Mega IT event all set to repeat earlier success

Post Report

KATHMANDU, Jan 20: With just four days remaining for the Eighth CAN Info-Tech and Nepal Information Technology Show & Conference 2002, the much-touted IT event of the country to begin, the organiser, Computer Association of Nepal (CAN), is upbeat that the event will be a grand success.

Both the participants and the organiser are busy preparing for the mega event, emboldened by the success of the same event organised last year. The mega IT show is to be held from January 25 to 29, 2002 at the Birendra International Convention Centre (BICC).

More than 70 companies have booked space for exhibition by today, which is almost the total number of exhibitors of the previous event, ensuring that the number of participating companies would not go down this year.

Atma Ram Ghimire, General Secretary of CAN, talking to The Kathmandu Post said that an avalanche of inquiries is pouring in from inside and outside the valley regarding the event and they are eagerly waiting for the event.

He said that 30 participants from 10 countries have confirmed their participation in the two-day IT Conference, which is one of the major attractions of the mega IT event. IT experts of international repute would present papers on IT policy formulation, e-commerce and the role of IT in the overall development.

Lochan Lal Amatya, President of CAN, said that TEMENOS, the world’s number one banking software producer, and the Asian-Oceanian Computing Industry Organisation (ASOCIO) are participating in the event, which has added importance to and enhanced the image of the Info-Tech.

Besides, Network Society in the 21st Century and Software Outsourcing are the two major topics of the Eighth CAN Info-Tech and Nepal Information Technology Show & Conference 2002, he added.

Lasse Laaksonen, President of InbitOn and George Koukis, Chairman of TEMENOS Holding are the two keynote speakers of the IT Conference.

As most of the exhibitors have kept their latest products and services secret for the event, it is difficult for us to say what new products and services would be on display, but Internet banking and web card, used in e-commerce are going to feature in the event, said Ghimire.

The organiser has made special arrangements to encourage the participants from outside the valley. They are entitled to 35 per cent discount on land transportation and ten per cent discount on conference fee, he said.

Similarly, the CAN members outside the valley would get 20 per cent discount on conference fee and free transportation facility, he added.

Students, the major target of the IT show and conference, are also given special offer to encourage their participation in the event. Students are given 66 per cent discount on conference fee and 50 per cent on entry fee for which they have to produce their valid identity cards.

CAN expects a total of 150,000 visitors during the five-day event. CAN started to organise the international IT conference since last year.

Ministry of Science and Technology (MoST), Royal Thai Embassy, Nepal Telecommunications Corporation (NTC), Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce (NCC), Institute of Engineering and Asian-Oceanian Computing Industry Organisation (ASOCIO) are supporting the event.

TEMENOS Software, College of Software Engineering (CSE) and Brother, Computer Advance System are the Platinum, Gold and Silver sponsors of this year respectively.

Channel Nepal, Kumari Bank Ltd, Nepal Insurance Company Ltd, Mercantile Communications Pvt Ltd, Makalu Yatayat Sewa Pvt Ltd, bitarak.com, Kantipur FM 96.1, Kantipur Publications, PC World, Spectrum Adv & Media Consultant and Hotel de L’Annapurna are the official sponsors of the event.

CAN has been organising the event annually in the capital since 1995 with an objective of promoting the information technology (IT) and creating awareness among the people about IT.

Labour Act should ensure employment growth

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KATHMANDU, Jan 20: At a time when the government is busy discussing over the new draft on the Labour Act, which is being amended for the third time, labour law experts have stressed that the amended Act should ensure employment growth.

Binod Kumar Bhattarai, member, Labour and Employment Promotion Council (LEPC) said that the amended labour act should facilitate the absorption of prevailing and annually generated new labour force in the market.

He noted that there are some 1.5 million people unemployed in the country and over 300 thousand new labour force are added up in the market annually.

Bhattarai said this while speaking at a program on "Hire and Fire in Nepali Labour Act: Relevance and Usage" organised jointly by Nepal Bar Association (NBA) and the LEPC on Sunday.

Earlier, inaugurating the program Minister of State for Lbaour and Transport Management Shiva Raj Joshi said that the government was in a very difficult position while amending the Act as both the employers and labourers were demanding the government to amend the act according to their interests.

Prithvi Raj Ligal, Vice Chairman of National Planning Commission (NPC) said that the government should focus on economic and employment growth rather than employers and labourers interests.

"Employers as well as labourers should raise above their interests and assist the government to formulate an Act that favours employment growth," Ligal said.

