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)
Wednesday, July 04, 2007
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.
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.
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
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.
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.
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.
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.
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.
Sunday, June 24, 2007
Roundup of Economic & Business News (Jun 17 - Jun 23)
June 17
Govt proposes revised rebidding to ADB (eKantipur.com)
Manakamana Cable car: country's pride (eKantipur.com)
Nepal bags Destination Travel Award from ITE HK (Nepalbiznews.com)
June 18
Pashmina suffers identity crisis after years of trade (eKantipur.com)
NAC cancels bid for Boeing lease (eKantipur.com)
Farmers demand 11 tea refineries in Ilam (eKantipur.com)
Private dairies flay DDC over milk price (eKantipur.com)
Declare tourism industry as a national industry: NATO (Nepalbiznews.com)
Entrepreneurs urge for Nepali products’ logo (Nepalbiznews.com)
Minister Yami intent on appeasing ADB, says govt. would fulfill all its conditions
June 19
Nepal Samachar- patra suspends publication (eKantipur.com)
Depreciating dollar hits remittance, exports (eKantipur.com)
Private airlines to build hangars at TIA (eKantipur.com)
NPC prepares interim plan (Nepalnews.com)
June 20
Yami's ambitious infrastructure plan (eKantipur.com)
Govt to ask ADB to extend Melamchi loan (eKantipur.com)
Additional state support for Nepali workers soon (eKantipur.com)
Govt approves SEZ Act (eKantipur.com)
Is the stock market awaiting meltdown? (eKantipur.com)
Parliament asked to investigate loan defaulters (eKantipur.com)
‘Involve private sector in infrastructure’ (eKantipur.com)
June 21
Nepali firms to go multinational (eKantipur.com)
ADB extending Melamchi loan (eKantipur.com)
$169,000 aid for micro hydro project (eKantipur.com)
Nepal to sign labor pact with Malaysia, UAE (eKantipur.com)
Biratnagar customs take improves (eKantipur.com)
Germany to provide €22m grant for health and energy sectors (Nepalbiznews.com)
June 22
Interim Plan to invest Rs 587 billion (ekantipur.com)
Deposit collection soars by 10 pc (ekantipur.com)
Cabinet endorses NT's 15 pc divestment plan (ekantipur.com)
June 23
DDC asked to raise prices, Govt for single price of milk (ekantipur.com)
Govt agrees to hike salary of employees (Nepalbiznews.com)
(Nepalnews.com)
Govt proposes revised rebidding to ADB (eKantipur.com)
Manakamana Cable car: country's pride (eKantipur.com)
Nepal bags Destination Travel Award from ITE HK (Nepalbiznews.com)
June 18
Pashmina suffers identity crisis after years of trade (eKantipur.com)
NAC cancels bid for Boeing lease (eKantipur.com)
Farmers demand 11 tea refineries in Ilam (eKantipur.com)
Private dairies flay DDC over milk price (eKantipur.com)
Declare tourism industry as a national industry: NATO (Nepalbiznews.com)
Entrepreneurs urge for Nepali products’ logo (Nepalbiznews.com)
Minister Yami intent on appeasing ADB, says govt. would fulfill all its conditions
June 19
Nepal Samachar- patra suspends publication (eKantipur.com)
Depreciating dollar hits remittance, exports (eKantipur.com)
Private airlines to build hangars at TIA (eKantipur.com)
NPC prepares interim plan (Nepalnews.com)
June 20
Yami's ambitious infrastructure plan (eKantipur.com)
Govt to ask ADB to extend Melamchi loan (eKantipur.com)
Additional state support for Nepali workers soon (eKantipur.com)
Govt approves SEZ Act (eKantipur.com)
Is the stock market awaiting meltdown? (eKantipur.com)
Parliament asked to investigate loan defaulters (eKantipur.com)
‘Involve private sector in infrastructure’ (eKantipur.com)
June 21
Nepali firms to go multinational (eKantipur.com)
ADB extending Melamchi loan (eKantipur.com)
$169,000 aid for micro hydro project (eKantipur.com)
Nepal to sign labor pact with Malaysia, UAE (eKantipur.com)
Biratnagar customs take improves (eKantipur.com)
Germany to provide €22m grant for health and energy sectors (Nepalbiznews.com)
June 22
Interim Plan to invest Rs 587 billion (ekantipur.com)
Deposit collection soars by 10 pc (ekantipur.com)
Cabinet endorses NT's 15 pc divestment plan (ekantipur.com)
June 23
DDC asked to raise prices, Govt for single price of milk (ekantipur.com)
Govt agrees to hike salary of employees (Nepalbiznews.com)
(Nepalnews.com)
Deposit collection soars by 10 percent
Deposit collection soars by 10 percent
eKantipur.com, 22-Jun-2007
Total deposits at the banking sector grew by over 10 percent during the first nine months of the current fiscal year as remittance inflow continued to flood the banks.
The data of Nepal Rastra Bank shows that the total deposits stood at Rs 321 billion by mid-April, up from Rs 291 billion in last mid-July.
Flushed with money caused by healthy inflow of remittance, more people are saving money in banks, bankers said. Besides, tough competition among banks to lure depositors by reducing the cost for opening accounts also helped to expand people's access to financial services, they said.
Terming the growth as normal, Sashin Joshi, chief executive officer of NIC Bank, said banks are setting up new branches even outside the Kathmandu Valley. “In addition, more people have put their money in financial institutions due to perceived security problem at home,” he said.
Of the total deposits, Rs 39.8 billion was kept in current account while Rs 166.2 billion was deposited in savings account. Likewise, 30 billion rupees was saved in fixed deposit.
During the period, the banks reported an impressive growth of over 27 percent in loan extensions. They gave loans amounting to Rs 221 billion by mid-April, compared to Rs 173 billion in last mid-July.
Almost all loans went for the private sector. Banks issued loans amounting to Rs 214 billion to private parties. Loans extended against government-owned enterprises fell by around 22 percent to almost seven billion rupees, down from Rs 9.21 billion.
Bankers said despite the end of armed conflict, industrial sector has not revived. “Demand for loans for this sector has not gone up considerably. Still, banks are managing their deposits and investing on retail lending more aggressively,” said a banker.
The investment of commercial banks on government securities was almost same at around Rs 57 billion during the period.
On the account of steady rise in deposit mobilization, total liquidity at the banking sector increased by 22.93 percent. The liquidity that was Rs 38.8 billion rupees in the beginning of the current fiscal year reached Rs 47.7 billion by the mid-April.
