Prime Minister Koirala launches NAES

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KATHMANDU, May 6 - At a time when there is a dearth of authentic institutions in the field of economics that could play an active part in the formulation of macroeconomic programs and policies, Prime Minister Girija Prasad Koirala launched Nepal Academy of Economic Studies (NAES) here Sunday.

Launching the new institution, Premier Koirala said, "The formulation of such an institution has rather been late. It should have been formed immediately after the restoration of democracy a decade back."

He hoped that the newly formed apolitical, non-profit and professional NAES would contribute in the national program and policy formulation and make valuable suggestions for achieving higher macro-economic stability and growth. Furthermore, he emphasized that such institutions overseeing economic matters should take into consideration the socio-political and socio-economic environment of the country while coming up with new plans, programs or policies.

Commenting upon the latest economic scenario, Koirala said, "Following the revolution in the Information Technology (IT) sector that has pulled the world more closer, there is a need to strengthen and enhance Nepal’s competitiveness in the international arena, primarily to survive the threats brought by the globalization."

He further stressed that economists should not neglect the political repercussions that plans or policies can invite. As such, he said, "Any economic thought should consider the political aftermath."

Speaking on the same occasion, Finance Minister Dr Ram Sharan Mahat said that economics has taken a central stage in the contemporary world. "The field of economics is growing more complex. There is growing curiosity and interest in this subject."

Dr Bimal Koirala, Secretary at the Ministry of Finance, who is also a member of the governing board of NAES, highlighted the objectives of the institution. He said that NAES would not only help in the country’s planning processes but would also act as a bridge to foreign scholars and domestic economists.

Professor Bishwambhar Pyakurel, Chairman of NAES, said that the institution would address the latest economic issues of the country.

Other members of NAES’s governing body include Prof. V R Panchamukhi, Prof. Binayak Bhadra, Prof. Madan K Dahal, Prof. Parashar Koirala and Manoranjan Sharma.

B P Shrestha awarded

KATHMANDU, May 6 (PR) - In recognition to his outstanding contribution to the field of Development Economics in Nepal - both in theory and practical - for over the past four decades, Dr Badri Prasad Shrestha, was conferred with the ‘Distinguished Award in Economics’ Sunday.

Prime Minister Girija Prasad Koirala presented Dr Shrestha with the award, comprising cash prize of Rs 75,000, a momento and the citation, at the launching of Nepal Academy of Economic Studies (NAES) in the Capital.

Addressing the gathering after he was presented with the award, a humble Dr Shrestha promptly donated the cash prize for the cause of economic studies. He expressed his happiness for being selected as fit for the award.

"The award is not to an individual but to economics as a branch of study," he said. "The award may be conferred to me by virtue of my age. But there are many scholars from younger generation who are more equipped in knowledge and tools than I am," Dr Shrestha said.

Born in a middle class business family of Kathmandu in 1932, Dr Shrestha completed his SLC in 1951 and obtained his BA degree from the Patna University in 1955. He mastered from the Banaras Hindu University in 1957. He received his Degree of Ph.D in economics in 1962, at the age of 30 from the University of Bombay. From 1964-65, he pursued the post-doctoral research at the University of Pennsylvania, USA.

Dr Shrestha started his career as a teacher in the post-graduate department of economics at the Tribhuban University in 1962, and visiting professor in various US universities. Although academic at heart, he was nominated as a member of the Rastriya Panchayat for four years from 1966. He served as a member of the National Planning Commission (NPC) from 1968-76 and then as a Vice-Chairman from 1976-79. He then served for seven years as an Ambassador to Japan, Australia, New Zealand and Republic of Korea.

Dr Shrestha is currently the president of Institute of Sustainable Development, and member of Water Resources Development Council, Group of Eminent Persons, South Asia Association for Regional Cooperation (SAARC), and a member of National Development Council.

