Japan extends grant assistance

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KATHMANDU, March 8 : The Japanese government has decided to extend grant assistance of US$ 897,000 (NRs 69,331,000) to Nepal as debt relief measure in Japan’s fiscal year 2001 (April 2001-March 2002).

According to a press release issued here today, Takamichi Okabe, Charge d Affaires of Japan to Nepal, and Dr Bimal Koirala, Secretary at the Ministry of Finance, signed and exchanged notes on behalf of the respective governments today.

Japan has been extending grants for debt relief with the objective of assisting Nepal in procuring commodities such as construction materials, fertilisers, petroleum products, medicines, and other materials, which are essential for carrying out development activities, states the release.

On the signing occasion, Okabe expressed hope that the continued support would play a significant role in strengthening the existing cordial relationship between the two Asian nations.

Government brings in Vision 2020

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KATHMANDU, March 8 : At a time when the performance of the much-touted Agriculture Perspective Plan (APP) is proving frustrating mainly due to poor implementation, the government with an aim to boost the technical aspects of the agriculture sector has brought Vision 2020.

The main objective of the new comprehensive agricultural strategy is to improve rural livelihood through the development of agriculture and related natural resources.

The vision, which particularly concentrates on technology generation and development, has planned to establish a separate research and implementation wing, two important bodies to materialise the various programs and policies set by the long-term plan.

Among others, the plan has adopted pluralistic approach of accommodating all institutions and individuals engaged in agricultural research to bring their contribution to the mainstream in an integrated way.

"The outcomes of the research would be implemented with due modification for the enhancement of the national agricultural productivity," informed Nanda Prasad Shrestha, a senior officer of Nepal Agriculture Research Council (NARC). The plan has also sketched various policies to encourage the involvement of Non-Governmental Organisations (NGOs) in agriculture researches.

Similarly, a research sharing approach is another important policy of the vision, which will be conducted at the international, national and regional levels. "We have benefited a lot from such approach and the upcoming vision aims for the institutional development of such approach," Shrestha added.

Explaining the necessity of a separate vision, he said that the APP – the most comprehensive plan for the development of agriculture sector that spans for 20 years - has covered the broader sectors while the new vision will specifically focus on technological development, its dissemination, and the exploration of natural resources.

"This is the first time that any agriculture related strategy of the government has pin-pointed upon the need for the development of natural resources," Shrestha said. However, he was quick to add that the new vision will be associated with the APP closely and the Tenth Plan and other periodic five-year plans thereafter.

"On the completion of the vision period, there would be sustainable use of agricultural technology and natural resources to fight against poverty through the enhancement of agricultural commercialisation," said an optimistic Shrestha.

He also informed that the donor countries and agencies are positive towards the Vision 2020 and expressed confidence of their financial and technical support. "Since the major bilateral and multilateral donors were in close touch during the preparation of the vision, we are optimistic of an active participation of donors to materialised the programmes of the vision," Shrestha said.

He said that a concrete vision implementation strategy would be formulated to strengthen the implementation procedures. "Lack of such strategy was one of the major causes for the less-than-expected performance of the APP and we have carefully addressed the shortcomings seen in the APP in the new vision," he said.

Among others, the vision has adopted a special organisational structure for its effective implementation. NARC would be responsible for the formation, implementation, and co-ordination of the policies at the central level.

Similarly, Nepal Agriculture Research Executive Board would be responsible for agricultural research. National Agriculture Research and Development Fund would also be set up to provide subsidy for competitive agriculture research. The fund would be made available particularly for the identified basic and core research projects.

Intention to dissolve NBL board flayed

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KATHMANDU, March 8 : The board of directors of the Nepal Bank Limited (NBL), in its clarification letter to the Nepal Rastra Bank (NRB), lambasted the central bank’s demand on ‘as to why NBL’s board of directors should not be dissolved’ as an unjust move and influenced by foreign bodies.

NRB’s demand for clarification defies natural system of justice, as the board is unaware of the report of the Regulatory Committee on which the NRB’s demand is based, says the letter dispatched by the NBL board members to the NRB.

"The issue for dissolving the NBL board picked up following the World Bank’s (WB’s) approval of ICC Bank for the management take-over and this screens the NRB’s intention to dissolve the NBL board to fulfil the wishes of the foreign agencies including the WB," the letter states.

It further states that the NBL has been forced to maintain a substantial amount of funds for loss provisioning, which has caused its losses to soar. The letter even alleges the central bank for not assisting in taking action against those who surged the illegal lending.

"Although the letter from the NRB allege the NBL directors of not following the prudential directives, it fails to outline the points whereby the NBL has failed to abide by the regulations," the letter states.

Referring to the NRB’s argument on NBL’s failure to conduct its annual general meet, the letter claims that it was due to the NRB’s silence over amending the NBL’s proxy forms and the Nepal Bank Regulations, which was necessary before holding the annual meet.

"As regards to the NRB’s concern over the NBL’s negative primary capital fund, the bank argued that it has already informed the governor that the board is putting in efforts to maintain it at an appreciable level," the letter highlights.

The board of directors in the clarification letter further holds that the bank has not defied the central bank’s directives or harmed shareholders’ interests.

‘Renewed treaty in nation’s interest’

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KATHMANDU, March 8 : Secretary at the Ministry of Industry, Commerce and Supplies Bhanu Prasad Acharya said that the recently signed Nepal-India Trade Treaty would boost industrialisation in the country and is in the national interest from every aspect.

The treaty has been signed in keeping with its far-reaching consequences in the industrialisation and multilateral trading system so that it could be compatible with the changing international trading system.

Instead of focusing merely on the bilateral treaty, we have tried to encompass provisions that would contribute significantly to our industrialisation process and smoothen Nepal’s accession to the World Trade Organisation (WTO).

Speaking at the Parliamentary Foreign Affairs and Human Rights Committee meeting held here today, Secretary Acharya said that the newly incorporated safeguard measure in the treaty is equally applicable to Nepal.

Since it is a bilateral treaty, we should consider the problems of our counterpart as well. The provision of export surge, which was in the 1996 Treaty, is in consonance with other international bilateral and multilateral treaties, he added.