Weekly Share Update : Investors’ education need of hour
ArthaExpress, 29-Sep-2007
Rising barometer of (Nepal Stock Exchange) Nepse, the sole secondary market, has send the cold wave to experts. Nepse index gained 30.49 points this week to post 878.35 points at the close of the week. In the recent months, the index has posted almost 400 points growth, which has no rationale as national economy has not expanded. The investors have been excited due to the bonus shares and right shares the banks are distributing to increase their paid up capital.
The experts stressed on the need of investors’ education for stability and sustained growth of capital market. Short term gain and ‘whims’ have propelled stock market to the dangerous zone, they claimed. “Stock market is the fast track of capitalism,” Dr Chiranjibi Nepal, chairman of Securities Board of Nepal (SEBON), said speaking at a workshop on ‘Trend and Issues of Capital Market,’ organised by Nepal Rastra Bank (NRB), Bankers’ Training Centre (BTC), here.
“But it must also follow the market norms. There is nothing to be encouraged about the current growth,” the chief of regulatory body said adding that capital market crash will have severe impact on total national economy.
The world over, stock is considered very sensitive as they immediately react to political, social and economical change. However, Nepali stock seems to have no effect at all. “Nepali stock is showing irrational behaviour,” Radhesh Pant, president of Nepal Bankers’ Association said. “On the day Maoists pulled out of the government, share prices touched the historic high,” he said adding that such trend is dangerous.
Similarly, shares of banks are gaining. The commercial banks group gained 23.23 points to post 984.86 points at the weekly closing. But real sector has no role in this growth, which is yet another signal of ‘dubidious’ growth. Investors might find themselves on road overnight as they are not going by the books and lured by the rumours.
“Stock price is directly related to the growth of bank,” Pant said adding that investors are not calculating growth prospectus of banks in next couple of years. “Due to cut-throat competition the banks are operating on very thin margin and they could not continue giving cash dividends as they have to increase their paid-up capital,” he added.
Since there is no more investment opportunity, alternative opportunities like bonds and mutual fund is need of the hour. “Mutual fund could be safer for the small investors,” said Upendar Kumar Poudel, vice-president of Finance Companies’ Association.
“Corrective measures are necessary and real sector must be encouraged to come to stock for sustained growth of capital market,” he said adding that its high time banks become cautious over margin lending on the secondary market.
Nabaraj Pokhrel, president of Nepal Brokers’ Association, on the occasion, said that open market sets its trend itself.
Bir Bikram Rayamajhi, deputy governor of NRB and Arjun Adhikari, director of BTC also showed concern over unnatural stock growth. for the stability of the market, Nepse has also brought some more rules. It is believed to help stop stock market crash.
Sunday, September 30, 2007
Govt speeds up labor attaché deployments
Govt speeds up labor attaché deployments
eKantipur.com, 29-Sep-2007
To address the mounting problems related to Nepal's overseas laborers, the government has speeded up the process of deputing labor attachés in the countries where a significant number of Nepali laborers are working, State Minister for Labor Ramesh Lekhak said on Saturday.
He said that the ministry on Friday had decided to forward a proposal to the Ministry of Finance asking for the necessary budget.
The existing Labor Act requires the government to deploy labor attachés in countries absorbing more than 5000 Nepali workers. But so far, it has not done so for any of these countries. There are almost a dozen countries which have over 5,000 Nepali workers. In the absence of attachés, the concerned embassies are looking after the labor issues.
"Labor attachés will be deputed on a need and priority basis in these countries," Lekhak said, talking to the Post. He added that the final decision will be taken in co-ordination with the finance and foreign ministries. In yet another development, Nepal is likely to sign a memorandum of understating (MoU) with Malaysia soon. "Preparation for the signing with the South-east Asian country is in its final stages," he said on Saturday at an interaction program on Foreign Employment and the Media.
Observing that the competition among unskilled laborers from different countries is intensifying, he underlined the need to produce semi-skilled and skilled laborers to meet the demand of the international labor markets. "It is an irony that we are still exporting unskilled laborer who are now facing a cut-throat competition. This has resulted in their wages declining," he said. Presenting a paper, Dr Bishwambher Pyakuryal said about 26 percent of the growth in convertible currency is from remittance, indicating its rising importance in the country's economy.
Kiran Nepal, president of Society of Economic Journalists of Nepal (SEJON) said that foreign recruiting agents must maintain transparency and improve their behavior to minimize negative news in media as well as establish the profession as a dignified one. LP Sanwa Limbu, president of Nepal Association of Foreign Employment Agents (NAFEA), expressed commitment to instill corporate culture and professionalism in the sector. Saru Joshi, regional manager of the United Nations Development Fund for Women (UNIFEM) urged the government to make a legal framework to facilitate women talking up overseas jobs.
eKantipur.com, 29-Sep-2007
To address the mounting problems related to Nepal's overseas laborers, the government has speeded up the process of deputing labor attachés in the countries where a significant number of Nepali laborers are working, State Minister for Labor Ramesh Lekhak said on Saturday.
He said that the ministry on Friday had decided to forward a proposal to the Ministry of Finance asking for the necessary budget.
The existing Labor Act requires the government to deploy labor attachés in countries absorbing more than 5000 Nepali workers. But so far, it has not done so for any of these countries. There are almost a dozen countries which have over 5,000 Nepali workers. In the absence of attachés, the concerned embassies are looking after the labor issues.
"Labor attachés will be deputed on a need and priority basis in these countries," Lekhak said, talking to the Post. He added that the final decision will be taken in co-ordination with the finance and foreign ministries. In yet another development, Nepal is likely to sign a memorandum of understating (MoU) with Malaysia soon. "Preparation for the signing with the South-east Asian country is in its final stages," he said on Saturday at an interaction program on Foreign Employment and the Media.
Observing that the competition among unskilled laborers from different countries is intensifying, he underlined the need to produce semi-skilled and skilled laborers to meet the demand of the international labor markets. "It is an irony that we are still exporting unskilled laborer who are now facing a cut-throat competition. This has resulted in their wages declining," he said. Presenting a paper, Dr Bishwambher Pyakuryal said about 26 percent of the growth in convertible currency is from remittance, indicating its rising importance in the country's economy.
Kiran Nepal, president of Society of Economic Journalists of Nepal (SEJON) said that foreign recruiting agents must maintain transparency and improve their behavior to minimize negative news in media as well as establish the profession as a dignified one. LP Sanwa Limbu, president of Nepal Association of Foreign Employment Agents (NAFEA), expressed commitment to instill corporate culture and professionalism in the sector. Saru Joshi, regional manager of the United Nations Development Fund for Women (UNIFEM) urged the government to make a legal framework to facilitate women talking up overseas jobs.
Chicken price touches record high
Chicken price touches record high
eKantipur.com, 29-Sep-2007
Propelled by dwindling supply after a major decline in production volume, the price of chicken touched Rs 165 per kilogram here.
As the Nepali government has imposed a ban on imports of parent chicks from source countries rumored to have been infected with cases of the bird-flu disease for the last one year, production of chicken has nose dived significantly for over six months prompting prices to skyrocket.
Entrepreneurs also attributed the price hike to frequent highway bandas and strikes which have been disrupting smooth delivery of poultry products. According to them, the price of chicken meat has shot up to Rs 165 per kg, up from the Rs 150 of a couple of months ago. "The price of chicken has culminated to a record high now," said Kapil Babu Khanal, the immediate past president of Nepal Hatchery Association.
"We have adjusted the price in line with the soaring price of feeds and short production along with shrinking level of supply." A short supply of goats has also contributed to the customers opting for chicken. This and an increase in the number of tourists arriving in the country have pushed the demand of chicken upward, Khanal added.
Traders said the recent improvement in the tourism sector along with an increase in economic activities in the country had caused a gradual rise in demand of meat. Poultry entrepreneurs said the prices would go up further.
eKantipur.com, 29-Sep-2007
Propelled by dwindling supply after a major decline in production volume, the price of chicken touched Rs 165 per kilogram here.
As the Nepali government has imposed a ban on imports of parent chicks from source countries rumored to have been infected with cases of the bird-flu disease for the last one year, production of chicken has nose dived significantly for over six months prompting prices to skyrocket.
Entrepreneurs also attributed the price hike to frequent highway bandas and strikes which have been disrupting smooth delivery of poultry products. According to them, the price of chicken meat has shot up to Rs 165 per kg, up from the Rs 150 of a couple of months ago. "The price of chicken has culminated to a record high now," said Kapil Babu Khanal, the immediate past president of Nepal Hatchery Association.
"We have adjusted the price in line with the soaring price of feeds and short production along with shrinking level of supply." A short supply of goats has also contributed to the customers opting for chicken. This and an increase in the number of tourists arriving in the country have pushed the demand of chicken upward, Khanal added.
Traders said the recent improvement in the tourism sector along with an increase in economic activities in the country had caused a gradual rise in demand of meat. Poultry entrepreneurs said the prices would go up further.
Saturday, September 29, 2007
BIMSTEC agrees on negative list, value addition criteria
BIMSTEC agrees on negative list, value addition criteria
eKantipur.com, 28-Sep-2007
Trade negotiators from seven BIMSTEC member countries have agreed on value addition conditions and downsizing of the negative list in Dhaka, bringing the free trade agreement on trade in goods close to conclusion.
Value addition and negative list were the two most contested issues and the delay in reaching a consensus in those had been delaying finalization of the accord. Nepal, India, Bangladesh, Bhutan, Sri Lanka, Thailand and Myanmar are members of BIMSTEC.
"In a bid to render free trade successful, trade negotiators agreed to downsize the negative list to 15 percent from 25 percent," said a Commerce Ministry official.
Talking to the Post, he elaborated that the consensus was reached as a middle path to the Thailand's proposal of reducing it to 10 percent and other members' proposal to maintain it at 20.
With the agreement, the BIMSTEC free trade agreement on goods would now have only 15 percent of the total 5,226 tariff lines in the negative list. That means, free trade rules will not be applicable to 784 tariff lines that the members would enlist in the negative list.
The 15th TNC meeting also agreed on 35 percent value additional requirement for products by developing members and 30 percent for the least developed country members to enjoy market access under free trade rules in the bloc.
The agreement was reached by compromising on the proposals that the LDCs and Thailand, and other developing members had pushed for. Thailand and the LDCs had pushed for a 30 percent value addition criteria while the other developing members 40 percent for accepting the products as originating from the developing members.
However, no such compromise was made on value addition criteria for LDCs. The LDCs had demanded that they be allowed to enjoy the facility with at least 25 percent value addition.
The meeting also finalized the modalities for tariff cut, under which LDCs would be required to reduce their tariff in a span of ten years and the developing countries would need to do that within 3 years for LDCs and 5 years for other developing members.
"Except for a few issues, the free trade accord for trade in goods is almost final," said the official. He added that the TNC would meet next in New Delhi on November 12-15 to finalize the issues agreed upon.
Officials said that they were optimistic of the New Delhi meeting finalizing the accord and forwarding it to the higher body for its official endorsement in the Summit. The BIMSTEC Summit has been scheduled for February 2008.
eKantipur.com, 28-Sep-2007
Trade negotiators from seven BIMSTEC member countries have agreed on value addition conditions and downsizing of the negative list in Dhaka, bringing the free trade agreement on trade in goods close to conclusion.
Value addition and negative list were the two most contested issues and the delay in reaching a consensus in those had been delaying finalization of the accord. Nepal, India, Bangladesh, Bhutan, Sri Lanka, Thailand and Myanmar are members of BIMSTEC.
"In a bid to render free trade successful, trade negotiators agreed to downsize the negative list to 15 percent from 25 percent," said a Commerce Ministry official.
Talking to the Post, he elaborated that the consensus was reached as a middle path to the Thailand's proposal of reducing it to 10 percent and other members' proposal to maintain it at 20.
With the agreement, the BIMSTEC free trade agreement on goods would now have only 15 percent of the total 5,226 tariff lines in the negative list. That means, free trade rules will not be applicable to 784 tariff lines that the members would enlist in the negative list.
The 15th TNC meeting also agreed on 35 percent value additional requirement for products by developing members and 30 percent for the least developed country members to enjoy market access under free trade rules in the bloc.
The agreement was reached by compromising on the proposals that the LDCs and Thailand, and other developing members had pushed for. Thailand and the LDCs had pushed for a 30 percent value addition criteria while the other developing members 40 percent for accepting the products as originating from the developing members.
However, no such compromise was made on value addition criteria for LDCs. The LDCs had demanded that they be allowed to enjoy the facility with at least 25 percent value addition.
The meeting also finalized the modalities for tariff cut, under which LDCs would be required to reduce their tariff in a span of ten years and the developing countries would need to do that within 3 years for LDCs and 5 years for other developing members.
"Except for a few issues, the free trade accord for trade in goods is almost final," said the official. He added that the TNC would meet next in New Delhi on November 12-15 to finalize the issues agreed upon.
Officials said that they were optimistic of the New Delhi meeting finalizing the accord and forwarding it to the higher body for its official endorsement in the Summit. The BIMSTEC Summit has been scheduled for February 2008.
Friday, September 28, 2007
Tea farming starts in Lalitpur district
Tea farming starts in Lalitpur district
ArthaExpress, 27-Sep-2007
Tea farming has also begun in Lalitpur district now. Earlier, coffee was grown in Lalitpur. The Modern Organic Tea Development Pvt Ltd (MOTD) has been producing some 6,00,000 tea saplings in 20-ropani of land in Chandanpur for commercial tea development. Production of tea saplings has been started from August to November.
Some 40 persons have found direct employment from the Modern Organic Tea Development Pvt Ltd while producing saplings. Tea saplings have been distributed in the south-eastern hilly villages of Kaleswor, Chandanpur, Gotikhel, Manikhel, Bukhel, Devi Chaur and Ghusel. Not only in private land but the tea farming has also been picking up collectively. Industrialists, businessmen and teachers have also been attracted to tea farming commercially currently. Balaram Banjara of the company, who is also a businessman of Chandanpur, said they have started production of saplings for the commercial production of tea.
He said the farming has begun by bringing cut plants from Ilam. The company has planted some 3,000 plants in Kaleswor- 9 alone. Headmaster of Nawodaya Primary School Kaleswor, Nawaraj Dahal has also planted some 450 plants on his field.
“It will change the lifestyle of the people,” said Chandanpur ex-VDC chairman Rhishi Ram Ghimire. “There is a good potential of tea farming in Lalitpur because of fertile soil and geographical condition,” said tea expert Taramani Khatiwada.
Tea can be planted in Nepal upto the altitude of 6,600 feet. It can yield for two to three years after planting once. In Nepal, tea farming began in 1920 BS by Ganarajsingh Thapa, the son-in-law of the then prime minister Jung Bahadur Rana.
ArthaExpress, 27-Sep-2007
Tea farming has also begun in Lalitpur district now. Earlier, coffee was grown in Lalitpur. The Modern Organic Tea Development Pvt Ltd (MOTD) has been producing some 6,00,000 tea saplings in 20-ropani of land in Chandanpur for commercial tea development. Production of tea saplings has been started from August to November.
Some 40 persons have found direct employment from the Modern Organic Tea Development Pvt Ltd while producing saplings. Tea saplings have been distributed in the south-eastern hilly villages of Kaleswor, Chandanpur, Gotikhel, Manikhel, Bukhel, Devi Chaur and Ghusel. Not only in private land but the tea farming has also been picking up collectively. Industrialists, businessmen and teachers have also been attracted to tea farming commercially currently. Balaram Banjara of the company, who is also a businessman of Chandanpur, said they have started production of saplings for the commercial production of tea.
He said the farming has begun by bringing cut plants from Ilam. The company has planted some 3,000 plants in Kaleswor- 9 alone. Headmaster of Nawodaya Primary School Kaleswor, Nawaraj Dahal has also planted some 450 plants on his field.
“It will change the lifestyle of the people,” said Chandanpur ex-VDC chairman Rhishi Ram Ghimire. “There is a good potential of tea farming in Lalitpur because of fertile soil and geographical condition,” said tea expert Taramani Khatiwada.
Tea can be planted in Nepal upto the altitude of 6,600 feet. It can yield for two to three years after planting once. In Nepal, tea farming began in 1920 BS by Ganarajsingh Thapa, the son-in-law of the then prime minister Jung Bahadur Rana.
Funds pour in for projects worth 57 MW
Funds pour in for projects worth 57 MW
Chamelia, Raghughat on fast track
eKantipur.com, 27-Sep-2007
BY BIKASH SANGRAULA
The government has sealed loan commitments of US $ 45 million and Rs 2 billion for construction of the 30 megawatt (MW) Chamelia project and the 27 MW Raghughat project respectively. Additionally, the government has received loan commitment of Rs 1 billion for the construction of three high voltage transmission lines to link Nepal's national power grid with the Indian power grid.
The Export Import Bank of the Republic of South Korea signed a loan commitment of US $ 45 million for the Chameliya project on Wednesday, according to Arjun Kumar Karki, managing director of Nepal Electricity Authority (NEA). The loan will be used for electro-mechanical and transmission line components of the project.
Similarly, India has extended Rs 2 billion for construction of the 27 MW Raghughat project, and another Rs 1 billion for construction of three high-voltage transmission links, Karki said.
The Indian line of credit of Rs 3 billion was agreed upon between the government of Nepal and Export Import Bank of India during the visit of Finance Minister Dr Ram Sharan Mahat to India recently.
Both the projects are scheduled to be completed in 2011. "We will call civil tenders for Raghughat within six months," Karki added. Raghughat project is estimated to cost Rs 3 billion.