While Laxman Basnet of Nepal Trade Union Congress (NTUC) stressed that the new Act should assist in enhancing productivity as well as strengthening the labour rights, Bishnu Rimal, General Secretary of General Federation of Nepalese Trade Unions (GEFONT) viewed that the Act should protect both employers and employees rights.

Padma Jyoti, Chairman of SAARC Chamber of Commerce and Industry urged the employers and labourers to be sincere and action-oriented.

Aviation companies begin laying-off workers

By Sanjaya Neupane

KATHMANDU, Jan 20: The sharp decline in the inflow of foreign visitors into Nepal during last year has hit the airlines industry hard resulting in the lay-offs of upto 25 per sent of the total staff in the domestic airlines.

According to the Airlines Operators’ Association of Nepal (AOAN), many airlines have decided to lay off the staff while some others are forcing their employees take long leaves without allowances or payments. Several private airlines have attempted to minimise their loss by either withdrawing the regular flights or reducing the frequency.

Currently more than four thousand employees are associated with 15 domestic airlines companies. And thier future is now in a limbo, especially because of the 20 per cent decline in tourist arrivals last year, further aggravated by the September 11 terror strikes in the United States.

Several Airlines have already reduced the number of domestic flights since last November. Experts say such reduction have exceeded 40 per cent of the formerly total domestic flights.

Kishor Silwal, Vice President of the AOA, says around 25 percent of the employees of airlines industry has been laid off. Silwal, who is also the Deputy Managing Director of Sangrila Air, informed that the Sangrila Air alone laid off 60 employees recently.

"We are flying our crafts just for existence," says Silwal. "Under the current situation when the airlines are facing huge losses, there is no other way to reduce the costs." However, Silwal assured that the workers would be called back when the situation improves.

And it is not just Sangrila Air that is facing the heat of the current downturn in the tourism industry. "We are asking a group of four employees each week to take leave for two weeks. We will apply the scheme gradually to all the employees," informed Pragyan SJB Rana, Chairman of Mountain Air.

Similarly, Necon Air is preparing to lay-off 69 employees. "The Association has already approved the decision from the Department of Labour," informed a high level source at the Necon Air.

Domestic airlines opeartors are now requesting with the government to increase the domestic fare, claiming that the cost of operation has increased during the last decade. The aviation feul has gone up by 86 per cent and there has been a significant increment in other civil aviation charges. The insurance premium has also increased significantly after the September 11 attack.

"Airline operators are presently losing US $ 200 per flight even while operating at full capacity," said Rana. Previously, the airlines used to recover the losses through mountain flights. But now, with the inflow of tourist on the wane, domestic airlines harldy operate mountain flights.

Changes in tax structures flayed

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KATHMANDU, Jan 20:The business community has flayed the recent changes in the tax structure that the government enforced by amending the Financial Act 2001 through an ordinance. They have even asked the government to reconsider the decision.

An emergency meeting of the permanent committee of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) held in the capital today concluded that the tariff rates announced through the ordinance without consulting the Revenue Advisory Committee (RAC) will adversely affect the economic activities.

Issuing a press release, the FNCCI said, "Tariffs changes put into effect by amending the Finance Bill 2001 through ordinance will hit the short-term as well as the long-term economic activities."

Expressing concern over the current economic recession, declining investment, among others, the FNCCI has urged the government to seek alternate resources and cut down the government expenditure.

Similarly, the federation has also flayed the central bank’s latest directives that requires exporters/importers to furnish Business Credibility Information (BCI) before opening letters of credit (LCs) from any commercial bank.

The emergency meet today also formed a committee under the coordinatorship of Rajendra Kumar Khetan, Second Vice President of the FNCCI, to chalk out the future course of action by the business community to pull it up from the current slowdown.

Surendra Bir Malakar of Nepal Chamber of Commerce (NCC), Kiran Saakha of Garment Association–Nepal (GAN) and Akil Kumar Chapagain of Nepal Foreign Trade Association are also the members of the newly formed committee, the release concludes.

In the same vein, issuing a separate communiqué, the NCC has billed the recent amendment as impractical and untimely that will further hit the economy that has been going through tough days lately.

CMT Fair-02 kicks off

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KATHMANDU, Jan 20:The Nepali stall at the CMT Fair-2002, which kicked off at Stuttgart, Germany Saturday, attracted over five hundred visitors on the first day itself, states a press release issued here today.

