Foreign employment entrepreneurs resentful over govt stance

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KATHMANDU, April 5 - Foreign employment entrepreneurs have expressed their resentment at Minister for Labour Palten Gurung as he repeated his stance for not allowing them to send Nepalese workers to Malaysia, unless the Royal Nepalese Consular General in Kwala Lampur certify the demand for Nepalese workers.

The irate entrepreneurs Wednesday poured out their dissatisfaction to the Under Secretary at the Ministry Dev Ratna Tamrakar for delaying the process of sending aspirant Nepalese to Malaysia.

The Malaysian companies had demanded for supplying manpower two months ago but we have not been able to send them yet. This will make us lose a supply of around 60 thousand manpower to the country, they complain.

They demanded with Under Secretary to allow them to send Nepalis to Malaysia as they have already submitted the demand letter of Malaysian companies, the letter of power of attorney, agreement between the Malaysian and Nepalese companies and the workers contract papers. They also insisted that the approval of the concerned Consular General was not necessary.

Talking to The Kathmandu Post, the exasperated entrepreneurs said that though they have completed all necessary procedures for sending Nepali workers to Malaysia, the Ministry is delaying the permission unnecessarily.

But Minister Gurung reiterating his stance said since it is a new country for foreign employment, we should be cautious about the safety and job guarantee of our people, unless they will suffer like those who went to the Gulf countries, said the Minister.

Therefore, if the Nepalis are sent upon the certification of the concerned Consular General, the workers can get legal treatment if they suffer in course of their job through the diplomats, said the Minister.

However, the entrepreneurs say that the Minister has been assuring them saying the same thing for months but he has not executed it. Earlier, when some Nepali workers in the Gulf countries suffered, it was made mandatory that the demand for manpower made by private companies from Gulf countries had to be endorsed by either the Foreign Affairs Ministry or the Chamber of Commerce and Industry of the respective countries.

But theere is provision of having approval of the Immigration Department in case of Malaysia. The entrepreneurs allege the Minister of violating the rule and pending the process of giving approval to their document. Yet, we are ready to follow the rules in the days ahead, they say.

They say that Consular general ask for additional fee for their approval, which will ultimately push up the cost to be borne by the aspirant workers. If allowed to sent workers to Malaysia, Nepalis could be benefitted as the climate is also suitable for them and the pay is also attractive, say the entrepreneurs.

According to the entrepreneurs, some 70 files including SOS Manpower Service, Space Overseas, Raj Overseas and other companies are in pending at the Ministry.

Inflation at 2 per cent, price price rise at an all time low

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KATHMANDU, April 5 - With the inflation rate at 2 per cent, Nepalese economy continues to enjoy historic low price rise - thanks to dwindling food prices that helped to drag down the whole price index despite surge in prices of the non-food commodities and services.

However, in the context of slowly improving food price along with soaring Indian inflation rate, which heavily influences Nepali inflation rate, tough to maintaining such delightfully low inflationary pressure seems tough in the days ahead.

According to the statistics of Nepal Rastra Bank, during the first half of the current fiscal year, the National Urban Price Index (NUPI) with 1995/96 as the base year, registered a low increment of just 2 per cent as compared to 4.2 per cent recorded in the corresponding period last year.

During the period, food and beverages items, which altogether command 53.20 per cent weight in the NUPI, registered historic deflation of 2.1 per cent. Of the major components of the group, grains and cereals products registered a double-digit deflation of almost 15 per cent. Since the grains and beverages alone holds 18 per cent weight in the overall index, any decline in its index largely helps to pull down the whole index by suppressing price increments of goods with low weight.

The plunging price of paddy due to combined effects of bumper domestic production and huge flow of cheap Indian rice played a crucial role for deflationary pressure on the grains and cereals group crushing poor peasants, who heavily depend upon the income of monsoon crops.

The growing aversion of majority farmers in cultivating paddy caused by prolonging paddy price slump has posed serious threat to the national agriculture productivity. If not reversed, paddy production in coming season might fall fueling the escalation of its prices and the inflation rate. Similarly, the prices of sugar and sugar related products and spices increased by 14.5 per cent and 14.1 per cent against a decline of 7 per cent and 3.5 per cent respectively recorded last year. These double-digit surges are mainly the due to the sky rocketing hike in the prices of petroleum products last November.

Similar increments were also recorded for restaurant meals, pulses and milk and milk products. However, despite the surge in fuel prices, prices of oil and ghee, surprisingly, continued to decline. Their prices, during the review period slumped by more than 3 per cent and such dive was over 30 per cent last year.

Similarly, the non-food and services group, which bear 46.80 per cent weight in the national price index, continued to register a high growth rate of 6.9 per cent. Such growth rate, during last year was 8.1 per cent. Propelled by the fuel price hike, housing - largest weight holder of the group - registered the highest increment of 27.5 against 18.8 per cent witnessed last year.