In order to reduce liquidity, the bankers said, mega projects should come into operation.
eKantipur.com, 22-Jun-2007
Total deposits at the banking sector grew by over 10 percent during the first nine months of the current fiscal year as remittance inflow continued to flood the banks.
The data of Nepal Rastra Bank shows that the total deposits stood at Rs 321 billion by mid-April, up from Rs 291 billion in last mid-July.
Flushed with money caused by healthy inflow of remittance, more people are saving money in banks, bankers said. Besides, tough competition among banks to lure depositors by reducing the cost for opening accounts also helped to expand people's access to financial services, they said.
Terming the growth as normal, Sashin Joshi, chief executive officer of NIC Bank, said banks are setting up new branches even outside the Kathmandu Valley. “In addition, more people have put their money in financial institutions due to perceived security problem at home,” he said.
Of the total deposits, Rs 39.8 billion was kept in current account while Rs 166.2 billion was deposited in savings account. Likewise, 30 billion rupees was saved in fixed deposit.
During the period, the banks reported an impressive growth of over 27 percent in loan extensions. They gave loans amounting to Rs 221 billion by mid-April, compared to Rs 173 billion in last mid-July.
Almost all loans went for the private sector. Banks issued loans amounting to Rs 214 billion to private parties. Loans extended against government-owned enterprises fell by around 22 percent to almost seven billion rupees, down from Rs 9.21 billion.
Bankers said despite the end of armed conflict, industrial sector has not revived. “Demand for loans for this sector has not gone up considerably. Still, banks are managing their deposits and investing on retail lending more aggressively,” said a banker.
The investment of commercial banks on government securities was almost same at around Rs 57 billion during the period.
On the account of steady rise in deposit mobilization, total liquidity at the banking sector increased by 22.93 percent. The liquidity that was Rs 38.8 billion rupees in the beginning of the current fiscal year reached Rs 47.7 billion by the mid-April.
In order to reduce liquidity, the bankers said, mega projects should come into operation.
Nepali firms to go multinational
Nepali firms to go multinational
eKantipur.com, 21-Jun-2007
Now is the time for established domestic companies to think of going multinational. If things go according to plan, the over four-decade long restriction on Nepali investors to invest abroad will be lifted within a month, paving the way for Nepali entrepreneurs to go multinational.
According to an official at the Finance Ministry, the government is in the final stages of amending the Ban on Nepali Investment in Foreign Countries 2021 Act, as per the long-standing demands of some potential Nepali businessmen willing to invest abroad. The government is attempting to bring policy level changes in the upcoming budget for fiscal year 2007/08.
Industrial experts and government officials say that well-established domestic service-based industries, like the food industry, have shown strong interest to expand their bases in foreign countries.
"We believe the food industry, particularly instant noodles, established-restaurant chains and cable transporters can reap benefits by going multinational once the ban is lifted," said a high-ranking official.
Finance Minister Dr Ram Sharan Mahat acknowledged the development and said that demand for lifting the ban is high from Nepali business community. "The government is positive on allowing Nepali companies to invest in foreign countries, but it will come with conditions," Dr Mahat said.
The official said the government is thinking on three ways to allow Nepali investors to invest abroad. First is through creating a mutual fund, established by financially sound banks with its majority equity participation. Organized investors, including individuals can participate in the fund by purchasing units of the fund.
Second is by allowing investments of Nepali companies through transfer of technology while the third way is by permitting Nepal-based holding companies to establish their subsidiaries in foreign lands.
eKantipur.com, 21-Jun-2007
Now is the time for established domestic companies to think of going multinational. If things go according to plan, the over four-decade long restriction on Nepali investors to invest abroad will be lifted within a month, paving the way for Nepali entrepreneurs to go multinational.
According to an official at the Finance Ministry, the government is in the final stages of amending the Ban on Nepali Investment in Foreign Countries 2021 Act, as per the long-standing demands of some potential Nepali businessmen willing to invest abroad. The government is attempting to bring policy level changes in the upcoming budget for fiscal year 2007/08.
Industrial experts and government officials say that well-established domestic service-based industries, like the food industry, have shown strong interest to expand their bases in foreign countries.
"We believe the food industry, particularly instant noodles, established-restaurant chains and cable transporters can reap benefits by going multinational once the ban is lifted," said a high-ranking official.
Finance Minister Dr Ram Sharan Mahat acknowledged the development and said that demand for lifting the ban is high from Nepali business community. "The government is positive on allowing Nepali companies to invest in foreign countries, but it will come with conditions," Dr Mahat said.
The official said the government is thinking on three ways to allow Nepali investors to invest abroad. First is through creating a mutual fund, established by financially sound banks with its majority equity participation. Organized investors, including individuals can participate in the fund by purchasing units of the fund.
Second is by allowing investments of Nepali companies through transfer of technology while the third way is by permitting Nepal-based holding companies to establish their subsidiaries in foreign lands.
Govt approves SEZ Act
Govt approves SEZ Act
eKantipur.com, 20-Jun-2007
BY MILAN MANI SHARMA
After years of debate, the government has finally endorsed the Special Economic Zone (SEZ) Act, incorporating better tax incentives and flexible labor provisions for entrepreneurs in the zone.
The Act would soon be forwarded to the House of Representatives for enactment, said acting Industry Secretary Purushottam Ojha.
Referring to provisions of the Act, Ojha told the Post that it upholds three broader principles: incentives to industries, one-spot service and labor flexibility.
The Act treats SEZ as a land where other domestic laws related to labor and industries would not be applicable. It has mooted an autonomous SEZ Authority to oversee its operations.
The Act, however, is still weak on labor related provisions, said officials involved in the formulation of Act, adding that provisions to tighten 'labor indiscipline' proposed initially has been diluted in the approved Act.
Nevertheless, while allowing workers to unite and practice collective bargaining, it prohibits workers from undertaking activities that affect production and normal operations of industries.
The Act allows entrepreneurs to hire workers on contract basis. “Terms of recruitment, facilities and lay off would be governed by the agreement the worker and management would sign while accepting the job.”
Initially, officials had pushed for 'hire and fire' provision as demanded by entrepreneurs.
The Act says that facilities for workers in the SEZ should be better than what workers receive outside of the zone. “SEZ Authority will see that workers pay scale, medical and insurance facilities are better than others,” reads the Act.
In order to lure investors in SEZ, the government has decided to provide them with facilities such as duty-free import of raw materials, exemption of value added tax (VAT) and free them from excise duty and other local taxes.
“The industries in SEZ will be provided with income tax holiday for five years,” says the Act. After five years also, they would be provided with 50 percent discount on income tax.
