‘No threat of war to SAARC nations’

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KATHMANDU, Oct 7 - Though the Nepalese tourism and industrial sectors are reeling from the global recession, an impending attack on Afghanistan by the US would not affect the SAARC countries.

"The recent development has not been encouraging for investment, however, it will not affect the SAARC (South Asian Association for Regional Cupertino) countries," said Finance Minister Dr Ram Sharan Mahat, referring to the impending attack on Afghanistan in the aftermath of the terrorist attack on the US.

"Much of Afghanistan lies in West Asia and it has nothing to do with the South Asian countries," he said, inaugurating the 7th Annual General Meeting (AGM) of the Courier Service Association of Nepal (COSAN) here Sunday.

He told the representatives of COSAN not to worry about the global recession brought about by the war against terrorism.

He further said that the government is considering liberalising its tight, restrictive policies and licensing system opting for a free and open policy for the emergence and growth of service-oriented industries.

"Much progress in the private sector enterprises has been recorded when the government interference is less but the sector has not progressed much when the government interference is maximum," said the Finance Minister.

He also hailed the Courier service as deserving the status of an industry. It has done commendable work in the last seven years and in providing employment to thousands of people.

Citing the emergence of the sprawling service-oriented enterprises in the last ten years, Dr Mahat said, "today’s context of development can be equated with the development of the service sector unlike what we had seen until yesterday as industrial revolution."

"Before we could even notice, so many changes began to show up in the service sector, this is obviously a hallmark of progress," he added.

He cited telebanking, insurance, merchant banking and hosts of other financial services including health, telecommunications and others as examples of growth of service-oriented industries in the last decade. But he vehemently opposed the propaganda that democracy has only been confined to paper.

He also warned in strong words that the government is ready to take any action against corruption, mismanagement, and fraud, which is responsible for hindering the development and progress.

Rajesh Kaji Shrestha, President of Nepal Chamber of Commerce (NCC), said that the establishment of courier service has solved the problems of delay and losses of parcels and letters which used to be delivered by the out-dated postal service system.

The COSAN has 40 registered courier service companies in major townships in Nepal and the sector employs over 2000 people. COSAN has been pressing the government to recognise the business as an industry.

Gobardhan Pahadi, President of COSAN, demanded with the government to recognise the business as an industry and to exempt courier service of Value Added Tax (VAT), arguing that the state-run Post Office has exempted VAT.

Kathmandu Utsav concludes

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KATHMANDU, Oct 7 - Kathmandu Utsav 2001, a ten-day consumer fair, came to a close here on Sunday.

The consumer fair organised before a couple of weeks of Dashain, the greatest Hindu festival, had over 175 stalls of consumer goods ranging from household items to hi-tech electronic appliances to vehicles.

Speaking at the closing ceremony, Binod Bahadur Shrestha, first Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said more new items would be introduced to the market in the fairs to be held in future and a spacious hall would be constructed for the purpose.

This festival is a welcome gesture for Dashain, said Bhaskar Raj Karnikar, Director of Everest Exhibitions, organiser of the annual festival.

Various awards were also distributed during the closing ceremony of the festival.

Three outstanding stalls, students performing various cultural programmes, Nepal Police, Anamnagar, Nepal Karate Federation and artistes were awarded cash prizes and certificates.

Similarly, Sanjay Concern was given away the best selling stall award, TVS Suzuki, the best decorated stall and Nepal Lever Limited was given away the best stall promotion award. Elisha Khadka, a five-grade student of Siddhartha Banasthali School received fabulous Mayos award.

Mayos Noodles, Nepal Bangladesh Bank, Gorkha Brewery Pvt. Ltd. and Asian Drinks among others supported the event.

Similarly, Gorkha Brewery Pvt. Ltd, Kwality Ice Cream, Asian Drinks and N.B. Bank, among the supporters and promoters of the festival were also honoured.

Entrepreneurs suggest export market expansion

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KATHMANDU, Oct 7 - At a time when Nepalese exports are plunging, entrepreneurs of exporting industries stressed upon the need to identifying the best exportable items and to suggest expanding their market.

Participating in an interaction organised by Nepal Chamber of Commerce (NCC) here today, the entrepreneurs stressed upon the need of finding out the problems individual export industries.

