Exports dip by 10.8pc

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KATHMANDU, March 14: Pressed by heavy decline in exports to India during the first half of the current fiscal year, the total exports recorded a double-digit plunge, despite a surge in the exports to the third countries.

According to latest trade statistics disclosed by the Nepal Rastra Bank, the total exports volume during the period was equal to Rs 23.52 billion, down by 10.8 per cent from 26.36 billion recorded during the similar period last year.

The statistics show that exports to India, which is Nepal’s major trade partner, stood at Rs 12.96 billion during the review period with a decline of 21.5 per cent compared to the total exports made during the similar period of the last fiscal year.

The heavy decline in the exports of goods to India is attributed to the huge plunge in the major exportable products to India. After the imposition of quota system on major Nepali products being exported to India, the export of copper wire has plummeted by 87 per cent, vegetable ghee by 57 per cent and yarns by 46 per cent.

With an amendment to the Nepal-India Trade Treaty last March, the Indian government had clamped annual quota restriction of 100,000 tons on the exports of vegetable ghee, 10,000 tons on acrylic yarn, 7,500 tons on copper wire and 2,500 tons on zinc oxide. According to the trade statistics, the exports to India before the renewal of treaty had surged by 33.1 per cent during the first half of the last fiscal year.

Total export to the third countries, however, recorded a surge of 7.1 per cent during the review period with a hefty increase in the exports of readymade garments by over 46 per cent. Despite a decline in the export of woollen carpets by over 29.2 per cent and Pashmina by 12.9 per cent, the export of silverware and jewellery, Nepalese papers, tea and pulses recorded a significant increase.

The imports, unlike the exports, recorded an increase of 10.1 per cent during the review period rising from the import equivalent to Rs 52.42 billion during the first half of the last fiscal year to Rs 57.70 billion during the same period this fiscal year. Of the total imports, imports from India grew by 15.6 per cent and from third countries by 6.1 per cent.

According to the statistics, there was a major surge in the imports of textiles, medicines, vehicles and spare parts, chemicals, among others from India, and the raw wool, textiles, petroleum products, machinery parts, among others from the third countries. During the period, the imports of gold and threads went down significantly.

The Central Bank statistics shows that the exports of manufactured articles topped the list with the exports valued at Rs 8.18 billion, followed by manufactured goods valued at 8.02 billion, foods and live animals worth Rs 3.09 billion, animal and vegetable oil and fats worth Rs 2.15 billion.

In commodity-wise classification for the export to the third countries, the export of readymade garments was at the top with exports of Rs 5.46 billion, followed by export of woollen carpet valuing Rs 2.52 billion and pashmina worth Rs 694.9 million.

In the import section, manufactured goods valued at Rs 17.34 billion followed by the imports of machinery and transport equipment worth Rs 9.36 billion, fuels and lubricants of Rs 9.20 billion and chemical drugs with valued Rs 6.84 billion.

With the increase in imports and decline in exports, the total trade deficit went up by 31.1 per cent, to remain at Rs 34.18 billion during the first half of the current fiscal year, up from 26.06 billion during the similar period during the last fiscal year. While the trade deficit with India surged by 131.6 per cent, the trade deficit with the third countries increased by 5.6 per cent.

Meanwhile, the volume of total foreign trade increased by 3.1 per cent compared to the total trade figures for the similar period last year. The total trade, according to the statistics, soared to Rs 81.22 billion during the first half of the current fiscal year, from Rs 78.79 million of the similar period last year.

The statistics show that the total foreign trade with India slumped marginally by 0.4 per cent and the total foreign trade with the rest of the world grew by 6.4 per cent. The share of foreign trade with India was 47 per cent of the total trade volume of the first half of the current fiscal year.

Road to Cancun likely to be bumpy

By Bhaskar Sharma

NEW DELHI, India, March 14: The road to Cancun, Mexico, where the fifth ministerial conference of the World Trade Organisation (WTO) is scheduled to be held in September, could be a bumpy one for the developing and the least developed countries, including Nepal.

Most civil society organisations from around the globe that seek to correct the flaws in the WTO and even some internationally acclaimed individuals who are directly involved in it have expressed the view.

The negative outlook towards the globalisation process arises as the developments on the agenda adopted in the Doha ministerial meet in November 2001 is in a gridlock. The promises made by developed member countries have hardly been fulfilled.

Civil society activists say, "The openly development that took place in the Doha Development Agenda is that there has been no development.’ If it remains so, the road to Cancun will surely be rough.

Even Eveline Herfkens, United Nations Secretary General’s Executive Co-ordinator for the Millennium Development Goals Campaign, concedes that the post-Doha follow-up have been depressing. "The follow-up on the Doha agenda has unfortunately been very poor," she said.

Social activists, globalisation experts and trade officials, including Herfkens, were deliberating in New Delhi on a three-day international conference on "Governance and its Relationship with Poverty Reduction" organised to mark the 20th anniversary of Consumer Unity and Trust Society (CUTS). The meet concluded today.