In order to ensure investment guarantee, the Act says industries already into operation would continue to enjoy all the facilities, even if later amendments changed the structure and extent of facilities.
Going by the Act, only export-oriented industries can be set up in SEZ. Nevertheless the government has allowed them to make domestic sales not exceeding 15 percent of their transactions.
SEZ Authority, to be led by an independent expert, would initially lease the land in SEZ for 30 years. Also, 50 percent, 40 percent and 25 percent discounts will be provided on lease rent for the first three years of investment. After 30 years, lease agreement can be renewed in every 5 years.
The Act has asked SEZ Authority to provide one-spot services so that foreign and domestic investors would not have to take the trouble of approaching different government offices.
The vision of the Act is to provide services like visa, visa renewal, logistics and other facilities through a special office of SEZ Authority.
eKantipur.com, 20-Jun-2007
BY MILAN MANI SHARMA
After years of debate, the government has finally endorsed the Special Economic Zone (SEZ) Act, incorporating better tax incentives and flexible labor provisions for entrepreneurs in the zone.
The Act would soon be forwarded to the House of Representatives for enactment, said acting Industry Secretary Purushottam Ojha.
Referring to provisions of the Act, Ojha told the Post that it upholds three broader principles: incentives to industries, one-spot service and labor flexibility.
The Act treats SEZ as a land where other domestic laws related to labor and industries would not be applicable. It has mooted an autonomous SEZ Authority to oversee its operations.
The Act, however, is still weak on labor related provisions, said officials involved in the formulation of Act, adding that provisions to tighten 'labor indiscipline' proposed initially has been diluted in the approved Act.
Nevertheless, while allowing workers to unite and practice collective bargaining, it prohibits workers from undertaking activities that affect production and normal operations of industries.
The Act allows entrepreneurs to hire workers on contract basis. “Terms of recruitment, facilities and lay off would be governed by the agreement the worker and management would sign while accepting the job.”
Initially, officials had pushed for 'hire and fire' provision as demanded by entrepreneurs.
The Act says that facilities for workers in the SEZ should be better than what workers receive outside of the zone. “SEZ Authority will see that workers pay scale, medical and insurance facilities are better than others,” reads the Act.
In order to lure investors in SEZ, the government has decided to provide them with facilities such as duty-free import of raw materials, exemption of value added tax (VAT) and free them from excise duty and other local taxes.
“The industries in SEZ will be provided with income tax holiday for five years,” says the Act. After five years also, they would be provided with 50 percent discount on income tax.
In order to ensure investment guarantee, the Act says industries already into operation would continue to enjoy all the facilities, even if later amendments changed the structure and extent of facilities.
Going by the Act, only export-oriented industries can be set up in SEZ. Nevertheless the government has allowed them to make domestic sales not exceeding 15 percent of their transactions.
SEZ Authority, to be led by an independent expert, would initially lease the land in SEZ for 30 years. Also, 50 percent, 40 percent and 25 percent discounts will be provided on lease rent for the first three years of investment. After 30 years, lease agreement can be renewed in every 5 years.
The Act has asked SEZ Authority to provide one-spot services so that foreign and domestic investors would not have to take the trouble of approaching different government offices.
The vision of the Act is to provide services like visa, visa renewal, logistics and other facilities through a special office of SEZ Authority.
Pashmina suffers identity crisis after years of trade
Pashmina suffers identity crisis after years of trade
eKantipur.com, 18-Jun-2007
POST REPORT
In a major blow, key pashmina importing countries, after accepting the product for years, have suddenly restricted its import demanding definition of the product.
Japan has barred import of pashmina items from Nepal from last week, saying that the products lack specific definition on content, texture and usage.
“As a result, the export of the product has come to a grinding halt from the last five days,” said Durga Bikram Thapa, general secretary of Nepal Pashmina Industries Association.
Likewise, Italy and Spain -- key markets of Nepali pashmina items in Europe -- have also warned of imposing ban on its import unless the manufacturers define the product.
“Both the countries have clearly said they will ban pashmina import from 2008 if Nepal failed to define it,” Thapa said.
Given the trend, exporters said the product, on which Nepal takes pride of enjoying a special advantage in the international market, could face similar problem in other European countries as well. Japan is the sixth largest importer of Nepali pashmina. Italy is also the third largest buyer among European countries.
The problem has added woes to the industry -- the third largest export industry of the country -- already suffering from a constant drop in exports over the years.
The problem emerged mainly because exporters from China, India and even Nepal have been exporting the items with widely varying quality and texture as 'pashmina' items, said Thapa.
It has come suddenly, but it is not unexpected, manufacturers said. Even though the manufacturers ever took pride over pashmina items carving a niche market, they never took serious initiatives to define and brand the items.
The product had faced hitch in past while seeking facility of Generalized System of Preference (GSP) in the European market.
Likewise, the industry had failed to secure its markets when Indian and other manufacturers marketed similar items under the name of pashmina.
So far, India's definition of Cashmere was widely accepted for the trade of pashmina and importers take the Nepali items as variation of the same category. As a result, the manufacturers and exporters, barring a few, never worked seriously to define and label the product.
“Now time has come for us to act urgently,” said Thapa Monday, seeking government's support in defining and branding the Nepali pashmina.
At an interaction program on “Export Sector Problems and Challenges”, he even suggested the carpet exporters to brand Nepali hand knotted woolen carpet.
Addressing the business community, acting Commerce Secretary Purushottam Ojha said that Ministry of Industry, Commerce and Supplies has presently assigned Department of Cottage and Small Industries to work on branding Nepali export items.
Businesspersons earlier sought the government to formulate a separate export policy to deal with the problems facing the sector. They even asked the government to contribute in export promotion, among others.
eKantipur.com, 18-Jun-2007
POST REPORT
In a major blow, key pashmina importing countries, after accepting the product for years, have suddenly restricted its import demanding definition of the product.
Japan has barred import of pashmina items from Nepal from last week, saying that the products lack specific definition on content, texture and usage.
“As a result, the export of the product has come to a grinding halt from the last five days,” said Durga Bikram Thapa, general secretary of Nepal Pashmina Industries Association.
Likewise, Italy and Spain -- key markets of Nepali pashmina items in Europe -- have also warned of imposing ban on its import unless the manufacturers define the product.
“Both the countries have clearly said they will ban pashmina import from 2008 if Nepal failed to define it,” Thapa said.
Given the trend, exporters said the product, on which Nepal takes pride of enjoying a special advantage in the international market, could face similar problem in other European countries as well. Japan is the sixth largest importer of Nepali pashmina. Italy is also the third largest buyer among European countries.