For Chamelia, NEA will ask OPEC for US $ 10 million for civil works. The US $ 78.9 million Chamelia project is being built 950-km west of Kathmandu on Chameliya River, a tributary of Mahakali River in Darchula district. The government of Nepal is funding US $ 7.5 million as allocated budget, which, along with the US $ 45m loan, will suffice for the electro-mechanical component of the project.
For civil works of Chamelia, apart from seeking US $ 10 million from OPEC, NEA targets to collect the remaining money by issuing power bonds, Karki said.
The China Gezhouba Water and Power Group Co Ltd has been awarded the civil contract for Chamelia.
Reference
Water Magazine
Chamelia, Raghughat on fast track
eKantipur.com, 27-Sep-2007
BY BIKASH SANGRAULA
The government has sealed loan commitments of US $ 45 million and Rs 2 billion for construction of the 30 megawatt (MW) Chamelia project and the 27 MW Raghughat project respectively. Additionally, the government has received loan commitment of Rs 1 billion for the construction of three high voltage transmission lines to link Nepal's national power grid with the Indian power grid.
The Export Import Bank of the Republic of South Korea signed a loan commitment of US $ 45 million for the Chameliya project on Wednesday, according to Arjun Kumar Karki, managing director of Nepal Electricity Authority (NEA). The loan will be used for electro-mechanical and transmission line components of the project.
Similarly, India has extended Rs 2 billion for construction of the 27 MW Raghughat project, and another Rs 1 billion for construction of three high-voltage transmission links, Karki said.
The Indian line of credit of Rs 3 billion was agreed upon between the government of Nepal and Export Import Bank of India during the visit of Finance Minister Dr Ram Sharan Mahat to India recently.
Both the projects are scheduled to be completed in 2011. "We will call civil tenders for Raghughat within six months," Karki added. Raghughat project is estimated to cost Rs 3 billion.
For Chamelia, NEA will ask OPEC for US $ 10 million for civil works. The US $ 78.9 million Chamelia project is being built 950-km west of Kathmandu on Chameliya River, a tributary of Mahakali River in Darchula district. The government of Nepal is funding US $ 7.5 million as allocated budget, which, along with the US $ 45m loan, will suffice for the electro-mechanical component of the project.
For civil works of Chamelia, apart from seeking US $ 10 million from OPEC, NEA targets to collect the remaining money by issuing power bonds, Karki said.
The China Gezhouba Water and Power Group Co Ltd has been awarded the civil contract for Chamelia.
Reference
Water Magazine
Soaring Vegetable Prices
Soaring Vegetable Prices
eKantipur.com, 27-Sep-2007
BY PRABHAKAR GHIMIRE
Skyrocketing price of potato, due to supply deficit in Nepal prompted potato from Bhutan to find its way to the Nepali market this week, traders said. Shortage of potato due to nominal domestic production and short supply has led to mounting price of the ubiquitous vegetable in Nepal.
According to traders, around 50 tons of potato have been arriving in Kalimati wholesale market daily, down from the normal supply of around 70 tons. They said that supply of other major vegetable items has also nosedived by around 25 to 30 percent in recent days.
"Availability of Nepali potato in the market is almost nil, thus leaving the entire market dependent on potato from Bhutan and India of late," said Bharat Khatiwada, president of Association of Vegetable Wholesalers at Kalimati.
Khatiwada said red potatoes from Bhutan have hit the Kalimati market constituting more than half the total supply of potatoes. The potatoes from Bhutan are preferred by Nepali consumers due to its similarity in taste to Nepali potatoes.
Mist and disease in potato farms in different parts of the country, coupled by prolonged unrest in tarai region has disrupted supply and caused shortfall of production and supply of vegetables.
"Due to unrest in Tarai, Indian truckers have almost doubled transport charges, prompting market prices to go up sharply," said Shriram Upadhya another trader.
According to Upadhya traders are paying up to Rs 35,000 in recent days as compared to around Rs 15,000 to Rs 20,000 for ferrying vegetables. Data at Kalimati Fruits and Vegetables Market Development Board (KFVMD) shows an alarming rise of vegetable prices over a six month period.
Average price of red-potato, white potato and dry onion reached Rs 25, Rs 23 and Rs 36 per Kg respectively this week, which is almost double the price compared to last April when those items were priced at Rs 12, Rs 9 and Rs 20 per Kg respectively.
Likewise, prices of tomato, cauliflower and cabbage have reached Rs 29, Rs 44 and Rs 19 per Kg from, Rs 14 Rs 8, Rs 4 in April.
Over the period, price of onion in particular saw steady increase due to total dependence on India to cater to the ever increasing domestic demand of the most used vegetable item in Nepal, said Binaya Shrestha Planning officer at KFVMD.
Shrestha said that more than 95 percent of onion demand is being supplemented by Indian onion.
"However, production of onion in India has also dwindled sharply this year due to bad weather resulting in price hike in India, the sole supplier of onion to Nepal," said Shrestha.
Flood and inundation in Tarai region also aggravated the production and supply of other vegetables like cabbage, cauliflower, and tomato.
According to Shrestha, supply of vegetables in Kalimati wholesale market, the biggest vegetable market, stands at around 500 tons daily, down from around 650 tons to 700 tons in normal season.
eKantipur.com, 27-Sep-2007
BY PRABHAKAR GHIMIRE
Skyrocketing price of potato, due to supply deficit in Nepal prompted potato from Bhutan to find its way to the Nepali market this week, traders said. Shortage of potato due to nominal domestic production and short supply has led to mounting price of the ubiquitous vegetable in Nepal.
According to traders, around 50 tons of potato have been arriving in Kalimati wholesale market daily, down from the normal supply of around 70 tons. They said that supply of other major vegetable items has also nosedived by around 25 to 30 percent in recent days.
"Availability of Nepali potato in the market is almost nil, thus leaving the entire market dependent on potato from Bhutan and India of late," said Bharat Khatiwada, president of Association of Vegetable Wholesalers at Kalimati.
Khatiwada said red potatoes from Bhutan have hit the Kalimati market constituting more than half the total supply of potatoes. The potatoes from Bhutan are preferred by Nepali consumers due to its similarity in taste to Nepali potatoes.
Mist and disease in potato farms in different parts of the country, coupled by prolonged unrest in tarai region has disrupted supply and caused shortfall of production and supply of vegetables.
"Due to unrest in Tarai, Indian truckers have almost doubled transport charges, prompting market prices to go up sharply," said Shriram Upadhya another trader.
According to Upadhya traders are paying up to Rs 35,000 in recent days as compared to around Rs 15,000 to Rs 20,000 for ferrying vegetables. Data at Kalimati Fruits and Vegetables Market Development Board (KFVMD) shows an alarming rise of vegetable prices over a six month period.
Average price of red-potato, white potato and dry onion reached Rs 25, Rs 23 and Rs 36 per Kg respectively this week, which is almost double the price compared to last April when those items were priced at Rs 12, Rs 9 and Rs 20 per Kg respectively.
Likewise, prices of tomato, cauliflower and cabbage have reached Rs 29, Rs 44 and Rs 19 per Kg from, Rs 14 Rs 8, Rs 4 in April.
Over the period, price of onion in particular saw steady increase due to total dependence on India to cater to the ever increasing domestic demand of the most used vegetable item in Nepal, said Binaya Shrestha Planning officer at KFVMD.
Shrestha said that more than 95 percent of onion demand is being supplemented by Indian onion.
"However, production of onion in India has also dwindled sharply this year due to bad weather resulting in price hike in India, the sole supplier of onion to Nepal," said Shrestha.
Flood and inundation in Tarai region also aggravated the production and supply of other vegetables like cabbage, cauliflower, and tomato.
According to Shrestha, supply of vegetables in Kalimati wholesale market, the biggest vegetable market, stands at around 500 tons daily, down from around 650 tons to 700 tons in normal season.
Thursday, September 27, 2007
Rs 500 note without King's picture circulated
Rs 500 note without King's picture circulated
Nepalnews.com, 27-Sep-2007
The central bank has decided to circulate from Thursday the Rs 500 denomination note without the picture of the King.
Instead of the King's photo, the new note will have the picture of Mt. Everest. The mark of Crown has been replaced by a picture of rhododendron flower.
This is the first currency note that will come into circulation without the King's photo. Earlier, the central bank had issued coins without the King's name.
Currency notes had come into circulation in Nepal since last six decades. And in all of them, King's photo used to be placed prominently.
However, following the April 2006 movement and subsequent clipping of all kinds of authorities of the King, the Nepal Rastra Bank had decided to remove his picture also from the currency notes.
The NRB decided to bring the new note into circulation on the eve of Dashain festival. nepalnews.com sd Sep 27 07
Nepalnews.com, 27-Sep-2007
The central bank has decided to circulate from Thursday the Rs 500 denomination note without the picture of the King.
Instead of the King's photo, the new note will have the picture of Mt. Everest. The mark of Crown has been replaced by a picture of rhododendron flower.
This is the first currency note that will come into circulation without the King's photo. Earlier, the central bank had issued coins without the King's name.
Currency notes had come into circulation in Nepal since last six decades. And in all of them, King's photo used to be placed prominently.
However, following the April 2006 movement and subsequent clipping of all kinds of authorities of the King, the Nepal Rastra Bank had decided to remove his picture also from the currency notes.
The NRB decided to bring the new note into circulation on the eve of Dashain festival. nepalnews.com sd Sep 27 07
BIMSTEC meet to finalize FTA
BIMSTEC meet to finalize FTA
eKantipur.com, 26-Sep-2007
The seven member countries of BIMSTEC, including Nepal, have begun negotiations in Dhaka to finalize an agreement that would pave the way for establishing a free trade area (FTA) in the bloc.
The trade negotiation committee (TNC) assigned for finalizing the pact Wednesday discussed on agreements on trade in goods, which is one among the three subsidiary agreements to be agreed up for the establishment of the FTA.
Officials said that the TNC today mainly discussed on the negative lists and rules of origin - two areas in which differences have persisted for long.
During the meeting, Thailand proposed that the negative list, which includes items on which free trade rules would not apply, be brought down to 10 percent. Nepal and other members, citing sensitivity of agro and other products, proposed that it be kept at 20 percent.
So far, members have prepared a longer negative list including 25 percent of the total tariff lines. Nepal, Bangladesh, India, Thailand, Sri Lanka, Bhutan and Myanmar are the members of BIMSTEC.
During the discussions, Thailand opposed the intent of some of the member countries to include various items in negative list for some members and open those for others.
It proposed adoption of the principle of reciprocity in the agreement, whereby a product being in the negative list of a particular country would not get duty-free status in other countries in the bloc. The proposal was floated in order to apply pressure on the negotiating teams to reduce the negative lists.
On rules of origin, India stood firm on its proposal of 40 percent value addition for developing members and 30 percent for least developed members.
Thailand and other LDC members, including Nepal, on the other hand, pushed for 30 percent value addition criteria for non-LDC and 20 percent for LDC members.
Besides these two issues, which will determine the condition of trading under the FTA, BIMSTEC members are still to finalize items
to be opened under fast track and normal track of tariff liberalization.
Likewise, the TNC is also scheduled to discuss on items in which tariff would be brought down to zero and items in which tariffs would be slashed to 1 to 5 percent.
The members had agreed on a BIMSTEC framework agreement on FTA during the BIMSTEC Summit on February 8, 2004. Nepal had acceded to the bloc during the summit.
Although BIMSTEC committed to commence free trade on goods from July 2006, it missed the deadline due to the failure in finalizing the agreement. Likewise, the members are yet to start discussions on an agreement on trade in services and investments.
eKantipur.com, 26-Sep-2007
The seven member countries of BIMSTEC, including Nepal, have begun negotiations in Dhaka to finalize an agreement that would pave the way for establishing a free trade area (FTA) in the bloc.
The trade negotiation committee (TNC) assigned for finalizing the pact Wednesday discussed on agreements on trade in goods, which is one among the three subsidiary agreements to be agreed up for the establishment of the FTA.
Officials said that the TNC today mainly discussed on the negative lists and rules of origin - two areas in which differences have persisted for long.
During the meeting, Thailand proposed that the negative list, which includes items on which free trade rules would not apply, be brought down to 10 percent. Nepal and other members, citing sensitivity of agro and other products, proposed that it be kept at 20 percent.
So far, members have prepared a longer negative list including 25 percent of the total tariff lines. Nepal, Bangladesh, India, Thailand, Sri Lanka, Bhutan and Myanmar are the members of BIMSTEC.
During the discussions, Thailand opposed the intent of some of the member countries to include various items in negative list for some members and open those for others.
It proposed adoption of the principle of reciprocity in the agreement, whereby a product being in the negative list of a particular country would not get duty-free status in other countries in the bloc. The proposal was floated in order to apply pressure on the negotiating teams to reduce the negative lists.
On rules of origin, India stood firm on its proposal of 40 percent value addition for developing members and 30 percent for least developed members.
Thailand and other LDC members, including Nepal, on the other hand, pushed for 30 percent value addition criteria for non-LDC and 20 percent for LDC members.
Besides these two issues, which will determine the condition of trading under the FTA, BIMSTEC members are still to finalize items
to be opened under fast track and normal track of tariff liberalization.
Likewise, the TNC is also scheduled to discuss on items in which tariff would be brought down to zero and items in which tariffs would be slashed to 1 to 5 percent.
The members had agreed on a BIMSTEC framework agreement on FTA during the BIMSTEC Summit on February 8, 2004. Nepal had acceded to the bloc during the summit.
Although BIMSTEC committed to commence free trade on goods from July 2006, it missed the deadline due to the failure in finalizing the agreement. Likewise, the members are yet to start discussions on an agreement on trade in services and investments.
Doing business in Nepal easier than in India
Doing business in Nepal easier than in India
eKantipur.com, 26-Sep-2007
Despite prolonged political transition and internal upheavals, it is easier to do business in Nepal than in India, says a report from the World Bank.
The report - Doing Business 2008 - launched on Wednesday has ranked Nepal at the 111th position in terms of ease of doing business, ahead of India. The report which rated 178 countries across the world on trade, taxation, business start-up costs, labor laws and legal procedures has ranked India at the 120th position.
The report is the fifth in an annual report series issued by the World Bank and its private lending arm, the International Finance Corporation (IFC).
According to the report, Nepal ranked 60th in starting a business. It takes 31 days to start a business in Nepal and investors need to fulfill just seven procedures to start the business, whereas in India, it takes 33 days and investors need to complete 13 procedures, says the report.
In terms of registering property, Nepal has been ranked 25th while on protecting investors it has been ranked 64th.
However, workers and cross border trading stands as the two biggest impediments in doing business in Nepal, says the report. On those two issues, the report has ranked Nepal in 155th and 151st respectively.
The report further says that South Asia has picked up pace in regulatory reforms over the past year to become the second-fastest reforming region in the world, on par with the speed of reforms in the countries of the Organization for Economic Co-operation and Development (OECD).
Last year South Asia was ranked lowest on the rate of reform. But this year two-third of its countries saw at least one reform, it says.
According to the report, India is the top reformer worldwide in trading across borders while Bhutan and Sri Lanka are the other top reformers in South Asia this year.
Bhutan introduced the country's first fundamental labor protection law and Sri Lanka made it easier to start a business and to trade across borders.
Singapore, for the second year running, tops the aggregate ranking on the ease of doing business. The top-ranking countries in South Asia are Maldives (60) and Pakistan (76). India improved its ranking from last year's 132nd and jumped 12 places, achieving a bigger gain than China, which rose by nine places to 83rd.
The report states that India is now setting the standard for reforms in South Asia, with an explicit policy objective to become a leading business-friendly economy.
Besides making it easier to trade across borders, India increased access to credit by expanding credit bureau coverage to individuals as well as businesses, it says. It also introduced an electronic registry for security rights granted by companies.
eKantipur.com, 26-Sep-2007
Despite prolonged political transition and internal upheavals, it is easier to do business in Nepal than in India, says a report from the World Bank.
The report - Doing Business 2008 - launched on Wednesday has ranked Nepal at the 111th position in terms of ease of doing business, ahead of India. The report which rated 178 countries across the world on trade, taxation, business start-up costs, labor laws and legal procedures has ranked India at the 120th position.
The report is the fifth in an annual report series issued by the World Bank and its private lending arm, the International Finance Corporation (IFC).
According to the report, Nepal ranked 60th in starting a business. It takes 31 days to start a business in Nepal and investors need to fulfill just seven procedures to start the business, whereas in India, it takes 33 days and investors need to complete 13 procedures, says the report.
In terms of registering property, Nepal has been ranked 25th while on protecting investors it has been ranked 64th.
However, workers and cross border trading stands as the two biggest impediments in doing business in Nepal, says the report. On those two issues, the report has ranked Nepal in 155th and 151st respectively.
The report further says that South Asia has picked up pace in regulatory reforms over the past year to become the second-fastest reforming region in the world, on par with the speed of reforms in the countries of the Organization for Economic Co-operation and Development (OECD).
Last year South Asia was ranked lowest on the rate of reform. But this year two-third of its countries saw at least one reform, it says.
According to the report, India is the top reformer worldwide in trading across borders while Bhutan and Sri Lanka are the other top reformers in South Asia this year.
Bhutan introduced the country's first fundamental labor protection law and Sri Lanka made it easier to start a business and to trade across borders.
Singapore, for the second year running, tops the aggregate ranking on the ease of doing business. The top-ranking countries in South Asia are Maldives (60) and Pakistan (76). India improved its ranking from last year's 132nd and jumped 12 places, achieving a bigger gain than China, which rose by nine places to 83rd.
The report states that India is now setting the standard for reforms in South Asia, with an explicit policy objective to become a leading business-friendly economy.