Minister for Industry, Commerce and Supplies Purna Bahadur Khadka also attended the opening ceremony of the annual event, says the release that was issued by Nepal German Chamber of Commerce and Industry (NGCCI).

Nepal Tourism Board (NTB), Asian Trekking, Island Jungle Resort, Plan Holidays Travel and Tours, and Nepal Tashi Taki Trekking are participating at the fair from Nepal.

Minister Khadka and the German dignitaries were greeted by B K Shrestha, President of NGCCI, Kishore Raj Pandey, Vice Chairman, NGCCI, office bearers of the chamber and representatives of Nepal Tourism Board (NTB) at the Nepali stall.

German dignitaries visiting the Nepali stall included Dr Cristoph Palmer, Minister of State and European Affairs of Baden Wurttemberg, Dr Wolf Gang Schuster, Mayor of Stuttgart and Baden Wurttemberg.

The communiqué added that Nepal’s participation in the fair was supported by the NTB, Royal Nepali Consulate General (Stuttgart) and the GTZ/PSPP.

Govt to hold pre-NDF consultations

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KATHMANDU, Jan 20: With the Nepal Development Forum (NDF) meet just round the corner, the government is all set to carry out pre-consultations on more than a dozen working papers.

Finance Ministry sources said that the pre-consultations would give the working papers a final shape before they are presented at the NDF meet that is scheduled to be held in Kathmandu and Pokhara from February 4-7.

Nepal during the meet will present the draft of the Tenth Five Year Plan and the Poverty Reduction Strategy Paper (PRSP) as its main documents.

However, it will also present papers on other sectoral areas including agriculture, decentralisation, governance, privatisation, financial sector reforms, among others.

Furthermore, Nepal will also present a paper reviewing its performance in the area of the second phase of economic reform programme that it implemented after the previous NDF meet held in Paris in April 1999.

Under the present circumstances when the government is fledging through tough times, especially since the declaration of a state of emergency and the mobilisation of security forces causing security expenses to escalate, the government will also try to gain the support and confidence of the donor agencies and countries.

Finance Minister Dr Ram Sharan Mahat has even said that the government will convince the donor community to extend greater financial aid to meet its soaring security expenses.

According to sources at the Ministry of Finance, some high level officials from the donor community are taking part at the NDF meet and that their participation has been confirmed.

Economy, Finance and Market

Supa Upadhyay

Domestic money market: The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBS) rose significantly by 25 basis points to 5.12 percent while, the AWDR of 364-day TBS rose sharply by 46 basis points to 5.62 percent compared to the previous week. The rupee was traded higher at 98.79 and lower at 98.64 for 91-day and higher at 94.85 and lower at 94.49 for 364-days TBS. The NRB had received 9 bids worth NPR 394 million only against the notified amount NPR 760 million for 91 day-TBS and 21 bids worth NPR 770 million against the notified amount NPR 500 million for 364-day TBS. The repo rate for member banks and Institutions have been quoted at 6.1233 for the trading days 21 Jan to 28 Jan, 2002. 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 700 million on 22 January 2002.

Domestic capital market:The stock market resumed on a distinctly firm note on the back of speculative purchases. The NEPSE Index 100 opened higher at 258.91 improved sharply to 265.62 in the second days but it traded lower in the range of 259-263 in the remaining trading days and eventually closed at 259.75 for the week, netting a significant gain of 3.83 points. Commercial banks and Finance companies shared 79.31 percent and 14.59 percent respectively of total traded amount. This week, the Index of Commercial Bank, Production sector and Hotel Sector improved while Insurance Sector, Finance Sector, Business Sector and Other Sector lost. Out of thirty-eight traded companies, twenty companies improved, twelve companies lost and six companies remain unchanged at their previous prices. Oriental Hotel, Bank of Kathmandu and HISEF Finance registered the first, the second and the third most traded companies trading 8470, 5070 and 2630 shares respectively. Shares of Nepal Bank Ltd, Nepal SBI Bank, Nepal B’desh Bank, Everest Bank, Bank of Kathmandu, NIC Bank, Oriental Bank, Nepal Merchant Bank and Finance and Nepal B’desh Finance were able to trade in all five working days.

Forex round-up:The USD lost mariginally against the GBP over the week but it improved against the EUR and JPY. The sentiment for the greenback was positive buoyed by a Wall Street rally and encouraging U.S. economic news. The positive US data this week remained supporting the dollar, especially after some had accurmulated short positions when it went through a correction recently.