IT Policy 2000 approved

By Ram Sharan Sedhai

KATHMANDU, Nov 30 - The Cabinet on 23 October approved the Information Technology Policy 2000 draft, prepared and made public by the Ministry of Science and Technology four months ago.

The policy vows to legalize e-commerce, introduce e-governance and computer education to primary up to university level curricula and to create a fair environment conducive to IT development.

With the adoption of the Policy, it is hoped that IT-related services will become efficient, qualitative and affordable for common people.

The policy envisages putting Nepal on the global IT map and exporting software and hardware worth Rs 10 billion over the next five years.

Making IT affordable to the general public thereby creating employment opportunities, building a knowledge-based society and establishing knowledge-based industries are the prime objectives of the policy.

To attain its objective of making the IT sector competitive through increased participation of the private sector, the Policy defines the government’s role as a promoter, facilitator and regulator and to announce IT as a "priority" sector, to pursue a one-window policy for IT development, to computerize government offices and create their web sites.

Likewise, the Policy aims at establishing physical and virtual information technology parks in different locations with private-sector involvement and a National Information Technology Centre (NITC). A Venture Capital Fund to be jointly set up by both the private and public sectors is another principal feature of the Policy.

The policy also envisages the development of a National Information Super Highway and a North-South Info Highway in order to keep abreast of the fast-changing trends in the IT sector. It also plans to connect Nepal with the rest of the world through a Broadband Information Network.

To make the Internet available throughout the kingdom, Internet Nodes will be established by private sector in the headquarters of all districts within five years. It also plans to provide four-hours a day of free Internet connection to colleges and schools within a five-year period.

The Policy plans to promote Distance Learning and to introduce School-net, Research-net, Commerce-net, Multilingual Computing, Tele-medicine, Tele-processing etc. through radio, television, Internet and intranet and to formulate necessary laws for their operation.

The new Policy allows customers to use voice mail for point to point conversation for individual purposes which does not require them to be connected to the existing public switched telephone network (PSTN). And it also includes a provision requiring each ministry to employ an IT officer.

To ensure the organized development of the IT sector, a 21-member National Information Technology Development Council (NITDC) led by the Prime Minister and an 11-member National Information Technology Coordination Committee (NITCC) headed by the Science and Technology Minister will be formed.

A National Information Technology Centre (NITC) will be established at the MoST initially and its regional and district offices will be opened as required. An Information Technology Development Trust (ITDT) will be set up and an additional 0.5 customs duty will be charged on goods to raise fund for the Trust.

The policy has proposed to levy one percent customs duty on the imported software, hardware and other IT-related spare parts and accessories and to give equal facilities to software and hardware exporters to other exporters in their foreign currency earning.

Rupee plunges, FEDAN asks NRB to intervene

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KATHMANDU, Nov 30 - Nepalis rupee dipped further by 25 paisa and traded at Rs 74.65 against one US dollar on November 29.

The decline in Nepali rupee is attributed to the devaluation of Indian currency to the dollar by 16 Indian paisa and the shortage of dollars in the markets. Indian currency traded at Rs 46.88 November 28, against its previous rate of IRS 46.72 for a dollar.

Talking to The Kathmandu Post Bikram Man Singh, Executive member of Foreign Exchange and Money Dealers’ Association of Nepal (FEDAN) said, "The decline of Nepalese rupee against dollar is due to increased demand for dollar in the markets." One reason is that, Nepalese currency maintains a fixed rate of exchange with Indian currency, and any fluctuation in Indian rupees leads to a reciprocal change in Nepalese currency, Singh said.

It is learnt that Everest Bank Limited, Nepal Industrial and Commercial Bank Limited and Nepal-Bank of Ceylon had tried to buy dollars in the market, but to no avail.

FEDAN has already requested Nepal Rastra Bank (NRB) to intervene and off-load dollars amounting to US $ 3 to 6 million in the market, Singh said. However, Central Bank has yet to concede to the FEDAN request to calm down the mounting demand for greenbacks in the market.

The down-slide of Indian currency and the dearth of dollars in the market has resulted in the continued depreciation of Nepali rupee in the last few months.

FEDAN, an association of 14 commercial banks, adopts a common market strategy to request the central bank for release of hard-currencty, if the commercial banks fail to secure dollar in the inter-bank market.

NEPSE Index bounces back

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KATHMANDU, Nov 30 - The dramatic tumbling of the Nepal Stock Exchange (NEPSE) index witnessed a revival, after the market surged up by 13.53 points and closed at 502.85 at the end of the day’s trading on Thursday.

The latest development has come as a good news for the worried investors at a time when NEPSE index was facing a series of sudden setbacks with the Index plunging by over 44 points within three days.

