 
 
April / May2001 His Majesty the King inaugurates Nepal Business Expo 2001 His Majesty King Birendra Bir Bikram Shah Dev inaugurated Nepal Business Expo 2001 amid a special function in Kathmandu on April 10, 2001 . Her Majesty Queen Aishwarya Rajya Laxmi Devi Shah was also present on the occasion. Following the inauguration, Their Majesties observed various stalls at the Expo with a keen interest gathered information on different issues related to Nepalese business and economy. Welcoming the reverred guests, on the occasion Pradeep Kumar Shrestha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the regal inauguration of the Expo has inspired and encouraged all the business community. Expressing business community's commitment towards the economic growth of the nation, he added that the government should also be equally committed to provide security for the welfare of the business community. Minister of State of Industry, Commerce and Supplies Krishna Prasad Sitaula said that government's liberal economic policy has enhanced the role of the private sector, as the government has shrunken its role to a facilitator and a regulator. Binod Bahadur Shrestha, Third Vice-President of the FNCCI and Convenor of the Expo said that the fair reflects the current product portfolio of the Nepalese Business. Organized with a theme of "Partnership for Prosperity" as an authorized business expo to mark Industry Commerce Day, the five day exhibition also had agricultural and engineering pavilions. Cultural performance throughout the Expo was another attraction of the fair. The FNCCI, Nepal Chamber of Commerce, Lalitpur Chamber of Commerce and Industry and Bhaktapur Chamber of Commerce and Industry was jointly organized the Expo in association with Nepal Engineers' Association and Agricultural Enterprises Centre. The Expo was co-organized and managed by Everest Exhibitions. Industry-Commerce Day Observed with various programmes Industry-Commerce Day 2001 was observed with various functions and programmes on April 10, 2001. The observation of Industry Commerce Day was initiated by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) since last year. In this connection, Prime Minister Girija Prasad Koirala inaugurated a special function organised to commemorate the Industry-Commerce Day 2001 in Kathmandu on April 10 this year. On the occasion Prime Minister Koirala said that the private sector had a pivotal role to play to promote trade and industry of the country. He assured the businessmen & industrialists of complete support and cooperation. He also conceded that this sector was suffering at present due to voilence in the country "we have not been able to attract enough foreign investment due to internal disorder and this will have serious implications on the national economy", he said. He said that country was passing through a critical phase and urged the FNCCI, the organisers, industrial community as well as the countrymen to assist the government in maintaining peace and security. State Minister for Industry, Commerce and Supplies Krishna Prasad Sitaula said that peace and security was a precondition for the development of trade & industry in the country. He further added that the government was determined to maintain law and order in the nation. Managing Director of Tata Steel a leading Indian company Jamshed J. Irani delivered the keynote address on globalisation in the context of South Asia. Welcoming the participants FNCCI president Pradeep Kumar Shrestha said that the observation of Industry-Commerce Day was to give recognition to the contribution of the industrialists and businessmen to the national economy and to encourage them to work with more devotion for the welfare of the country and its people. On the occasion State Minister Sitaula also gave away commendation letters to Birgunj CCI, Bhaktapur CCI, Mechi CCI and Lekhnath CCI from District and Municipality Chambers of Commerce and Industry, Handicrafts Association of Nepal from Commodity Associations and Nepal-German CCI from Bi-national Chambers of Commerce & Industry, for their distinguished service to business community. He also gave way commendation letters to Nepal Lever Ltd, Surya Tobacco Co. (P) Ltd. and Gorkha Brewary Ltd. from large scale industries and Asian Paints (Nepal) Pvt. Ltd. and Pashupati Paints (Pvt) Ltd. from medium industries for their distinguished performance in various fields. On the Occasion State Minister Sitaula also affixed the cancilation marks on special commemorative cover. FNCCI first Vice-President Ravi Bhakta Shrestha proposed the vote of thanks at the conclusion of the function. FNCCI and the Singapore Federation of CCI sign MoU to boost Economic cooperation Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Singapore Federation of Chambers of Commerce and Industry (SFCCI) signed a memorandum of Understanding (MoU) in Singapore on 21st March 2001. Pradeep Kumar Shrestha, president of FNCCI and N.B. Doshi, vice president (officiating