Besides making it easier to trade across borders, India increased access to credit by expanding credit bureau coverage to individuals as well as businesses, it says. It also introduced an electronic registry for security rights granted by companies.
Wednesday, September 26, 2007
Transparency International Corruption Index 2007
Transparency International Corruption Index 2007
http://www.transparency.org/policy_research/surveys_indices/cpi
London/Berlin, 26 September 2007
Persistent corruption in low-income countries requires global action
Concerted efforts needed in rich and poor countries to stem flow of corrupt monies and make justice work for the poorest
The divide in perceived levels of corruption in rich and poor countries remains as sharp as ever, according to the 2007 Corruption Perceptions Index (CPI), released today by Transparency International, the global coalition against corruption. Developed and developing countries must share responsibility for reducing corruption, in tackling both the supply and demand sides.
“Despite some gains, corruption remains an enormous drain on resources sorely needed for education, health and infrastructure,” said Huguette Labelle, Chair of Transparency International. “Low scoring countries need to take these results seriously and act now to strengthen accountability in public institutions. But action from top scoring countries is just as important, particularly in cracking down on corrupt activity in the private sector.”
The 2007 results
The 2007 Corruption Perceptions Index looks at perceptions of public sector corruption in 180 countries and territories - the greatest country coverage of any CPI to date – and is a composite index that draws on 14 expert opinion surveys. It scores countries on a scale from zero to ten, with zero indicating high levels of perceived corruption and ten indicating low levels of perceived corruption.
A strong correlation between corruption and poverty continues to be evident. Forty percent of those scoring below three, indicating that corruption is perceived as rampant, are classified by the World Bank as low income countries. Somalia and Myanmar share the lowest score of 1.4, while Denmark has edged up to share the top score of 9.4 with perennial high-flyers Finland and New Zealand.
Scores are significantly higher in several African countries in the 2007 CPI. These include Namibia, Seychelles, South Africa and Swaziland. These results reflect the positive progress of anti-corruption efforts in Africa and show that genuine political will and reform can lower perceived levels of corruption.
Other countries with a significant improvement include Costa Rica, Croatia, Cuba, Czech Republic, Dominica, Italy, FYR Macedonia, Romania and Suriname. Countries with a significant worsening in perceived levels of corruption in 2007 include Austria, Bahrain, Belize, Bhutan, Jordan, Laos, Macao, Malta, Mauritius, Oman, Papua New Guinea and Thailand.
The concentration of gainers in South East and Eastern Europe testifies to the galvanising effect of the European Union accession process on the fight against corruption.
At the same time, deeply troubled states such as Afghanistan, Iraq, Myanmar, Somalia, and Sudan remain at the very bottom of the index. “Countries torn apart by conflict pay a huge toll in their capacity to govern. With public institutions crippled or non-existent, mercenary individuals help themselves to public resources and corruption thrives,” said Labelle.
http://www.transparency.org/policy_research/surveys_indices/cpi
London/Berlin, 26 September 2007
Persistent corruption in low-income countries requires global action
Concerted efforts needed in rich and poor countries to stem flow of corrupt monies and make justice work for the poorest
The divide in perceived levels of corruption in rich and poor countries remains as sharp as ever, according to the 2007 Corruption Perceptions Index (CPI), released today by Transparency International, the global coalition against corruption. Developed and developing countries must share responsibility for reducing corruption, in tackling both the supply and demand sides.
“Despite some gains, corruption remains an enormous drain on resources sorely needed for education, health and infrastructure,” said Huguette Labelle, Chair of Transparency International. “Low scoring countries need to take these results seriously and act now to strengthen accountability in public institutions. But action from top scoring countries is just as important, particularly in cracking down on corrupt activity in the private sector.”
The 2007 results
The 2007 Corruption Perceptions Index looks at perceptions of public sector corruption in 180 countries and territories - the greatest country coverage of any CPI to date – and is a composite index that draws on 14 expert opinion surveys. It scores countries on a scale from zero to ten, with zero indicating high levels of perceived corruption and ten indicating low levels of perceived corruption.
A strong correlation between corruption and poverty continues to be evident. Forty percent of those scoring below three, indicating that corruption is perceived as rampant, are classified by the World Bank as low income countries. Somalia and Myanmar share the lowest score of 1.4, while Denmark has edged up to share the top score of 9.4 with perennial high-flyers Finland and New Zealand.
Scores are significantly higher in several African countries in the 2007 CPI. These include Namibia, Seychelles, South Africa and Swaziland. These results reflect the positive progress of anti-corruption efforts in Africa and show that genuine political will and reform can lower perceived levels of corruption.
Other countries with a significant improvement include Costa Rica, Croatia, Cuba, Czech Republic, Dominica, Italy, FYR Macedonia, Romania and Suriname. Countries with a significant worsening in perceived levels of corruption in 2007 include Austria, Bahrain, Belize, Bhutan, Jordan, Laos, Macao, Malta, Mauritius, Oman, Papua New Guinea and Thailand.
The concentration of gainers in South East and Eastern Europe testifies to the galvanising effect of the European Union accession process on the fight against corruption.
At the same time, deeply troubled states such as Afghanistan, Iraq, Myanmar, Somalia, and Sudan remain at the very bottom of the index. “Countries torn apart by conflict pay a huge toll in their capacity to govern. With public institutions crippled or non-existent, mercenary individuals help themselves to public resources and corruption thrives,” said Labelle.
China to asphalt key highway bordering Nepal
China to asphalt key highway bordering Nepal
Xinhua , 26-Sep-2007
The asphalting of a section of a key highway in southwest China's Tibet which borders Nepal began on Tuesday.
The 141-km gravel road from Gangga to Nyalam in Tibet will be completely sealed in two years at a cost of 470 million yuan (62.6 million U.S. dollars).
It is expected that vehicle speeds will rise from 20 km per hour to 40 km per hour on the completion of the project.
Asphalting has already begun on a 42-km section from Nyalam to Zhangmu, a key land port in Tibet at a cost of 335 million yuan.
The Chinese section of the China-Nepal Highway, from Lhasa, capital of Tibet, to Zhangmu, will be completely sealed at the end of 2009.
The highway links Lhasa and Katmandu, capital of Nepal.
Xinhua , 26-Sep-2007
The asphalting of a section of a key highway in southwest China's Tibet which borders Nepal began on Tuesday.
The 141-km gravel road from Gangga to Nyalam in Tibet will be completely sealed in two years at a cost of 470 million yuan (62.6 million U.S. dollars).
It is expected that vehicle speeds will rise from 20 km per hour to 40 km per hour on the completion of the project.
Asphalting has already begun on a 42-km section from Nyalam to Zhangmu, a key land port in Tibet at a cost of 335 million yuan.
The Chinese section of the China-Nepal Highway, from Lhasa, capital of Tibet, to Zhangmu, will be completely sealed at the end of 2009.
The highway links Lhasa and Katmandu, capital of Nepal.
POLLS EXPENDITURE MONITORING : Over Rs 628m being spent for poll-related programs
POLLS EXPENDITURE MONITORING : Over Rs 628m being spent for poll-related programs
eKantipur.com, 25-Sep-2007
BY BISHNU BUDHATHOKI
Despite the uncertainty that looms large over Constituent Assembly (CA) elections slated for November 22, Election Commission (EC) and other different non-government organizations are set to spend over Rs 628 million to carry out election-related programs across the country.
According to EC, it plans to mobilize over Rs 370 million to carry out training programs for returning officers, polling officers, assistant polling officers, volunteers to be deployed during the polls and volunteers deployed for voters' education campaign for the CA elections.
Laxman Prasad Bhattarai, spokesperson at the EC said Nepal Peace Trust Fund (NPTF) under the Ministry of Peace and Reconstruction has already released Rs 120 million to conduct voters' education campaign across the country by mobilizing over 8,400 volunteers.
Similarly, EC has allocated Rs 32.65 million for media campaign -- Rs 1.28 million for production and Rs 2.78 million for NTV, Rs 2.11 million for KTV, Rs 699,000 for Image TV, Rs 400,000 for Channel Nepal. Also included in this headline are Rs 820,000 for production, Rs 3.46 million for airing from Radio Nepal, Rs 2.42 million for Kathmandu based FM stations, Rs 20,000 for each of the FM stations outside the valley and Rs 240,000 for each broadsheet daily and Rs 50,000 for each weekly under A category.
Meanwhile, 24 non-government organizations have already received approval from the Social Welfare Council (SWC) to mobilize Rs 162.11 million received from different foreign donors to launch media and voters' awareness campaign across the country.
According to a report received from SWC, National Coalition Against Racial Discrimination, Kathmandu led by Sumitra Manandhar Gurung has received Rs 29.18 million from a donor to launch a program to ensure
excluded communities' representation in the constitution building and democratization process in 25 districts.
Similarly, Piyush Raj Mishra of CEAPREAD, Lalitpur has received Rs 25.28 million from USAID to launch training programs for the farming community.
Anjan Kumar Dahal of Center for Legal Research and Resource Development, Kathmandu has received approval from SWC to mobilize Rs 18.29 million in 16 districts in the eastern region for voters' awareness campaign.
Similarly, Pro-Public, Kathmandu, has got Rs 18.29 million from Rights Democracy and Inclusive Fund (RDIF) through the Asia Foundation to launch civic education program in 24 districts in mid and far western region.
Prakash Mani Sharma of Pro-Public said that 27 local NGOs have been mobilizing 1,875 volunteers in these districts for the purpose whereas Pro-Public will deploy 600 persons.
"We have already provided civic education to 74,000 people in these districts," Sharma said, further adding, "We will organize 2,400 meetings - 1,200 meetings for civic education and 1,200 meetings for voters' education."
Likewise, Ghanashyam Pande of Federation of Community Forestry Users, Nepal, has received Rs 17.50 million from a donor for women's participation in community forest and constituent assembly from 25 districts.
Similarly, National Election Monitoring Alliance (NEMA), a joint forum of 14 different professional and non-government organizations, has received over Rs 64 million from DFID to monitor the upcoming CA polls.
According to NEMA's Pradip Gihimire, 14 partner organizations of NEMA will mobilize at least one observer in all 20,883 polling booths across the country on November 22.
Similarly, National Election Observation Committee (NEOC) led by former Chief Election Commissioner Surya Prasad Shrestha has received Rs 320 million from Danish, Canadian and Norwegian Embassies jointly to monitor the CA poll. According to Netra Timilsena of NGO-Federation, different partner organizations will coordinate and mobilize monitors during the election.
Likewise, General Election Observation Committee (GEOC) Nepal led by Himalaya Shumsher Rana has planned to coordinate with seven non-government organizations including Nepal Press Institute, Election Observation Institute, Nepal Law
Society and mobilize around 900 observers in 20 municipalities, 700 VDCs and 70 constituencies of 35 districts.
According to GEOC's Bikash Ghimire, the committee has submitted a proposal at European Union seeking financial support for the purpose.
Other organizations which have received more than Rs 5 million included National Indigenous Women's Federation (Rs7.9 million), Jagaran Media Center (Rs 7.2 million), National Peace Campaign (Rs 5.2 million) and Sancharika Samuha Nepal (Rs 5.6 million).
eKantipur.com, 25-Sep-2007
BY BISHNU BUDHATHOKI
Despite the uncertainty that looms large over Constituent Assembly (CA) elections slated for November 22, Election Commission (EC) and other different non-government organizations are set to spend over Rs 628 million to carry out election-related programs across the country.
According to EC, it plans to mobilize over Rs 370 million to carry out training programs for returning officers, polling officers, assistant polling officers, volunteers to be deployed during the polls and volunteers deployed for voters' education campaign for the CA elections.
Laxman Prasad Bhattarai, spokesperson at the EC said Nepal Peace Trust Fund (NPTF) under the Ministry of Peace and Reconstruction has already released Rs 120 million to conduct voters' education campaign across the country by mobilizing over 8,400 volunteers.
Similarly, EC has allocated Rs 32.65 million for media campaign -- Rs 1.28 million for production and Rs 2.78 million for NTV, Rs 2.11 million for KTV, Rs 699,000 for Image TV, Rs 400,000 for Channel Nepal. Also included in this headline are Rs 820,000 for production, Rs 3.46 million for airing from Radio Nepal, Rs 2.42 million for Kathmandu based FM stations, Rs 20,000 for each of the FM stations outside the valley and Rs 240,000 for each broadsheet daily and Rs 50,000 for each weekly under A category.
Meanwhile, 24 non-government organizations have already received approval from the Social Welfare Council (SWC) to mobilize Rs 162.11 million received from different foreign donors to launch media and voters' awareness campaign across the country.
According to a report received from SWC, National Coalition Against Racial Discrimination, Kathmandu led by Sumitra Manandhar Gurung has received Rs 29.18 million from a donor to launch a program to ensure
excluded communities' representation in the constitution building and democratization process in 25 districts.
Similarly, Piyush Raj Mishra of CEAPREAD, Lalitpur has received Rs 25.28 million from USAID to launch training programs for the farming community.
Anjan Kumar Dahal of Center for Legal Research and Resource Development, Kathmandu has received approval from SWC to mobilize Rs 18.29 million in 16 districts in the eastern region for voters' awareness campaign.
Similarly, Pro-Public, Kathmandu, has got Rs 18.29 million from Rights Democracy and Inclusive Fund (RDIF) through the Asia Foundation to launch civic education program in 24 districts in mid and far western region.
Prakash Mani Sharma of Pro-Public said that 27 local NGOs have been mobilizing 1,875 volunteers in these districts for the purpose whereas Pro-Public will deploy 600 persons.
"We have already provided civic education to 74,000 people in these districts," Sharma said, further adding, "We will organize 2,400 meetings - 1,200 meetings for civic education and 1,200 meetings for voters' education."
Likewise, Ghanashyam Pande of Federation of Community Forestry Users, Nepal, has received Rs 17.50 million from a donor for women's participation in community forest and constituent assembly from 25 districts.
Similarly, National Election Monitoring Alliance (NEMA), a joint forum of 14 different professional and non-government organizations, has received over Rs 64 million from DFID to monitor the upcoming CA polls.
According to NEMA's Pradip Gihimire, 14 partner organizations of NEMA will mobilize at least one observer in all 20,883 polling booths across the country on November 22.
Similarly, National Election Observation Committee (NEOC) led by former Chief Election Commissioner Surya Prasad Shrestha has received Rs 320 million from Danish, Canadian and Norwegian Embassies jointly to monitor the CA poll. According to Netra Timilsena of NGO-Federation, different partner organizations will coordinate and mobilize monitors during the election.
Likewise, General Election Observation Committee (GEOC) Nepal led by Himalaya Shumsher Rana has planned to coordinate with seven non-government organizations including Nepal Press Institute, Election Observation Institute, Nepal Law
Society and mobilize around 900 observers in 20 municipalities, 700 VDCs and 70 constituencies of 35 districts.
According to GEOC's Bikash Ghimire, the committee has submitted a proposal at European Union seeking financial support for the purpose.
Other organizations which have received more than Rs 5 million included National Indigenous Women's Federation (Rs7.9 million), Jagaran Media Center (Rs 7.2 million), National Peace Campaign (Rs 5.2 million) and Sancharika Samuha Nepal (Rs 5.6 million).
Govt to study feasibility of Morang-Sunsari SEZ
Govt to study feasibility of Morang-Sunsari SEZ
eKantipur.com, 25-Sep-2007
The government has announced that it is soon initiating a study towards declaring the Morang-Sunsari industrial corridor a Special Economic Zone (SEZ).
The Ministry of Industry, Commerce and Supplies (MoICS), in writing, informed the Morang Trade Association about the new initiatives on Monday, saying it was aimed at fulfilling the demand that the entrepreneurs of the region have been placing for a long time.
Initially the government, through the budget speech for 2007/08, announced of establishing SEZs in Birgunj, Panchkhal and Nuwakot only. However, the announcement drew flak from the entrepreneurs of the region, who have long been demanding that the corridor be declared an SEZ and the industries in the area be pledged with facilities enjoyed by other SEZs.
Holding a series of meetings with the Finance Minister, Commerce Minister and even the Prime Minister, they demanded the government to include the Morang-Sunsari corridor in the SEZ list. They have even warned the government of launching an industrial shutdown if the government did not fulfill their demand.
“The government will begin the feasibility study of the corridor first. On the basis of its findings only will the government proceed towards announcing the corridor as an SEZ,” says the letter undersigned by Padam Prasad Pandey, section officer at the planning division of MoICS.
Entrepreneurs, meanwhile, have lauded the initiative. “It is a positive start,” said Avinash Bohara, general secretary of the association, adding that the government should move ahead with its plan immediately.
However, another segment of entrepreneurs are skeptic over a positive outcome. They argued that the announcement of conducting a study of corridor smells foul because the government already has a pretty good idea about the industrial set-up and status of the corridor.
Conversion of the corridor into an SEZ would entitle entrepreneurs with facilities such as exemption on customs duty, income tax, value added tax and local development tax, among others.
It will also guarantee that the industries in the zone would not be nationalized. Investors would also enjoy lower land-lease fees and duty free import of up to three vehicles for industrial operations, among others.
Most importantly, it would ensure absence of labor stir, as the SEZ Act of the country restricts workers in the Zone from launching strikes that disturb manufacturing and normal operations of the industries. The government has also committed to provide a one-stop service on tax clearance, banking services, visa renewal and other import-export procedures from within the SEZ.
eKantipur.com, 25-Sep-2007
The government has announced that it is soon initiating a study towards declaring the Morang-Sunsari industrial corridor a Special Economic Zone (SEZ).
