Stress
on the need to resolve Nepal-India trade and transit issues
Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation
of Indian Industry (CII) Joint Economic Council which recently
met in New Delhi has recommended to both the governments to conclude
the pending railway agreement for making the Inland Clearance
Depot (ICD) at Birgunj, Nepal operational at the earliest.
The meeting
decided to form a Joint Task Force on Transit including Railway
Agreement. The meeting also decided to form another Joint Task
Force on Quarantine.
The meeting
felt that the exchange of draft agreement between NBSM and BIS
was a good progress and decided to recommend that Bureau of Indian
Standards (BIS) and Nepal Bureau of Standards and Metrology (NBSM)
should start certification for facilitating export of manufactured
items from Nepal.
The meeting
chaired by Co-chairman Subodh Bhargava, CII former President and
attended by FNCCI former President Padma Jyoti, Ex-Officio Vice
President Suraj Vaidya, Industrial Promotion, Environment and
Energy Management Committee Chairperson Kush Kumar Joshi, Internal
Trade Committee Chairperson Kumud Kumar Dugar, President of Computer
Association of Nepal Lochan Lal Amatya, FNCCI Director General
Badri P. Ojha and Director Dr. Binod Hari Joshi from FNCCI side
has decided to organize promotional programs, viz. Investment
Promotion Seminars on Investment and Hydropower in major cities
of India, Nepal-India Summit, Joint Activities on Corporate Governance,
Study on Nepal, India China Tripartite collaboration in promoting
trade and investment and Active participation in trade fairs and
organization of joint trade fairs.
A high power
CII Delegation is expected to visit Nepal during the next meeting
of JEC scheduled to take place in Nepal.
FNCCI
initiates special programme for Non-Resident Nepalese (NRN)
Federation
of Nepalese Chambers of Commerce & Industry (FNCCI) officiating
President Binod Bahadur Shrestha along with Ex-Officio Vice President
Suraj Vaidya and Director General Badri P. Ojha and Honorary Royal
Nepalese Consul General Kunja Sharma (Toronto), Honorary Royal
Nepalese Consul General of Belarus Dr. Upendra Mahato, Honorary
Royal Nepalese Consul Ram Thapa (Koln), Arun Ojha of Russia Nepal
Chamber of Commerce and Industry decided to initiate a conference
on NRN in October 2003 in Kathmandu. A large number of NRN delegates
are expected to attend the conference.
The objective
of the conference to discuss the package required for attracting
investment and promoting Nepalese culture through active participation
of NRN. FNCCI has already set up a cell for coordination and collaboration
with the government and the NRN International Coordination Committee.
Formation of an expert group under a high level committee comprised
of very high level representatives of the government, the NRN
International coordination Committee and FNCCI and creation of
permanent website were also proposed in the meeting.
Poor
governance restricts Nepal's development: WB
The World
Banks's country assistance strategy (CAS) has identified poor
governance as the reason which debilitates Nepal's development.
The CAS report is being officially unveiled in the capital on
January 29.
According
to the WB's recent report, it has proposed a two-pronged approach
for the bank, by bringing resources to the grass root levels through
mobilization of social capital and improving the effectiveness
of the government's development programme.
The strategies
adopted by the bank would support Nepal's policy of greater decentralization
by providing funding to projects designed to bring more resources
to grass root levels, encourage reforms at the central level by
linking the overall lending level to progress, by improving government
effectiveness and strengthen donor coordination so that the bank's
strategic focus would be shared more widely. It also identifies
that fundamental challenge needed is in 'governance'.
The bank says,
its strategy would be adapted to take into account greater focus
on outputs and results, more emphasis on being a 'facilitator
of change', as opposed to focusing on specific project interventions
and this implies working more closely with change agents to ensure
that irreversible steps are taken to improve public service delivery
systems and governance.
It suggests
a gradual move towards a more programmatic approach to be fully
developed in the next CAS upon completion of the Poverty Reduction
Strategy (PRS) and continued emphasis on strengthening the process
of donor coordination and building partnership and these shifts
imply and increasing emphasis on economic and sectoral work by
supporting the new role of the bank for effective results.