president) of SFCCI signed the MoU on behalf of Nepal and Singapore respectively. The MoU aims at fostering friendship and understanding between the business communities of Singapore and Nepal promoting cooperation in trade, investment, technology, services and other industrial business sectors, between both countries. As per the MoU both sides will exchange information in regard to trade, economic cooperation and services between the two countries; Exchange appropriate materials necessary for securing the aim of the MoU; Recommend jointly necessary measures for promoting close economic cooperation between the two countries to the respective governments; Encourage businessmen to participate in trade fairs/exhibitions held in Singapore and Nepal; Cooperate in organising missions and receiving businessmen and technical experts as mutually agreed upon; recommend measures for the promotion of mutually beneficial bilateral trade, cooperate in organising training, seminars, workshops etc. in the areas mutually agreed upon and conduct other mutually agreed activities for achieving the aim of the MoU. NEPAL'S GDP ROSE TO 6% Nepal's gross domestic product (GDP) rose from less than four percent in 1999 to six percent in 2000 according to the Economic and Social Survey of Asia and the Pacific-2001 released by the United Nations' Economic and Social Commission for Asia and the Pacific on April 3. Bhutan is another South Asian nation to achieve six percent growth rate. India's economy grew by 5.9 percent, Sri Lanka's 5.7 percent, Bangladesh's 5.5 percent and Pakistan's 4.5 percent. In Nepal, agricultural production that comprises more than 40 percent share of total output, rose from 2.7 percent in 1999 to five percent in 2000 due to increase in the supply of fertilisers and favourable weather. The non-agricultural sector grew by 6.6 percent in 2000. Introduction of new hydroelectricity operations led to growth of over 16 percent in the electricity, gas and water-subsector while the growth rate in manufacturing to 12 percent as a result of higher production of garment, processed food, beverages and chemicals. The service sector expanded by nearly six percent in 2000 as the construction sector revived due to higher government spending and farm incomes. Growth in tourism led to an increase in wholesale and retail trade, restaurants and hotels, the report said. The survey said that inflation dropped sharply from more than 11 percent in 1999 to 3.3 percent in 2000. Local food grain prices were stable in 2000 as a result of increased supplies of and low import prices. Non-food prices were generally higher in part owing to a rise in electricity and water charges. The exports rose by nearly 30 percent in 1999 and were projected to increase by 45 percent in 2000. Exports to India expanded by 42 percent in 1999 and 80 percent in 2000, while exports to other countries averaged over 24 percent during the two-year period. The exports of ready-made garments, handicrafts, and paper products witnessed significant increase. The imports that recorded a decline by two percent in 1999 increased by 22 percent in 2000. The imports from India, according to the survey, increased by 27 percent and those form other countries rose by 19 percent. Aid financed imports decreased to less than 10 percent of total imports due to rapid expansion of non-aid related economic activities and services. The trade deficit widened by almost seven percent to just under 15 percent of GDP as the marginal decline in the deficit with India was offset by greater trade deficit with the rest of the world. The net services income was estimated to have declined by 12 percent as air service constraints resulted in lower tourism receipts. According to the survey, the current account surplus of 0.3 percent of GDP in 1999 became a deficit of 1.5 percent of GDP in 2000. The survey said that the official development assistance increased by 15 percent in 2000. Over 90 percent of such assistance was concessional multilateral loans. The government expenditure increased by 13.4 percent to 67.6 billion rupees nearly 18 percent of GDP Debt servicing absorbed about 30 percent of the current outlays, the survey said. The survey said that government revenue rose by 14 percent with 78 percent coming from taxes. The fiscal deficit declined from 5.3 percent in 1999 to 5.1 percent in the following year. There are 25 developing and three developed nations in the Asia pacific region. CHINA INCLUDES NEPAL AS ITS OUT BOUND TOURIST DESTINATION A memorandum of understanding (MoU) on tourism cooperation between His Majesty's Government and the Government of the People's Republic of China was signed amidst a special function in Beijing on April 16, 2001. Omkar Prasad Shrestha, Minister for Culture, Tourism and Civil Aviation and He Guangwei, chairman of the China National Tourism Administration (CNTS) signed the MoU on behalf of their respective governments. Under the MoU, the Chinese Government has agreed to include