Experts during the conference lamented that most issues that had been promised to be addressed in the trade negotiations that kick-started after the Doha ministerial meet are yet to be effectively taken up. They stated that promises must translate into actions.

The concern of the civil society in the developing and underdeveloped countries arose as the WTO has not been able to come up with concrete understanding on the issues of special and differential treatment, access to health facility and drugs, agriculture support and the patenting regime of the WTO.

The WTO has already missed two deadlines on special and differential treatment, and Trade Related Aspects of Intellectual Property Rights and public health. And stating that the March 31st deadline for agriculture too is likely to be missed, participants said that the globalisation process would be stalled if developed members do not respond requests of the underdeveloped members and non-members.

However, despite the sharp criticisms, trade officials nurture a different view. Pascal Lamy, Trade Commissioner for the European Commission, views that the negotiations will progress. "The European Union is willing to do its part and to work on a basis that allows all members’ concerns to be met."

Stating that trade can play an important role in economic development and poverty reduction, he said that ‘enhanced market access, balanced rules, and well targeted, sustainably financed technical assistance and capacity building programmes’ are needed.

Defending the stringent agricultural regime of the EU, Lamy said, "We support agriculture, we have to do it in ways which do not harm the world trade system." However, he added, "We are not going to agree to dismantle the Common Agricultural Policy."

Among the issues that are of paramount interest to the weaker economies relate to agriculture, investment, intellectual property regime, and market access, among others. "The developed members should sincerely take upon the concerns of the developing and underdeveloped economies and end the current polarisation that are seen in almost all sectors," stated many experts.

Experts warns that if concrete positive outcomes do not precede the upcoming WTO meet, then certainly another debacle as in the Seattle conference cannot be ruled out. "The only option left is to press developed members to act sincerely and keep fingers crossed."

Jhapa to regulate sale of kerosene

KAKARVITTA, March 14 (PR) - The local administration of Jhapa district has decided to introduce coupon system for the sale of kerosene to avoid the possible scarcity of the kerosene fuelled by the rise in the illegal export to the bordering Indian cities.

According to the officials, a total of 11 petrol pumps and the petroleum dealers have been selected for the sale of kerosene throughout the district. These petrol pumps have been asked not to issue more than five litres of kerosene per coupon.

"We have supplied sufficient kerosene to these petrol pumps and have directed each of them to provide five litres of kerosene per coupon," said Nava Raj Koirala, an official of Nepal Oil Corporation. The coupon was distributed by the concerned Village Development Committees and the Municipality in accordance with the size of the families.

While, the average monthly demand for kerosene in the district is in between 30,000 to 35,000 thousand litres, thousands of litres of kerosene outflows to India illegally. The higher price in the Indian cities compared to the subsidised lower price of kerosene in Nepali market is the main cause for the illegal outflow of the fuel.

Himalayan Bank loan for foreign job seekers

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KATHMANDU, March 14: Himalayan Bank Limited, one of the leading joint venture banks of the country, today announced to introduce a new loan scheme at discounted rate to foreign job seekers.

The bank at a programme today said that it would extend as much as Rs 100,000 as support loan for foreign employment at 11 per cent interest rate. To facilitate the borrowers, the bank has set a repayment period of two years at equal instalments.

The bank has introduced the scheme at a time when the remittance has been one of the major contributors to the national income. More than Rs 74 billion flows into the country each year in the form of remittance, which is almost 18 per cent of gross domestic product, according to an independent estimate.

Announcing the new scheme of the bank, Shahid M Loan, Senior General Manager, said that the bank was interested in extending such loan as an increasing number of Nepalis is leaving the country for foreign employment. The low interest rate on the loan would benefit the aspirant foreign job seekers.

Himalayan Bank, however, is not the pioneer in facilitating foreign job seekers by introducing such loan schemes. Earlier various government institutions and private parties including the Employment Promotion Commission, Department of Labour, Nepal Rastra Bank, Bank of Kathmandu among others had offered loan schemes for foreign job seekers.

In addition, the bank also declared to make efforts to attract maximum possible remittance through official channel, while a large chunk of remittance comes into the country through illegal channel.

The bank said that it would appoint a number of liaison officers in various countries where the presence of Nepali workers are significant.

Ram Babu Pant, Deputy Governor of Nepal Rastra Bank, said such efforts from the private bank would be supportive to minimising the illegal transfer of money. He laid emphasis on joint effort of both the government and private sector in order to minimise illegal inflow of remittance.

Presenting a working paper on "Foreign Employment and Role of Himalayan Bank", Kishore K Maharjan, Deputy General Manager of the bank, said that they are soon to appoint bank representatives in various countries. The bank would also make provision for opening a bank account only at Rs 100 in order to helping in bringing the remittance through official channel.