The problem has added woes to the industry -- the third largest export industry of the country -- already suffering from a constant drop in exports over the years.
The problem emerged mainly because exporters from China, India and even Nepal have been exporting the items with widely varying quality and texture as 'pashmina' items, said Thapa.
It has come suddenly, but it is not unexpected, manufacturers said. Even though the manufacturers ever took pride over pashmina items carving a niche market, they never took serious initiatives to define and brand the items.
The product had faced hitch in past while seeking facility of Generalized System of Preference (GSP) in the European market.
Likewise, the industry had failed to secure its markets when Indian and other manufacturers marketed similar items under the name of pashmina.
So far, India's definition of Cashmere was widely accepted for the trade of pashmina and importers take the Nepali items as variation of the same category. As a result, the manufacturers and exporters, barring a few, never worked seriously to define and label the product.
“Now time has come for us to act urgently,” said Thapa Monday, seeking government's support in defining and branding the Nepali pashmina.
At an interaction program on “Export Sector Problems and Challenges”, he even suggested the carpet exporters to brand Nepali hand knotted woolen carpet.
Addressing the business community, acting Commerce Secretary Purushottam Ojha said that Ministry of Industry, Commerce and Supplies has presently assigned Department of Cottage and Small Industries to work on branding Nepali export items.
Businesspersons earlier sought the government to formulate a separate export policy to deal with the problems facing the sector. They even asked the government to contribute in export promotion, among others.
Manakamana Cable car: country's pride
Manakamana Cable car: country's pride
eKantipur.com, 17-Jun-2007
In a mountainous country like Nepal, where a large chunk of people is yet to be linked to road network, Manakamana Cable Car has demonstrated how establishment of a cable transport link can facelift economy and social wellbeing of a community.
Over the period of about eight years, the Cable Car has not only facilitated travelers and increased flow of people to Manakamana - of the most famous the pilgrimage sites, it has also created market, enhanced trade and enabled local people secure good income returns. Most importantly, it has demonstrated cable cars can be an effective transportation alternative in the country, where difficult terrain stands a major impediment to extending road transportations.
All the success stories Manakamana Cable Car boasts today, however, have emerged from a meager start, an ambitious plan and a vision of its promoter. Manakamana Darshan Private Limited (MDPL), the operator of cable car was established in 1998 with an objective to provide clean, safe and convenient means of transportation for the pilgrims and visitors wanting to go to Manakamana. The total investment of the project was Rs 500 million.
What inspired the promoters to venture into such an expensive project? Manakamana was already one of the most visited pilgrimage sites. Owing to distance and difficult trail, many others who wished to visit the place were unable to visit the hilltop holy temple due to a difficult four-hour trek. So, the scope of business was already there, says its officials.
"When people had no alternative than to walk, 50,000 visitors used to visit the place per year," said Manoj Manandhar, sales and marketing manager of Manakamana Darshan.
With the start of the service, promoters knew they could easily raise the number of visitors by at least two-fold and soon they realized they were not wrong. Today, more than 400,000 visitors travel to Manakamana on cable car every year.
The service not only shortened the journey to the religious hot spot, but also generated ample of self-employment and business opportunities for people residing around, giving a complete facelift to the local economy.
Due to influx of huge number of people, a considerable number of restaurants, souvenir shops and resorts have come into operation in the place, which in turn has provided employment to many locals and increased their income level.
According to the company, around 1,200 people visit Manakamana via the cable car every day. "Even if each of these people spends Rs 50, the business transaction in the local economy would reach Rs 600,000 per day, which is a considerable amount," said Manandhar. Besides, the local farm produces, especially oranges, which earlier used to be wasted, now are sold at better prices, generating handsome returns to farmers. And, the locals who were required to walk up or down during emergencies now have access to advanced mode of transportation. This has increased their access to urban areas.
Statistics of the company shows that the cable car ferried a total of 2.935 million people to Manakamana till the end of last fiscal year. Of that, 446,102 traveled in the year 2005/06 alone.
The company has so far generated revenue of Rs 737.4 million, of which Rs 705.4 million was generated from the operation of the cable car, one million from cargo service, Rs 6.3 million from parking facilities, Rs 4.14 million from sales of souvenir and Rs 20.5 million from restaurant business.
"With the restoration of peace, we believe more people will use the cable car," Manandhar said. The cable car company has also made numerous endeavors to establish itself as a responsible to corporate house accountable to the surrounding communities in operates in.
"To meet that end, we are giving huge discounts on cable car fares to locals of Manakamana VDC and Darhechowk VDC," Manandhar said. As per the agreement, people residing in those two VDCs do not have to pay more than Rs 65 to travel on the cable car.
The company also gives grants of Rs 500,000 to Manakamana VDC and Rs 250,000 to Darhechowk VDC every year. Moreover, it has made sure that 90 percent of the total 110 staffs are locals.
"Besides, we have also teamed up with locals and Manakamana Development Committee to promote historical sites such as Bakreshwor Mahadev and Lakhan Thapa Cave, located in the vicinity of Manakamana temple." The company feels that it would be able to give more to the local communities, if locals there take more concrete initiatives to develop Manakamana as a tourist spot.
"Currently, most of the visitors are pilgrims, who visit the place for short period of time, i.e. couple of hours. But, if we can develop it as a tourist spot, more people would come to the place to spend their vacation. If their length of stay increases, their spending would also increase. This will ultimately open new avenues for locals planning to do business and further keep the local economy robust," Manandhar said.
eKantipur.com, 17-Jun-2007
In a mountainous country like Nepal, where a large chunk of people is yet to be linked to road network, Manakamana Cable Car has demonstrated how establishment of a cable transport link can facelift economy and social wellbeing of a community.
Over the period of about eight years, the Cable Car has not only facilitated travelers and increased flow of people to Manakamana - of the most famous the pilgrimage sites, it has also created market, enhanced trade and enabled local people secure good income returns. Most importantly, it has demonstrated cable cars can be an effective transportation alternative in the country, where difficult terrain stands a major impediment to extending road transportations.
All the success stories Manakamana Cable Car boasts today, however, have emerged from a meager start, an ambitious plan and a vision of its promoter. Manakamana Darshan Private Limited (MDPL), the operator of cable car was established in 1998 with an objective to provide clean, safe and convenient means of transportation for the pilgrims and visitors wanting to go to Manakamana. The total investment of the project was Rs 500 million.
What inspired the promoters to venture into such an expensive project? Manakamana was already one of the most visited pilgrimage sites. Owing to distance and difficult trail, many others who wished to visit the place were unable to visit the hilltop holy temple due to a difficult four-hour trek. So, the scope of business was already there, says its officials.
