Experts suggest to boost economy

By a Post Reporter

KATHMANDU, March 23 - With a view to formulating strategies that the private sector need to pursue for enhancing the socio-economic condition of the country, Policy Dialogue Forum, formed under the chairmanship of Pradeep Kumar Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) held its meeting here yesterday.

Welcoming the participants of the meeting, president Shrestha opined that the role to be played by the private sector is important and hoped that the members of the federation will contribute to the growth of national economy, according to an FNCCI press release..

The federation has been playing a pivotal role in the promotion of economy in national and international level and urged the participants of the meeting to furnish their recommendations to promote the industrial condition of the country and to make suggestions in connection with the forthcoming budget.

Ananda Raj Mulmi, Immediate Past President (IPP) of FNCCI expressed the hope that with the country’s economy passing through a difficult period, this forum will seek solutions for the betterment of the economy.

Participants at the meeting expressed their view that the private sector should be encouraged in the context of its increasing role in the liberal economy. They said that the federation should help in producing and distributing quality products and services and stressed that there should be transparency and good governance in the day to day operation of business in the private sector.

They also said that the private sector, with joint efforts of the government, should not only play a major role in combating corruption but should also work together towards harnessing the country’s vast natural resources.

In addition, they said that the information of FNCCI’s economic activities should be updated and a comprehensive research laboratory to test food and medicine immediately established.

They also stressed on the need to expand the Nepal Standard (NS) quality mark and to declare a personality making remarkable contribution to the commerce and industry as a national hero.

On the same occasion, they also took the opportunity to lambaste the government for the ‘negative protection’ of the domestic industries. They also stressed that the existing policies and acts formulated and enacted by the government are confusing. Moreover, privatization policy is unclear and lacks continuity, they said.

Also stressing upon the need to create an environment conducive to generating more revenue, the participants said that the priority sector of industry should be clear and policy formulation should be free from international influence. They also emphasized to strengthen the monitoring mechanism.

Experts Yadav Kant Silwal, Himalaya Shumsher JBR, Raj Krishna Shrestha, Dr Rabindra Shakya, Hulas Chand Golchha, Prof. Upendra Bahadur Pradhananga, Banwari Lal Mittal, Dr Dilli Raj Khanal, Satyendra Pyara Shrestha, Dr Yadav Prasad Pant, Shyam Bahadur Pandey, Daman Nath Dhungana, Dr Suresh Raj Sharma, Dr Prakash Chandra Lohani, Bharat Bahadur Pradhan, Dr Harka Gurung and Dr Raghavdhoj Pant among others expressed their views on the occasion.

Delivering vote of thanks, Rabi Bhakta Shrestha, First Vice-President of FNCCI said, at a time when the political and economic condition of the nation is poor, the suggestions put forward by the experts would be valuable in policy formulation of the government. He also urged the government to take the private sector into confidence and move forward as partners for the betterment of the economy, the release states.

Second Vice-President Diwakar Golchha, Third Vice-President Binod Bahadur Shrestha and ex-officio Vice-President Rajendra Kumar Khetan including executive committee members of the FNCCI were also present on the occasion, according to the release.

503 enterprises under VAT in Chitwan

By a Post Reporter

CHITWAN,  March 23 - The number of business enterprises registered with Value Added Tax (VAT) has reached 503 as of today, according to VAT office here.

Chudamani Devkota, chief of the VAT office informed while the government had collected revenue of Rs 420 million through customs duty and 140 million rupees from VAT last year, the customs duty and VAT collected this year has reached Rs 520 million and Rs 180 million respectively.

The revenue this year was up by 25.6 percent compared to the figures of the previous year.

Investors attracted towards public apartment system 

By Bijaya Babu Khatri

KATHMANDU, March 23 - With a rising demand for housing and scarcity of land, various housing companies have started to build and sell public apartments.

A number of such public apartment complexes are under construction in areas such as; Tripureshwor, Bhatbhateni, and Mitrapark, Chabahil. Though many housing companies had started to mull such schemes in since the early 90s, they couldn’t translate it into action due to lack of legal provisions. It was only after the government formulated Collective Housing Policy in 1998 that these companies started constructing of such apartments.

The Policy has provisioned a collective ownership of the apartment complex land  to all owners of the apartments.

