com, 27-Jun-07

Compared to the previous fiscal year, the number of people leaving Nepal for employment purposes recorded a slight growth this year. In the past one month alone, some 21,175 Nepalese citizens left Nepal in search of greener pastures abroad.

The number of people going for foreign employment has increased by 6.9 percent in the first 11 months of current fiscal year (July 16, 2006 to July 15, 2007), according to the Department of Labor and Employment Promotion.

During this period, 176,115 persons left the country for 14 different labor destinations around the world, the department said. Last year some 164,742 persons had left the country for foreign employment. Lack of employment opportunities in the country is said to be the main reason why increasing number of Nepalese youths are heading abroad.

As per recent figures, Malaysia remains the most preferred destination among people going for foreign employment. However, number of workers leaving for Malaysia decreased by 13 percent to 65,455 this year from last years 75,758. But in aggregate, around 50 percent of the total outgoing workers left for Malaysia this fiscal year, followed by Qatar and Saudi Arabia.

However, according to manpower companies, increasing number of Nepalese workers are now heading to Qatar, United Arab Emirates and Saudi Arab for foreign employment.

Oppressive labor acts, unsafe working environment and harassments are said to be some of the reasons that are putting off Nepalese workers from Malaysia.

Earnings of overseas workers dwindle

Earnings of overseas workers dwindle
eKantipur.com, 27-Jun-07
BY PRABHAKAR GHIMIRE

Nepal has managed to post an encouraging growth in remittance, but a closer look at the receipts show that earnings of average Nepalis working overseas has dwindled drastically over the past one decade.

Data of Ministry of Labor shows the number of overseas workers has gone up by 77 times over the period of 1995/96 - 2005/06. However, the amount of remittance has edged up by just 34 times during the period, according to the central bank.

Analysis of these two figures suggests: earning per capita of overseas Nepali workers stands at mere half of what it used to be a decade ago.

In 1995/96, Nepal had received a total of Rs 2.66 billion in remittance from 2,134 workers employed abroad, which means each worker had earned an average of Rs 1.24 million per year.

Whereas, in 2005/06, 165,256 workers sent only Rs 92.75 billion, putting the earning per head at just above Rs 560,000 a year.

Moreover, per capita earning figure has gone down further in the first six months of the current fiscal year. With volume of remittance receipt standing at Rs 51.59 billion from 94,964 outgoing workers, per worker earning has dropped to Rs 542,500.

Foreign employment company operators attributed the continued shrinking in hard earned income to increasing global competition on overseas job and burgeoning living cost in the employer country.

“Intensified competition among workers from Nepal as well as other source countries has resulted in a decline in wage rate and other facilities to the workers” L P Sanwa, president of Nepal Association of Foreign Employment Agencies (NAFEA) told the Post.

“Even in work, where wage rate has remained stable, rise in inflation in host country and other factors have led to the volume of earnings going down.”

The major sufferers of decline in wage are unskilled laborers, who work at the lowest wage rate and face tough competition in the job market, he stated.

Rameswor Shah, president of Nepalese Society - UAE, also shared the same views.

“Nepali workers are toiling hard under 50 degree Celsius of blistering sun in UAE for meager wages, which has remained unchanged, barring a few cases over the past one decade” he said, adding that their working condition is more hazardous.”

However, the condition of skilled laborers is more satisfactory than the unskilled ones.

According to Shah, Nepali workers earn Rs 7,000 to Rs 1.2 million per month depending on their skill and company they work for. “Those who suffer the most and vulnerable to exploitation are unskilled laborers,” he added.

Realizing the fact, government is all set to fix minimum wage ceiling soon for Nepali workers heading for overseas job, said Ramesh Lekhak, minister of state for Labor.

“It is alarming that wage of Nepali workers has remained at meager 500 riyal per month for the last 15 years in the Gulf region,” he stated.

Dilli Ram Sharma, director at Department of Labor and Employment Promotion (DoLEP) attributed the depleting wages to increasing mobility of workers worldwide.

