Industry-Commerce
Day observed with various programmes
Industry-Commerce Day 2002 was observed amidst various functions
and programmes on April 10, 2002. Prime Minister Sher Bahadur
Deuba inaugurated a special function organised to commemorate
the Industry-Commerce Day 2002 in Kathmandu on April 10 this year.
Addressing the gathering Prime Minister Deuba said that the government
has initiated efforts to maintain commercial and industrial security.
Minister for Industry, Commerce & Supplies Purna Bahadur Khadka
highlighted the need for a dialogue to sort out differences between
the government and the private sector. He asked for active cooperation
for review industrial and commercial policies within a certain
time frame.
Ravi Bhakta Shrestha president of the Federation of Nepalese
Chambers of Commerce & Industry (FNCCI) welcoming the guests noted
that the growing international and national terrorism had increased
business risks, thereby increasing the cost of doing business.
He was of the view that, "without peace and security, it was impossible
to have economic prosperity and development: and in the absence
of economic prosperity, the situation of peace and stability could
further deteriorate.
Earlier at the function the message sent by His Majesty the King
wishing for the success of the Industry-Commerce Day 2002 was
read out.
Binod Bahadur Shrestha, First Vice President of FNCCI, proposing
the vote of thanks urged the government to ensure peace and security
in the country to promote the growth of the industrial and trading
sectors.
Prime Minister Deuba also released a special supplement of FNCCI
Newsletter and FNCCI Directory of Members 2001/2003 on the website
on the occasion of the Industry Commerce Day.
The special supplement was presented by Rajendra Kumar Khetan,
Second Vice President of FNCCI to the Prime Minister.
Prime Minister Deuba presented the letters of appreciation to
the Lalitpur Chamber of Commerce & Industry, the Tanahun CCI,
the Lekhnath CCI, the Ratnanagar CCI and the Central Carpet Industries
Association and the Nepal Britain CCI and Environment Sector Programme
Support (ESPS).
Former Vice President and the former Secretary General of FNCCI
Raj Bahadur Chipalu was also felicitated on the occasion for special
achievements of the Chamber Movement in Nepal.
On the occasion Prime Minister Deuba presented the FNCCI National
Excellence Award 2058 to Surya Tobacco Co. Pvt. Ltd.
He also presented letters of appreciation to Asian Paints (Nepal)
Pvt. Ltd. and Standard Chartered Bank.
HMG recognises
Chaitra 28th as Industry-Commerce Day
The government gave due recognition to Chaitra 28th each year
as the Industry-Commerce Day, which the private sector had been
celebrating since the past three years.
Minister for Industry, Commerce and Supplies Purna Bahadur Khadka
said that a recent Cabinet meeting endorsed the proposal of the
private sector, as well as the ministry.
"The Cabinet recently, as per the recommendations made by the
Federation of Nepalese Chambers of Commerce and Industry (FNCCI)
and the Ministry for Industry Commerce and Supplies has declared
to observe Chaitra 28th as Industry-Commerce Day," said minister
Khadka. He was speaking at a function organised by the FNCCI to
mark the third Industry-Commerce Day on April 10, 2002.
The minister also informed that the Cabinet decided to issue
a stamp to commemorate the Industry-Commerce Day. The FNCCI had
long been demanding with the government to recognise Chaitra 28th
as the national Industry-Commerce Day each year and to issue a
stamp to celebrate the occasion.
Nepal’s economic
growth to decline to 3.5%
Nepal’s economic growth is expected to decline to 3.5 percent
this year from five percent last year, according to Asian Development
Outlook 2002, released by the Asian Development Bank recently.
Growth in the agriculture sector will decline to about three
percent in 2002 from four percent in 2001 due to uneven monsoon
rains, the ADO forecasts. "As manufacturing and tourism continue
to suffer from the insurgency and external conditions, industry
and service sectors are expected to grow at 3.5 percent in 2002
compared to 2.5 percent and 7.3 percent, respectively in 2001."
The services sector is projected to decline sharply to 3.5 percent
this year, but may grow stronger in the following year to 5.5
percent, boosted by a recovery in tourism.
In the absence of any external shocks to the economy, inflation
is likely to be moderate over the next few years, and in 2002
and 2003 is projected at five percent despite the rising nonfood
prices.