The idea of public apartment system is likely to take quite a long time before it is sold to the public.” In a social culture like ours, where people have long been living in private houses, it will take some time for them to adapt to this compulsive change,” says Amrit Shresthacharya, Senior Official at the Housing Department.

With growing population and pressure on land, many people are unlikely to find a viable alternative to this time-tested public apartment schemes in the metropolitan cities throughout the world. Though the scheme is new to Nepal, it is a common feature in metropolitan cities across the continents.

Public apartment is a long-established practice even in the major cities of India.

With bloating population and increasing cost of real estate along with housing, people will inevitably fall back to public apartment system.

A national housing survey conducted in 1992 revealed that the yearly demand for housing was growing by over 5.3 percent in the Kathmandu Valley and 24 percent of the population residing in the valley didn’t have their own house. Experts say the number has shot up further as population influx to the Valley increased heavily after 1992.

Besides releasing people from the burden of unaffordable real estate prices in the Valley, the scheme is also expected to free them from the perennial shortage of drinking water and chronic problem of public roads and sewerage. The apartments under construction will have all these facilities including telephone services and security.

Foreign and local investors as well as the government agencies are currently involved in the development of such schemes. Housing Department is utilizing 220 ropanis of the 500 ropanis of land provided by the government for public apartment scheme. The rest 280 ropanis is being utilized to construct apartments for Member of Parliaments.

Similarly, Employees Provident Fund is constructing 112 houses in Pokhara, which will be leased out to the members of the Fund. However, the Fund officials say they would handover the scheme to the private sector in the long run.  

Choudhary Group and Ansal House, India, are jointly developing the apartments in Bhainsepati, Kathmandu.

Anil Choudhary of Ansal Housing says they are investing in Bhainsepati under a pilot project. “If the project succeeds, we will invest more in new schemes,” said he. He also said that response form the public has been encouraging so far.

FNCCI President hopeful of IA flight

By a Post Reporter

KATHMANDU, March 23 - President of Federation of Nepalese Chambers of Commerce and Industry Pradeep Kumar Shrestha has expressed concern over the much-delayed suspension of Indian Airlines’ flight to Nepal.

“It is very annoying to notice that Indian Airlines is flying to Pakistan even during such a crisis period, and not flying to Nepal for security reasons,” he added.

“It is very sad that the airlines stopped its scheduled flight to such a close neighbouring country just because of one hijack. I don’t think that security measures in Nepal are so bad to suspend their act for so long,” he said.

The President of the apex body of the business sector, Shrestha, is leading a delegation to India on 27th of this month, which is supposed to raise the issue among host of other trade matters.

He is hopeful that something concrete would come out when a high level business delegation meets with civil aviation authorities and political leaders of India.

Shrestha said that the event has seriously raised the issue of strengthening the national flag carrier. “Now all of us have realized that either the government should restructure Royal Nepal Airlines and acquire more aircrafts, or they should immediately privatize it,” he added.

It is not only the suspension of Indian Airlines, it could be any other airlines stopping flights to our country, he said. “Even if Indian Airlines resumes flight this time, they may suspend it again in the pretext of shortage of aircraft or for any other reasons,” he added.

“So, we should enhance our own capability, either by the flag carrier, or by the private sector,” he suggested.

President Shrestha has also urged private operators and investors to form a consortium and operate a capable airlines with few mid-range jets and other aircrafts.

Talking to The Kathmandu Post at his office today, Shrestha also said that Nepal should consider a few foreign airliners’ proposal to fly to New Delhi or any other short destination before halting their flights for a night in Kathmandu.

Reportedly, Qatar Airways has proposed to fly to New Delhi or Varanasi, before halting their flight from Qatar and London overnight. “It would be beneficial for both the operating airlines and the country,” he added.

He also announced that FNCCI is going to organize a high-level meeting to formulate action-plan on tourism sector. “Our Tourism Committee has already started working on it,” he explained.

Shares
Nepal Stock Exchange
Singhadurbar Plaza, Kathmandu

23 March, 2000

              Trading Information                                   Trading Price

Paid-up value of S. N. 9  is 57.
Paid-up value of S. No. 12     is 10.
Paid-up value of S. No. 24  is 85.
Paid-up value of S. No. 25  and 28   is 60.
Paid-up value of S. No. 26 and 29  is 50.
Paid-up value of S. No. 27  is 65.
NEPSE Index : 318.31 (1.98) Base : 12th.   Feb, 1994 = 100