Two growth rates set for Tenth Plan

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KATHMANDU, Dec 17 With an objective of making the Tenth Plan targets more realistic and attainable, particularly in the wake of unending cycle of violence, a meeting of the National Planning Commission (NPC) has set two different economic growth rate targets, which is first of its kind in over four-decade long history.

The meeting chaired by the Prime Minister Lokendra Bahadur Chand, also principally approved the Tenth Plan document and decided to submit it to the cabinet meeting for the final approval.

As per the modified plan targets, the original economic growth rate of 6.2 per cent, defined as optimistic or normal growth rate, would be achieved only if the fragile security condition returns to normalcy and the economy revives. The normal growth rate has been targeted to be achieved by the growths of 4.1 in agriculture and 7.5 per cent in non-agriculture sectors.

However, if the situation remains unchanged or further deteriorates, then the Tenth Plan expects low-case growth scenario, which has been put at 4.3 per cent. The targeted low scenario growth rates for the agriculture and non-agriculture sectors have been put at 2.8 and 5.2 per cent respectively.

According to information given at a press conference, the Tenth Plan, which has set poverty alleviation as the sole objective and has vowed to bring down the existing poverty rate to 30 per cent, has aimed at investing Rs 490 billion to Rs 640 billion. Of the total targeted expenditures of the plan period, government expenditures would be around Rs 205 to Rs 234 billion, while the rest amount is targeted to be met from the private investments.

Similarly, with the annual average growth rate of 7 to 11 per cent, the government has targeted to mobilise foreign assistance to finance 57 to 58 per cent of the total government investments. The plan has also aimed to achieve 10 to 15 per cent of annual growth rate in the development expenditure.

Answering quarries, Dr Shankar Sharma, Vice Chairman of the NPC said that the government has made changes in the target of the economic growth rate due to the ongoing violence and its visible impacts on the economy and investments. "We have seen a lot of changes after National Development Committee approved the Tenth Plan’s concept paper about a year ago and the growth rate has been made flexible to make it more realistic by addressing the existing economic slowdown," Dr Sharma said.

He further said that with a view to making the Tenth Plan document more concrete and result-oriented, the NPC has incorporated other complimentary documents as Medium Term Expenditure Framework (MTEF), Poverty Reduction Strategy Paper (PRSP), Immediate Action Plan (IAP) and Performance Indicators (PIs).

He also said that high, sustainable and board-based economic growth, development of social sector and rural infrastructures, targeted programmes, and good-governance are the main four strategies of the Tenth Plan.

Sharma also said that the plan document has been slightly modified by adding a separate chapter on Conflict and Development to make the plan programmes largely focused on the grave problem of poverty and unemployment, and to address the root cause of the violence.

He also informed that the existing fixed block grants policy to the Village Development Committees (VDCs) would be changed and, as per the new policies adopted in the plan, such block grants would vary depending upon the incidence of poverty of the particular VDC. Referring to the impressive implementation of the IAP, he said that such IAP covering the entire fiscal year would be introduced and the plan has adopted an effective expenditure tracking mechanism to improve the quality of expenditure.

Dr Sharma also stressed that the plan has adopted specially designed strategies to expedite decentralisation, effective implementation of anti-poverty programmes and strengthen evaluation and monitoring of the plan programmes.

Dr Yuba Raj Khatiwada, member of the NPC, said that unlike the past periodic plan, the Tenth Plan has adopted a policy of intervention, particularly on the pro-poverty programmes to ensure its effective and result-oriented implementation.

He also said that MTEF, which for the first time prioritises the development programmes to ensure maximum utilisation of scare-resources, would play a crucial role in accelerating the existing fight against poverty. Stressing upon the need of active participation of private sector to achieve the plan target, he said that the plan has incorporated necessary strategies to crate a conducive environment to the development of the private sector.

Govt to form high level task force to enhance tourist police service

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KATHMANDU, Dec 17 With an aim to enhance the service of the tourist police with wide range of area coverage, the Ministry of Culture, Tourism and Civil Aviation is formulating a high level task force incorporating the representatives from government, semi government and private sector.