Rajesh Kaji Shrestha, the president of NCC, said that each of the Nepalese export Industries are currently passing through a tough time and there is a need for the government security for the sustainability of these industries. "The government should make extra effort to make the "Export Year 2003" a success." he said.

"Export is declining every other month due mainly to the deteriorating economic and political situation and it needs an appropriate government policy to protect these industries from further damage".

Brij Gopal Inani, president of Garment Association of Nepal (GAN) suggested that top priority should be accorded to exporting industries, employing more people and earning more foreign currency.

The government’s efforts to revive the garment industry is hopeless, he said adding that there is a need to change the attitude of the employees at the Finance Ministry.

Kabindra Thakur, a carpet exporter stressed upon the need to formulating a separate Labour Act for the exporting industry. Bikash Dhakwa, general secretary of Handicraft Association of Nepal suggested to simplify inspection procedure of handicrafts and to simplify the customs clearance procedures.

Mahesh Kumar Pradhan, former NCC president, pointed out the need for the market expansion and to reduce production costs. He suggested to create market-friendly environment with the joint efforts of the government and the private sector to increase exports.

"Heavy taxes and the other duties that discourage export business must be waived," he added.

Former secretary Mohan Dev Pant suggested to target the Indian market asIndia is emerging as a potential market.

Export entrepreneurs demanded with the government to provide incentives to encourage the local producers of raw materials. Due to insufficient raw materials, the export industries have to heavily rely on imported raw materials, they said.

NCC has formed a 15-member Core Committee consisting the members of all the exporting industries with an aim to promote the export business. This committee would also suggest measures for making Export Year 2003 a success.

Economy, finance and market

By Supa Upadhyay

Domestic money market:

After the massive purchases of dollar by commercial banks during last few weeks and heavy withdrawal of cash for the Dashain festival, the demand of 91-day Treasury Bills (TBs) declined. As the result, the banking sector remained at tight liquidity. The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) rose sharply by 39 basis points to 4.62 percent compared to 4.22 percent of previous week. The rupee was traded higher at NPR 98.95 and lower at NPR 98.83 for 91-day TBs. The NRB had received 15 bids worth NPR 1080 million against the notified amount NPR 600 million. The Repo rate for member banks and institutions have been quoted at 5.1162 for the trading days 25 September to 01 October 2001. The outright purchase facility for bank, institutions and other on TBs is also available. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 789.3 million on October 02, 2001.

Domestic capital market:

This week, a declining trend in the stock market gained momentum and bounced back to its previous two weeks' level. The NEPSE Index-100 opened lower at 279.92 lost further in three consecutive days but eventually closed at 276.07 for the week, netting a sharp loss of 7.81 points over the week. This week, trading was estimated at 54944 shared valued NPR 2.07 million compared to 39219 shares valued NPR 2.06 million of previous week. Commercial Bank and Finance companies shared 54.08 percent and 27.05 percent respectively of total traded amount. Commercial banks, Finance/Insurance Sector and Other Sector lost. While, Production Sector, Hotel Sector and Business Sector remained unchanged. Out of thirty-eight traded companies, eleven companies improved, sixteen companies lost and eleven traded companies remain uncharged at their previous prices. Universal Finance, NIC Bank, and Bank of Kathmandu registered the first, the second and the third most traded companies trading 15437, 8730 and 6834 shares respectively. Share of Nabil Bank, Indosuez Bank, Nepal B’desh Bank, NIC Bank, Bank of Kathmandu, Lumbini Finance, and Nepal Merchant Bank & Finance was able to trade in all five working days. Likewise, Nepal Bank Ltd, Standard Chartered, Himalayan Bank, Everest Bank, Nepal Lever Ltd, Ace Finance and Universal Finance were able to trade in four working days.

Forex round-up

The USD strengthened against the GBP and JPY over the week but it weakened against the EUR. The dollar had been boosted by more intervention by the Bank of Japan to sell yen against it during the Asian trading session. But on the whole, the GBP should remain well bid because it’s better placed than most to withstand the global slow down.

The INR improved marginally against the green back, as the dollar demand remained weak. However, the month-end demand by importers can push the prevailing rate up in the level 47.90. There is also some chance that the exporters can satisfies with this rate and some export income may flushed in the market. In the Nepalese market front, this week the dollar demand by importers was muted as the INR remained almost stable at the range 47.85-47.90. Nepalese banking sector reported to be overbought position. The domestic currency remain unchanged against the dollar over the week.

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