‘Next budget should prop up battered business’

Post Report

KATHMANDU, May 14 – Rajesh Kaji Shrestha, President of Nepal Chamber of Commerce (NCC), has said that the government in its forthcoming budget should bring policies and programs to regain shrinking business confidence since the industrial environment of the country has been greatly disturbed by the worsening security condition.

Addressing an interaction program organized by the NCC with an aim of urging the government in bringing transparent and practical budget for the fiscal year 2001/02, he advised the government to include various business-related recommendations adopted by the recently concluded 48th Annual General Meeting of the NCC. "The forthcoming budget should seriously address the deteriorating business environment coupled by fragile internal security and frequently occurring bandha and strikes."

Speaking on the same occasion, Bhoj Raj Ghimire, Joint Secretary at the Revenue Department, Ministry of Finance (MoF), said that the government is aiming to enhance revenue collection by lowering the existing tax rates. He also expressed the hope that the various recommendation of the program would be helpful in formulating the upcoming budget.

Narayan Prasad Silwal, Joint Secretary at the Ministry said that the government has been incorporating various business-friendly suggestions from businessmen and informed the participants that the government is always ready to honor taxpayers.

According to Bidhaydhar Mallik, Director General of Department of Tax, the government is always ready to negotiate with the businessmen on the problems related with VAT and excise duties to find out suitable solution.

Madhav Prasad Ghimire, Director General of Department of Customs, said that the current tax rates of Nepal are less than the existing rates in other countries and added that it could be further lowered after Nepal’s accession to the World Trade Organization (WTO). He further informed that the detailed homework regarding the tax rates in the forthcoming budget is being consulted at the Customs Sub-Committee.

Mahesh Kumar Agrawal, immediate past president of the NCC, Lok Manya Golccha, president of Nepal Overseas Traders’ Association, and other high ranking officials of NCC spoke on the occasion.

Regional training on currency mgmt kicks off

Post Report

KATHMANDU, May 14 - Dr Tilak Rawal, Governor of Nepal Rastra Bank (NRB), has said that despite the stalwart development of the electronic transaction, most of the developing countries still depend upon the currency notes and coins for transaction due to lack of extensive banking facilities.

Addressing the opening session of five-day training program on Currency Operation Management here today, Dr Rawal said that the central bank has great role and challenge in managing the currency operation. "These challenges in turn have let the central bank explore possibilities and new avenues to manage the currency operation more effectively," he said.

The training program, which is being participated by 28 participants from 14 central banks of the Asia and Pacific Region, was organized by Research and Training Center of The South East Asian Central Banks (SEACEN) and hosted by the NRB.

He further said that currency operation management demands greater precision and accuracy to carry out the effective monetary management. He also expressed the hope that the training program will largely help the participants to understand and acquire deep insight in to the intricacies of currency operation management.

Addressing the same function, Dr Subarjo Joyosumarto, Executive Director of the SEACEN Center, shaded light on the various emerging problems and challenges in the currency management. He also expressed the optimism that the training program will provide an opportunity to exchange various currency-related experiences and problems of the central bank.

Machhapuchhre Bank holds 2nd AGM

Post Report

KATHMANDU, May 14 - Machhapuchhre Bank (MB), a regional bank with its headquarters in Pokhara accumulating a total deposit of Rs 643 million, has so far invested Rs 470 million by the end of mid-April, states a press release issued by the MB here today.

According to the information given at the second Annual General Meeting (AGM) of the bank, the bank has recently opened a rural branch in Vyas Municipality with an aim to expand banking services in the rural sectors, the release said.

Addressing the meeting, Shankar Man Dangol, President of the Bank, said that though there have been some improvements in the economy, recent turmoil seen in the political arena might dampen the economy in the days to come. "Continued political instability could slowdown the development activities and demand of goods and services, which could squeeze demands of loans thereby hitting the banking sector," the release quoted him as saying.

The bank has already obtained license to open branches in some more industrial cities like Birgunj and Bhirahawa, the release quoted Dangol as saying.

On the way to implement central bank’s direction and to upgrade it into a national level bank, the meeting also took some decision to change its capital structure. The AGM approved the proposal to upgrade its authorized capital to Rs 1 billion from Rs 240 million. Similar decision was also taken to upgrade paid up capital and issued capital to Rs 550 million, states the release.

The release also quoted the meeting as deciding to postpone the issue of shares to public and bank employees, which is equal to 30 per cent of the capital, until desired improvements in financial condition of the bank takes place. Similarly, the AGM also approved the 10 per cent share investment of PKR Investment of Pokhara.