Krishna Bahadur Manandhar, Executive Director of Foreign Exchange Department of Nepal Rastra Bank said that increase in service efficiency of banking transfer is the key to curb the illegal channel of money transfer.

Hotels, restaurants to remain open till 10 p.m.

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BUTWAL, March 14: Hoteliers and restaurateurs of Butwal have decided to keep their businesses open till 10 p.m. from now onwards. The decision was taken in keeping with the increasing number of customers who frequently visit hotels and restaurants especially after the announcement of cease-fire.

Meanwhile, a meeting comprising representatives of local chambers of commerce and industry, local police, hoteliers and restaurateurs has made other significant decisions regarding security and discretion.

It has been decided that the female employees will have to work only till 7 p.m. during summer and till 6 p.m. in winter. From now onwards any door, curtain or other material that will obstruct view from outside will have to be removed from cabins. The female employees working in such establishments are also required to dress properly and the employers will have to take full responsibility of their female employees.

Hotels will have to register all details plus identity cards of their clientele. Organising any programmes, marriage, or conferences can be done only after obtaining prior permission from the police authority.

Likewise, police personnel have to compulsorily wear their identity cards while inspecting any organisation.

FNCCI, BCCI sign agreement

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KATHMANDU, March 14: With an aim to promote trade relation and to expand economic ties between Nepal and Bhutan, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Bhutan Chambers of Commerce and Industry (BCCI) signed an agreement in the Bhutanese capital Thimpu today.

According to a press release issued here today by the FNCCI, the agreement was signed by Suraj Vaidya and Dasho Ugyen Dorji on behalf of the FNCCI and BCCI in the presence of Bhutanese Trade and Industry Minister Lyonpo Khandu Wangchuk.

As per the agreement, both sides have agreed to promote mutual cooperation in trade and industrial relation by sharing information related to markets and exploring trade potentials. Similarly, the two sides will also work on enhancing sharing technological knowledge, promoting investments.

Likewise, both the chambers have also decided to form a Joint Economic Council to ensure continuation of trade dialogues and to solve various problems that might surface in future.

Tenth Plan focuses on pro-poor policies

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KATHMANDU, March 14: Vice Chairman of National Planning Commission (NPC), Dr Shankar Sharma has claimed that Tenth Plan incorporates more pro-poor and labour intensive policies to meet the ultimate objective of reducing poverty to expedite development than the previous five-year plans.

"The present five year plan of the country is more directed towards alleviating poverty by generating employment opportunities throughout the country and providing better working environment," said Sharma.

Speaking at a programme to launch a book "Decent Work For Poverty Reduction" jointly prepared by NPC and International Labour Organisation (ILO), Dr Sharma, however stressed that effective implementation of the policies only could help in meeting the primary objective of reducing poverty.

"Despite formulating effective poverty reducing policies, we are falling behind while implementing them," said he adding, "We cannot improve our present status unless we correct the implementation aspect."

The newly released book makes 10 recommendations to the government for alleviating poverty through formulating and implementing pro-labour policies. Various recommendations made by the ILO to the government include strengthening the private sector to generate mass employment, skill development and employment promotion activities, and reformation of the vocational training system, among others.

"Besides supporting to generate mass employment, the government should also be aware that the people are not deprived of their rights," said Duncan Campbell, director of Employment Strategy Department–ILO/Geneva, elaborating the recommendations.

"The challenge in this line is that the present government needs to respond immediately, to effectively work to rehabilitate former kamaiyas, effective implementation of laws on minimum wage, elimination of child labour and gender-based discrimination," said Campbell.

The 10-point recommendations made by the ILO to the government, which has already been incorporated in the Tenth Plan has focused on providing social protection for all and to empower the formal social security system.

"Develop a national strategy for extending social protection to the poor and excluded. Priority should be given to identify ways to provide access to better healthcare, including HIV/AIDS, life insurance, maternity protection and livestock insurance, among others," reads the recommendation.

Dr Sharma thanked the ILO for providing such invaluable guidelines to the government that could be largely supportive to eradicate poverty thereby expediting the pace of development.

Writ petition filed against government

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KAILALI, March 14: A writ petition has been filed at the Commission for the Investigation of Abuse of Authority (CIAA) against the decision of the government to allow two factories to collect resin from the hilly districts of far-western region of the country.

A group of 169 employees of Attaria-based Nepal Resin and Turpentine Company (NRTC) have filed the petition, claiming the government’s decision as malicious, for the NRTC was still authorised to collect 4,000 metric tons of resin annually from Kailali, Dadeldhura, Baitadi and Doti.

Established in 1986 with the financial and technical assistance of the then USSR government, NRTC is the government-owned body to collect resin.

A cabinet meeting in August 2002 had given permission to Bhawani Chemicals Pvt Ltd and Bhadrakali Resin and Turpentine Pvt Ltd to collect 3,500 and 4,000 metric tons of resin per annum respectively. Days before giving permission to these companies, the government had made a policy to end monopoly of any company based on forest products.