"When people had no alternative than to walk, 50,000 visitors used to visit the place per year," said Manoj Manandhar, sales and marketing manager of Manakamana Darshan.
With the start of the service, promoters knew they could easily raise the number of visitors by at least two-fold and soon they realized they were not wrong. Today, more than 400,000 visitors travel to Manakamana on cable car every year.
The service not only shortened the journey to the religious hot spot, but also generated ample of self-employment and business opportunities for people residing around, giving a complete facelift to the local economy.
Due to influx of huge number of people, a considerable number of restaurants, souvenir shops and resorts have come into operation in the place, which in turn has provided employment to many locals and increased their income level.
According to the company, around 1,200 people visit Manakamana via the cable car every day. "Even if each of these people spends Rs 50, the business transaction in the local economy would reach Rs 600,000 per day, which is a considerable amount," said Manandhar. Besides, the local farm produces, especially oranges, which earlier used to be wasted, now are sold at better prices, generating handsome returns to farmers. And, the locals who were required to walk up or down during emergencies now have access to advanced mode of transportation. This has increased their access to urban areas.
Statistics of the company shows that the cable car ferried a total of 2.935 million people to Manakamana till the end of last fiscal year. Of that, 446,102 traveled in the year 2005/06 alone.
The company has so far generated revenue of Rs 737.4 million, of which Rs 705.4 million was generated from the operation of the cable car, one million from cargo service, Rs 6.3 million from parking facilities, Rs 4.14 million from sales of souvenir and Rs 20.5 million from restaurant business.
"With the restoration of peace, we believe more people will use the cable car," Manandhar said. The cable car company has also made numerous endeavors to establish itself as a responsible to corporate house accountable to the surrounding communities in operates in.
"To meet that end, we are giving huge discounts on cable car fares to locals of Manakamana VDC and Darhechowk VDC," Manandhar said. As per the agreement, people residing in those two VDCs do not have to pay more than Rs 65 to travel on the cable car.
The company also gives grants of Rs 500,000 to Manakamana VDC and Rs 250,000 to Darhechowk VDC every year. Moreover, it has made sure that 90 percent of the total 110 staffs are locals.
"Besides, we have also teamed up with locals and Manakamana Development Committee to promote historical sites such as Bakreshwor Mahadev and Lakhan Thapa Cave, located in the vicinity of Manakamana temple." The company feels that it would be able to give more to the local communities, if locals there take more concrete initiatives to develop Manakamana as a tourist spot.
"Currently, most of the visitors are pilgrims, who visit the place for short period of time, i.e. couple of hours. But, if we can develop it as a tourist spot, more people would come to the place to spend their vacation. If their length of stay increases, their spending would also increase. This will ultimately open new avenues for locals planning to do business and further keep the local economy robust," Manandhar said.
Sunday, June 17, 2007
Roundup of Economic & Business News (Jun 9 - Jun 16)
June 9
Nepal Federation of Indigenous Nationalities (NEFIN) calls off banda (eKantipur.com)
Stock brokers: Making hay while sun shines (eKantipur.com)
NEPSE posts impressive growth (eKantipur.com)
Hetauda Cement Factory (HCF) resumed production (eKantipur.com)
Inland Revenue Office (IRO) to miss revenue target (eKantipur.com)
June 10
Interview - Jhapat Vohra, Chairman&MD, Malika Development Bank (eKantipur.com)
NIBL opens 16th branch, DCBL opens 2nd branch, Kumari Bank opens 8th branch
Trade deficit continuous to widen: NRB (Nepalbiznews.com)
Labour MoU with UAE to be signed in July (Nepalnews.com)
June 11
Notification delay stalls camouflage cloth import (eKantipur.com)
JTMM-Goit seizes 435 bighas of land in Saptari (Nepalnews.com)
June 12
GDP per capita up 8.8pc (eKantipur.com)
NAC cancels engine overhaul tender (eKantipur.com)
Nepal pushes for trade preference in China (eKantipur.com)
Another industry packs up (eKantipur.com)
Paradise-II colony under development, IME completes 5 years (eKantipur.com)
Strike by landless people partially affects life (Nepalbiznews.com)
Remittance growth plummets (Nepalnews.com)
June 13
‘Company Act to be revised soon’ (eKantipur.com)
Airfares on Ktm-Delhi route up (eKantipur.com)
Govt appoints Poverty Alleviation Fund (PAF) board members (eKantipur.com)
June 14
ADB positive on Melamchi, Asks govt to suggest options (eKantipur.com)
15m euros EU aid for renewable energy (eKantipur.com)
Stock market plummets (eKantipur.com)
IMF to disburse US$ 16m under PRGF (eKantipur.com)
June 15
Locals encircle Marsyangdi hydro (eKantipur.com)
National park revenues dwindle (eKantipur.com)
Unregistered drugs continue to flood market (eKantipur.com)
June 16
NEA's unpaid account rises to Rs 780 million (eKantipur.com)
Nepse scales to 15.89 points (Nepalbiznews.com)
(eKantipur.com)
Nepal Federation of Indigenous Nationalities (NEFIN) calls off banda (eKantipur.com)
Stock brokers: Making hay while sun shines (eKantipur.com)
NEPSE posts impressive growth (eKantipur.com)
Hetauda Cement Factory (HCF) resumed production (eKantipur.com)
Inland Revenue Office (IRO) to miss revenue target (eKantipur.com)
June 10
Interview - Jhapat Vohra, Chairman&MD, Malika Development Bank (eKantipur.com)
NIBL opens 16th branch, DCBL opens 2nd branch, Kumari Bank opens 8th branch
Trade deficit continuous to widen: NRB (Nepalbiznews.com)
Labour MoU with UAE to be signed in July (Nepalnews.com)
June 11
Notification delay stalls camouflage cloth import (eKantipur.com)
JTMM-Goit seizes 435 bighas of land in Saptari (Nepalnews.com)
June 12
GDP per capita up 8.8pc (eKantipur.com)
NAC cancels engine overhaul tender (eKantipur.com)
Nepal pushes for trade preference in China (eKantipur.com)
Another industry packs up (eKantipur.com)
Paradise-II colony under development, IME completes 5 years (eKantipur.com)
Strike by landless people partially affects life (Nepalbiznews.com)
Remittance growth plummets (Nepalnews.com)
June 13
‘Company Act to be revised soon’ (eKantipur.com)
Airfares on Ktm-Delhi route up (eKantipur.com)
Govt appoints Poverty Alleviation Fund (PAF) board members (eKantipur.com)
June 14
ADB positive on Melamchi, Asks govt to suggest options (eKantipur.com)
15m euros EU aid for renewable energy (eKantipur.com)
Stock market plummets (eKantipur.com)
IMF to disburse US$ 16m under PRGF (eKantipur.com)
June 15
Locals encircle Marsyangdi hydro (eKantipur.com)
National park revenues dwindle (eKantipur.com)
Unregistered drugs continue to flood market (eKantipur.com)
June 16
NEA's unpaid account rises to Rs 780 million (eKantipur.com)
Nepse scales to 15.89 points (Nepalbiznews.com)
(eKantipur.com)
NEA's unpaid account rises to Rs 780 million
NEA's unpaid account rises to Rs 780 million
eKantipur.com, 16-Jun-2007
Eastern regional office of Nepal Electricity Authority (NEA) has over Rs 780 million to collect from its clients. Of the total dues, it has accounted over Rs 40 million as bad debt, as those belong to clients who have refused to pay and have been blacklisted.
