His Majesty the
King grants audience to FNCCI President
His Majesty King Gyanendra Bir
Bikram Shah Dev granted an audience to Ravi Bhakta Shrestha,
President of the Federation of Nepalese Chambers of Commerce &
Industry (FNCCI) recently. President Shrestha briefed His Majesty
about the current industrial and trade situation, the challenges
facing the country at present and measures to resolve the problems.
The executive committee meeting of the Federation has extended
gratitude to His Majesty for granting audience to its president.
FNCCI-FCCISL Joint
Economic Council formed
The Federation of Nepalese Chambers of Commerce & Industry (FNCCI)
and The Federation of Chambers of Commerce & Industry of Sri Lanka
(FCCISL) as per agreement signed on 19 January 2002 in Kathmandu
to form a Joint Economic Council (JEC) with the aim of promoting
economic cooperation between Nepal and Sri Lanka.
Ravi Bhakta Shrestha, President of FNCCI and Macky Hashim President
of FCCISL signed the agreement on behalf of their respective organisations.
Present on the occasion were Sri Lankan Ambassador to Nepal Pamela
Jayasekera Deen, Joint Secretary at the Ministry of Industry,
Commerce & Supplie Purusotam Ojha, Vice President of the FCCISL,
Suraj Vaidya Ex-Officio Vice President of FNCCI and industrialists
and businessmen of the two countries.
The basic purposes and objectives of the JEC are to identify
and suggest specific measurers for promoting close economic cooperation
between Nepal and Sri Lanka; to identify the industries and services
viable for cooperative ventures between Sri Lanka and Nepal; to
suggest transparent processes and clear cut time bound guidelines
by which such joint ventures and joint initiatives could take
place at a very fast pace; to examine problems being faced by
existing joint ventures and provide the necessary impetus for
speedy solutions and resolution with concerned bodies on either
side; to assist both Governments in the formulation and pronouncement
of guidelines and policies relating to goods and services in terms
of their import and export between the two countries including
matters relating to duty structures, taxation and other related
issues; to exchange information in regard to trade, economic cooperation
and services between the two countries. to encourage businessmen
of either side to participate in Trade Fairs/Exhibitions held
in Sri Lanka and Nepal; to cooperate in organising Missions and
receiving busienssmen and technical experts as mutually agreed
upon; to cooperate in organising training, seminars, workshops,
etc in the areas mutually agreed upon. The JEC is to consist of
12 members, 6 from each side that is FCCISL and FNCCI.
FCCISL President and FNCCI Preident will chair the JEC in Sri
Lanka and Nepal respectively. There will be provision for co-chairperson
from each side. Representatives of Diplomatic Mission of two countries
and high officials from respective Ministries of both countries,
are to be included; in the JEC. Both FCCISL and FNCCI will establish
a desk in their respective organisations to handle the matters
concerning the JEC and other matters of mutual cooperation and
the JEC will work according to the working procedures established
by itself.
Padma Jyoti becomes
the president of SAARC Chamber
Mr. Padam Jyoti, nominated by FNCCI, has been unanimously elected
the President of SAARC Chamber of Commerce & Industry, (SCCI),
the recognised regional apex organisation of business in the 8th
General Assembly Meeting held in Kathmandu on 17 January 2002.
Likewise, from this General Assembly elected Macky Hashim from
the Federation of Chambers of Commerce & Industry of Sri Lanka
(FCCISL) assumed the senior Vice presidentship of SCCI. Likewise
Yessuf Abdullah Harun from Federation of Bangladesh Chambers of
Commerce & Industry (FBCCI), Bap Kinga from Bhutan Chamber of
Commerce & Industry (BCCI), A.S. Kasliwal from Federation of Indian
Chambers of Commerce & Industry (FICCI), Hulas Chand Golchha from
Federation of Nepalese Chambers of Commerce & Industry (FNCCI)
and Sheikh Jameel Magoon from Federation of Pakistan Chambers
of Commerce & Industry (FPCCI) have become the Vice Presidents
for 2002-2003.
The General Assembly meeting also passed the auditor’s report,
budget and programmes of the SCCI.
SAARC Chamber of Commerce & Industry established in 1994 encompasses
National Federations of all seven SAARC countries: Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. FNCCI
is a founder member of SCCI.
Newly elected President Mr. Jyoti started his involvement with
SCCI right from its inception. From February 2001 he has been
serving as Senior Vice President.
Mr. Jyoti, a well known industrialist and intellectual of Nepal,
has had a distinguished service in FNCCI and SCCI. He was President
of FNCCI in 1995-1997 and distinguished member of FNCCI in 1999-2001.
before assuming Presidency of FNCCI he served FNCCI in various
capacities like: First Vice President (1993-1995), Ex-officio
Vice President and Chairman, Employers’ Council (1991-1993) and
Chairperson of the Various Committees since 1985.