The Ministry of Industry, Commerce and Supplies (MoICS), in writing, informed the Morang Trade Association about the new initiatives on Monday, saying it was aimed at fulfilling the demand that the entrepreneurs of the region have been placing for a long time.
Initially the government, through the budget speech for 2007/08, announced of establishing SEZs in Birgunj, Panchkhal and Nuwakot only. However, the announcement drew flak from the entrepreneurs of the region, who have long been demanding that the corridor be declared an SEZ and the industries in the area be pledged with facilities enjoyed by other SEZs.
Holding a series of meetings with the Finance Minister, Commerce Minister and even the Prime Minister, they demanded the government to include the Morang-Sunsari corridor in the SEZ list. They have even warned the government of launching an industrial shutdown if the government did not fulfill their demand.
“The government will begin the feasibility study of the corridor first. On the basis of its findings only will the government proceed towards announcing the corridor as an SEZ,” says the letter undersigned by Padam Prasad Pandey, section officer at the planning division of MoICS.
Entrepreneurs, meanwhile, have lauded the initiative. “It is a positive start,” said Avinash Bohara, general secretary of the association, adding that the government should move ahead with its plan immediately.
However, another segment of entrepreneurs are skeptic over a positive outcome. They argued that the announcement of conducting a study of corridor smells foul because the government already has a pretty good idea about the industrial set-up and status of the corridor.
Conversion of the corridor into an SEZ would entitle entrepreneurs with facilities such as exemption on customs duty, income tax, value added tax and local development tax, among others.
It will also guarantee that the industries in the zone would not be nationalized. Investors would also enjoy lower land-lease fees and duty free import of up to three vehicles for industrial operations, among others.
Most importantly, it would ensure absence of labor stir, as the SEZ Act of the country restricts workers in the Zone from launching strikes that disturb manufacturing and normal operations of the industries. The government has also committed to provide a one-stop service on tax clearance, banking services, visa renewal and other import-export procedures from within the SEZ.
Tuesday, September 25, 2007
Indonesian Proposal: Pay Us Not to Chop Down Our Trees
Indonesian Proposal: Pay Us Not to Chop Down Our Trees
Papua Governor Touts Carbon-Credit Fund; Developers Put on Hold
Wall Street Journal, 10-Aug-2007
By TOM WRIGHT
Barnabas Suebu, the governor of this remote and wild province, recalls flying over parts of Indonesia a decade ago and being appalled by what he saw below. A major island in the archipelago, once home to massive virgin rain forests, had been stripped bare for development and plantations.
"I felt so sad," Mr. Suebu said. "This kind of damage must be avoided in Papua."
PAPUA'S PLEA
Until recently, similar destruction in Papua seemed inevitable. The Indonesian government has long wanted to hack through its rain forest to make way for agricultural development. In the past year, Chinese and Indonesian companies have unveiled plans to spend billions of dollars on huge palm-oil plantations, hoping to feed demand for biodiesel. Papua appeared on the verge of its first-ever investment rush.
In an interview in Papua's capital, Jayapura, Mr. Suebu, 61 years old, acknowledged that his impoverished province needs the economic boost development might bring. But rather than allow Papua to follow the same course as many other Indonesian islands, Mr. Suebu is trying to chart a new direction. In effect, he wants Papua to be paid not to cut down its rain forest.
His proposal: Have Papua become an active player in the world's emerging carbon markets -- a series of exchanges that let investors and companies buy and sell the right to pollute. By setting aside a portion of the earmarked land for conservation, he believes Papua could attract companies who wish to gain carbon "credits." These valuable commodities, traded on various types of exchanges, allow investors to offset their carbon-dioxide emissions elsewhere. Credits on the European Union's trading system are currently worth about $27 per ton of carbon dioxide.
The plan for Papua came to the governor's attention by way of Dorjee Sun, a 30-year-old Australian who became a millionaire developing Internet software. Under Mr. Sun's model for Papua, European and U.S. investors would put money into an offshore carbon fund. The money would then flow to local governments if they keep their promises not to cut forest land. In return, investors stand to receive credits based on how much carbon dioxide would have been emitted if the forests were burned. Compliance would be monitored via satellite technology.
If successful, the Papua approach could help influence anti-global warming efforts in Indonesia and elsewhere.
"We need to show Papua that there is an alternative to plantations," said Mr. Sun on a recent visit to the island. "This is the last frontier."
Rain forests play a key role in maintaining the world's environmental balance. Trees and plants soak up carbon dioxide through photosynthesis. Ancient forests store more than new plantations. Protecting them also means reducing one of the chief causes of harmful carbon-dioxide emissions: fires set to clear the forests for other agricultural purposes.
According to the World Bank, roughly 22 million acres of rain forests are lost globally each year when they are cleared by fire for alternate use. These fires account for about 20% of the world's carbon-dioxide emissions -- more than the total from all vehicles, airplanes and ships. Such fires make Indonesia the third-largest emitter of carbon dioxide after the U.S. and China -- even though it has the world's 22nd-largest economy.
Curbing forest destruction is gaining more attention as a strategy to combat global warming. The Kyoto protocol, the global treaty intended to cap emissions, allows companies to earn the right to pollute by funding emission-reducing projects in developing nations. Credits to pollute are traded around the world. Major buyers include heavy-emitting companies in Europe and Japan, which are subject to Kyoto-related emission caps.
Currently, the treaty allows companies to generate credits by planting new trees. But it doesn't cover efforts to preserve existing trees -- the sort of plan now being pursued in Papua. Even so, most of the Kyoto-sanctioned projects have focused on cutting pollution from industry; only one has involved planting trees.
But now, as diplomats begin debating a new international agreement to succeed the Kyoto Protocol when it expires in 2012, there's increasing talk of changing the rules to allow tree-preservation -- also dubbed "avoided deforestation" -- to produce emission credits that can be bought and sold.
Messrs. Sun and Suebu concede that their project is unlikely to interest companies that must meet official emissions-reduction targets under the current Kyoto treaty. But they believe change is afoot.
In December, the United Nations' Climate Change Conference will meet on the Indonesian island of Bali to discuss whether to include "avoided deforestation" projects in the successor treaty to Kyoto. At the meeting, the World Bank will detail its plan to spend $250 million over the next year in a pilot program to reward nations that protect their forests.
Even if Kyoto standards remain ironclad, Messrs. Sun and Suebu see potential.
They suspect that the Papua fund will also appeal to investors who want to get in on the growing number of unregulated, ad-hoc markets dedicated to the voluntary trade of carbon credits. These markets, including the Chicago Climate Exchange, sell different types of credits to companies that want to offset their carbon emissions -- sometimes going so far as to be "carbon neutral" -- for public-relations reasons. Some of these companies are in countries that have ratified Kyoto and want to go beyond what the treaty requires. Others are in countries that haven't ratified Kyoto, like the U.S., and want to voluntarily invest in avoided-deforestation credits.
"In my mind, we have to save the forests of Papua and make money from that," said Mr. Suebu.
Still in the planning stages, the Papua project faces other hurdles -- starting with jurisdictional issues over who controls the land in question. Indonesia's powerful Forestry Ministry says it has the power to determine the fate of Papua's forests, a claim Mr. Suebu strenuously disputes.
And Messrs. Sun and Suebu have yet to calculate how much, financially, Papua would benefit from the project. Specific figures won't be determined until more scientific analysis is performed on the land and its carbon stash.
Many global warming experts say paying governments to protect forests needs to become part of the arsenal to stop climate change. Papua's plan could offer an attractive alternative for countries such as Brazil and the Democratic Republic of Congo that have huge tropical rain forests but need substantial investment.
Mr. Suebu has proposed to protect more than half of the Papua land targeted for development to see if such a plan can work. In the meantime, he has applied heavy brakes to the plantation companies' expansion aims, so far refusing to grant them permission to proceed with their planned developments.
The plantation companies in Papua aren't giving up, however. The only four-star hotel in Jayapura is swarming with Malaysian and Indonesian plantation executives hoping for an audience in the governor's mansion. The companies are proffering large investments in roads and ports and the creation of local jobs -- attractive incentives to the province's 2.5 million residents. Many people here still hunt wild animals for food and 40% live on less than $14 a month, according to the World Bank.
The companies may yet persuade Mr. Suebu to free up huge tracts for development, especially if Mr. Sun's plan fails to get off the ground. Even if the plan does take off, Mr. Suebu may decide to allow a mix of plantations and preservation to reap the maximum economic benefit.
Papua is the size of California and takes up the western half of the giant island of New Guinea. (The other half is the separate country of Papua New Guinea.) Indonesian Papua is almost entirely covered by vast stretches of virgin rain forests. Its central mountain range is capped by glaciers. The only large development in the province is a copper and gold mine owned by Phoenix-based Freeport-McMoran Copper & Gold Inc.
Mr. Suebu, a large man quick to break into a broad smile, was born on a small island on a lake near Jayapura. After law school, he founded a business conducting surveys for public-works projects. He became a member of the political party of Indonesia's former president and strong man, Suharto. In 1988, he was appointed Papua's governor.
After Mr. Suharto's fall in 1998, Mr. Suebu moved to Jakarta as an advisor to the president's successor, B.J. Habibie. Shortly after, Mr. Suebu was appointed Indonesia's ambassador to Mexico, where he learned how nations such as Costa Rica were earning money from protecting forests. A decade ago, Costa Rica was a pioneer of so-called debt-for-nature swaps in which developed countries wrote off loans made to the republic in return for specific forest conservation measures. "I thought, 'This is great' because here you protect the forest but money still comes in," Mr. Suebu said.
He returned to Indonesia in 2002, becoming an adviser to the World Bank. In July 2006, he was elected governor, the first time the post had been filled by popular vote.
On taking office, Mr. Suebu pledged the local government would make decisions about Papua's forests -- not the central government in Jakarta.
The governor's powers had changed dramatically from his earlier stint in the job. A 2001 law granted a large degree of autonomy to Papua, including greater say over how forests and other natural resources are parceled out to investors. It also gave the provincial government 80% of the revenues from natural-resource-based industries such as mining and forestry -- a gusher of cash that has allowed Mr. Suebu to hand out $10,000 to every village in the province.
But a few weeks into his tenure, Mr. Suebu says he was called to Jakarta by Indonesian President Susilo Bambang Yudhoyono. Mr. Yudhoyono explained how the government hoped to attract billions of dollars in investment and create 3.5 million jobs in the country from developing plantations of oil palms, cassava and sugar cane -- the raw material for biofuels.
The Forestry Ministry, which argues it still has the final authority over Papua's forests, had in 1999 earmarked land roughly the size of Portugal for agriculture. The president asked Mr. Suebu to immediately open up five million acres of that land for conversion to plantations. Plantation companies from Indonesia to Malaysia were running out of space elsewhere in the country and wanted to expand to the island.
Mr. Suebu balked. In the past, he says, small-scale palm-oil ventures in Papua have cut down and exported valuable tropical hardwood but, in many cases, failed to develop plantations on the cleared land. In other cases, workers on the plantations were brought in from Indonesia's main island of Java, sparking social conflict with locals.
Papua's forests in the past several years also have become a rallying point for environmentalists as Indonesia's other virgin forests disappear. The country has the world's fastest rate of deforestation, losing an area the size of Belgium annually. In provinces such as Kalimantan and Sumatra, the U.N. estimates that lowland forests will be wiped out by 2022, putting the survival of species like orangutans and elephants at risk. Mr. Suebu didn't want Papua to be next. "We're not doing that," he said he told the president.
But the pressure on him only increased. The government of Malaysia, the world's largest palm-oil producer, invited Mr. Suebu to see for himself how plantations can spur economic growth. Then, in January, Indonesia's central government said it had signed preliminary deals to develop biofuel projects worth a combined $12.4 billion.
China National Offshore Oil Corp. and its Indonesian partner, PT Sinar Mas Agro Resources & Technology, announced they had agreed with Jakarta to invest $5 billion over eight years to develop palm-oil plantations in Papua.
"It's a matter of communicating the benefits to these people," said Rafael Concepcion, executive director of investor relations at Sinar Mas Agro, in an interview. Of the Papuans, he added: "I think they are tired...They live like nomads."
That same month, Mr. Sun, the carbon-trading proponent, made his first trip to Indonesia from Australia to discuss how to counter the threat from plantations.
In Indonesia, Mr. Sun met LeRoy Hollenbeck, an American adviser to the governor of Aceh, an Indonesian province at the other end of the country from Papua. The governor, Irwandi Yusuf, was looking for ways to make money by protecting forests. Mr. Sun offered to use his business expertise to raise money for a carbon fund that would pay for preservation. Mr. Hollenbeck, who had known Mr. Suebu since the 1980s, approached Papua's governor to see if he would be interested in joining the effort. Mr. Suebu said yes.
In April, the two governors held a summit in Bali, backed by the World Bank. In a formal declaration, they offered to stop forest destruction, and called on the global community to step up with financing. Mr. Suebu agreed to protect three million acres for carbon trading from the land Jakarta wants to convert to agriculture. That could rise to 12 million acres if the initial carbon-trading plan is successful, he said.
Soon after the Bali declaration, Mr. Sun bought a controlling stake in the Carbon Pool Pty. Ltd., a small Australian company that in 2006 did one of the world's first avoided-deforestation trades. In that project, Carbon Pool bought out farmers' rights over 30,000 acres in Queensland, in the northeast of Australia, and sold the resulting carbon credits to Anglo-Australian mining company Rio Tinto Ltd. The terms of the deal were not disclosed.
Mr. Sun hopes to get Rio Tinto to invest in his new venture for Papua and Aceh. Rick Humphries, head of climate-change strategy for Rio Tinto's aluminum division in Brisbane, says the company is "keen to look at other opportunities" in forest-protection projects, but didn't specifically comment on Papua.
In July, Mr. Sun traveled for the first time to Papua for a meeting with Mr. Suebu in which they discussed strategies for selling the Papua fund. Mr. Sun then flew directly to the U.S. to hold preliminary meetings with investors, including hedge funds, companies and rich individuals, he says. He declines to release a tally of the fund-raising efforts.
Papua Governor Touts Carbon-Credit Fund; Developers Put on Hold
Wall Street Journal, 10-Aug-2007
By TOM WRIGHT
Barnabas Suebu, the governor of this remote and wild province, recalls flying over parts of Indonesia a decade ago and being appalled by what he saw below. A major island in the archipelago, once home to massive virgin rain forests, had been stripped bare for development and plantations.
"I felt so sad," Mr. Suebu said. "This kind of damage must be avoided in Papua."
PAPUA'S PLEA
Until recently, similar destruction in Papua seemed inevitable. The Indonesian government has long wanted to hack through its rain forest to make way for agricultural development. In the past year, Chinese and Indonesian companies have unveiled plans to spend billions of dollars on huge palm-oil plantations, hoping to feed demand for biodiesel. Papua appeared on the verge of its first-ever investment rush.
In an interview in Papua's capital, Jayapura, Mr. Suebu, 61 years old, acknowledged that his impoverished province needs the economic boost development might bring. But rather than allow Papua to follow the same course as many other Indonesian islands, Mr. Suebu is trying to chart a new direction. In effect, he wants Papua to be paid not to cut down its rain forest.
His proposal: Have Papua become an active player in the world's emerging carbon markets -- a series of exchanges that let investors and companies buy and sell the right to pollute. By setting aside a portion of the earmarked land for conservation, he believes Papua could attract companies who wish to gain carbon "credits." These valuable commodities, traded on various types of exchanges, allow investors to offset their carbon-dioxide emissions elsewhere. Credits on the European Union's trading system are currently worth about $27 per ton of carbon dioxide.
The plan for Papua came to the governor's attention by way of Dorjee Sun, a 30-year-old Australian who became a millionaire developing Internet software. Under Mr. Sun's model for Papua, European and U.S. investors would put money into an offshore carbon fund. The money would then flow to local governments if they keep their promises not to cut forest land. In return, investors stand to receive credits based on how much carbon dioxide would have been emitted if the forests were burned. Compliance would be monitored via satellite technology.
If successful, the Papua approach could help influence anti-global warming efforts in Indonesia and elsewhere.
"We need to show Papua that there is an alternative to plantations," said Mr. Sun on a recent visit to the island. "This is the last frontier."
Rain forests play a key role in maintaining the world's environmental balance. Trees and plants soak up carbon dioxide through photosynthesis. Ancient forests store more than new plantations. Protecting them also means reducing one of the chief causes of harmful carbon-dioxide emissions: fires set to clear the forests for other agricultural purposes.
According to the World Bank, roughly 22 million acres of rain forests are lost globally each year when they are cleared by fire for alternate use. These fires account for about 20% of the world's carbon-dioxide emissions -- more than the total from all vehicles, airplanes and ships. Such fires make Indonesia the third-largest emitter of carbon dioxide after the U.S. and China -- even though it has the world's 22nd-largest economy.
Curbing forest destruction is gaining more attention as a strategy to combat global warming. The Kyoto protocol, the global treaty intended to cap emissions, allows companies to earn the right to pollute by funding emission-reducing projects in developing nations. Credits to pollute are traded around the world. Major buyers include heavy-emitting companies in Europe and Japan, which are subject to Kyoto-related emission caps.
Currently, the treaty allows companies to generate credits by planting new trees. But it doesn't cover efforts to preserve existing trees -- the sort of plan now being pursued in Papua. Even so, most of the Kyoto-sanctioned projects have focused on cutting pollution from industry; only one has involved planting trees.
But now, as diplomats begin debating a new international agreement to succeed the Kyoto Protocol when it expires in 2012, there's increasing talk of changing the rules to allow tree-preservation -- also dubbed "avoided deforestation" -- to produce emission credits that can be bought and sold.
