Export Development Fund redesigning suggested

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KATHMANDU, July 26 - In a symposium jointly organised by the Ministry of Industry, Commerce and Supplies in association with ICT, United Nations Conference on Trade and Development (UNCTAD) and World trade Organization (WTO), on Thursday in the Capital, experts have suggested to redesign the existing Export Development Fund (EDF) and make improvements in the export development programs of the government.

The experts say that the EDF cannot address exogenous constraints like weaknesses in export support infrastructure, weaknesses in metrology standards, testing and quality infrastructure, lack of access to finance required for both working capital and investment needs and underdeveloped business advisory services.

Similarly, they have pointed out that the Fund cannot resolve endogenous constraints like lack of technical skills, lack of commercial management skills and management systems.

Neil Spooner, International Trade Center (ICT) Consultant on Export Development Fund (EDF) and Bindu D Adhikary ICT National Consultant, expressed the views while presenting the findings of Feasibility Study Report on Pilot Export Development Fund at a national symposium here today.

They also pointed out that grants are more appropriate mechanisms for addressing the kinds of constraints to export development, as grant funding mechanisms are easy to administer while lending mechanism require more complex administration and organizational capacity to set finance charges and appraise, monitor and supervise loans.

Speaking on the occasion, Anant Vijay, Chief of Office for Least Developed Country (LDC) and Africa, DTCC/ITC said that the changing pattern of international production and trade has not only created opportunities but also posed challenges.

ITC has launched a number of important initiatives like integrated framework for trade related technical assistance and the joint integrated technical assistance program (JITAD) for LDC and other countries in Africa to assist the LDCs in taking advantage of the opportunities brought by the trend and programs to mitigate the challenges, which are relevant to Nepal, Vijay said.

Bhanu Prasad Acharya, Secretary at the Ministry of Industry, Commerce and Supplies, expressed the hope that Nepal would get assistance in developing export infrastructure, human resource development, and in the establishmnet of export processing zone so that it could help Nepal to narrow her trade deficit.

Niranjan Baral, secretary-member of Export Promotion Committee and joint secretary at the ministry expressed the views that the interaction would help in establishing Model export development fund.

Consumer Price Index soars

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KATHMANDU July 26 - The national urban Consumer Price Index (CPI) of May-June showed an increase of 0.7 per cent compared to the CPI recorded in the previous month. The rate of inflation recorded in this month is equal to the rate recorded one month ago.

During the last month, the overall CPI for the national level increased by 0.9 per cent to touch the index of 138.6 from 137.7 points as recorded in April-June. The rate of inflation was maximum one per cent in the Terai region last month whereas the inflation rate remained 0.5 per cent in the Kathmandu valley and 0.3 per cent in the Hills.

The consumer price index is prepared on the basis of prices of several consumer items collected from 22 different cities representing all regions. The consumer items are separated into two groups: Food & Beverages and Non-food & Services. For the calculation of CPI, the weight of these two categories is specified as 53.2 and 46.8 points respectively. The weight has been determined by the household expenditure survey conducted by Nepal Rastra Bank (NRB) in 1995/96. The household consumer survey is conducted by the NRB every 10 years. The weight of the consumer products is revised according to the results based on the survey.

On the overall national price index, during the last one month, the index of spices has increased by 7.9 points to reach 151.6 from 143.7 points whereas there was a fall on the index of oil and ghee that declined from 108.5 to reach 107.6 points. In total, the index of the vegetable group climbed highest in the Terai region which rose by 7.3 per cent.

New computer system to help accounting process

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KATHMANDU, July 26 - Financial Management Project (FMP) has developed four computer systems to help the budget and the accounting processes of the government. The commissioning of these systems completed here on Wednesday in a press conference. The system is developed to support the governmental financial management.

The four systems developed are the Line Ministry Budget System (LMBS), the Budget Management Information System (BMIS), the Financial Management Information System (FMIS) and the District Expenditure Control System (DECS).

The LMBS and BMIS are said to help over the budget operation of the government whereas the FMIS and DECS enable to manage the financial records.

These systems represent the largest network operating in Nepal and are entirely operated by the government officers. A Nepali team of software engineers in Oracle has developed all of the systems. The unit within the Ministry of Finance and Financial Controller General’s Office (FCGO) will take over responsibility for the operation and maintenance of these systems.

Power tariff hike decision flayed

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KATHMANDU, July 26 - Several organizations and the political parties have expressed their dissatisfaction over the government’s decision to increase the price of the electricity to be effective from August 17.

In a press release received here today, Nepal Consumers Forum (NCF) has said that the hike in power price is intolerable and inexpedient decision of the government towards the welfare of the consumers.

The NCF has said that the Electricity Corporation (EC) has failed to provide subsidy to the customers and instead has raised the electricity capacity by more than 300 per cent after the revival of democracy.

Similarly, in a separate press release received here today Federation of Nepal Cottage and Small Industries (FNCSI) has expressed that the rise in the price will create adverse impact on the industrial sector. In the present situation where our industries are passing through several hurdles we are in a need of incentives but the present rise in the price of electricity is totally unexpected and would discourage the industrial activity, says the release.

"Nepali are paying the highest electricity charge in spite of the fact that Nepal has abundant water resources." says Lekhnath Chamber of Commerce and Industry (LCCI) through a separate press release that was received here today. The price rise in last November is stil hitting the customer and despite of this fact the present rise has been terrible and fearful. The LCCI has suggested that there should be the attempts to control the unproductive expenses and the leakage instead of raising the price of this corporation that is working under the monopoly.

In a like manner, All Nepal National Free Students’ Union (ANNFSU) has made the objection over the government decision to hike power tariff. In a separate press release issued by the president of ANNFSU, Rabindra Adhikary, the ANNFSU has demanded to withdraw the decision at an earliest. Similarly, the Communist Party of Nepal (Marxist- Leninist) has also demanded to withdraw the present decision of power tariff hike.

ADB mission in Nepal concludes

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KATHMANDU, July 26 – The mission from the Asian Development Bank (ADB) that was in the Capital for the past ten days digging facts for the Project Preparatory Technical Assistance (PPTA) relating to the proposed Third Irrigation Sector Program (TISP) has expressed satisfaction over the government’s implementation of the Second Irrigation Sector Program (SISP).

Kenichi Yokoyama, leader of the fact-finding mission, today expressed satisfaction over Nepal’s progress in the physical implementation of the SISP that was initiated in 1996 with a loan assistance of US $ 25 million from ADB and $ 4.2 million from the government.

However, he said that certain issues relating to qualitative aspects of the SISP is yet to conform to the ADB standards. He said, "There is a need to ensure that the physically completed projects are constantly supervised and monitored for ensuring high levels of productivity and sustainability. And this is where the challenge lies."

It may be recalled that two ADB officials from Manila, with one local consultant and one ADB official based in Kathmandu had carried out the fact-finding exercise. The mission had interacted with various concerned parties and then conducted field visits for gathering facts.

The mission’s visit had come as a positive signal from the ADB for the financing of the proposed TISP. TISP would be a successor to the Second Irrigation Sector Project (SISP), which is in the final year of completion.

The SISP, which also mobilized the labour of the local consumers worth $ 4.1 million, had targeted to extend sustainable irrigation facility to 41,000 hectare of land of 35 districts of the Eastern and Central Development Regions.

Yokoyama said that the final decision of the ADB to move forward for the designing of the TISP would be taken by September. If the program gets a green go, a team will most likely begin working early next January, he said.