Pvt sector interested in new mutual fund

Post Report

KATHMANDU, Jan 11: At a time when the only mutual fund of the country has not been able to perform as per initial expectations, two private sectors parties have put up applications at the Securities Board (SEBO) seeking permission for the operation of a new mutual fund.

An official at the SEBO informed The Kathmandu Post that two private parties have shown interest to initiate a mutual fund. "The parties have put up applications, which will be studied in detail. The study presently is only at a preliminary stage," said Damber Dhungel, Chairman of the regulatory board.

This is the first time that any private party has shown interest to operate a mutual fund. Nepal Industrial Development Corporation (NIDC) was the first to initiated a mutual fund scheme in Nepal.

The state-owned institution had issued irredeemable NCM mutual fund of Rs 500 million in 1994. However, following the stock market crash in the mid-nineties, the mutual fund was later changed to a redeemable one in 1996 with a maturity of five years. The central bank and NIDC had to pump in Rs 60 million then to revive the mutual fund.

Mutual fund, one of the financial instruments, accumulates small savings and channels it into large investment. However, the portfolio of investment for any investor is diversified thus minimising the risks associated with his investment.

Govt to bring more rescue packages

Post Report

KATHMANDU, Jan 11: Pritivi Raj Legal, Vice Chairman of the National Planning Commission has said that government is very serious on the deteriorating economic condition of the country and added it is considering to bring more rescue packages to boost the economy.

He further added that apart from the industry and trade, tourism industry has been worst hit by the ongoing economic slowdown due to combined effects of both domestic and international series of incidents.

Assuring the business leaders against the surrounding rumors on Voluntary Disclosure of Income Scheme (VDIS), he said that the campaign has been lunched only against the tax evaders and therefore the genuine taxpayers should not be scared.

Addressing the inaugural session the 22nd Annual General Meeting of Lalitpur Chamber of Commerce and Industry (LCCI), Vice Chairman Legal said that economic slowdown has already started affecting the economic growth rate. "GDP along with government investment and revenue is expected to record a nominal growth seriously hampering the government efforts to fight against poverty," Legal said.

He also stressed that the strong partnership between private sector and the government is the need of hour to accelerate the economic activities. Referring to the weak implementation records of the government plan, he said the real outcomes of the programs and policies announced recently by the government would depend upon their effective implementation.

Speaking on the same occasion, Rabi Bhakta Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry said that the ongoing economic slowdown has greatly hampered the development of the industry and business.

"Corruption and lack of good governance and transparency is still a big problem in the Nepalese administration," he added. He also expressed his dissatisfaction over the number of recent government decisions in which private sectors were in consulted properly. "The recent central bank’s decision related with business creditability information that was imposed without prior consultation with the private sector has created a great confusion in the foreign trade sector," he said.

He said that upcoming Tenth Plan should be focused on the development of industrial sector, which ultimately can contribute in alleviation of poverty by creating employment opportunities.

Kedar Lal Khoshi, President of LCCI said that the government should be serious about the problems being faced by the business community and urged the government to announce comprehensive programs to stimulate the sluggish economic activities.

He stressed that government should make extra efforts to end the confusion over the renewal of Nepal- India trade treaty. "Since India is the largest investor in Nepal, government should be concentrated in signing a long-term trade treaty with India to ensure inflow of further investments," he added.

Appreciating the government announcement to form an Industrial Security Force, he said that there is a need of extensive interaction with the private sector to make the force more result orientated. He also stressed the need to launch a comprehensive ‘youth employment programs’ to achieve the target set by the upcoming Tenth Plan.

Khoshi also said that local productions should be given high priority in the government procurement to encourage local industries and employment.

WEAN Cooperative holds AGM 
Makes profit after a decade

Post Report

KATHMANDU, Jan 11: Women Entrepreneurs’ Association of Nepal (WEAN) Cooperative, the first cooperative run by women in Nepal, marked its 10th annual general meeting (AGM) here today.

Rita Bhandari, Chairperson of the Cooperatives, speaking on the occasion, said that after a decade-long struggle, the Cooperative has been able to earn a modest profit this year. It has been able to earn a profit of about Rs 200 thousand this year, she added.

"We have witnessed a lot vicissitudes right from the beginning. Once we were about to close down the cooperative, but with the support of our members we were successful to continue it. This year’s progress has emboldened us", she said.

She also informed that the Cooperative has a plan to open centres outside the valley for rural backward linkages and going to develop it as a South Asian packaging centre.

Deputy Speaker Chitra Lekha Yadav commended the women involved in the Cooperative to bring it to the present state in a short period of time and she also praised the women entrepreneurs for making an excellent presentation during the Eleventh SAARC Summit.

The Deputy Speaker said that she would extend best possible support for the promotion of women entrepreneurs. Sharada Rizal of the Cooperative also spoke on the occasion.

WEAN Cooperative, a women producers’ marketing cooperative, was established ten years ago with an objective of enhancing the economic and social status of women entrepreneurs.

The cooperative provides skill developing training, counseling and supporting its members in participating in national and international exhibitions and trade fairs.

The Cooperative exports fresh agro-products and Navaras, a branded pickles, to Hong Kong, and handicraft products to mainly Japan and other European markets. It also promotes the quality products of even non-member women entrepreneurs.

Established with seven members, the WEAN Cooperative boasts of 154 women entrepreneurs from various fields today.