Messrs. Sun and Suebu concede that their project is unlikely to interest companies that must meet official emissions-reduction targets under the current Kyoto treaty. But they believe change is afoot.
In December, the United Nations' Climate Change Conference will meet on the Indonesian island of Bali to discuss whether to include "avoided deforestation" projects in the successor treaty to Kyoto. At the meeting, the World Bank will detail its plan to spend $250 million over the next year in a pilot program to reward nations that protect their forests.
Even if Kyoto standards remain ironclad, Messrs. Sun and Suebu see potential.
They suspect that the Papua fund will also appeal to investors who want to get in on the growing number of unregulated, ad-hoc markets dedicated to the voluntary trade of carbon credits. These markets, including the Chicago Climate Exchange, sell different types of credits to companies that want to offset their carbon emissions -- sometimes going so far as to be "carbon neutral" -- for public-relations reasons. Some of these companies are in countries that have ratified Kyoto and want to go beyond what the treaty requires. Others are in countries that haven't ratified Kyoto, like the U.S., and want to voluntarily invest in avoided-deforestation credits.
"In my mind, we have to save the forests of Papua and make money from that," said Mr. Suebu.
Still in the planning stages, the Papua project faces other hurdles -- starting with jurisdictional issues over who controls the land in question. Indonesia's powerful Forestry Ministry says it has the power to determine the fate of Papua's forests, a claim Mr. Suebu strenuously disputes.
And Messrs. Sun and Suebu have yet to calculate how much, financially, Papua would benefit from the project. Specific figures won't be determined until more scientific analysis is performed on the land and its carbon stash.
Many global warming experts say paying governments to protect forests needs to become part of the arsenal to stop climate change. Papua's plan could offer an attractive alternative for countries such as Brazil and the Democratic Republic of Congo that have huge tropical rain forests but need substantial investment.
Mr. Suebu has proposed to protect more than half of the Papua land targeted for development to see if such a plan can work. In the meantime, he has applied heavy brakes to the plantation companies' expansion aims, so far refusing to grant them permission to proceed with their planned developments.
The plantation companies in Papua aren't giving up, however. The only four-star hotel in Jayapura is swarming with Malaysian and Indonesian plantation executives hoping for an audience in the governor's mansion. The companies are proffering large investments in roads and ports and the creation of local jobs -- attractive incentives to the province's 2.5 million residents. Many people here still hunt wild animals for food and 40% live on less than $14 a month, according to the World Bank.
The companies may yet persuade Mr. Suebu to free up huge tracts for development, especially if Mr. Sun's plan fails to get off the ground. Even if the plan does take off, Mr. Suebu may decide to allow a mix of plantations and preservation to reap the maximum economic benefit.
Papua is the size of California and takes up the western half of the giant island of New Guinea. (The other half is the separate country of Papua New Guinea.) Indonesian Papua is almost entirely covered by vast stretches of virgin rain forests. Its central mountain range is capped by glaciers. The only large development in the province is a copper and gold mine owned by Phoenix-based Freeport-McMoran Copper & Gold Inc.
Mr. Suebu, a large man quick to break into a broad smile, was born on a small island on a lake near Jayapura. After law school, he founded a business conducting surveys for public-works projects. He became a member of the political party of Indonesia's former president and strong man, Suharto. In 1988, he was appointed Papua's governor.
After Mr. Suharto's fall in 1998, Mr. Suebu moved to Jakarta as an advisor to the president's successor, B.J. Habibie. Shortly after, Mr. Suebu was appointed Indonesia's ambassador to Mexico, where he learned how nations such as Costa Rica were earning money from protecting forests. A decade ago, Costa Rica was a pioneer of so-called debt-for-nature swaps in which developed countries wrote off loans made to the republic in return for specific forest conservation measures. "I thought, 'This is great' because here you protect the forest but money still comes in," Mr. Suebu said.
He returned to Indonesia in 2002, becoming an adviser to the World Bank. In July 2006, he was elected governor, the first time the post had been filled by popular vote.
On taking office, Mr. Suebu pledged the local government would make decisions about Papua's forests -- not the central government in Jakarta.
The governor's powers had changed dramatically from his earlier stint in the job. A 2001 law granted a large degree of autonomy to Papua, including greater say over how forests and other natural resources are parceled out to investors. It also gave the provincial government 80% of the revenues from natural-resource-based industries such as mining and forestry -- a gusher of cash that has allowed Mr. Suebu to hand out $10,000 to every village in the province.
But a few weeks into his tenure, Mr. Suebu says he was called to Jakarta by Indonesian President Susilo Bambang Yudhoyono. Mr. Yudhoyono explained how the government hoped to attract billions of dollars in investment and create 3.5 million jobs in the country from developing plantations of oil palms, cassava and sugar cane -- the raw material for biofuels.
The Forestry Ministry, which argues it still has the final authority over Papua's forests, had in 1999 earmarked land roughly the size of Portugal for agriculture. The president asked Mr. Suebu to immediately open up five million acres of that land for conversion to plantations. Plantation companies from Indonesia to Malaysia were running out of space elsewhere in the country and wanted to expand to the island.
Mr. Suebu balked. In the past, he says, small-scale palm-oil ventures in Papua have cut down and exported valuable tropical hardwood but, in many cases, failed to develop plantations on the cleared land. In other cases, workers on the plantations were brought in from Indonesia's main island of Java, sparking social conflict with locals.
Papua's forests in the past several years also have become a rallying point for environmentalists as Indonesia's other virgin forests disappear. The country has the world's fastest rate of deforestation, losing an area the size of Belgium annually. In provinces such as Kalimantan and Sumatra, the U.N. estimates that lowland forests will be wiped out by 2022, putting the survival of species like orangutans and elephants at risk. Mr. Suebu didn't want Papua to be next. "We're not doing that," he said he told the president.
But the pressure on him only increased. The government of Malaysia, the world's largest palm-oil producer, invited Mr. Suebu to see for himself how plantations can spur economic growth. Then, in January, Indonesia's central government said it had signed preliminary deals to develop biofuel projects worth a combined $12.4 billion.
China National Offshore Oil Corp. and its Indonesian partner, PT Sinar Mas Agro Resources & Technology, announced they had agreed with Jakarta to invest $5 billion over eight years to develop palm-oil plantations in Papua.
"It's a matter of communicating the benefits to these people," said Rafael Concepcion, executive director of investor relations at Sinar Mas Agro, in an interview. Of the Papuans, he added: "I think they are tired...They live like nomads."
That same month, Mr. Sun, the carbon-trading proponent, made his first trip to Indonesia from Australia to discuss how to counter the threat from plantations.
In Indonesia, Mr. Sun met LeRoy Hollenbeck, an American adviser to the governor of Aceh, an Indonesian province at the other end of the country from Papua. The governor, Irwandi Yusuf, was looking for ways to make money by protecting forests. Mr. Sun offered to use his business expertise to raise money for a carbon fund that would pay for preservation. Mr. Hollenbeck, who had known Mr. Suebu since the 1980s, approached Papua's governor to see if he would be interested in joining the effort. Mr. Suebu said yes.
In April, the two governors held a summit in Bali, backed by the World Bank. In a formal declaration, they offered to stop forest destruction, and called on the global community to step up with financing. Mr. Suebu agreed to protect three million acres for carbon trading from the land Jakarta wants to convert to agriculture. That could rise to 12 million acres if the initial carbon-trading plan is successful, he said.
Soon after the Bali declaration, Mr. Sun bought a controlling stake in the Carbon Pool Pty. Ltd., a small Australian company that in 2006 did one of the world's first avoided-deforestation trades. In that project, Carbon Pool bought out farmers' rights over 30,000 acres in Queensland, in the northeast of Australia, and sold the resulting carbon credits to Anglo-Australian mining company Rio Tinto Ltd. The terms of the deal were not disclosed.
Mr. Sun hopes to get Rio Tinto to invest in his new venture for Papua and Aceh. Rick Humphries, head of climate-change strategy for Rio Tinto's aluminum division in Brisbane, says the company is "keen to look at other opportunities" in forest-protection projects, but didn't specifically comment on Papua.
In July, Mr. Sun traveled for the first time to Papua for a meeting with Mr. Suebu in which they discussed strategies for selling the Papua fund. Mr. Sun then flew directly to the U.S. to hold preliminary meetings with investors, including hedge funds, companies and rich individuals, he says. He declines to release a tally of the fund-raising efforts.
World Bank Nears Rate Reduction Move Is Part of Compromise Navigated by Zoellick To Assist Poorest Nations
World Bank Nears Rate Reduction Move Is Part of Compromise Navigated by Zoellick To Assist Poorest Nations
Wall Street Journal, 25-Sep-2007
By BOB DAVIS
For the first time in nearly a decade, the World Bank is poised to make significant cuts in the interest rates it charges China, Brazil, Mexico and other big developing countries as part of a deal to boost aid for the world's poorest nations.
According to bank officials, as part of the compromise, the World Bank will contribute as much as $3.5 billion to the International Development Association, a World Bank unit that provides grants and no-interest loans to the world's 80 poorest nations.
The deal has been negotiated over the past few months and shows the difficulty in bridging longstanding fissures in the World Bank among impoverished countries, rich countries and those in the middle such as China and Brazil, all of which are the bank's shareholders. The compromise was pushed hard by the World Bank's new president, Robert Zoellick, who has emerged as a pragmatic horse trader, unsympathetic to conservative critics who say the bank should cut off lending to countries that can borrow easily on private markets.
"He believes in linking up poor countries, rich countries and middle-income countries as way of [producing] a more inclusive form of globalization," said a senior World Bank official. Bank officials wouldn't be identified speaking on the subject because the compromise is still being refined and must be approved by the bank's board, which is expected to meet again on the issue later this week. The bank is pushing for a final deal in time for its annual meeting here Oct. 19.
The World Bank largely finances itself by borrowing on world markets at very favorable rates because it is backed by the world's governments, and then lending that money at a higher rate to developing countries. But the IDA unit is traditionally funded by contributions from governments since it goes to countries too poor to pay money back with interest.
Every three years, the World Bank raises new funds for IDA. The $3.5 billion World Bank contribution to IDA is meant to encourage rich countries to boost their commitments, too. It is now looking for donors to commit between $25 billion and $30 billion for the three years ending June 30, 2011, compared with about $18 billion for the three preceding years, to cover a big increase in debt relief and pay for development projects.
Following the 1997-98 Asian financial crisis, the World Bank increased the interest rates on loans to middle-income countries -- such as China, Mexico and Brazil -- by about 0.25 percentage point. Even though the global economy recovered, it hasn't reduced the rate, aside from occasional waivers. Currently, middle-income countries pay rates of about 0.3 percentage point above the London interbank offered rate, or Libor, at which banks lend to each other.
For years, middle-income countries complained that the rates should be lowered, but they were stymied in the bank's governing executive board by wealthy nations such as the U.S., which didn't want the World Bank competing with private markets. The world's poorest nations also opposed a rate reduction, fearing that it would give a leg up on their somewhat-wealthier competitors.
But now a breakthrough is in the works, with Mr. Zoellick revamping proposals by France, the U.S. and other wealthy nations, according to bank officials. In exchange for lowering interest rates to pre-Asian-crisis levels, Mr. Zoellick pressed Brazil, Mexico, China and other middle-income countries to support a substantial contribution to IDA by the International Finance Corp., a World Bank arm that lends to private companies, rather than governments. Middle-income countries have long opposed such IFC contributions because they wanted the IFC to continue to focus on companies in their countries.
Last year, for the first time, the IFC contributed $150 million to IDA earmarked for private-sector development in poor nations. As part of the compromise, the IFC is increasing its contribution to as much as $1.75 billion over four years, World Bank officials said.
Officials at the IFC also opposed the deal for months, arguing the plan would distort the agency's mission to lend to the private sector. But the IFC relented after conversations with Mr. Zoellick, who was backed by many of the World Bank's wealthiest nations. Middle-income countries -- whose construction companies, airlines and utilities and other firms depend on IFC lending -- dropped their opposition to using IFC money in exchange for the rate cut on loans, bank officials said.
The World Bank unit that makes loans to governments in middle-income countries, the International Bank for Reconstruction and Development, is also expected to earmark as much as $1.75 billion to IDA. That unit has long contributed to IDA.
The compromise still has its critics. Some smaller European countries and poor countries worry that the U.S. and other large lenders will use the IFC contributions to IDA as an excuse to cut their own commitments to the poor.
A former U.S. trade negotiator, Mr. Zoellick looked for a deal that would tie together the bank's various constituencies and personally lobbied the board's 24 directors. Mr. Zoellick, who worked for about two years at Goldman Sachs before taking the World Bank job, has dismissed concern that lower interest rates would put the World Bank in more direct competition with the private sector.
"In my time at Goldman Sachs, I never heard once of the World Bank as competitor," he has told World Bank officials.
Wall Street Journal, 25-Sep-2007
By BOB DAVIS
For the first time in nearly a decade, the World Bank is poised to make significant cuts in the interest rates it charges China, Brazil, Mexico and other big developing countries as part of a deal to boost aid for the world's poorest nations.
According to bank officials, as part of the compromise, the World Bank will contribute as much as $3.5 billion to the International Development Association, a World Bank unit that provides grants and no-interest loans to the world's 80 poorest nations.
The deal has been negotiated over the past few months and shows the difficulty in bridging longstanding fissures in the World Bank among impoverished countries, rich countries and those in the middle such as China and Brazil, all of which are the bank's shareholders. The compromise was pushed hard by the World Bank's new president, Robert Zoellick, who has emerged as a pragmatic horse trader, unsympathetic to conservative critics who say the bank should cut off lending to countries that can borrow easily on private markets.
"He believes in linking up poor countries, rich countries and middle-income countries as way of [producing] a more inclusive form of globalization," said a senior World Bank official. Bank officials wouldn't be identified speaking on the subject because the compromise is still being refined and must be approved by the bank's board, which is expected to meet again on the issue later this week. The bank is pushing for a final deal in time for its annual meeting here Oct. 19.
The World Bank largely finances itself by borrowing on world markets at very favorable rates because it is backed by the world's governments, and then lending that money at a higher rate to developing countries. But the IDA unit is traditionally funded by contributions from governments since it goes to countries too poor to pay money back with interest.
Every three years, the World Bank raises new funds for IDA. The $3.5 billion World Bank contribution to IDA is meant to encourage rich countries to boost their commitments, too. It is now looking for donors to commit between $25 billion and $30 billion for the three years ending June 30, 2011, compared with about $18 billion for the three preceding years, to cover a big increase in debt relief and pay for development projects.
Following the 1997-98 Asian financial crisis, the World Bank increased the interest rates on loans to middle-income countries -- such as China, Mexico and Brazil -- by about 0.25 percentage point. Even though the global economy recovered, it hasn't reduced the rate, aside from occasional waivers. Currently, middle-income countries pay rates of about 0.3 percentage point above the London interbank offered rate, or Libor, at which banks lend to each other.
For years, middle-income countries complained that the rates should be lowered, but they were stymied in the bank's governing executive board by wealthy nations such as the U.S., which didn't want the World Bank competing with private markets. The world's poorest nations also opposed a rate reduction, fearing that it would give a leg up on their somewhat-wealthier competitors.
But now a breakthrough is in the works, with Mr. Zoellick revamping proposals by France, the U.S. and other wealthy nations, according to bank officials. In exchange for lowering interest rates to pre-Asian-crisis levels, Mr. Zoellick pressed Brazil, Mexico, China and other middle-income countries to support a substantial contribution to IDA by the International Finance Corp., a World Bank arm that lends to private companies, rather than governments. Middle-income countries have long opposed such IFC contributions because they wanted the IFC to continue to focus on companies in their countries.
Last year, for the first time, the IFC contributed $150 million to IDA earmarked for private-sector development in poor nations. As part of the compromise, the IFC is increasing its contribution to as much as $1.75 billion over four years, World Bank officials said.
Officials at the IFC also opposed the deal for months, arguing the plan would distort the agency's mission to lend to the private sector. But the IFC relented after conversations with Mr. Zoellick, who was backed by many of the World Bank's wealthiest nations. Middle-income countries -- whose construction companies, airlines and utilities and other firms depend on IFC lending -- dropped their opposition to using IFC money in exchange for the rate cut on loans, bank officials said.
The World Bank unit that makes loans to governments in middle-income countries, the International Bank for Reconstruction and Development, is also expected to earmark as much as $1.75 billion to IDA. That unit has long contributed to IDA.
The compromise still has its critics. Some smaller European countries and poor countries worry that the U.S. and other large lenders will use the IFC contributions to IDA as an excuse to cut their own commitments to the poor.
A former U.S. trade negotiator, Mr. Zoellick looked for a deal that would tie together the bank's various constituencies and personally lobbied the board's 24 directors. Mr. Zoellick, who worked for about two years at Goldman Sachs before taking the World Bank job, has dismissed concern that lower interest rates would put the World Bank in more direct competition with the private sector.
"In my time at Goldman Sachs, I never heard once of the World Bank as competitor," he has told World Bank officials.
Capital flight hits Nepali banks
Capital flight hits Nepali banks
ArthaExpress, 24-Sep-2007
A large chunk of capital has been draining out because of low interest rate of Nepali banks in comparison to Indian banks.
Banking and financial experts have suggested an investment-friendly environment and industrial security to stop capital flight from Nepal. “There is a huge demand for capital in India because of investment-friendly environment,” said Bijaya Kumar Sarawagi, chairman of Birgunj Finance Ltd, adding that India has also increased interest rates in deposit and in loan.