35% demand met by domestic drugs

35% demand met by domestic drugs
eKantipur.com, 27-Jun-07

Nepal is quite good at producing antibiotics though a high amount of drugs is imported in the country, a report said.

According to a study on "Consumption of antibiotics and other medicines" carried out by Department of Drug Administration (DDA), 35 percent of the total consumption in the country is met through domestic industries. The antibiotic amoxicillin is the top selling drug of the domestic industries. Pharmaceutical Horizon of Nepal (PHON) prepared the report for DDA.

The study carried out during the fiscal year 2005/006 in several cities like Kathmandu, Bhairahawa, Birgunj, Biratnagar, Lalitpur and Bhaktapur, among others was released here Wednesday. It said that about 30 percent of total consumption of drugs is covered by antibiotics. Allopathic drugs worth Rs 4.99 billion in retail value were sold through private importers. Ayurvedic/Unani drugs worth Rs 347 million, veterinary drugs worth Rs 201 million and homeopathic drugs worth Rs 4 million were sold through private importers.

Similarly, the total value of drugs imported through Government, UN agencies, INGO's/ NGO's was Rs 889 million. Allopathic drugs worth Rs 3.18 billion in retail value were sold from domestic industries. Ayurvedic/Unani drugs worth Rs 247 million and veterinary drugs worth Rs 121 million in retail value were sold from domestic industries.

The value of drugs imported through different custom points was Rs 5.1 million.

"This study has helped estimate the national consumption of medicines, which will serve as a basis for planning an effective drug management as well as for making self-reliant drug production through the national industries," said Bhupendra Bahadur Thapa, director of DDA.

Parties for free energy from West Seti

Parties for free energy from West Seti, Against separate project for Nepal
eKantipur.com, 25-Jul-07

Parliamentarians representing the major parties in the Interim Parliament demanded on Monday that the government amend the agreement with Australia's Snowy Mountain Engineering Corp (SMEC) so that it provide free energy to Nepal from the 750 megawatt West Seti project, instead of providing cash benefit.

In a meeting of the Interim Parliament's Natural Resources and Means Committee, parliamentarians representing NC, CPN (UML), NSP (A), PFN, and United Left Front also asked the government to ensure that SMEC provides free energy from West Seti itself, instead of building another project to give Nepal the free energy.

Furthermore, the parliamentarians told the government to ensure that Nepal gets 10 percent of total generation, instead of just 75 megawatts, as it is possible that the project's installed capacity will cross 750 megawatts.

"We should ask for ten percent free energy from West Seti itself, and we should get the free energy right from the day the project starts generation," said NC's Ananda Dhungana.

Parliamentarians Hridayesh Tripathi of NSP (A) and Lilamani Pokharel of PFN expressed doubts that the project's developer would build another project for providing free energy. They therefore pushed for 10 percent free energy from West Seti itself.

United Left Front's C P Mainali also said that Nepal should ask for benefit in kind instead of cash. Mainali also asked the government why the provision of 10 percent free energy was revised in favor of either free energy or cash, and finally in favor of cash.

However, parliamentarians representing CPN (Maoist) urged the government to halt all decisions on mega projects. Parliamentarians Dinanath Sharma and Lokendra Bista said that the country's priority at the moment is conducting constituent assembly election, and not making decisions on mega projects. RPP's Govinda Bikram Shah concurred with them.

Answering the parliamentarians, Acting Secretary of the Ministry of Water Resources Jitendra Ghimire said that a minute has been signed with SMEC for free energy to Nepal. Ghimire added that the government will ensure increment in free energy to Nepal in the event the project's installed capacity increases.

The government had signed an agreement with SMEC in 1994 for 10 percent free energy to Nepal. The agreement was revised to "either free energy or cash" in 1997, and later to cash benefit in 1998.

In 2003, during the tenure of former Minister of Water Resources Dipak Gyawali, a minute was signed with SMEC stating that the government would identify another project so that SMEC would build it for Nepal for providing free energy. Discussions had taken place then to award the 122 megawatt Upper Seti to SMEC for the purpose.