Defaulters of NEA's book of accounts include municipalities of the region, village development committees, government offices, industries, trading houses and household clients.
According to Tanka Prasad Shrestha, assistant director of NEA, the bulkiest unsettled account stands for electricity consumed by streetlights in municipalities and VDCs.
“Municipalities of 13 districts of the eastern region alone have Rs 288.61 million to pay to the NEA,” Shrestha told the Post.
Officials at the NEA regional office said that arrears of local bodies have shot up mainly because they have not been clearing bills fearing it would impact their budget. In fact, they have repeatedly refused to verify the volume of electricity consumed by them.
“Municipality officials do not respond to our request to conduct verification of bills generated from street lights,” said Shrestha, adding that lack of formal ownership of those bills by the municipalities have affected NEA in its endeavor to collect the bill amount.
Under the existing system, local bodies need to settle bills of street lamps. In case they cannot do so, they have to verify the bills, certifying that those were generated by street lamps, to pave way for the NEA to approach the Ministry of Local Development for payment
In latter mode of payment, the Ministry deducts the payment amount from the budget allocated to local bodies. As that reduces the budget the local bodies would receive, municipality officials have been avoiding verification of NEA bills.
The system of verification is followed because most of the street lamps do not have meters.
Very recently, Udaypur and Ilam municipalities have agreed for the verification, said Shrestha. According to NEA records, Ilam has unsettled bills worth Rs 3.63 million and Udaypur has dues totaling to Rs 815,000. The largest defaulter of NEA bills in the region is Biratnagar sub-metropolis. It owes Rs 68.39 to NEA. Rajbiraj has unpaid due of Rs 42.12 million, Itahari - Rs 48.74 million, Lahan - Rs 50.37 million and Dharan - Rs 24.68 million.
Likewise, Siraha has to pay Rs 14.72 million, Duhabi - Rs 11.66 million, Bhadrapur - Rs 17.25 million, Damak - Rs 4.01 million and Dhankuta - Rs 2.17 million.
eKantipur.com, 16-Jun-2007
Eastern regional office of Nepal Electricity Authority (NEA) has over Rs 780 million to collect from its clients. Of the total dues, it has accounted over Rs 40 million as bad debt, as those belong to clients who have refused to pay and have been blacklisted.
Defaulters of NEA's book of accounts include municipalities of the region, village development committees, government offices, industries, trading houses and household clients.
According to Tanka Prasad Shrestha, assistant director of NEA, the bulkiest unsettled account stands for electricity consumed by streetlights in municipalities and VDCs.
“Municipalities of 13 districts of the eastern region alone have Rs 288.61 million to pay to the NEA,” Shrestha told the Post.
Officials at the NEA regional office said that arrears of local bodies have shot up mainly because they have not been clearing bills fearing it would impact their budget. In fact, they have repeatedly refused to verify the volume of electricity consumed by them.
“Municipality officials do not respond to our request to conduct verification of bills generated from street lights,” said Shrestha, adding that lack of formal ownership of those bills by the municipalities have affected NEA in its endeavor to collect the bill amount.
Under the existing system, local bodies need to settle bills of street lamps. In case they cannot do so, they have to verify the bills, certifying that those were generated by street lamps, to pave way for the NEA to approach the Ministry of Local Development for payment
In latter mode of payment, the Ministry deducts the payment amount from the budget allocated to local bodies. As that reduces the budget the local bodies would receive, municipality officials have been avoiding verification of NEA bills.
The system of verification is followed because most of the street lamps do not have meters.
Very recently, Udaypur and Ilam municipalities have agreed for the verification, said Shrestha. According to NEA records, Ilam has unsettled bills worth Rs 3.63 million and Udaypur has dues totaling to Rs 815,000. The largest defaulter of NEA bills in the region is Biratnagar sub-metropolis. It owes Rs 68.39 to NEA. Rajbiraj has unpaid due of Rs 42.12 million, Itahari - Rs 48.74 million, Lahan - Rs 50.37 million and Dharan - Rs 24.68 million.
Likewise, Siraha has to pay Rs 14.72 million, Duhabi - Rs 11.66 million, Bhadrapur - Rs 17.25 million, Damak - Rs 4.01 million and Dhankuta - Rs 2.17 million.
Saturday, June 16, 2007
National park revenues dwindle
National park revenues dwindle
eKantipur.com, 15-Jun-2007
BY PRABHAKAR GHIMIRE
Government revenue from major jungle safaris of the country declined by 18 percent in the first eight months, despite double-digit growth in the number of incoming tourists.
A data complied by Department of National Parks and Wildlife Conservation has reckoned that three major national parks collected Rs 24.72 million during the period, down from Rs 30.19 millions recorded in the same period last year.
Chitwan National Park (CNP), Bardia National Park (BNP) and Shuklaphanta Wildlife Reserve (SWR) are the three major national parks in the country.
According to the department, CNP collected Rs 22.08 million in the period and the amount was 22 percent less than last year's collection. However, BNP pocketed Rs 1.85 million, which was 26 percent more than the revenue collected in same period last year. Similar is the story for SWR, which collected Rs 0.78 million as revenue during the period and the amount was almost double the collection recorded in the corresponding period last year.
Of the total revenue collection, almost 90 percent was contributed by CNP, which hosts around 80 percent of tourists enjoying jungle safari.
The popular tourist hangouts witnessed upward in tourist arrivals with the number of tourists increasing to 48,310 as compared to 40,789 of same period last year, despite the fall in revenue collection.