Nepal in its outbound tourist destinations list. With this, Nepal has become the first country in South Asia to be recognised as such a destination country for Chinese nationals. In order to promote cooperation in tourism, both countries have agreed to open non-commercial and non-profit tourism offices in each other's country. Similarly, measures will be taken by both governments to encourage third country tourists to visit each other's country. TOURIST ARRIVAL ON INCREASE Tourist arrivals to Nepal by air in March 2001 saw a very positive growth compared to that of the same period in 2000, says the Nepal Tourism Board. Total tourist arrivals in the first three months of 2000 was 82,562. This has increased to 95,550 in the same period this year indicating an overall growth of 15.73 percent. In this period, tourist arrivals from third countries have increased by 62.25 percent whereas arrivals from neighboring India showed a growth of 13.49 percent, according to the Board. NEPALI CARPET INDUSTRY BAGS AWARD IN FRANCE Ashoka Carpet Industry has been given the 26th international award for the best trade name new millennium award in Paris, the capital of France. More than 14,000 carpet industries from 115 countries had taken part in the programme. Altogether 150 industries of various countries bagged prizes. The prize was presented by the French Ambassador to Nepal. The Thamel, Kathmandu-based Ashoka Carpet Industry has been exporting carpets to more than 70 countries in Europe, America, Africa and Asia. Nepal's annual export of carpets is worth about nine billion rupees. NEPAL, TIBET OF PR CHINA SIGN MOU WITH AGREE ON TARIFF CUTS Customs officials of Nepal and Tibet autonomous Region of the People's Republic of China have signed a memorandum of understanding (MoU) regarding customs and various issues related to bilateral trade and commerce. The MoU was signed on April 17, 2001 in Kathmandu following a series of bilateral talks between the concerned officials from both sides. Representatives of both sides have agreed to review import and export trade via Tibet and to send Nepali customs delegation on forthcoming trade fair slated in Lhasa in the near future with an objective of studying market and choices of Chinese customers. The main feature of the MoU is the Chinese acceptance to reduce the customs imposed on export goods from Nepal and levying special custom facilities. The export trade was greatly affected following the increase in the duty of import customs by Tibet Nepali businessmen were raising their voice to review the provision. According to a press release issues by the Customs Department, both sides have agreed to meet at Nilagu Customs of Tibet and Tatopani Customs of Nepal in every three months so as to disseminate information regarding the cross border illegal trade. China has ratified the Nepalese proposal to buy its currency transacted in Nepal at existing exchange rate. Likewise, they have agreed to develop physical infrastructures so as to boost up mutual trade. Both parties have agreed to sort out problems of any sort by mutual discussion in the days to come and to meet on Lhasa in 2002. The MoU was signed by Madhav Prasad Ghimire, Deputy Driector General of Customs Department and Jhang Wei, Deputy Director General of Lhasa Customs Department. The seven-member Tibetan delegation was in the Capital for some days, upon the invitation of Nepal and a series of discussions were held between them. PANCHANKANYA STEEL AWARDED THE ISO 9001:2000 The Panchakanya Steel (Pvt) Ltd., Kotehawa, Bhairahwa has been awarded to ISO 9001:2000 for its cold-twisted, ribbed (CRT) deformed steel bars. Panchakanya is Nepal's largest manufacturer of steel rods and produces about 35,000 metric tons each year. The group's steel now has about 20 percent of the market share, and the bars are also exported to Tibet. "We plan to expand exports to neighboring Indian cities also", says Pradeep Kumar Shrestha, managing director of Panchakanya Steel. Nepal's domestic demand for steel is about 160,000 metric tons and has generally grown by about 10 percent every year. Business has gone a little slack in the last two years, due largely to the slowdown in large infrastructure development and the slump in real estate. Shrestha says that roughly 70 percent of steel industries have shut down and Panchakanya is one of the few that added capacity to achieve economy of scale. All the market really needs to pick up speed again are a few development projects using local product. Most foreign-funded infrastructure projects still import steel for construction, which Shrestha hopes will now change because quality steel is available locally. The International Organisation for Standardisation (ISO) certification is approved by Llyod's Register Quality Assurance. Panchakanya's steel was the first company to receive the Nepal Standard Quality Award in the industry, and also the first to receive ISO certification. 
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