Dr Shrestha has already received nine medals and awards from within and outside the country including Suprasidha Prabal Gorkha Dakshin Bahu (1982), Order of Diplomatic Service Merit (Republic of Korea, 1985), SAARC Commemorative Medal (1987) and Silver Jubilee Medal (1997).

FNCCI chief meets ILO Regional Director

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KATHMANDU, May 6 - Pradeep Kumar Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), met Yasayuki Nodera, Regional Director of the Asia Pacific branch of the International Labor Organization (ILO) Sunday.

According to an FNCCI press release issued here, Shrestha apprised the ILO Director of the latest position of laborers in Nepal and the relevant part played by the government and private sector for their upliftment. He also praised the important role played by the ILO in Nepal.

Shrestha and Nodera also discussed on ways and means by which the position of workers can be improved and employment generated. Furthermore, he appraised Nodera on the latest programs jointly carried out by the ILO and FNCCI, the release states.

Nodera, on the occasion, expressed his commitment to closely cooperate with the Nepalese private sectors for the betterment of workers, according to the release.

On the same occasion, Leyla Tegmo Reddy, Senior ILO Advisor, expressed possibilities of further ILO’s involvement in human resource development and industrial development in the future, the release says.

Ravi Bhakta Shrestha, first vice-president of the FNCCI and Bijay Bahadur Shrestha, vice-president of the Employers’ Council, among other officials of FNCCI and ILO were present on the occasion, the release concludes.

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) rose by 09 basis points to 4.75 percent compared to the previous week. The rupee was traded higher at 98.84 and lower at 98.82 for 91- day TBs. The NRB had received 35 bids worth NPR 1751 million against the notified amount NPR 751 million. The Repo rate for Member Banks and Institutions have been quoted at 5.2473 for the trading days May 02 to May 08, 2001. The outright purchase facility for banks, institutions and other on TBs is also available. In the regular weekly auction, the NRB is going to issue 91- day TBs worth NPR 760 million on May 08, 2001. The call money was traded at 4.75 in the inter bank.

Domestic capital market:

A declining trend in the stock market witnessed due to lack of strong buying interest by regular investors. The NEPSE Index - 100 opened higher at 398.38 compared to the previous week’s close of 367.98 but moved down at the range of 365-367 in the consecutive days and eventually closed lower at 365.25 for the week netting a sharp fall of 2.73 points. This week, trading was estimated at 43035 shares valued NPR 22.5 million compared to 68435 shares valued NPR 20.6 million of previous week. Commercial banks and finance companies shared 79.02 percent and 17.51 percent of total traded amount. This week, the Index of Production Sector and Hotal sector improved while Commercial Banks, Finance/Insurance and Other Sector lost, Business Sector and others remain unchanged at their previous prices. This week, brokers had quoted the prices of 56 companies on the trading board but only 43 companies were traded. Out of forty-three traded companies, eleven companies improved, eighteen companies lost and fourteen traded companies remain unchanged at their previous prices. Nepal Share markets, Bank of Kathmandu, and NIC Bank registered the first, the second and the third most traded company trading 11635, 8196 and 4620 shares respectively. Share of Nabil Bank, Himalayan Bank, Nepal SBI Bank, Bank of Kathmandu, Taragaon regency hotel, and Universal Finance was able to trade in all five working days. Likewise, Nepal Bank Ltd, Nepal B’desh Bank, Everest Bank, NIC Bank, Necon Air, Sagarmatha Insurance and Lumbini Finance were able to trade in four working days.

Forex round-up:

The dollar strengthened against the Sterling and Euro over the week. Last week an U.S. growth report raised hopes that the U.S. economy might already be on the path to recovery. However, the green back fell against the Yen as traders started fretting the U.S. April jobs report out later on Friday might be weaker than expected. The Yen was also supported by optimism Prime Minister Junichiro Koizumi will be able to boost Japan's frail economy by introducing structural reforms.

The Euro showed little immediate reaction to data signaling a slow down in activity in the Euro zone service sector.

This week also the INR continued to rule firm against the USD backed by good dollar supplies. The NPR remains unchanged against the dollar over the week.