Of the total tourists arriving in these areas, large chunk visited CNP, the most popular wildlife safari destination in last eight months with the numbers reaching at 45,856 while 2,298 and 166 tourists visited BNP and SWR respectively.
Concerned officials attribute mismatch between tourist arrivals and revenue to irregularity in collection of revenues from revenues heads, which are not directly related to tourist arrivals.
“Some heads of revenue have no relation with tourist arrivals," said Shiva Raj Bhatta, ex-warden of CNP and BNP, adding, “Some seasonal revenues vary from month to month and recovery of outstandings of previous years may have affected revenue amount which do not have co-relation with the tourist arrivals.”
Moreover, some of the tourists who pay entry fees to parks prefer visiting community forests to the parks.
The community forests which are emerging as alternative to the parks are also contributing to reduction of park revenue, say park officials.
Tourists with travel package or Fit Individual Travelers (FIT) visit the destinations for wildlife safari activities that include elephant ride, canoe ride, jungle driving, jungle walk, bird watching among others.
Over a decade long conflict had marred tourist arrivals and subsequent revenue collection in those areas.
eKantipur.com, 15-Jun-2007
BY PRABHAKAR GHIMIRE
Government revenue from major jungle safaris of the country declined by 18 percent in the first eight months, despite double-digit growth in the number of incoming tourists.
A data complied by Department of National Parks and Wildlife Conservation has reckoned that three major national parks collected Rs 24.72 million during the period, down from Rs 30.19 millions recorded in the same period last year.
Chitwan National Park (CNP), Bardia National Park (BNP) and Shuklaphanta Wildlife Reserve (SWR) are the three major national parks in the country.
According to the department, CNP collected Rs 22.08 million in the period and the amount was 22 percent less than last year's collection. However, BNP pocketed Rs 1.85 million, which was 26 percent more than the revenue collected in same period last year. Similar is the story for SWR, which collected Rs 0.78 million as revenue during the period and the amount was almost double the collection recorded in the corresponding period last year.
Of the total revenue collection, almost 90 percent was contributed by CNP, which hosts around 80 percent of tourists enjoying jungle safari.
The popular tourist hangouts witnessed upward in tourist arrivals with the number of tourists increasing to 48,310 as compared to 40,789 of same period last year, despite the fall in revenue collection.
Of the total tourists arriving in these areas, large chunk visited CNP, the most popular wildlife safari destination in last eight months with the numbers reaching at 45,856 while 2,298 and 166 tourists visited BNP and SWR respectively.
Concerned officials attribute mismatch between tourist arrivals and revenue to irregularity in collection of revenues from revenues heads, which are not directly related to tourist arrivals.
“Some heads of revenue have no relation with tourist arrivals," said Shiva Raj Bhatta, ex-warden of CNP and BNP, adding, “Some seasonal revenues vary from month to month and recovery of outstandings of previous years may have affected revenue amount which do not have co-relation with the tourist arrivals.”
Moreover, some of the tourists who pay entry fees to parks prefer visiting community forests to the parks.
The community forests which are emerging as alternative to the parks are also contributing to reduction of park revenue, say park officials.
Tourists with travel package or Fit Individual Travelers (FIT) visit the destinations for wildlife safari activities that include elephant ride, canoe ride, jungle driving, jungle walk, bird watching among others.
Over a decade long conflict had marred tourist arrivals and subsequent revenue collection in those areas.
Remittance growth plummets
Remittance growth plummets
Nepalnews.com, 12-Jun-2007
The rate of growth of remittance income has plummeted sharply in the first nine months of the current fiscal year.
According to a report by Nepal Rastra Bank (NRB), the remittance earning increased by 8.4 percent in the first nine months of the current fiscal year – compared with 48.9 percent growth it had witnessed during the same period previous fiscal year.
In recent years, remittance earnings have had immense impact on national economy contributing to 20 percent of GDP.
The NRB report states that the country received Rs 72.39 billion as remittance income during this period.
The central bank says that the decline in growth rate is due to absence of substantial increase in the number of workers going for overseas and stagnant wage overseas.
Furthermore, the appreciation of Nepali Rupees compared with US dollar, too, has affected the remittance earnings.
Nepalnews.com, 12-Jun-2007
The rate of growth of remittance income has plummeted sharply in the first nine months of the current fiscal year.
According to a report by Nepal Rastra Bank (NRB), the remittance earning increased by 8.4 percent in the first nine months of the current fiscal year – compared with 48.9 percent growth it had witnessed during the same period previous fiscal year.
In recent years, remittance earnings have had immense impact on national economy contributing to 20 percent of GDP.
The NRB report states that the country received Rs 72.39 billion as remittance income during this period.
The central bank says that the decline in growth rate is due to absence of substantial increase in the number of workers going for overseas and stagnant wage overseas.
Furthermore, the appreciation of Nepali Rupees compared with US dollar, too, has affected the remittance earnings.
Another industry packs up
Another industry packs up
eKantipur.com, 12-Jun-2007
Citing security problem, Crescent Industries -- one of the leading joint venture companies of the district -- has shut down its operations and has decided to shift to Nigeria.
The industry was established four years ago with investment totaling Rs 500 million, including 40 percent shares from Minakshi Group of Industries of Kolkata. It had capacity to employ 500 persons in its corrugated sheet manufacturing plant.
Madan Koirala, managing director of the industry, said that the industry was forced to take the unpleasant step as it could not withstand threats and intimidations coming from various armed groups.
Tiger, an infamous local armed group, and other groups were demanding huge amount of money from the company.
The closure of industry has affected a dozen VDCs of the district. It was generating employment and giving boost to economic activities in those VDCs.
The industry unveiled its plan to shift to Nigeria on Monday after it shipped its plants into Indian territory.
Meanwhile, business community of the eastern region has dubbed the incident as 'unfortunate' and raised serious questions over government's commitment to protect investment coming into the country. “The industry's decision to relocate outside the country is very unfortunate,” Mahesh Kumar Jaju, senior vice president of Morang Trade Association, told the Post.
Suka Dev Mehta, president of Inaruwa Chamber of Commerce and Industry lambasted the local administration and government for not being serious to improve industrial security.
“Entrepreneurs are not seeking industrial security for nothing. The government must be serious toward it,” said Mehta, urging the eight-political parties in the government to work for restoring business environment in the country.
eKantipur.com, 12-Jun-2007
Citing security problem, Crescent Industries -- one of the leading joint venture companies of the district -- has shut down its operations and has decided to shift to Nigeria.
The industry was established four years ago with investment totaling Rs 500 million, including 40 percent shares from Minakshi Group of Industries of Kolkata. It had capacity to employ 500 persons in its corrugated sheet manufacturing plant.