SAARC Chamber
makes Presentation on "Government Industry Partnership to
SAARC Council of Ministers
On occasion of the 11th SAARC Summit, the SAARC Chamber of Commerce
and Industry (SCCI) made a presentation on Janury 2, 2002 at the
meeting of the Council of Ministers on "Government-Industry Partnership".
Padma Jyoti, incoming President of SAARC CCI made the presentation
on "Partnership Affirmation of SAARC CCI on behalf of all seven
Member Federations of SCCI.
The Partnership Affirmation of SAARC chamber expresses concern
at the serious developmental challenges that poverty imposes in
the region. It affirms support and commitment to the Governments
on measures taken for poverty alleviation and economic growth.
It proposes a partnership between Government and Industry to identify
areas to work in, engage in strategies aimed at employment creation,
productivity enhancement, skill upgradation, health, education
and welfare, and investing for the future of childeren. It offers
services for injecting effectiveness of entrepreurship and efficiency
of management into economic activities for raising the standards
of living. It urges the business community of SAARC to join hands
in this regional effort and forge a strategic alliance with Government.
FNCCI, SCCI honour
Foreign Ministers of SAARC Countries
The Federation of Nepalese Chambers of Commerce and Industry
(FNCCI) and the SAARC Chamber of Commerce and Industry jointly
hosted a dinner in honour of the foreign ministers of the South
Asian As sociation for region Cooperation (SAARC) in Kathmandu
on January 3, 2002.
Welcoming the guests on the occasion, FNCCI president Ravi Bhakta
Shrestha said that mutual cooperation should be enhanced for poverty
alleviation, economic prosperity and raising the living standard
of the people of the region.
Board
of investment formed
His Majesty’s Government has recently
formed a high level Board of Investment (BoI) under the chairmanship
of Prime Minister. The Board has been formed with a view to promote
investment and make it more transparent and reliable.
The Minister for Industries Commerce
and Supply is the vice-chairman of the BoI.
According to the Ministry of Industries
Commerce and Supply other members of the BoI are Minister for
Finance, Minister for Water Resources, Minister for Culture, Tourism
and Civil Aviation, Vice Chairman of the National Planning Commission
(NPC), Chief Secretary, Governor Nepal Rastra Bank and the President
of the Federation of Nepalese Chambers of Commerce and Industry
(FNCCI).
At the recommendations of the Vice-chairman
of the BoI, there is a provision of nominating three persons for
the period of two years, by the Prime Minister.
Secretary at the Ministry of Industry
Commerce and Supply is the Member secretary of the BoI.
If required the Board can invite
other ministers, officials, experts and renowned persons to it’s
meeting other. objectives of the Board are to formulate new policies
by reviewing the existing investment policy, to maintain coordination
between various government and non government organizations for
the promotion of investment, to identify the areas of priority
sector for investment promotion, to monitor the activities related
to the investment promotion and to give directives to the concerned
department to gear up investment.
It is believed that the formation
of the BoI would help facilitate investment to a great extent.
This is the first high level committee to address the issue of
investment and attract more foreign direct investment for country’s
economic development.
Hard Days ahead
for Nepalese economy
Richard Vokes, Resident Representative
of Asian Development Bank (ADB) expressed concern that the Nepalese
economy was still in a difficult situation as fiscal position
had been under tremendous pressure with low revenue collection
and the need for increased expenditures in security.
Vokes, however, said that despite
Nepal faced tremendous difficulties in the year 2001, but the
year for ADB remained good. He said that ADB signed a Poverty
Reduction Partnership Agreement with Nepal which is a broad framework
for ADB’s operation in Nepal which ties up ADB’s future operations
specifically to poverty reduction and is in line with ADB’s overarching
goal of reducing poverty in Asia.
He was speaking at a news conference
organized in Kathmandu recently by the ADB.
Nepal faced crisis during 2001 as
the country encountered a tragic event of royal family in June
that had sent an immense shock to the people but had negative
impacts on the economy followed by insurgency. September 11 events
in the US and unstable political situation.
ADB report says, "tourist arrivals
have gone down, the manufacturing industry’s (including carpets,
garments and breweries) producing has fallen due to labor unrest
and the insurgency, and trade has been adversely hit. The most
unfortunate is that agriculture sector which is the mainstay of
economy has been affected by the unusual drought in the east and
floods in other parts of the country.
However, the potential for a strong
recovery in the medium-to-long run certain exists, said Vokes.
He said that the economic recovery will depend on how quickly
the internal political and law and order situation is restored
and the need at this time is to expedite needed economic reforms
to address the pressing issues of poverty, governance and performance
of key economic sectors, and ensure improved public expenditure
management and service delivery.