Nepali commercial banks offer three to five per cent interest rates and finance companies offer six to eight per cent, whereas Indian banks in bordering areas offer nine to 12 per cent interest rates.
Nepali banks charge six to nine per cent and finance companies charge nine to 12 per cent interest on loans, whereas Indian banks charge 13 to 15 per cent. “”If the government does not bring any effective policy, capital will continue to go to India,” said Ganesh Lath, president of BCCI.
Last year, the capital flight to India has been calculated at around Rs 500 million from Birgunj only.
“Even after restoration of loktantra, there is no stability as insecurity, attacks, bandhs, strikes, threats, kidnappings, extortions and ransoms has been continuing,” he blamed the government.
ArthaExpress, 24-Sep-2007
A large chunk of capital has been draining out because of low interest rate of Nepali banks in comparison to Indian banks.
Banking and financial experts have suggested an investment-friendly environment and industrial security to stop capital flight from Nepal. “There is a huge demand for capital in India because of investment-friendly environment,” said Bijaya Kumar Sarawagi, chairman of Birgunj Finance Ltd, adding that India has also increased interest rates in deposit and in loan.
Nepali commercial banks offer three to five per cent interest rates and finance companies offer six to eight per cent, whereas Indian banks in bordering areas offer nine to 12 per cent interest rates.
Nepali banks charge six to nine per cent and finance companies charge nine to 12 per cent interest on loans, whereas Indian banks charge 13 to 15 per cent. “”If the government does not bring any effective policy, capital will continue to go to India,” said Ganesh Lath, president of BCCI.
Last year, the capital flight to India has been calculated at around Rs 500 million from Birgunj only.
“Even after restoration of loktantra, there is no stability as insecurity, attacks, bandhs, strikes, threats, kidnappings, extortions and ransoms has been continuing,” he blamed the government.
Yeti Airlines completes nine years
Yeti Airlines completes nine years
ArthaExpress, 24-Sep-2007
Yeti Airlines, one of the leading Nepali domestic airlines, has completed its nine years of operation.
The Airlines has consistently been ahead in terms of delivery of service and growth, states a press issued here by the airlines today.
Yeti airlines with more than 60 per cent of the total market share has the widest domestic flight network. It fly to almost all the destinations in Nepal, claims the company.
Yeti Airlines serves people living in far-flung mountain areas by providing the only
means of transportation and connecting the outside world. It also provides convenient connections to the cities and town of Nepal.
Yeti Airlines has received permission for international operations in 2007. It also plans for more expansion, adds the press release issued here by the Airlines.
ArthaExpress, 24-Sep-2007
Yeti Airlines, one of the leading Nepali domestic airlines, has completed its nine years of operation.
The Airlines has consistently been ahead in terms of delivery of service and growth, states a press issued here by the airlines today.
Yeti airlines with more than 60 per cent of the total market share has the widest domestic flight network. It fly to almost all the destinations in Nepal, claims the company.
Yeti Airlines serves people living in far-flung mountain areas by providing the only
means of transportation and connecting the outside world. It also provides convenient connections to the cities and town of Nepal.
Yeti Airlines has received permission for international operations in 2007. It also plans for more expansion, adds the press release issued here by the Airlines.
Rupee scales to nine-year high
eKantipur.com, 24-Sep-2007
BY KRISHNA REGMI
The rupee rose to a nine-year high against the US dollar Monday with the steady fall of the greenback against the Indian rupee-- to which the Nepali currency is pegged.
While some economists said that the strong rupee has hurt exports, and reduced remittance value, industrialists argued that for a country like Nepal, which has a low export base and an import-dependent economy, the rising rupee is beneficial.
The partially convertible rupee ended at Rs 63.95 a dollar today-- its highest since 1998. Currency analysts said the Indian rupee has appreciated steadily against the dollar after sharp cuts in US rates last week revived strong foreign fund interest in the record-breaking Indian stock market.
According to an official at Nepal Rastra Bank (NRB), the Indian rupee is Asia's best performing currency, rising 11 percent since 2006-end. The dollar has dropped against major global currencies, weighed down by expectations of further US interest rate cuts which are limiting the currency's appeal to global investors.
Dr Ragahb Dhoj Pant, an economist told the Post that the decline in the dollar causes remittances to go down, and this is a very serious challenge for a remittance-dependent economy like Nepal’s as it lessens the purchasing power of the people.
"Pegging of the Nepali currency vis-à-vis the Indian unit for long--- at a rate which is unjustifiable-- is just piling up problems," he said. "The Indian economy's performance is several times better than Nepal's. This necessities review in our pegging system."
Acting Governor of the NRB, Krishna Bahadur Manandhar said the pros and cons of the rise and fall of the rupees seem virtually equal. "The country benefits in imports and outstanding foreign loans, and debt servicing costs fall," he said.
"However, the dollar's decline diminished the spending by tourists in Nepal. It also threatens to make exports more expensive, and therefore less competitive."
The total foreign debt decreased to Rs 213 billion by the end of the last fiscal year, from Rs 233 billion a year earlier, due mainly to a drop in the American currency.
Rajendra Khetan, president of Young Entrepreneurs' Council said if overall impact is analyzed, it is better for the economy to have a strong rupee. "It makes imports cheaper and does not allow inflation to reach a very high trajectory," he said.
BY KRISHNA REGMI
The rupee rose to a nine-year high against the US dollar Monday with the steady fall of the greenback against the Indian rupee-- to which the Nepali currency is pegged.
While some economists said that the strong rupee has hurt exports, and reduced remittance value, industrialists argued that for a country like Nepal, which has a low export base and an import-dependent economy, the rising rupee is beneficial.
The partially convertible rupee ended at Rs 63.95 a dollar today-- its highest since 1998. Currency analysts said the Indian rupee has appreciated steadily against the dollar after sharp cuts in US rates last week revived strong foreign fund interest in the record-breaking Indian stock market.
According to an official at Nepal Rastra Bank (NRB), the Indian rupee is Asia's best performing currency, rising 11 percent since 2006-end. The dollar has dropped against major global currencies, weighed down by expectations of further US interest rate cuts which are limiting the currency's appeal to global investors.
Dr Ragahb Dhoj Pant, an economist told the Post that the decline in the dollar causes remittances to go down, and this is a very serious challenge for a remittance-dependent economy like Nepal’s as it lessens the purchasing power of the people.
"Pegging of the Nepali currency vis-à-vis the Indian unit for long--- at a rate which is unjustifiable-- is just piling up problems," he said. "The Indian economy's performance is several times better than Nepal's. This necessities review in our pegging system."
Acting Governor of the NRB, Krishna Bahadur Manandhar said the pros and cons of the rise and fall of the rupees seem virtually equal. "The country benefits in imports and outstanding foreign loans, and debt servicing costs fall," he said.
"However, the dollar's decline diminished the spending by tourists in Nepal. It also threatens to make exports more expensive, and therefore less competitive."
The total foreign debt decreased to Rs 213 billion by the end of the last fiscal year, from Rs 233 billion a year earlier, due mainly to a drop in the American currency.
Rajendra Khetan, president of Young Entrepreneurs' Council said if overall impact is analyzed, it is better for the economy to have a strong rupee. "It makes imports cheaper and does not allow inflation to reach a very high trajectory," he said.
Monday, September 24, 2007
Nepali carpet exports to US up
Nepali carpet exports to US up
ArthaExpress, 23-Sep-2007
Nepali carpet exporters are optimistic on regaining their lost glory in woollen hand-knotted carpets following an increase in exports to the US market.
Although the European markets still consumes major chunk of Nepali carpet exports, the US is steadily coming up with one of potential markets, as it lured more than 22 per cent of the total exports during the fiscal year 2006-07.
Out of the total exports of 1.3 million sq-metre of hand-knotted carpets during the period, about 3,00,000 sq-metre were exported to US alone, according to figures of the Trade and Export Promotion Centre. Although total exports of carp-ets dropped by about 11 per cent in 2006-07, export to US market has been steadily growing
Nepal exported hand-knotted woollen carpets worth abo-ut Rs 5.5 billion during the fiscal 2006-07, whereas the exports in 2005-06 accounted for about six billion rupees. Poor manufacturing condition, static global demand along with the competition posed by Chinese and Vietnamese carpets lowered the demand for the Nepali carpets.
“Besides increasing demand in the US, competitive strength of Nepali carpets has also gone up in recent years, which is a plus point,” said Ram Bahadur Gurung, director of Gandaki Carpet Industry and joint coordinator of the Central Carpet Industry Association (CCIA).
He further said that Nepali carpet manufacturers and exporters could benefit from spill-over effect of proposed wage hike in China and India. Quoting unconfirmed reports, Guru-ng said that China is planning to fix a minimum wage of a labourer at Rs 17,000 per month and India is likely to follow.
“The hike in minimum wage is sure to make cost of production dearer in China and India, which will be an opportune ti-me for Nepal,” Gurung said. He urged that current problems such as political instability, labour dispute, frequent strikes and bandhs should, however, be addressed immediately.
In the operational front, the government must provide tax incentive by bringing back the carpet-manufacturing units into cottage and small industry category, according to CCIA. The association has also asked the government to formulate a separate labour law for the carpet industry, set up a carpet processing zone and distinct label or logo for Nepali hand-knotted carpets.
“Its time for an aggressive promotion, as the Nepali carpets is still popular among many buyers in Europe and luring new importers in the US, Japan, Korea and also in Latin America,” suggested Gurung, adding that the private and public sector must address the issue of Indo-Nepal carpet immediately. He foresees that the Nepali carpet exports could recover its lost glory with an average growth of 12-15 per cent annually, if the persisting issues are addressed on time.
Once, the carpet industry al-one is said to have provided more than 3,00,000 jobs.
ArthaExpress, 23-Sep-2007
Nepali carpet exporters are optimistic on regaining their lost glory in woollen hand-knotted carpets following an increase in exports to the US market.
Although the European markets still consumes major chunk of Nepali carpet exports, the US is steadily coming up with one of potential markets, as it lured more than 22 per cent of the total exports during the fiscal year 2006-07.
Out of the total exports of 1.3 million sq-metre of hand-knotted carpets during the period, about 3,00,000 sq-metre were exported to US alone, according to figures of the Trade and Export Promotion Centre. Although total exports of carp-ets dropped by about 11 per cent in 2006-07, export to US market has been steadily growing
Nepal exported hand-knotted woollen carpets worth abo-ut Rs 5.5 billion during the fiscal 2006-07, whereas the exports in 2005-06 accounted for about six billion rupees. Poor manufacturing condition, static global demand along with the competition posed by Chinese and Vietnamese carpets lowered the demand for the Nepali carpets.
“Besides increasing demand in the US, competitive strength of Nepali carpets has also gone up in recent years, which is a plus point,” said Ram Bahadur Gurung, director of Gandaki Carpet Industry and joint coordinator of the Central Carpet Industry Association (CCIA).
He further said that Nepali carpet manufacturers and exporters could benefit from spill-over effect of proposed wage hike in China and India. Quoting unconfirmed reports, Guru-ng said that China is planning to fix a minimum wage of a labourer at Rs 17,000 per month and India is likely to follow.
“The hike in minimum wage is sure to make cost of production dearer in China and India, which will be an opportune ti-me for Nepal,” Gurung said. He urged that current problems such as political instability, labour dispute, frequent strikes and bandhs should, however, be addressed immediately.
In the operational front, the government must provide tax incentive by bringing back the carpet-manufacturing units into cottage and small industry category, according to CCIA. The association has also asked the government to formulate a separate labour law for the carpet industry, set up a carpet processing zone and distinct label or logo for Nepali hand-knotted carpets.
“Its time for an aggressive promotion, as the Nepali carpets is still popular among many buyers in Europe and luring new importers in the US, Japan, Korea and also in Latin America,” suggested Gurung, adding that the private and public sector must address the issue of Indo-Nepal carpet immediately. He foresees that the Nepali carpet exports could recover its lost glory with an average growth of 12-15 per cent annually, if the persisting issues are addressed on time.
Once, the carpet industry al-one is said to have provided more than 3,00,000 jobs.
‘Garment industry can regain past glory’ - PK Pokhrel, MD, Ami Apparels
‘Garment industry can regain past glory’
eKantpur.com, 23-Sep-2007
Prashant K Pokhrel is managing director of Sunsari-based Ami Apparels, which is one of the leading exporters of readymade garment products. Pokhrel holds Master's degree in Economics and is the first Vice-President of Garment Association - Nepal (GAN). He talked to the Post about problems and prospects of the largest foreign currency spinning industry of Nepal. Excerpts
Tell us about the performances of Ami Apparels?
It is one of the few garment factories that are operating at this most adverse situation in decades. Despite the situation, our exports has maintained a moderate growth and hovered around US$4.4 million a year in the last few years. India, which is an emerging market for Nepal, consumes the major share of our exports. We have focused on product diversification in Europe and other countries, including India, where Nepal enjoys a duty free access. We contribute around Rs 3 million to the national coffer as income tax each year. We boast of being in a list of top five garment factories in the country, which are performing well amid hard time. Ami employs nearly 1000 workers at present and almost all of them are Nepalis. We commenced our business with the investment of Rs 10 million, which now has reached to around Rs 60 million.
What about the overall scenario of garment industry in Nepal?
Nepali readymade garment industry is facing a tough time at the moment due to impact of decade long conflict, labor problems and phase out of quota system in global apparel trading from 2005. Over the past five years, number of garment factories have dropped to about fifty from over 1200, dragging down the employment in the industry to meager 5,000 from around 100,000. Total export of garment slid down to US $47.7 million in 2006, from $105.9 million in 2002. It is expected to nosedive to around $30 million in 2007. In the past we were entirely dependent on the US market, but now we have diversified markets to Canada, Australia and India. As a result, share of exports to USA has dropped significantly compared to the past. Once the sector used to account for some 45 percent of total exports, but now, it is hardly contributing 15 percent. Out of the total investment of Rs 6 billion, only one billion is currently operational.
Do you see any possibility of Nepali garment industry regaining that past glow?
Despite all obstacles, I see a tremendous potentiality in the sector. India this week decided to lift 4 percent extra duty on Nepali garment exports. We can capitalize on it and tap the vast market of India, as Bangladesh is aspiring to recently. Geographical proximity with India will add advantage to Nepal. We will also get an opportunity to retrieve the lost US market, as USA is expected to provide duty free access to garment products of least developed countries like Nepal. We are also enjoying comparatively lower production cost compared to our competitor countries.
How will duty-free import agreement India signed with Bangladesh impact Nepali readymade garment exports to India?
I don't think it will pose any serious threat to the Nepali exports. India is a huge market. Besides, Bangladesh has received duty free export facility for just 8 million pieces, whereas we enjoy the facility for unlimited quantity. But still, there is no room for complacency in the business. We must build deeper business ties with diverse set of importers. Most importantly, we must settle all internal constraints to enjoy the benefits in the Indian as well as other markets.
How are you coping with the increasing global competition?
Well, adoption of new technology has helped us stand out better than other countries. We are using latest technology in the business. Situation of skilled manpower crunch does not exist now because as we have sufficient Nepali manpower specialized in different lines of production.
What sort of problem is the industry facing from labor?
The problem of labor exploded after Maoist launched labor union expansion drive in a bid to strengthen the party's position in open politics. To attain that, it placed various high-sounding but unreasonable demands. The workplace harmony vanished as already existing trade unions opposed the Maoist's drive. Ultimately, that caused dozens of factories to close down productions. Despite the situation, I believe labor problem can be solved soon. Of late, trade unions have begun to understand the problems of the industry. If employers are allowed to adopt hire and fire policy with a condition of employees' social security, labor problem will be solved. So, a policy of flexicurity- a combination of flexibility and social security - should be embraced to end labor unrest.
eKantpur.com, 23-Sep-2007
Prashant K Pokhrel is managing director of Sunsari-based Ami Apparels, which is one of the leading exporters of readymade garment products. Pokhrel holds Master's degree in Economics and is the first Vice-President of Garment Association - Nepal (GAN). He talked to the Post about problems and prospects of the largest foreign currency spinning industry of Nepal. Excerpts
Tell us about the performances of Ami Apparels?
It is one of the few garment factories that are operating at this most adverse situation in decades. Despite the situation, our exports has maintained a moderate growth and hovered around US$4.4 million a year in the last few years. India, which is an emerging market for Nepal, consumes the major share of our exports. We have focused on product diversification in Europe and other countries, including India, where Nepal enjoys a duty free access. We contribute around Rs 3 million to the national coffer as income tax each year. We boast of being in a list of top five garment factories in the country, which are performing well amid hard time. Ami employs nearly 1000 workers at present and almost all of them are Nepalis. We commenced our business with the investment of Rs 10 million, which now has reached to around Rs 60 million.
What about the overall scenario of garment industry in Nepal?
Nepali readymade garment industry is facing a tough time at the moment due to impact of decade long conflict, labor problems and phase out of quota system in global apparel trading from 2005. Over the past five years, number of garment factories have dropped to about fifty from over 1200, dragging down the employment in the industry to meager 5,000 from around 100,000. Total export of garment slid down to US $47.7 million in 2006, from $105.9 million in 2002. It is expected to nosedive to around $30 million in 2007. In the past we were entirely dependent on the US market, but now we have diversified markets to Canada, Australia and India. As a result, share of exports to USA has dropped significantly compared to the past. Once the sector used to account for some 45 percent of total exports, but now, it is hardly contributing 15 percent. Out of the total investment of Rs 6 billion, only one billion is currently operational.
Do you see any possibility of Nepali garment industry regaining that past glow?