Madan Koirala, managing director of the industry, said that the industry was forced to take the unpleasant step as it could not withstand threats and intimidations coming from various armed groups.
Tiger, an infamous local armed group, and other groups were demanding huge amount of money from the company.
The closure of industry has affected a dozen VDCs of the district. It was generating employment and giving boost to economic activities in those VDCs.
The industry unveiled its plan to shift to Nigeria on Monday after it shipped its plants into Indian territory.
Meanwhile, business community of the eastern region has dubbed the incident as 'unfortunate' and raised serious questions over government's commitment to protect investment coming into the country. “The industry's decision to relocate outside the country is very unfortunate,” Mahesh Kumar Jaju, senior vice president of Morang Trade Association, told the Post.
Suka Dev Mehta, president of Inaruwa Chamber of Commerce and Industry lambasted the local administration and government for not being serious to improve industrial security.
“Entrepreneurs are not seeking industrial security for nothing. The government must be serious toward it,” said Mehta, urging the eight-political parties in the government to work for restoring business environment in the country.
Stock brokers: Making hay while sun shines
Stock brokers: Making hay while sun shines
eKantipur.com, 9-Jun-2007
By KRISHNA REGMI
Stock brokers in Nepal are having a great time: their commission rate is one of the highest in the world and their profits are soaring. On top of that, their profits, in a way, are being protected by regulations that bars entry of new brokers in the ring.
As a result many brokers are raking in vast sums of money in commission. For example, during the last ten months of the current fiscal year, the highest-income generating broker earned on average, Rs 960,000 per month after taxes.
The commissions compiled by the Nepal Stock Exchange (NEPSE) show that the second highest earner made Rs 910,000 per month. The third, fourth, fifth and sixth highest earning brokers made Rs 870,000, Rs 740,000, Rs 630,000, and Rs 615,000 per month respectively.
NEPSE clients complain that the commission rate offered to brokers is too high, something that the NEPSE officials also agree with in private.
The commission rates at the regional stock markets also justify these complains. For instance, the Bombay Stock Exchange, India and Chittagong Stock Exchange, Bangladesh, have imposed upper ceilings of one percent for brokerage commission. However, in Nepal the lower ceiling is one percent and it can go up to 1.5 percent.
Fixed number of brokers for the last 11 years is another issue since it concentrates the incomes from stock commissions within a small group and keeps the interest rates high.
Notwithstanding the expanding size of the market, NEPSE has not added brokers for the last 11 years. At the time of its establishment in 1994, NEPSE had appointed 25 brokers. Two years later, it was expanded to 32. But the number declined later to 23, as some left the service and some were blacklisted by NEPSE.
In the beginning, there were only 60 companies; now 133 companies are listed for trading. Likewise, the market capitalization-- the value of listed shares-- shot up by over 21 times, to 148 billon rupees.
"Due to strong lobbying from the brokers, no concrete efforts were made in the past to allow the entry of new brokers," said a NEPSE official, preferring to remain unnamed.
But Rewat Bahadur Karki, general manager of NEPSE said the stock market has dispatched a letter to the Securities Board of Nepal (SEBON), a regulatory body, asking its permission to appoint 27 more brokers.
"However, there is no response as yet," he said, adding, "As soon as we get a nod, we will increase the number of brokers."
Deepak Raj Kafle, chairman of SEBON said the board is awaiting endorsement of the Brokers and Dealers Regulations that it has forwarded to the government to clear the way for expansion of the number of brokers.
Kafle also said absence of professional brokers was one of the reasons behind the erratic movement of share prices and the high rate of commissions.
Due to absence of competition coupled by weak regulations, the brokers are not rendering quality service. The recently prepared report by NEPSE points out that there is an immense need for brokers to professionalize their services, providing investors with an efficient and quality service. They have not maintained proper offices, and most do not have email addresses or fax machines, said the report.
eKantipur.com, 9-Jun-2007
By KRISHNA REGMI
Stock brokers in Nepal are having a great time: their commission rate is one of the highest in the world and their profits are soaring. On top of that, their profits, in a way, are being protected by regulations that bars entry of new brokers in the ring.
As a result many brokers are raking in vast sums of money in commission. For example, during the last ten months of the current fiscal year, the highest-income generating broker earned on average, Rs 960,000 per month after taxes.
The commissions compiled by the Nepal Stock Exchange (NEPSE) show that the second highest earner made Rs 910,000 per month. The third, fourth, fifth and sixth highest earning brokers made Rs 870,000, Rs 740,000, Rs 630,000, and Rs 615,000 per month respectively.
NEPSE clients complain that the commission rate offered to brokers is too high, something that the NEPSE officials also agree with in private.
The commission rates at the regional stock markets also justify these complains. For instance, the Bombay Stock Exchange, India and Chittagong Stock Exchange, Bangladesh, have imposed upper ceilings of one percent for brokerage commission. However, in Nepal the lower ceiling is one percent and it can go up to 1.5 percent.
Fixed number of brokers for the last 11 years is another issue since it concentrates the incomes from stock commissions within a small group and keeps the interest rates high.
Notwithstanding the expanding size of the market, NEPSE has not added brokers for the last 11 years. At the time of its establishment in 1994, NEPSE had appointed 25 brokers. Two years later, it was expanded to 32. But the number declined later to 23, as some left the service and some were blacklisted by NEPSE.
In the beginning, there were only 60 companies; now 133 companies are listed for trading. Likewise, the market capitalization-- the value of listed shares-- shot up by over 21 times, to 148 billon rupees.
"Due to strong lobbying from the brokers, no concrete efforts were made in the past to allow the entry of new brokers," said a NEPSE official, preferring to remain unnamed.
But Rewat Bahadur Karki, general manager of NEPSE said the stock market has dispatched a letter to the Securities Board of Nepal (SEBON), a regulatory body, asking its permission to appoint 27 more brokers.
"However, there is no response as yet," he said, adding, "As soon as we get a nod, we will increase the number of brokers."
Deepak Raj Kafle, chairman of SEBON said the board is awaiting endorsement of the Brokers and Dealers Regulations that it has forwarded to the government to clear the way for expansion of the number of brokers.
Kafle also said absence of professional brokers was one of the reasons behind the erratic movement of share prices and the high rate of commissions.
Due to absence of competition coupled by weak regulations, the brokers are not rendering quality service. The recently prepared report by NEPSE points out that there is an immense need for brokers to professionalize their services, providing investors with an efficient and quality service. They have not maintained proper offices, and most do not have email addresses or fax machines, said the report.
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