NEPSE Index that closed at 543.85 at the end of last week’s trading on Friday, come down to 489.32 on Wednesday; an aggregate 55 points drop since Friday’s closing. NEPSE Index had touched an all time high of 545.82 last Thursday.

Experts and traders are often asked on the root-cause huge fluctuations, but as usual fail to provide specific answers.

"The major cause of the latest slide is difficult to pinpoint since there are various factors affecting the psychology of investors," says Madan R Joshi, General Manager of Nepal Stock Exchange.

He further said that, the heavy presence of uninformed investors, whose investment is totally based on the current market trend, is the prime cause for such fluctuations. "Only after emergence of real stock investors, who invest for long term gain, after in-depth analysis of the market situation, such fluctuations can be controlled to some extend," he said.

However, brokers claim that the situation is not alarming. "The recent fluctuations in the stock market is normal phenomenon and it happens in any market around the world. So, there is no need to worry," said Nabraj Pokhrel, Director of Nepal Stock Exchange Ltd.

NEPSE index, which began its swinging in August, was catapulted to the new height with the rise in the price of commercial bank’s shares, recorded a 42-point rise within the week ending August 25.

Earlier in August, most of the commercial banks announced bonus and right shares to its shareholders in an attempt to upgrade their core capital to Rs 500 million, as per the directives of central bank. The announcement helped to boost the already high shares price of commercial banks.

The unique characteristics of Nepalese stock market is that, commercial banks alone hold around 90 percent of the total transactions. And, any fluctuations automatically plunges the whole share index

Furthermore, the surge of small investors in the banking sector, mainly due to decline in interest rates of the commercial banks, fueled by the excess liquidity condition, is seen as another reason for the stocks’ decline.

In today’s transaction, the stock prices of some of the leading listed companies, mostly financial institutions, increased as compared to Wednesday’s closing price. The share prices of Bangladesh Bank increased from Rs 2960 to Rs 3151, Nepal Grindlays Bank from Rs 2650 to Rs 2751, Nepal Indosuez Bank from Rs 2350 to Rs 2401 and Nepal SBI Bank from Rs 2110 to Rs 2400. However, stock prices of most of the non-financial companies, like Nepal Lever, whose share price has stucked around Rs 3000, remain relatively unaffected.

Nepal calls for more trade in S Asia

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KATHMANDU, Nov 30 - An eight member Nepalese delegation including government representatives and the private sector bussinessmen have taken part in a Private Sector Forum on South Asian Sub-Regional Economic Cooperation held in Calcutta on November 28, says a press statement issued by the National Planning Commission (NPC) today.

The conference was jointly organized by Asian Development Bank and Indian Chamber of Commerce (ICC) and was attended by over 300 participants from Nepal, India and Bangladesh. The two day long seminar is being attended by ministers and high level government officials, it is said.

Addressing the function, Dr Shanker Sharma, Member, NPC, said that, though the SAARC charter fully envisages the initiation and development of sub-regional cooperation, there is a need to understand the dynamics of the formulation of the sub-regional groups, and operational issues which investors and traders face, the role of policy makers, among others. There is a need to evaluate the feasibility of this being a model for economic cooperation among Bangladesh, Bhutan, India and Nepal, Dr Sharma added.

Dr Sharma also said that, the sub-regional cooperation has been developing slowly in other parts of the world, and it helps to link more number of countries to share the comparative advantages and to form a larger region with greater potential for economic growth.

"Cooperation in trade facilitation and transport could increase regional trade and enhance prosperity," he said. Highlighting the possibility in regional tourism promotion, Sharma said that, "....cooperation in planning and research, promotion and marketing and minimizing travel barriers could advance sub-regional cooperation in tourism with diverse cultural heritages."

as Nepal has been credited as the most open country in terms of trade and investment in the SAARC region by international agencies, private sector should capitalize on the existing opportunities, Sharma added.

PM apprised of farmers’ problems

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KATHMANDU, Nov 30 - A seven member delegation of All Nepal Peasants’ Association (ANPA) submitted a memorandum to the Prime Minister Girija Prasad Koirala demanding the fulfillment of a 4-point demand. The delegation was led by Keshav Badal, president of the association.

Talking to The Kathmandu Post, Keshav Badal said that the demands includes the fixation of the support price of paddy and sugarcane, ending of milk holiday and rebate of small farmers’ loans with immediate effect. The memorandum also demands the government to purchase paddy at the support price.

On the occasion, the delegation also discussed with the Prime Minister to patent Nepalese products as per the requisites of WTO, whose membership Nepal is presently seeking.

In turn, according to Badal, PM Koirala assured the delegation of resolving the peasants’ plight at the earliest. The PM has also assured the delegation to brief the concerned miniters regarding farmers’ problems.