E-business grips Nepal as IT revolution sets in

By Satyendra Timilsina

KATHMANDU, Jan 26: Each day new developments are taking place in the Information Technology (IT) corridors throughout the world. Nepal undoubtedly lags far behind, but IT revolution even in this landlocked country has begin to set in.

The notable changes are now seen in business transactions that are becoming more remote and hi-fi. A computer or a micro-card, and Internet access, are all that are needed in the world of IT.

After all, how can Nepal afford to stay aloof from the world’s fast growing IT sector that has brought significant change in the mode of transactions in developed economies through e-commerce?

The initiation taken some years back through the opening of online shopping websites, and the launching of some more recently, are steps that will lead Nepal to the new era of business through IT.

"Nepal has a very high prospects for e-commerce," says Atmaram Acharya, Secretary General of Computer Association of Nepal (CAN). With the growing number of Internet users each year and the lucrative offers of the Internet Service Providers (ISPs) for the Internet promotion, net-based business would grow significantly, Acharya says.

Acharya points out that the only hurdle is the high telecom tariff that is in the way of growth of Internet users in Nepal. "If a separate line is provided to the Internet users at minimal cost, the sector will see robust growth," he claims.

Though the figures for the Internet account holders was 25,000 the last year, it is expected to have increased by 30 per cent, say the CAN authorities. And with the assumption that four people uses each account, the total number of Internet users is 150,000, they say.

At a time when Nepal lacks required sound infrastructure in IT sector to take a wider step towards Internet based business, Kumari Bank recently launched its new service–Internet Banking. Though the initial offerings of the service are limited, it is a positive step towards exploring the potentials of e-commerce in the country.

However, the concept may be to some extent blighted by the unorganised sector through which a chunk of personal credit is covered. More than 80 per cent of flow of personal credits are takes place through the informal sector that comprises local money lenders, relatives and friends. With banking habit of the individuals very low, the concept of Internet Banking may be beyond the thought of the general mass.

Unless the banking habits of the residents increase significantly, not much can however be expected for a leap in e-commerce, where Internet Banking is a basic requirement.

The Internet users represent a mere 0.04 per cent of the total population. Assuming that a majority of the Internet users are in the Kathmandu, the number of Internet users is less than 8 per cent of the population of Kathmandu district.

"We should focus to market our products through web, which is one aspect of e-commerce," says Acharya. "The IT sector must be used for business promotion," he adds.

Internet Banking deals with the internal business comprising the payments and the delivery of the products would grow in a significantly after the growth of banking habits only.

With the eighth CAN Info-Tech currently underway in the capital, entrepreneurs expect that IT will get a further boost.

Stock market confidence remains low

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KATHMANDU, Jan 26: Dwindling investors’ confidence has resulted in downturn in Nepal Stock Exchange (Nepse) index for yet another week. The index tumbled by marginal 0.89 points during the week.

The Index that opened at 257.73 points on the first day of trading Monday settled at 256.84 points at the close of trading Friday.

The index had managed to recover by 0.84 points in the last week after recording downturn for five straight weeks. The Index had slumped by about 6 points, 9 points, 6 points, 3 points and 6 points in the previous weeks.

On a group-wise manner, the Index of commercial banks went up to 255.61 points on the closing day against 255.05 points registered on the opening day of the week. The group’s Index had gone up by about 1 point in the last week.

Contrary to the last week, the indices of manufacturing group and hotel group went down by over 5 points each and settled at 305.30 points and 231.26 points on Friday against 310.64 points and 236.82 points on Friday respectively. Last week, the indices of manufacturing group and hotel group had gone up by about 6 and 1 points respectively.

The indices of the trading group, insurance group and finance group too tumbled to 103.60 points from 104.09 points, 291.63 points from 292.74 points and 293.95 points from 294.83 points respectively during the week. The indices of trading group, insurance group and finance group had tumbled by over 1 point, about 3 points and over I points respectively in the last week.

Meanwhile, indices of other group and development bank group remained at 140.13 points and 293.91 points throughout the trading days. While the other group’s index plunged by about 6 points last week, the development bank group is the new entrée in the Nepse. According to information disseminated by the stock exchange, shares of the development bank group were traded from January 23.

The commercial bank group, which stands as the complimentary group in the secondary market, dominated trading on the floor of the Nepse capturing 63.64 per cent of the total trading in the week. It was followed by finance group at 29.41 percent, hotel group at 2.95 percent, insurance group at 2.80 percent, manufacturing group at 0.66 percent, trading group at 0.33 percent and the miscellaneous group at 0.22 percent.

According to the Nepse, shares of 42 companies were traded in the secondary market. 48,727 share units worth Rs 15.85 million in total 886 transactions were traded in the 5-day week. Last week 36,457 share units valued at Rs 12.35 million in total 833 transactions were traded.

Bank of Kathmandu recorded maximum transactions during the week and it was recorded at 99. While Oriental Hotels Ltd. topped the list in terms of shares units traded which was put at 7120, Nepal Bangladesh Bank topped the trading list in monetary terms. Trading of the NB Bank was valued at Rs 2.12 million during the week.

Companies whose shares were traded throughout the week are Nepal Bank, Nepal Indosuez Bank, Nepal SBI Bank, Nepal Bangladesh Bank, Everest Bank, Bank of Kathmandu, NIC Bank, Himalayan Bank, Everest Insurance, NECO Insurance, Nepal Merchant Banking and Finance, Lumbini Finance and Leasing and Alpic Everest Finance.

While Standard Chartered Bank, National Life and General Insurance, Siddhartha Finance, Nepal Bangladesh Finance and Leasing, Sagarmatha Insurance had share trading for four days, Nepal Welfare Company, Nepal Insurance, Nepal Share Markets, Nepal Development Finance, Hisef Finance, Universal Finance and General Finance had share trading only one day of the week.

Jewellery training held

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KATHMANDU, Jan 26: Parliamentarian Ishwor Pokhrel and former minister Padma Ratna Tuladhar today gave away certificates to the young trainees who had participated in various levels of Jewellery training held by Tisa Jwalan in Kathmandu in past several months.

Addressing the certificate distribution programme, Pokhrel said that those who cannot compete with the other counterparts of the market, they cannot survive for long and all should equip themselves with the most scientific and advanced technology to do business in the modern world.

He also urged the government to support the dying out profession that was once a symbol of the craftsmanship of the locals of the Kathmandu Valley.

Pokhrel also suggested the Jewellery Entrepreneurs Assoc-iation to set up a training section and regularly train the youths for their job’s sake and also to conserve the indigenous tradition.

Padma Ratna Tuladhar said he had been encouraging the jewelers to conduct such training for the locals so that the traditional professions of the Shakyas, Bajrachryas and Tamrakars would not die out.

"Jewellery making is not only a vocation but each stroke the goldsmiths make on raw gold is a line in the history because they in fact are giving continuity to the age long tradition of Jewellery making," he said.

Central Committee member of Communist Party of Nepal (UML) said that the gold and Jewellery market of the capital has been predominantly occupied by the foreign businessmen who are known for treachery.

Niranjan Ratna Shakya, the owner of Tisa Jwalan and coordinator of the training programme said that the Indians run away with 8.5 million rupees every year but the Nepalis still trust them and run after the glamour they showcase in their shops. Roshan Shakya, who received training said after the training he went to work in Narayanghat as a goldsmith. "There is a high demand of goldsmiths in the capital as well as other cites."