Despite all obstacles, I see a tremendous potentiality in the sector. India this week decided to lift 4 percent extra duty on Nepali garment exports. We can capitalize on it and tap the vast market of India, as Bangladesh is aspiring to recently. Geographical proximity with India will add advantage to Nepal. We will also get an opportunity to retrieve the lost US market, as USA is expected to provide duty free access to garment products of least developed countries like Nepal. We are also enjoying comparatively lower production cost compared to our competitor countries.
How will duty-free import agreement India signed with Bangladesh impact Nepali readymade garment exports to India?
I don't think it will pose any serious threat to the Nepali exports. India is a huge market. Besides, Bangladesh has received duty free export facility for just 8 million pieces, whereas we enjoy the facility for unlimited quantity. But still, there is no room for complacency in the business. We must build deeper business ties with diverse set of importers. Most importantly, we must settle all internal constraints to enjoy the benefits in the Indian as well as other markets.
How are you coping with the increasing global competition?
Well, adoption of new technology has helped us stand out better than other countries. We are using latest technology in the business. Situation of skilled manpower crunch does not exist now because as we have sufficient Nepali manpower specialized in different lines of production.
What sort of problem is the industry facing from labor?
The problem of labor exploded after Maoist launched labor union expansion drive in a bid to strengthen the party's position in open politics. To attain that, it placed various high-sounding but unreasonable demands. The workplace harmony vanished as already existing trade unions opposed the Maoist's drive. Ultimately, that caused dozens of factories to close down productions. Despite the situation, I believe labor problem can be solved soon. Of late, trade unions have begun to understand the problems of the industry. If employers are allowed to adopt hire and fire policy with a condition of employees' social security, labor problem will be solved. So, a policy of flexicurity- a combination of flexibility and social security - should be embraced to end labor unrest.
Monday, September 03, 2007
Roundup of Economic & Business News (Jul 4 - Aug 31)
July 4
Nepal-UAE labor pact to cut recruitment cost (ekantipur.com)
Petroleum supply improves (ekantipur.com)
NAC suggested to add six aircraft (ekantipur.com)
IMF concerned over corruption charge (ekantipur.com)
Signs of revival in handicraft export (ekantipur.com)
Government provides loan guarantee to NOC (nepalnews.com)
Nepse crosses 600 mark (nepalnews.com)
UAE to launch direct flights to Nepal (nepalnews.com)
July 5
Norway, HPL, UNDP provide US$ 3.85 m for mini-hydro (ekantipur.com)
Nepal, Malaysia finalize labor MoU (ekantipur.com)
S Korea extends US$ 3.5m support (ekantipur.com)
Tourist arrivals up by 9.6 pc (ekantipur.com)
July 6
‘Privatize NAC’ (ekantipur.com)
S Korea invites Nepal for labor pact (ekantipur.com)
Garment export reduced to half (ekantipur.com)
Orient begins selling Indian Railways tickets (ekantipur.com)
July 7
14 cinemas close down (ekantipur.com)
Vegetable farmers fail to get good returns (ekantipur.com)
Debate on monetary policy begins (nepalnews.com)
Gautam asks Diaspora to help Nepal for development (nepalnews.com)
July 8
‘Nepal's anti-piracy law enforcement weak’ (ekantipur.com)
Shikhar Shoes’ second showroom (ekantipur.com)
Sanima signs agreement with SCB Mumbai, EBL opens new branch (ekantipur.com)
Construction of 750-MW West Seti hydel to start by year-end (nepalnews.com)
July 9
Economy signals gloomy outlook (ekantipur.com)
Nepal Telecom undertakes biggest mobile expansion (ekantipur.com)
Preferential trading facility sought from China (ekantipur.com)
MoF briefs PM on budget (nepalbiznews.com)
Banknotes likely to be in short supply after Dashain (nepalnews.com)
July 10
Hotels set to raise room rates (ekantipur.com)
New standards law on anvil (ekantipur.com)
‘Inflated budget could strain economy’ (ekantipur.com)
July 11
Economic Survey: Economic, social progress dismal (ekantipur.com)
Forged certificates add to Nepali workers' plight (ekantipur.com)
ADB delegation in Kathmandu to discuss Melamchi project (nepalnews.com)
July 12
Rs 169b budget hikes civil service pay 17 pc (ekantipur.com)
Budget relieves salarymen, consumers, exporters (ekantipur.com)
Experts doubt implementation (ekantipur.com)
Bouquets and brickbats for the finance minister (nepalnews.com)
July 13
Industrial security force imminent (ekantipur.com)
Budget draws mixed reactions (ekantipur.com)
‘Terai problems not addressed in budget’ (ekantipur.com)
Education expo in Pokhara from July 19 (ekantipur.com)
Govt. allocates Rs. 125m for the royal palace (nepalbiznews.com)
Nepse sets all-time high record (nepalbiznews.com)
Yami encouraged by talks on Melamchi (nepalnews.com)
July 14
KTV marks fourth anniversary (ekantipur.com)
Transport strike grips capital again (ekantipur.com)
Renewed effort to promote jute farming (ekantipur.com)
Revenue policy leak hurts customs (ekantipur.com)
Only board can change conditions: ADB delegation (nepalnews.com)
Parliament starts debate on budget (nepalnews.com)
Construction of Syafrubesi-Rasuwagadhi highway to start within 3 months (nepalnews.com)
July 15
‘Tourists should feel they are welcome in Nepal’ - Prakash Shrestha (ekantipur.com)
UTL starts services in Butwal (ekantipur.com)
Govt to come up with concrete plans to rescue tourism industry (nepalnews.com)
Yami says ADB has given 'green signal' to proceed with Melamchi (nepalnews.com)
NTB vice-chairman resigns (nepalnews.com)
July 16
Parliament to shrink budget session (ekantipur.com)
ADB board to take up Melamchi (ekantipur.com)
NT slashes distance charges (ekantipur.com)
Cabinet okays labor MoU with S Korea (ekantipur.com)
Eight trade unions to unify (ekantipur.com)
Budget draws more mixed reactions (ekantipur.com)
CPN-M affiliated workers shuts down Pokhara businesses (nepalbiznews.com)
July 17
45 pc civil service reservations coming (ekantipur.com)
Spice NepaSpice Nepal slashes post-paid ratel slashes post-paid rate (ekantipur.com)
Maoists to abstain from budget vote (ekantipur.com)
Makwanpur exports rise 52 pc (ekantipur.com)
Birgunj customs shoots past revenue target (ekantipur.com)
Far west to see DDC milk processing center (ekantipur.com)
NRNs discuss establishing new airline (nepalnews.com)
July 18
Bandas in eastern terai have patchy effect (ekantipur.com)
Garbage collection under way in capital (ekantipur.com)
Duty revision to hike car prices (ekantipur.com)
SC quashes Khetan's plea (ekantipur.com)
Guidelines unveiled for ethical drugs promotion (ekantipur.com)
July 19
GMR to lose either Arun III or Upper Karnali (ekantipur.com)
Tax row brings TIA cargo handling to complete halt (ekantipur.com)
NRB extends NBL's mgmt contract (ekantipur.com)
Parliament approves govt decision on West Seti (nepalnews.com)
Private sector advise NRB to bring out flexible monetary policy (nepalnews.com)
July 20
Royals’ electricity dues rise to Rs 36 million (ekantipur.com)
Understaffing hampers services at Nepali missions (ekantipur.com)
NAC plans to lease Bhutanese aircraft (ekantipur.com)
Nepal-Sri Lanka aviation talks fail (ekantipur.com)
July 21
ICCMT terminates Nepal Bank contract (ekantipur.com)
Nepal enjoys trade surplus with B’desh (ekantipur.com)
Agriculture minister dissatisfied with budget (ekantipur.com)
July 22
SC orders Surya Tobacco verdict review (ekantipur.com)
Interview - Surya Bahadur KC (Noodle Industry) (ekantipur.com)
HCMI now in Nepal (ekantipur.com)
July 23
New monetary policy focuses on deprived class (ekantipur.com)
‘Buy aircraft but maintain transparency’ (ekantipur.com)
Ace Finance receives prestigious ICAN awards (nepalnews.com)
Nepal, South Korea sign labour pact (nepalnews.com)
July 24
China asked for more assistance (ekantipur.com)
Farmers demand govt fix jute price (ekantipur.com)
Export sector problems not addressed: CNI (ekantipur.com)
Don't drag Maoist name into labourer-employer dispute, says Mahara (nepalnews.com)
China offers Rs 8 billion line of credit to Nepal (nepalnews.com)
July 25
ADBL aims to lend Rs 17.4b (ekantipur.com)
MoAC unveils commercial agriculture policy (ekantipur.com)
Inflation target unrealistic: NCC (ekantipur.com)
China willing to support Nepal for infrastructure development: Chao (nepalnews.com)
July 26
‘KMC falls short of tax target’ (ekantipur.com)
Monetary policy not ‘export friendly’: FNCCI (ekantipur.com)
Handicraft exports dip (ekantipur.com)
SilkAir set to restart service (ekantipur.com)
July 27
WB warns govt over NBL reform (ekantipur.com)
Strike grounds NAC's domestic fleet (ekantipur.com)
TIA customs releases some halted air cargo (ekantipur.com)
Research hampered at six government livestock farms (ekantipur.com)
July 28
Chilime to cap price for next 4.5 yrs (ekantipur.com)
Phemekhola hydro into operation (ekantipur.com)
July 29
Interview - Mahesh Uttamchandani (Access to credit) (ekantipur.com)
July 30
NAC cancels all int’l flights for a week (ekantipur.com)
Govt revokes passports of defaulters-Freezes fixed assets (ekantipur.com)
Management shuts down Alico offices (ekantipur.com)
Nepal to send labor to S Korea only after signing IA (ekantipur.com)
Names of bank defaulters (ekantipur.com)
Bir Hospital enters its 118th year (nepalnews.com)
Korean language and vocational training a must for Korea jobseekers (nepalnews.com)
July 31
World Bank gets govt’s rebuttal (ekantipur.com)
Excise sticker on beer bottles, cigarette packs (ekantipur.com)
Squeezing pasture access affects sheep, goat rearing (ekantipur.com)
More Nepalis holidaying in Malaysia (ekantipur.com)
New TV channel on the block (nepalnews.com)
Tourism entrepreneurs concerned over cancellation of NAC's flights (nepalnews.com)
Aug 1
Net penetrates rural hinterlands (ekantipur.com)
Differential pricing recommended for LP gas (ekantipur.com)
Foreign employment climbs by 12.5 pc (ekantipur.com)
Nepal concerned over climate change effects on LDCs (nepalnews.com)
Aug 2
‘Flexicurity’ stressed for sound industrial relations (ekantipur.com)
July tourist arrivals up by 25 percent (ekantipur.com)
‘Banks smokescreening bad loans’ (ekantipur.com)
UTL rings in Pokhara (ekantipur.com)
Overseas employment sees a whopping 21 percent rise (nepalnews.com)
Aug 3
Importers liable for food quality: MoICS (ekantipur.com)
VLCC opens center in Kathmandu (ekantipur.com)
Parties urged to focus on economic issues (ekantipur.com)
Agriculture hit hard by floods (ekantipur.com)
Aug 4
Pashmina industry unveils recovery plan (ekantipur.com)
Workers close down another factory (ekantipur.com)
Exports through Birgunj slump (ekantipur.com)
Revenue collection more than targeted: Govt (nepalnews.com)
Aug 5
Interview - Rajesh Kaji Shrestha (Nepal failed to reap benefits from China) (ekantipur.com)
Aug 6
Int'l airlines sell higher fare tickets-NAC flights from next week (ekantipur.com)
NTA allows STM Telecom to expand coverage (ekantipur.com)
Insurance Board directs Alico to resume operations (ekantipur.com)
Nepse makes history again; crosses 700 mark (nepalnews.com)
Aug 7
Insurance Board takes tough actions against Alliance Insurance (ekantipur.com)
New outbound air route proposed (ekantipur.com)
Bandh cripples life in east, organisers burn newspaper vehicle (nepalnews.com)
Aug 8
Water resources strategy falls short of targets (ekantipur.com)
Vegetable prices jump twofold (ekantipur.com)
NRB macroeconomic report-Salarymen, wage earners gain (ekantipur.com)
Lackluster FDI growth (ekantipur.com)
Committee formed to probe NAC (ekantipur.com)
Mid-Marshyangdi to be delayed by two years (nepalnews.com)
Aug 9
Parliament passes budget - Maoist lawmakers walk out (ekantipur.com)
NTA recommends new telecom operator (ekantipur.com)
Alico resumes operation under tight security (ekantipur.com)
Bandhs called by different groups paralyse life in eastern and central Terai (nepalnews.com)
Aug 10
Tobacco procurement price raised by 20 pc (ekantipur.com)
Trade union shuts down Dabur Nepal (ekantipur.com)
Rs 610m welfare fund remains idle (ekantipur.com)
Aug 11
New airlines flock to Nepal as tourism booms (ekantipur.com)
Yarchagumba traders 'evading' tax (ekantipur.com)
Morang-Sunsari corridor to become SEZ (ekantipur.com)
NAC resumes flights (ekantipur.com)
Aug 12
Janakpur Cigarette Factory plans to launch new brands (ekantipur.com)
Rastriya Banijya Bank profits Rs 1.68b (ekantipur.com)
CG Finco opens outlet, Stan Chart opens two new ATM counters (ekantipur.com)
Normal business at Tatopani checkpoint affected (nepalnews.com)
Aug 13
Highways closed 165 times in 7 months (ekantipur.com)
Nepal to sign migration accord with Isreal (ekantipur.com)
Parliament passes NRN bill (nepalnews.com)
Aug 14
Nepal less dependent on major Indian vegetable items (ekantipur.com)
Dabur Nepal to resume operation, ADB/N to issue shares (ekantipur.com)
Local body employees in indefinite strike (nepalnews.com)
Aug 15
NEA’s loss down from Rs 2.47 b to Rs 320 m (ekantipur.com)
Drug manufacturers seek ceiling prices (ekantipur.com)
Govt allows foreign airlines to add flights (ekantipur.com)
NEPSE begins trial electronic trading (ekantipur.com)
Marie Stopes launches oral contraceptive (ekantipur.com)
Maoists announce education, transport strike in Dolakha (nepalnews.com)
Aug 16
Khimti workers intensify stir (ekantipur.com)
NAC management handover planned (ekantipur.com)
Nepal-China trade fair in September (ekantipur.com)
Follow directives, normalize operations: IB tells Alico (ekantipur.com)
Maoist trade union backs off, says it will not shut down media houses (nepalnews.com)
Aug 17
Net pricing fails to stop exploitation by middleman (ekantipur.com)
Forex reserve reaches Rs 166b (ekantipur.com)
Fuel shortages loom as NOC losses increase (ekantipur.com)
Prof Dahal elected new Nepal Economic Association (NEA) prez (nepalnews.com)
Aug 18
60 MW Khimti faces closure (ekantipur.com)
Real estate downslide ends (ekantipur.com)
Excel Bank allots shares (ekantipur.com)
Aug 19
Private garbage collectors stage demo (ekantipur.com)
Tender to be invited for 396 MWs (ekantipur.com)
Interview - Siddhant Raj Pandey (Ace Financial) (ekantipur.com)
Cable operators withdraw agitation (nepalnews.com)
Aug 20
Royal property to be nationalized in 15 days (ekantipur.com)
NOC seeks 1b rupee loan from government (ekantipur.com)
Local leaders say no to bandas (ekantipur.com)
‘Industrial-capitalism is Maoist economy policy’ (ekantipur.com)
Siddhartha bank opens branch in Damak (ekantipur.com)
Parliamentary committee directs NTA to clash rates (nepalnews.com)
Aug 21
Govt forms panel to fix water tariff (ekantipur.com)
WB, NRB agree on two-option scheme for NBL (ekantipur.com)
Unemployed locals close Dabur (ekantipur.com)
Promoters to be allowed to sell shares (ekantipur.com)
Roaming charge on NT's mobile phones to be scrapped (nepalnews.com)
Aug 22
Banda affects valley and beyond (ekantipur.com)
Poultry product prices skyrocket (ekantipur.com)
SC clears way for action against Pun (ekantipur.com)
Govt prepares to ask India for 2nd transit point (ekantipur.com)
Dabur resumes operations (ekantipur.com)
Medicine entrepreneurs go on strike (nepalnews.com)
Aug 23
Transport strike on highways banned (ekantipur.com)
11 hrs daily power cuts in offing (ekantipur.com)
Economy slows but corporates pay more tax (ekantipur.com)
Employment Permit System (EPS) office for Korean jobs this week (ekantipur.com)
Improve quality of pashmina to promote exports: Experts (ekantipur.com)
Aug 24
Govt to get tough on non-performing hydro licensees (ekantipur.com)
Insurance scheme forwarded to MoF (ekantipur.com)
Cold storage being built with Indian help (ekantipur.com)
Code of conduct to check petroleum adulteration (ekantipur.com)
FM concerned at stock market volatility (ekantipur.com)
Aug 25
Vegetable prices soar amid floods, landslides (ekantipur.com)
Suryadarshan is 77th finance company (ekantipur.com)
Aug 26
Massive hike in hydro license fee this week (ekantipur.com)