The budget deficit, according to the ADB document, is likely
to widen to six percent of the Gross Domestic Product (GDP) in
2002 due to the downturn in the economy, fall in the growth of
domestic revenue and increased spending on security. The budget
deficit has widened to 4.2 percent of GDP in 2001 from 3.3 percent
in 2000 due to higher spending on security together with a salary
increase for the civil service and the implementation of a voluntary
early retirement scheme.
Commenting on the Nepal-India Trade Treaty earlier this year,
the forecast states that the treaty has ended the uncertainty
surrounding Nepal’s exports to India. "However, the new provisions
in the treaty will require Nepal’s industries to become more competitive
to maintain their export growth".
With its forecast of India’s economic growth at six percent this
year, the ADO suggests that a continued good performance of the
immediate southern neighbor’s economy should help Nepal. "India
accounts for two thirds of the Gross Domestic Product of the South
Asian region," noted Richard Vokes, Resident Representative of
the ADB, releasing the ADO.
Nepal will also be subject to a gradual removal of quotas in
the United States as part of the World Trade Organisation’s agreement
on textiles and clothing, the forecast stated.
HMG forms Finance
Commission
His Majesty’s Government has constituted a Finance Commission
to study and look into the tax levied by local bodies and the
revenue to be shared between them and His Majesty’s Government,
to make recommendations on policy matters to be adopted to bring
the tax and accounts system up-to-date and see to the implementation
of recommendations made in a report submitted by the Finance Commission-2057
including the decentralization implementation action plan.
The Finance Commission will include representatives from associations
or federations of the local bodies concerned, it is learnt.
The commission’s task will be to recommend to His Majesty’s Government
ways of making the financial administration and revenue mobilization
by local bodies more dynamic by identifying the overall taxation
powers and revenue sources, besides their powers to levy taxes
and the policy on grants.
The commission constituted under the convenorship of national
planning commission member Dr. Shankar Sharma includes the secretary
at the ministry of local development, the finance secretary or
joint-secretary at the revenue division and representatives from
the Association of District Development Committees Nepal, the
Municipalities Association of Nepal, the National Federation of
Village Development Committees and the Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) as members.
An additional member will be appointed by the commission convenor
from among revenue and accounts expert.
The Chief of the Local Development Ministry’s self Governance
Coordination Division has been designated member-secretary of
the commission.
The commission’s secretariat will operate from the self-governance
division, decentralized action plan coordination unit under the
Ministry of Local Development, it is learnt.
National Fertilizer
Policy Launches
The government has brought into effect a national fertilizer
policy with the objective of making the supply system more effective
and supporting agricultural production.
The policy which has a core objective of increasing agricultural
production through improvement in soil fertility, is believed
to facilitate the availability of fertilizer in keeping with the
farmer’s increasing demand for and interest in fertilizers.
According to information given by the Ministry of Agriculture
and Co-operatives with the objective of highlighting the national
fertilizer policy, the chemical fertilizers supplies system has
improved following private sector participation in this sector
since 1995.
Total consumption of chemical fertilizers in fiscal year 1997/1998
was 108,728 metric tons, and it increased by 44 percent in fiscal
year 1998/99 the consumption of the same in fiscal year 2000/01
was 156,093 metric tons.
The national policy is expected to facilitate effective implementation
of an integrated crops management system promotion programme and
improve the environment through mitigation of the adverse effect
of increased use of chemical fertilizers on the soil.
National
agro research fund set up
His Majesty’s Government has established a National Agriculture
Research and Development Fund with the objective of launching
agro research and development programmes for the overall development
of the agricultural sector.
Minister for Agriculture and Cooperatives Mahesh Acharya said
the main objective of the fund is to launch priority programmes
on full or partial grants that are proposed by the government,
private, non government bodies and the civil society.
The chairman of the Fund Operation Committee is Secretary at
the Ministry of Agriculture and Cooperatives, and the members
are Joint Secretary at the National Planning Commission, Joint
Secretary of the finance Ministry, one woman expert among those
contributing in the development of the agro sector nominated by
the Ministry of Agriculture and Cooperatives, representatives
of The Federation of Nepalese Chambers of Commerce & Industry
(FNCCI) and representative of the Nepal Agriculture Association.
A gazette first class technical officer of the agriculture services
nominated by the Ministry of Agriculture and Cooperatives will
be the member secretary of the fund.