According to ministry officials present in the press conference organised to handover equipment to tourist police, the task force headed by Shankar Koirala, chief of Tourism Industry Division of the Ministry will submit report to strengthen the tourist police within the next month.

Addressing the gathering, Shankar Koirala said that the new task force would resolve the raised confusion over legal status of tourist police and suggest measures to expand the tourist service beyond the Kathmandu valley.

Dr Govinda Prasad Thapa, Assistant Inspector General of Police giving an example of Aruba, a small country in the Caribbean sea said, "We are very poor manager and therefore we have been unable to make use of abundant natural resources to uplift the living standard of our people."

Despite having handful tourism products - rocky mountain, cactus and other trees - more than ninety percent of the Arubian people rely upon the earnings of the tourism sector, he said.

As there is a joint need of all the stake holders to uplift tourism sector of country, the tourist police has also to work accordingly, Thapa said adding, "The current step of providing tourist police with modern equipment is an appreciable step."

The government, jointly with Nepal police and private sector has to map most safe places and vulnerable places for tourist, he said adding, "After the mapping, there should be a suitable approach to tourist generating countries asking them to include Nepal in safe travel advisory."

Submitting the report on tourist police, Rajendra Bista, Inspector at tourist police said the tourist police is looking forward to increase the manpower from the existing 15 police to a total of 225 under the supervision of Deputy Superintendent of Police.

"We are hoping to expand the service to 18 touristic places from all around the country," said Bista adding after the expansion, the tourist police would be able to deal with several problems related to tourists.

Tek Bahadur Dangi, officiating Chief Executive Officer of the Nepal Tourism Board stressed upon the expansion of the tourist police as in the countries depending most on the tourism sector. "Our tourist police should be made as active as the tourist police in the tourism dependent countries like Thailand, Singapore, Malaysia and others," he said.

Riddhi Baba Pradhan, Secretary at the tourism Ministry handing over the equipment to the tourist police stressed upon the need to effective mobilisation of the tourist police. "The government would provide all supports to strengthen the police and help upgrade its services," she added.

On the goods provided to the tourists police, there consists three mountain bikes, jackets, office equipment among others. Devendra Bahadur Malla, Deputy Inspector General of Police and Subas Nirola, Director at the Nepal Tourism Board also spoke in the occasion.

Domestic gold price six-year high

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KATHMANDU, Dec 17 Propelled by price rise in the international market, the price of gold in the domestic market soared to Rs 8,575 per ten gram on Tuesday, which is a record high price in the last six years.

The price of gold on Tuesday jumped by Rs 45 per ten gram as compared to its price on Monday, according to price figure issued by Nepal Gold-Silver Dealers Association (NGSDA). The market price of gold, however, is below the price of the central bank.

The gold price fixed by Nepal Rastra Bank (NRB), the sole authority to import gold in the country, stood at Rs 8,636 per ten gram on Tuesday, which was higher by Rs 61 per ten gram than the market price. The higher fixed price of the NRB was based on the international price which closed at US$ 341 per troy ounce today - a record high price since last five and half years.

The international market price of gold today soared by US$ 6 per troy ounce as compared to Monday, which was about US$ 333 per troy ounce. Such a sharp rise in the international price of gold was largely due to plunging of the share markets across the globe. As speculative investors usually reshuffle their portfolio between gold and the share market, these exhibit a negative and opposite relationship.

The rising US-Iraq tension and the downturn recorded in the growth of the industrial sector across the world too has been attributed for increment in gold price.

Moreover, the shifting of the investors towards gold after the dollar started to fall against euro and Japanese yen too was one of the major reasons behind the hike in international prices of gold.

Pokhara offers more to tourists

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POKHARA, Dec 17 Local tourism entrepreneurs today in an attempt to boost ailing tourism business announced the launching of six different promotional programmes under the "Jaun Hai Pokhara" campaign to attract domestic tourists.

"Jaun Hai Pokhara", a promotional campaign aims to attract at least fifty thousand domestic tourists within a year. Regional Hotel Association of Nepal (HAN) based in Pokhara has launched this campaign with the support of Nepal Tourism Board (NTB).