Interview - Dr Til Chandra Bhattarai (Poulty Industry) (ekantipur.com)
Partial effect of bandh in Terai; Squatters' agitation blocks highway in Far West
Aug 27
Buddha Air flight cancellation irks passengers (ekantipur.com)
Petrol shortage deepens (ekantipur.com)
Foreign job seekers rise by 16 pc (ekantipur.com)
Aug 28
Labor MoU delayed as Malaysia not responding (ekantipur.com)
Additional duty hits pipe exports (ekantipur.com)
Fuel consumption up after four years - NOC incurs Rs 3.12 billion net loss in 2006/07
PAC directs NAC to bring aircraft on lease (nepalnews.com)
Aug 29
NAC to resume flights (ekantipur.com)
Indo-Bangladesh pact to affect Nepali garments (ekantipur.com)
SAARC transport ministers to push for greater connectivity (ekantipur.com)
Medicine entrepreneurs end their protest (nepalnews.com)
Aug 30
Insurance Board to probe Alico's financial status (ekantipur.com)
Business community deplores growing insecurity (ekantipur.com)
Aug 31
‘Hike fuel price or give money to NOC’ (ekantipur.com)
Market capitalization crosses Rs 200b mark (ekantipur.com)
Postal service disrupted as employees go on strike (nepalnews.com)
(nepalnews.com) (ekantipur.com)
Nepal-UAE labor pact to cut recruitment cost (ekantipur.com)
Petroleum supply improves (ekantipur.com)
NAC suggested to add six aircraft (ekantipur.com)
IMF concerned over corruption charge (ekantipur.com)
Signs of revival in handicraft export (ekantipur.com)
Government provides loan guarantee to NOC (nepalnews.com)
Nepse crosses 600 mark (nepalnews.com)
UAE to launch direct flights to Nepal (nepalnews.com)
July 5
Norway, HPL, UNDP provide US$ 3.85 m for mini-hydro (ekantipur.com)
Nepal, Malaysia finalize labor MoU (ekantipur.com)
S Korea extends US$ 3.5m support (ekantipur.com)
Tourist arrivals up by 9.6 pc (ekantipur.com)
July 6
‘Privatize NAC’ (ekantipur.com)
S Korea invites Nepal for labor pact (ekantipur.com)
Garment export reduced to half (ekantipur.com)
Orient begins selling Indian Railways tickets (ekantipur.com)
July 7
14 cinemas close down (ekantipur.com)
Vegetable farmers fail to get good returns (ekantipur.com)
Debate on monetary policy begins (nepalnews.com)
Gautam asks Diaspora to help Nepal for development (nepalnews.com)
July 8
‘Nepal's anti-piracy law enforcement weak’ (ekantipur.com)
Shikhar Shoes’ second showroom (ekantipur.com)
Sanima signs agreement with SCB Mumbai, EBL opens new branch (ekantipur.com)
Construction of 750-MW West Seti hydel to start by year-end (nepalnews.com)
July 9
Economy signals gloomy outlook (ekantipur.com)
Nepal Telecom undertakes biggest mobile expansion (ekantipur.com)
Preferential trading facility sought from China (ekantipur.com)
MoF briefs PM on budget (nepalbiznews.com)
Banknotes likely to be in short supply after Dashain (nepalnews.com)
July 10
Hotels set to raise room rates (ekantipur.com)
New standards law on anvil (ekantipur.com)
‘Inflated budget could strain economy’ (ekantipur.com)
July 11
Economic Survey: Economic, social progress dismal (ekantipur.com)
Forged certificates add to Nepali workers' plight (ekantipur.com)
ADB delegation in Kathmandu to discuss Melamchi project (nepalnews.com)
July 12
Rs 169b budget hikes civil service pay 17 pc (ekantipur.com)
Budget relieves salarymen, consumers, exporters (ekantipur.com)
Experts doubt implementation (ekantipur.com)
Bouquets and brickbats for the finance minister (nepalnews.com)
July 13
Industrial security force imminent (ekantipur.com)
Budget draws mixed reactions (ekantipur.com)
‘Terai problems not addressed in budget’ (ekantipur.com)
Education expo in Pokhara from July 19 (ekantipur.com)
Govt. allocates Rs. 125m for the royal palace (nepalbiznews.com)
Nepse sets all-time high record (nepalbiznews.com)
Yami encouraged by talks on Melamchi (nepalnews.com)
July 14
KTV marks fourth anniversary (ekantipur.com)
Transport strike grips capital again (ekantipur.com)
Renewed effort to promote jute farming (ekantipur.com)
Revenue policy leak hurts customs (ekantipur.com)
Only board can change conditions: ADB delegation (nepalnews.com)
Parliament starts debate on budget (nepalnews.com)
Construction of Syafrubesi-Rasuwagadhi highway to start within 3 months (nepalnews.com)
July 15
‘Tourists should feel they are welcome in Nepal’ - Prakash Shrestha (ekantipur.com)
UTL starts services in Butwal (ekantipur.com)
Govt to come up with concrete plans to rescue tourism industry (nepalnews.com)
Yami says ADB has given 'green signal' to proceed with Melamchi (nepalnews.com)
NTB vice-chairman resigns (nepalnews.com)
July 16
Parliament to shrink budget session (ekantipur.com)
ADB board to take up Melamchi (ekantipur.com)
NT slashes distance charges (ekantipur.com)
Cabinet okays labor MoU with S Korea (ekantipur.com)
Eight trade unions to unify (ekantipur.com)
Budget draws more mixed reactions (ekantipur.com)
CPN-M affiliated workers shuts down Pokhara businesses (nepalbiznews.com)
July 17
45 pc civil service reservations coming (ekantipur.com)
Spice NepaSpice Nepal slashes post-paid ratel slashes post-paid rate (ekantipur.com)
Maoists to abstain from budget vote (ekantipur.com)
Makwanpur exports rise 52 pc (ekantipur.com)
Birgunj customs shoots past revenue target (ekantipur.com)
Far west to see DDC milk processing center (ekantipur.com)
NRNs discuss establishing new airline (nepalnews.com)
July 18
Bandas in eastern terai have patchy effect (ekantipur.com)
Garbage collection under way in capital (ekantipur.com)
Duty revision to hike car prices (ekantipur.com)
SC quashes Khetan's plea (ekantipur.com)
Guidelines unveiled for ethical drugs promotion (ekantipur.com)
July 19
GMR to lose either Arun III or Upper Karnali (ekantipur.com)
Tax row brings TIA cargo handling to complete halt (ekantipur.com)
NRB extends NBL's mgmt contract (ekantipur.com)
Parliament approves govt decision on West Seti (nepalnews.com)
Private sector advise NRB to bring out flexible monetary policy (nepalnews.com)
July 20
Royals’ electricity dues rise to Rs 36 million (ekantipur.com)
Understaffing hampers services at Nepali missions (ekantipur.com)
NAC plans to lease Bhutanese aircraft (ekantipur.com)
Nepal-Sri Lanka aviation talks fail (ekantipur.com)
July 21
ICCMT terminates Nepal Bank contract (ekantipur.com)
Nepal enjoys trade surplus with B’desh (ekantipur.com)
Agriculture minister dissatisfied with budget (ekantipur.com)
July 22
SC orders Surya Tobacco verdict review (ekantipur.com)
Interview - Surya Bahadur KC (Noodle Industry) (ekantipur.com)
HCMI now in Nepal (ekantipur.com)
July 23
New monetary policy focuses on deprived class (ekantipur.com)
‘Buy aircraft but maintain transparency’ (ekantipur.com)
Ace Finance receives prestigious ICAN awards (nepalnews.com)
Nepal, South Korea sign labour pact (nepalnews.com)
July 24
China asked for more assistance (ekantipur.com)
Farmers demand govt fix jute price (ekantipur.com)
Export sector problems not addressed: CNI (ekantipur.com)
Don't drag Maoist name into labourer-employer dispute, says Mahara (nepalnews.com)
China offers Rs 8 billion line of credit to Nepal (nepalnews.com)
July 25
ADBL aims to lend Rs 17.4b (ekantipur.com)
MoAC unveils commercial agriculture policy (ekantipur.com)
Inflation target unrealistic: NCC (ekantipur.com)
China willing to support Nepal for infrastructure development: Chao (nepalnews.com)
July 26
‘KMC falls short of tax target’ (ekantipur.com)
Monetary policy not ‘export friendly’: FNCCI (ekantipur.com)
Handicraft exports dip (ekantipur.com)
SilkAir set to restart service (ekantipur.com)
July 27
WB warns govt over NBL reform (ekantipur.com)
Strike grounds NAC's domestic fleet (ekantipur.com)
TIA customs releases some halted air cargo (ekantipur.com)
Research hampered at six government livestock farms (ekantipur.com)
July 28
Chilime to cap price for next 4.5 yrs (ekantipur.com)
Phemekhola hydro into operation (ekantipur.com)
July 29
Interview - Mahesh Uttamchandani (Access to credit) (ekantipur.com)
July 30
NAC cancels all int’l flights for a week (ekantipur.com)
Govt revokes passports of defaulters-Freezes fixed assets (ekantipur.com)
Management shuts down Alico offices (ekantipur.com)
Nepal to send labor to S Korea only after signing IA (ekantipur.com)
Names of bank defaulters (ekantipur.com)
Bir Hospital enters its 118th year (nepalnews.com)
Korean language and vocational training a must for Korea jobseekers (nepalnews.com)
July 31
World Bank gets govt’s rebuttal (ekantipur.com)
Excise sticker on beer bottles, cigarette packs (ekantipur.com)
Squeezing pasture access affects sheep, goat rearing (ekantipur.com)
More Nepalis holidaying in Malaysia (ekantipur.com)
New TV channel on the block (nepalnews.com)
Tourism entrepreneurs concerned over cancellation of NAC's flights (nepalnews.com)
Aug 1
Net penetrates rural hinterlands (ekantipur.com)
Differential pricing recommended for LP gas (ekantipur.com)
Foreign employment climbs by 12.5 pc (ekantipur.com)
Nepal concerned over climate change effects on LDCs (nepalnews.com)
Aug 2
‘Flexicurity’ stressed for sound industrial relations (ekantipur.com)
July tourist arrivals up by 25 percent (ekantipur.com)
‘Banks smokescreening bad loans’ (ekantipur.com)
UTL rings in Pokhara (ekantipur.com)
Overseas employment sees a whopping 21 percent rise (nepalnews.com)
Aug 3
Importers liable for food quality: MoICS (ekantipur.com)
VLCC opens center in Kathmandu (ekantipur.com)
Parties urged to focus on economic issues (ekantipur.com)
Agriculture hit hard by floods (ekantipur.com)
Aug 4
Pashmina industry unveils recovery plan (ekantipur.com)
Workers close down another factory (ekantipur.com)
Exports through Birgunj slump (ekantipur.com)
Revenue collection more than targeted: Govt (nepalnews.com)
Aug 5
Interview - Rajesh Kaji Shrestha (Nepal failed to reap benefits from China) (ekantipur.com)
Aug 6
Int'l airlines sell higher fare tickets-NAC flights from next week (ekantipur.com)
NTA allows STM Telecom to expand coverage (ekantipur.com)
Insurance Board directs Alico to resume operations (ekantipur.com)
Nepse makes history again; crosses 700 mark (nepalnews.com)
Aug 7
Insurance Board takes tough actions against Alliance Insurance (ekantipur.com)
New outbound air route proposed (ekantipur.com)
Bandh cripples life in east, organisers burn newspaper vehicle (nepalnews.com)
Aug 8
Water resources strategy falls short of targets (ekantipur.com)
Vegetable prices jump twofold (ekantipur.com)
NRB macroeconomic report-Salarymen, wage earners gain (ekantipur.com)
Lackluster FDI growth (ekantipur.com)
Committee formed to probe NAC (ekantipur.com)
Mid-Marshyangdi to be delayed by two years (nepalnews.com)
Aug 9
Parliament passes budget - Maoist lawmakers walk out (ekantipur.com)
NTA recommends new telecom operator (ekantipur.com)
Alico resumes operation under tight security (ekantipur.com)
Bandhs called by different groups paralyse life in eastern and central Terai (nepalnews.com)
Aug 10
Tobacco procurement price raised by 20 pc (ekantipur.com)
Trade union shuts down Dabur Nepal (ekantipur.com)
Rs 610m welfare fund remains idle (ekantipur.com)
Aug 11
New airlines flock to Nepal as tourism booms (ekantipur.com)
Yarchagumba traders 'evading' tax (ekantipur.com)
Morang-Sunsari corridor to become SEZ (ekantipur.com)
NAC resumes flights (ekantipur.com)
Aug 12
Janakpur Cigarette Factory plans to launch new brands (ekantipur.com)
Rastriya Banijya Bank profits Rs 1.68b (ekantipur.com)
CG Finco opens outlet, Stan Chart opens two new ATM counters (ekantipur.com)
Normal business at Tatopani checkpoint affected (nepalnews.com)
Aug 13
Highways closed 165 times in 7 months (ekantipur.com)
Nepal to sign migration accord with Isreal (ekantipur.com)
Parliament passes NRN bill (nepalnews.com)
Aug 14
Nepal less dependent on major Indian vegetable items (ekantipur.com)
Dabur Nepal to resume operation, ADB/N to issue shares (ekantipur.com)
Local body employees in indefinite strike (nepalnews.com)
Aug 15
NEA’s loss down from Rs 2.47 b to Rs 320 m (ekantipur.com)
Drug manufacturers seek ceiling prices (ekantipur.com)
Govt allows foreign airlines to add flights (ekantipur.com)
NEPSE begins trial electronic trading (ekantipur.com)
Marie Stopes launches oral contraceptive (ekantipur.com)
Maoists announce education, transport strike in Dolakha (nepalnews.com)
Aug 16
Khimti workers intensify stir (ekantipur.com)
NAC management handover planned (ekantipur.com)
Nepal-China trade fair in September (ekantipur.com)
Follow directives, normalize operations: IB tells Alico (ekantipur.com)
Maoist trade union backs off, says it will not shut down media houses (nepalnews.com)
Aug 17
Net pricing fails to stop exploitation by middleman (ekantipur.com)
Forex reserve reaches Rs 166b (ekantipur.com)
Fuel shortages loom as NOC losses increase (ekantipur.com)
Prof Dahal elected new Nepal Economic Association (NEA) prez (nepalnews.com)
Aug 18
60 MW Khimti faces closure (ekantipur.com)
Real estate downslide ends (ekantipur.com)
Excel Bank allots shares (ekantipur.com)
Aug 19
Private garbage collectors stage demo (ekantipur.com)
Tender to be invited for 396 MWs (ekantipur.com)
Interview - Siddhant Raj Pandey (Ace Financial) (ekantipur.com)
Cable operators withdraw agitation (nepalnews.com)
Aug 20
Royal property to be nationalized in 15 days (ekantipur.com)
NOC seeks 1b rupee loan from government (ekantipur.com)
Local leaders say no to bandas (ekantipur.com)
‘Industrial-capitalism is Maoist economy policy’ (ekantipur.com)
Siddhartha bank opens branch in Damak (ekantipur.com)
Parliamentary committee directs NTA to clash rates (nepalnews.com)
Aug 21
Govt forms panel to fix water tariff (ekantipur.com)
WB, NRB agree on two-option scheme for NBL (ekantipur.com)
Unemployed locals close Dabur (ekantipur.com)
Promoters to be allowed to sell shares (ekantipur.com)
Roaming charge on NT's mobile phones to be scrapped (nepalnews.com)
Aug 22
Banda affects valley and beyond (ekantipur.com)
Poultry product prices skyrocket (ekantipur.com)
SC clears way for action against Pun (ekantipur.com)
Govt prepares to ask India for 2nd transit point (ekantipur.com)
Dabur resumes operations (ekantipur.com)
Medicine entrepreneurs go on strike (nepalnews.com)
Aug 23
Transport strike on highways banned (ekantipur.com)
11 hrs daily power cuts in offing (ekantipur.com)
Economy slows but corporates pay more tax (ekantipur.com)
Employment Permit System (EPS) office for Korean jobs this week (ekantipur.com)
Improve quality of pashmina to promote exports: Experts (ekantipur.com)
Aug 24
Govt to get tough on non-performing hydro licensees (ekantipur.com)
Insurance scheme forwarded to MoF (ekantipur.com)
Cold storage being built with Indian help (ekantipur.com)
Code of conduct to check petroleum adulteration (ekantipur.com)
FM concerned at stock market volatility (ekantipur.com)
Aug 25
Vegetable prices soar amid floods, landslides (ekantipur.com)
Suryadarshan is 77th finance company (ekantipur.com)
Aug 26
Massive hike in hydro license fee this week (ekantipur.com)
Interview - Dr Til Chandra Bhattarai (Poulty Industry) (ekantipur.com)
Partial effect of bandh in Terai; Squatters' agitation blocks highway in Far West
Aug 27
Buddha Air flight cancellation irks passengers (ekantipur.com)
Petrol shortage deepens (ekantipur.com)
Foreign job seekers rise by 16 pc (ekantipur.com)
Aug 28
Labor MoU delayed as Malaysia not responding (ekantipur.com)
Additional duty hits pipe exports (ekantipur.com)
Fuel consumption up after four years - NOC incurs Rs 3.12 billion net loss in 2006/07
PAC directs NAC to bring aircraft on lease (nepalnews.com)
Aug 29
NAC to resume flights (ekantipur.com)
Indo-Bangladesh pact to affect Nepali garments (ekantipur.com)
SAARC transport ministers to push for greater connectivity (ekantipur.com)
Medicine entrepreneurs end their protest (nepalnews.com)
Aug 30
Insurance Board to probe Alico's financial status (ekantipur.com)
Business community deplores growing insecurity (ekantipur.com)
Aug 31
‘Hike fuel price or give money to NOC’ (ekantipur.com)
Market capitalization crosses Rs 200b mark (ekantipur.com)
Postal service disrupted as employees go on strike (nepalnews.com)
(nepalnews.com) (ekantipur.com)
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