WB also says,
"The proposed programme of financial assistance under the progress
report could be anchored with a Structural Adjustment Credit (SAC)
if conditions are appropriate."
"A SAC would
be contingent on implementation of a selective yet significant
set of coherent reforms, contained in the Immediate Action Plan
(IAP) designed to further prioritise public expenditure, improve
implementation of poverty programmes, and improve accountability
and transparency of the public sector, including specific measures
to promote private sector development.
Nepal's aggregate
GDP grew by 5.2 percent per annum between fiscal year 1999 and
2001, but growth in 2002 dropped to 0.8 percent.
Growth
rate of GDP Low
Due to negative
impact in the production of goods and services in the economy
under the present situation in the country the actual growth rate
of gross domestic production of FY 2058/59 B.S. as per amended
estimates are at 0.63 in terms of both factor cost and production
cost.
According
to the National Accounts of 2058/059 issued by the Central Bureau
of Statistics, the actual growth rate in gross domestic production
is at 2.23.
This is because
of low production in paddy, millet, food grains, tobacco, jute,
cash crops and fruits.
The actual
growth in mining is 1.03 in the same period as compared to last
year and 6.74 percent at current prices.
The production
of the industry sector has seen a 9.92 percent decline in gross
domestic production at fixed prices as compared to last year.
This is because of decline in the export of food grains, garments,
woolen goods and carpets.
The electricity
and water sector had 5.47 percent increase and 16.13 percent at
current prices and price rise has been 10.10 percent in the sector.
The Bureau
side the construction sector saw a growth of 0.98 percent at fixed
prices and 6.69 at current prices. Marginal increase has been
seen in production of timber, bricks, cement, electricity wire
and a decline in iron rods and corrugated sheets and the overall
price rise has been 5.66 percent in the sector.
Similarly,
the hotel-restaurant sector has seen a sharp decline by 7.7 percent
and exports by 14.6 percent and heavy decline in the internal
industrial production has caused reduced volume of trade.
The actual
decline in domestic production in the sector has been by 10.79
percent because of low transactions and sharp decline in tourist
arrivals and the price rise has been 1.58. percent.
Mountaineering
on rise despite low tourist arrivals
Amidst the
downfall and the regression of the tourism industry Mountaineering
sector has proved to be the sustainability factor in the long-run
for the Nepalese economy. Statistics read that Mountain Expedition
in the year 2002 have gone up in spite of the slack in the tourism
industry and in the economy on the whole. Despite the continuous
fall in the tourists' arrival, with the only exception of the
month of June, which saw an increase in tourist arrival by 35%,
climbing activities have gained momentum, the whole year through
in 2002.
In the months
of September and October of 2002, there were 71 expeditions altogether
with 499 foreign climbers whereas the same period in 2001 recorded
55 expeditions with 397 Alpinists approximately. However, the
interesting factor here remains that the total tourists arrival
figure shows a decrease by 25% and 18% respectively in the months
of September and October of 2002 vis-à-vis that of 2001. This
comparison of mountain expeditions with tourist arrival shows
the importance of mountain tourism as opposed to other sectors
of tourism.
The autumn
season of 2002 witnessed a sharp increase in the mountaineering
sector with a revenue generation of rs. 28.8 million as the permit
fees of the peaks. In the same season of 2001, the government
had a turnover of Rs. 17.8 million from the peaks. The increase
of 11 million in the year 2002, from the same season brings the
notice of all the authorities concerned to the potential of mountain
tourism in Nepal.
Experts believe
that with the development of mountain tourism and preservation
of mountain biodiversity, Nepal can reach the level of sustainable
development, which has been invariably emphasized on every other
occasion.
NRB's
directive to commercial banks
Nepal Rastra
Bank (NRB) has directed all the commercial banks to distribute
their interim dividends only after the final auditing reports
are approved by the central bank. The latest move, according to
an NRB's source, is aimed at curbing the existing practice of
commercial banks of declaring the interim dividends before it
is approved by the NRB.