The six different packages under the promotional programme include educational, family, youth camp, honeymoon, agricultural and pilgrim packages. In a bid to popularise the campaign, the organisers are intend to invite people of major cities of the country as well as people of some bordering towns of India.

According to the organisers, the estimated budget for marketing has been fixed at Rs 2.5 million, of which they claimed to have collected almost Rs 2.3 million. NTB, the supporting body for the campaign has contributed Rs 0.6 million for the success of the campaign.

‘We will start inviting people as early as next week," said Biplav Poudel, secretary of HAN, Pokhara. The organisers have chosen Industrial City Biratnagar as their first place for promotional activities. "We soon are going to distribute attractive posters and pamphlets, that introduce Pokhara and its scenic beauty," added Poudel.

Besides Biratnagar, other major cities including Dharan, Birgunj, Janakpur have been targeted for the first phase of advertising and promotion campaigns.

"At the same time we are also planning to do the same in some nearby Indian cities, such as Gorakhpur, Lucknow, Kanpur, Chandigarh and even Benaras," said Biswa Shankar Palikhey, co-ordinator of the campaign.

The campaign has been introduced following the slump in tourism business of Pokhara for the last two years. While the number of incoming tourists for last year was around ninety-five thousand, the statistics for this year however shows less than half of it.

Going by the optimism of the present campaign to stimulate the ailing domestic tourism, many concerned have expressed hope that the business might get some relief.

"Tourism industry of Pokhara will be benefited for more than 50 years with the success of this campaign," said Hari Prasad Gurung, President of HAN.

Trade relation with China should be reviewed: Traders

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KATHMANDU, Dec 17 Given the changed economic conditions in both Nepal and China, several industrialists have pointed out the need of reviewing the trade relationship with China on grounds of new business perspective.

Speaking at a programme, organised by Federation of Nepalese Chamber of Commerce and Industries (FNCCI), Binod Bahadur Shrestha, Acting President of FNCCI, stated that the bilateral trade relationship between Nepal and China needs to be based on present progressive business environment rather than traditional relation in the present era of globalisation.

The programme was organised to notify the developments of the recently concluded 6th meeting of Nepal – China Non-Governmental Forum in China.

"Both China and Nepal need to explore new business avenues to address mutual trade demands," he added. Highlighting the age-old cultural relation between Nepal and China, Shrestha emphasised the need to convert this traditional relation into a positive business relation.

Stating that Nepalese agro-products have high potential in the Chinese markets, Shrestha informed that Chinese traders are also willing to import Nepali products. "We have found great enthusiasm among Chinese entrepreneurs to import our products during our recent meeting with them," he added. Meanwhile, he informed that Chinese traders have agreed to import 10,000 metric tons of Nepali rice for the Tibetan market.

Referring to the decline in the tourism business of the country, Shrestha suggested the government to explore the Chinese market in order to promote tourism. "We can encourage large numbers of Chinese to visit our country by expanding our air links with China," he remarked.

"Chinese are also highly interested in our hydropower potential and had expressed their strong desire to import the same," he added. Nepal on the other hand can import computers, textile, electronic products and light industry products from China, he opined.

On the occasion, he also dwelt on the discussion on formation of potential economic zone including Nepal, India and China in the latest meet of the forum. The Nepalese delegation concentrated on reducing the trade deficit with China in the latest meeting of the forum, he informed.

Similarly, Chandi Raj Dhakal, co-ordinator of the forum stressed on the need of proper marketing of the available opportunities within Nepal among Chinese business community. "Many Chinese industrialists are unaware of Nepal’s potential to absorb their business,’ he remarked.

Dhakal also pointed out the need of restructuring the recent industrial success of China in the Nepali context. "We now need to step towards the significant trade achievement with China rather than the usual trade based on formal basis.

Stating that Nepali agro-products have great potential in Chinese market, Dhakal suggested the government to utilise the border trade, which remains highly under-applied till now.

Meanwhile, he informed that the relationship between All China Federation of Industry and Commerce (ACFIC) and FNCCI would be further developed on district-wise and province-wise basis in the near future.