Prices for medical and personal care also rose by 5.9 per cent albeit, little less than the increment witnessed during same period last year. However, clothes, clothing and education and reading materials also registered marginal increments of 1.8 per cent and 2.8 per cent against 9.8 and 5.4 seen last year.

Business community slams govt

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BUTWAL, April 5 - Industrialists affiliated to Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have criticized the government for its counter-productive role in the development of commercial and industrial sector.

Representatives of FNCCI taking part in the advisory meeting of Butwal Chamber of Commerce and Industryn and conference of district and municipal level Chambers of Commerce and Industry of Lumbini zone held recently has stressed the weak security situation, wrong revenue policy and irresponsibility of the opposition parties for brewing instability in the industrial and commercial sector.

Speaking on the occasion, Ananda Raj Mulmi, former president of FNCCI castigated the government’s recent decision to deploy army personnel on the main customs points throughout the country.

"This is not the permanent solution to check cross border smuggling," said Mulmi, urging the government punish the corrupt employees at the customs.

Referring the current Parliament stalemate, Mulmi said the country as a whole has become the prisoner of indecision and this has caused tremendous impact on the economy.

Highlighting the need of mutual trust between the government and private sectors, Ravi Bhakta Shrestha, first Vice-President of FNCCI criticized the government for frequently infracting the consensus reached with the business sector.

Second Vice-President of FNCCI Diwakar Golchha pointed out the lack of transparency at the government offices, adding that it has caused problems on the implementation of value added tax (VAT). He also demanded to consult the respective chamber of commerce before army carry out raid in any business godowns.

FNCCI has submitted recommendations to the government and main opposition party regarding various problems of the economy, informed Rajendra Khetan, ex-officio Vice-President of FNCCI, adding none of the political parties is paying attention to their recommendations.

Expressing his suspicion on the implementation of proposed industrial security force Khetan feared that it would further increase problems.

Central members of FNCCI Jeevan Ojha and Chop Narayan Shrestha, immediate past president of Butwal Chamber of Commerce Gynendra Kasaju spoke on the occasion and the one-day conference was inaugurated by member of the Parliament Surya Prasad Pradhan.

Representatives of chambers of commerce from Bhairahawa, Parasi, Gulmi, Krishnanagar, among others, participated the conference.

HM to open Nepal Business Expo 2001

KATHMANDU, April 5 (PR)- His Majesty King Birendra Bir Bikram Shah Dev is scheduled to inaugurate the Nepal Business Expo 2001 on April 10 at Bhrikuti Mandap amid a special function.

The Expo is being held on the occasion of the Industry and Commerce Day on April 10 and the establishment day of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body of the trade and industry sector.

According to a press release issued here today, in order to celebrate the establishment day of the Federation in a grand manner, the FNCCI has initiated to organize Nepal Business Expo as an authorized exhibition from this year onwards.

The Expo is being jointly organized by the FNCCI, Nepal Chamber of Commerce, Lalitpur Chamber of Commerce and Bhaktapur Chamber of Commerce.

Understandings reached

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KATHMANDU, April 5 - Various understandings were reached in a meeting of the Revenue Advisory Committee held today regarding the inventories declared taxpayer registered under VAT as per the provision of Financial Act 2056.

As per the understandings reached today, the deadline to submit details of the inventories declared by the taxpayer themselves has been extended to mid-May. Similarly, in order to solve various problems seen in the local levels it was decided that district level Revenue Coordination Committee would be activated.

According to a press release issued by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the meeting was attended by Revenue officials of the government and high officials of FNCCI including its president Predeep Kumar Shrestha, Dewakar Golchha, second vice president and other related officials of the federation.

FM informs NCC delegates

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KATHMANDU, April 5 - Finance Minister Dr Ram Sharan Mahat has informed a delegation of Nepal Chamber of Commerce that the existing procedure of granting VAT credit on the business inventories has been extended for nest two months.

According to a press release issued by the NCC here today, Minister Mahat gave the information to the delegation of NCC headed by its president Rajesh Kaji Shrestha, which had gone to meet Minister to request to remove obstacles lying on the issue of VAT credit.

This has ended the uncertainty in the business community created by a decision of the Department of VAT to initiate necessary actions to bring VAT credit to zero by mid-March.

During the discussion, President Shrestha told Minister Mahat that business community is always ready to pay due tax, however he urged the government to take necessary steps to remove existing uncertainty on the effective implementation of VAT.

On the occasion, Minister Mahat said that the latest government decision was taken keeping in the view, the practical difficulties facing the business community.

Govt appoints 5 NTB members

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KATHMANDU, April 5 - The Ministry of Culture, Tourism and Civil Aviation has appointed five board members to the vacant posts of the Nepal Tourism Board (NTB).

According to a press release, issued by the Ministry here today, Shyam Bahadur Pandey, Ambica Shrestha, Yogendra Shakya, Kali Bahadur Adhikari and Bishwo Shankar Palikhe have been appointed as the board members of the NTB.

Decision to this effect was taken by the government on March 29.