NRB reduces Capital
Reserve Ratio
Nepal Rastra Bank (NRB) has announced
cuts in Capital Reserve Ratio (CRR) by one percentage point in
average and reduced refinancing rate ranging from one to two percentage
points effective from December 20, 2001.
According to the new provision, the
commercial banks are required to keep a capital reserve of seven
percent of the total deposit amount (current and saving accounts)
at the central bank whereas the reserve ratio for the fixed accounts
is 4.5 percent.
The ratio of cash in vault is three
percent as earlier. Previously, they had to keep a reserve of
eight percent in cases of current and savings accounts and six
percent in the fixed account.
The NRB had reduced the rate of Capital
Reserve Ratio from 12 percent to 10 percent in nearly five years
ago.
The central bank has cut the refinancing
rate on the convertible currency export loans by two percent.
For commercial banks, the NRB has fixed a new refinancing rate.
According to which refinancing rate on industrial rehabilitation
loans have been reduced to three percent from 4.5 percent. Similarly
the bank rate on the loans of rural development bank and Nepalese
currency export has been whittled down from 5.5 percent to 4.5
percent.
The refinancing rate on all other
kinds of loans has been brought down to 5.5 percent from 6.5 percent.
Special packages
to revive tourism in Nepal
With the number of tourists coming
to Nepal reaching the lowest in last three years, tourism entrepreneurs
are now all set to announce special packages in a fresh bid to
revive Nepal’s tourism.
The package, to be introduced in
a few days time, would be a three-day to 14-day package. And the
Royal Nepal Airline is supporting the package to be introduced
by the private sector.
With the private sector showing new
enthusiasm, the government too is planning to provide subsidised
fare of RNAC’s for the programme, a highly placed source at the
Ministry of Culture, Tourism and Civil Aviation told.
The Ministry official also informed
that the government is preparing to waive the visa fee to the
travellers coming to Nepal on a three-day package. "The government
would also reduce other visa fees by around 50 percent" he added.
Under the new scheme, visitors would
be provided a two-way airline ticket, accommodation, all meals
and limited sight seeing tour in heavily subsidised package to
the passengers coming in RNAC flights. However, the package would
not include the fare for the mountain flights.
According to latest tourism statistics,
there has been a decline of more than 17 percent tourists this
year compared to the last year, November alone showed a decline
of over 42 percent. The statistics has shown that there has been
a significant decline in the inflow of Indian tourists, falling
to around 18 percent of total tourists from more than 33 percent
two years ago.
Agriculture Research
and Development Fund set up
His Majesty’s Government has instituted
a national Agriculture Research and Development Fund at the Ministry
of Agriculture and Cooperatives.
The fund aims to provide services
to farmers by effectively mobilising research and development
in the agriculture sector through a competitive grants system.
The fund will seek proposals on agricultural
research and development programmes from the government, private
and non-governmental bodies and civil society. Of these proposals,
the priority ones will be implemented on full or partial grant.
The fund consists of amounts allocated
for agriculture research and development from the government,
amounts received from the services of the fund and other sources
as consented to by the Finance Ministry. A seven members governing
committee has been formed under the chairmanship of the secretary
at the Ministry of Agriculture and Cooperatives to run the fund.
The member secretary is a gazette
first class officer specified by the Ministry and the remaining
members are the joint secretary of the National Planning Commission
looking after agriculture, a joint secretary at the Ministry of
Finance, one woman agriculture expert nominated by the Ministry
of Agriculture and Cooperatives, representatives of the Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) and the
Nepal Agriculture Association, the Ministry of Agriculture and
Cooperatives, says.
Nepal Bangladesh
Bank profits Rs. 198.7 ml.
Nepal Bangladesh Bank has realized
a profit put at Rs. 198.7 million during the last fiscal year
even as it has decided to issue 5 percent dividend to general
shareholders and 2:1 bonus shares.
The decision regarding the same was
realized by the board meet of the bank recently. "The bank has
already requested the central bank to grant permission for issuance
of the same and the proposal for the same would be put forth during
the annual general meet of the bank as well," said communiqué
issued by the bank.
The bank has mobilized a deposit
valued at Rs. 8.6 million and its loans investment has been put
at Rs. 6.98 billion during the last fiscal year.
It may be recalled that the bank
had made a profit of Rs. 139.5 million during the fiscal year
1999-2000. Furthermore it had distributed bonus shares at the
rate of 1:1 during the period.
The paid up capital of the bank too
has been increased to Rs. 561.6 million by the end of the last
fiscal year, according to the communiqué. This has been done according
to the commercial banks directives issued by the central bank,
whereby the commercial banks were asked to upgrade their paid
up capital to Rs. 500 million by the last fiscal year-end.
