FNCCI to make efforts to narrow trade gap

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KATHMANDU, Nov 26 - Pradeep Kumar Shrestha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said today that the FNCCI and its Indian counterpart are holding talks regarding the Indian media’s news report that cheap Chinese goods are exported to India through Nepal. However, Nepal’s imports from China have fallen recently. According to Shrestha, it is not only India, but also the international market which is affected by the Chinese products.

A delegation comprising government officials, experts and members of the FNCCI leaves for Wuxi, People’s Republic of China today to participate in the fourth meeting of the Nepal-China Non-Governmental Cooperation Forum beginning on November 27.

The delegation will focus mainly on narrowing the trade deficit between Nepal and China by exploring new areas for exporting Nepalese goods to the Chinese mainland, China Autonomous Region of Tibet, Hong Kong, the Special Administrative Region (SAR).

Pradeep Kumar Shrestha speaking at a press conference organized on the eve of the Forum’s meet here today, said, "We will mainly focus on narrowing the trade gap and exploring new areas for export."

He also commented that during the meet and in informal talks with Chinese entrepreneurs, the delegation would ask them to invest in solar energy, hydropower, export promotion zone, electric trains, and the fertilizer and cement industry.

The delegation is also going to import new technologies that China is using in agriculture, sheep raising, sericulture and will also hold talks regarding the export of herbal medicines to China.

Another important point on the agenda of the delegation would be a follow-up to the memorandum of understanding (MoU) signed between the two countries and the alternative route to China through Nuwakot, which the FNCCI suggested a while ago. The FNCCI has carried out a study on the route and submitted the proposal to the prime minister: he will also present the study report to the Chinese officials. The opening-up of new routes will help to formalize the informal trade between the two countries, he said.

The delegation will also request the Chinese Government to commence a direct flight from Beijing to Kathmandu in order to attract more Chinese tourists to Nepal. China recently announced Nepal to be its ninth outbound tourist destination.

Binod Bahadur Shrestha, Second Vice President of the FNCCI said that they would also focus on issues other than trade, such as asking the Chinese to help revive ailing industries established with Chinese cooperation, for instance Hetauda Textiles.

Likewise, they would also discuss the difficulties in Sino-Nepal trade and make efforts to solve them. Since China is advanced in the field of information technology (IT) we will also discuss it during the meeting, he said. In this connection, the FNCCI is going to request the Nepal Rastra Bank, the central bank, to allow Chinese nationals to use Chinese currency for certain purposes.

Ravi Bhakta Shrestha, First Vice President of FNCCI said that trade between Nepal and China has not flourished in comparison to Sino-Nepal relations and the delegation would make efforts to boost the bilateral trade especially Nepal’s export to China. The meet will end on December 3, 2000. The 35-member delegation is the biggest ever.

Seminar on commercial law held

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KATHMANDU, Nov 26 - With a view to developing and strengthening commercial law in Nepal, a one-day seminar on Company, Bankruptcy and Secured Transaction, organized by the Ministry of Finance, on behalf of Asian Development Bank (ADB), was held here today.

The focus of the seminar was on three closely linked areas, including suggested reforms of the companies act, suggested reforms of corporate insolvency law, and proposals for the development of a secured transactions law for Nepal.

The presentations at the seminar examined ways in which the commercial laws could be strengthened, improved and further developed.

Speaking on the occasion, Chief Justice Keshav Prasad Upadhaya said that the growth of multinational companies and the emergence of stock exchange have called for a review of the two dimensional view of law which was used to keep the state and the individual in an adversarial relation.

He said that reforms endeavours should be determined by the Constitution rather than being externally propelled.

On the same occasion, Richard Vokes, Resident Mission Representative of ADB, said that the seminar is timely because the government and ADB recently concluded negotiations on a loan and technical assistance package to support improvements in Corporate and Financial Governance.

Vokes also highlighted the relevance of developing a more effective Company, Insolvency and Secured Transactions Law in Nepal.

The seminar was attended by representatives of different financial institutions, the private business sector, legal professionals and different ministries. Foreign legal consultants, Ray Astin and Ron Harner, led the technical sessions of the seminar.

Electro-Tech 2000 soon

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KATHMANDU, Nov 26 - Nepal Electrical Association (NEA) is organizing the third international electric and electronic exhibition ‘Electro-tech 2000’ from November 29 to December 3 in Kathmandu.

According to a press release, electric appliances, transmission & distribution equipment, energy supply and control machinery, house-wiring products, wires, cables, conductors, tubes and bulbs, communications equipment and computer technology will be on display during the exhibition.

The exhibition entitled ‘Electricity for Prosperity’ will house over 60 stalls from Nepal, India, Japan, Singapore, Taiwan, China, France, Malaysia, America, Germany, Italy and Australia.

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate of 91-day Treasury Bills (TBs) rose marginally to 5.33 percent from 5.28 percent of previous week. The NRB had received 30 bids worth NPR 1810 million against the notified amount NPR 1260 million. The rupee was traded higher at 98.70 and lower at 98.68. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 890 million on November 28, 2000.

Domestic capital market:

The stock market stages a moderate recovery largely on speculative purchases of selected non-bank stocks. The recovery in prices was accompanied with an increase in volumes. The NEPSE Index-100 opened higher at 543.44 zoomed at 545.82 in fourth day but eventually closed lower at 543.85 for the week, netting a profit of 3.57 points over the week. Trading was estimated at 147594 shares valued NPR 139.8 million compared to 92109 shares valued NPR 123.2 million of previous week. Commercial Banks alone shared 89.30 percent of total traded amount. This week the Index of Production Sector, Finance/Insurance Sector, Hotel Sector and Other Sector improved while the Commercial Banks lost. Business Sector remained unchanged at its previous prices. This week, brokers had quoted the prices of 48 companies on the trading board but only 38 companies were traded. Out of thirty-eight traded companies, nineteen companies improved, thirteen companies lost and other six traded companies remain unchanged at their previous prices. Nepal Bank Limited, Universal Finance and Bank of Kathmandu registered the first, the second and the third most traded companies trading 36093, 22040 and 17580 shares respectively. Shares of Nepal Bank Limited, Nabil Bank, Nepal Grindlays Bank, Himalayan Bank, Nepal SBI Bank, Nepal Bangladesh Bank, Bank of Kathmandu, NIC Bank, Nepal Lever Limited, Necon Air, United Insurance, NEFINSCO and Universal Finance were able to trade in all five working days. Likewise, Nepal Indosuez Bank, Everest Bank, Soaltee Hotel, Taragaon Regency Hotels, Everest Insurance, Premier Insurance and NIDC Capital Market were only able to trade in four working days.

Forex round-up:

The USD ended the week strengthening against all its major partners despite uncertainties over the outcome of the US presidential elections. The sterling hit fresh two-month lows below 1.40 amid broad-based dollar gains and expectations that British interest have peaked. Analysts said the prospect of steady British interest rates in the coming months, and talk the next move in rates would be down, had gained momentum in recent days. Looking at the cyclical indicators, there is more real evidence of a slowing economy in the UK than the US. The Euro also fell sharply against the green back in the lack of any positive news. The dollar nudges up to new nine-month highs. Dealers say Yen undermined by renewed concern that corporate bankruptcies could delay Japan’s recovery. The INR and NPR both remain unchanged against the dollar over the week.