Deficit widens despite rise in export, import

-BY A STAFF REPORTER

Kathmandu, Jan. 4: The first quarter of the current fiscal year has witnessed widening trade and budgetary deficit, but the exports and imports have increased significantly, Nepal Rastra Bank said today.

The foreign exchange reserve is sufficient to cover merchandise import of about 10 months, an NRB press release stated. The NEPSE share price index has improved compared to last month, it said.

The foreign exchange holding of the banking system recorded a rise due to a surplus in the balance of payment emanating in monetary front, narrow money increased by 6.8 per cent to Rs. 56618.4 million during the review period in contrast to a decline of 2.1 per cent last year. Broad money also recorded a growth of 2.1 per cent to Rs. 156081.4 million as compared to 4.5 per cent growth last year. But, time deposits which increased by 8.1 per cent last year, registered a decline of 0.3 per cent during the review period reflecting the effect of the downward revision of interest rates on time deposits. The share of time deposits in the broad money marginally declined to 65.0 per cent.

Net foreign asset of the banking system which had increased by 1.1 per cent (Rs. 624.1 million) last year, surged up by 1.3 per cent (Rs. 839.8 million) during the review period. At the same time, domestic credit increased only by 2.5 per cent as compared to 2.6 per cent growth in the previous year. Of the total domestic credit, share of credit to the private sector increased slightly to 67.7 per cent, the press release stated.

On the fiscal sector, government expenditure registered a significant growth as compared to that during the last year. Total expenditure increased by 18.2 per cent to Rs. 12881.7 million during the review period as compared to 7.6 per cent growth in the previous year. The rise in such expenditure, according to the press release, is mainly due to a significant rise in development expenditure by 42.1 per cent, freeze expenditure by 52.9 per cent and regular expenditure by 10.2 per cent.

During the review period, revenue collection increased by 8.6 per cent to Rs. 10325.3 million as compared to 15.8 per cent last year. A low growth of revenue collection and decline in foreign cash grant receipts lowered the growth rate of total resource mobilisation to 5.8 per cent as compared to last year’s 20.2 per cent. Low resource mobilisation as compared to total expenditure growth resulted in a budget deficit of Rs. 2517.6 million. During the review period, the government overdrew amounting to Rs. 1132.1 million along with issuing treasury bills worth Rs. 310 million to meet the resource gap created by the declining receipts of foreign cash loan.

On the external sector, both exports and imports registered a growth of 33.5 per cent and 30.4 per cent to Rs. 13798.8 million and Rs. 30919.6 million respectively. Surge in total imports is attributed to higher imports of food-grains, industrial raw materials, medicine and gold.

Due to a higher volume of imports, the merchandise trade deficit rose by 27.9 per cent to Rs. 17120.8 million. The present export, according to the release, can cover about 44.6 per cent of total import value. During the review period, export of readymade garment and woollen carpet increased by 77.8 per cent and 8.6 per cent respectively. The export of readymade garments, (Rs. 4036.8 million) occupied the front position by outpacing the export of woollen carpet (3277.8 million). In addition, a remarkable growth in the export of pasmina shawl (Rs. 1150 million) registered itself to the third position during the review period.

On the price front, rate of inflation on point to point basis was recorded at 2.0 per cent during the review period compared to 18.5 per cent last year. The decelerating trend in the prices of food and beverages helped to lower down national price index to a single digit. The price index of food and beverages group increased slightly by 0.7 per cent in the review period as compered to an increase of 26.3 per cent in the previous year. The declining trend in the prices of oil and ghee, vegetable and fruit, as well as sugar products are attributed for the lower growth in the price index of food and beverages. The prices for non-food and services moved up by 4.6 per cent as compared to 4.4 per cent last year. Region-wise, prices in the Hills recorded the highest growth of 3.3 per cent followed by respective growth of 1.9 per cent and 1.6 per cent in Terai and Kathmandu, the release said.

Based on the available statistics for the first two months of this fiscal year, the balance of payment remained favourable by Rs. 543.0 million. In the review period, a noteworthy increase in net services income followed by a marginal increase in net transfer income off set by a significant trade deficit caused a deficit of Rs. 1923.0 million in the current account. However, substantial increase in official capital inflow and miscellaneous capital items net helped balance of payments to record sizeable surplus. Based on the monetary statistics for the first four months of current fiscal year, overall balance of payment recorded a surplus of Rs. 839.0 million.

As a result of continued balance of payments surplus, the foreign exchange holdings of the banking system increased by 16.2 per cent to Rs. 7896.4 million as at mid-November 1999. Of the total reserve, 91.8 per cent accounted for convertible currency and 8.2 per cent non-convertible currency. A sharp increase in the convertible currency reserve is attributed, among others, to the higher growth in export to countries other than India.

Law unclear about ‘hijack’ compensation

Kathmandu, Jan. 4 (RSS):The Nepalese passengers, who were among those held hostage for eight days on the Indian Airlines plane hijacked on its way from Kathmandu to New Delhi and underwent a very painful ordeal, are likely to be deprived of compensation due to the lack of a clear legal provision in this regard in Nepal.

Even relevant international conventions have not clearly spelt out a provision for providing compensation to such hostages. However, some countries have made their own legal provisions in this regard.

According to advocate Sher Bahadur K.C., Various international conventions on hijacking including the Chicago Convention-1944, The Hague Convention-1970, the Tokyo Convention 1940 and Montreal Convetion-1940 have laid down various relevant provisions, and he is studying as to what kind of provisions are made in such conventions regarding compensation for the hostages.

Likewise, officer at the Nepal office of Indian Airlines Bimala Rai gave the information that discussions are being held at New Delhi on various aspects of the hijacking of the Indian Airlines plane. A decision might be taken in a few days on whether or not the hostages should be provided compensation, she said.

Meanwhile, Bihari Krishna Shrestha, a Nepalese passenger who was, among others, held hostage on a hijacked Royal Dutch Airlines aircraft for 33 hours in Beirut in 1972 informed that he was paid U.S. $ 1120 by the Royal Dutch Airlines as compensation.

Out of the 247 hostages on the plane 210 were Japanese nationals, he said, adding as the Japanese law provides for compensation for such hostages, I also received the compensation.

Advocate Gandhi Pandit is of the view that although, Nepal does not have a law to ensure compensation for mental and physical torture victims, the passengers who suffer due to the negligence of an airlines can be entitled to compensation.

Nepalese passenger Gajendra Man Tamrakar, who was described by Indian media as one of the hijackers in the recent hijacking drama, can file libel suit against them at the Nepalese district court or the district court of India, he said.

Tourist arrivals increase

Kathmandu, Jan. 4 (RSS): The number of foreign tourists coming to Nepal via air route in 1999 has increased by 5.8 per cent in comparison to the previous year.

According to Nepal Tourism Board, the total number of such tourists coming to the kingdom this year was 421,188 among which the highest number 40,630 was from neighbouring India.

The highest number of tourists from the third world countries was 35,582 from the United States followed by 32,330 from Japan and 30,783 from the United Kingdom.

The Visit Nepal Year-1998 has attracted 398,008 tourists to the country.

A statistics of the World Tourism Organisation indicates an annual increase of 4.3 per cent in the number of tourists worldwide and accordingly the present rate of increase in the number of tourists to Nepal is quite satisfactory, said director of market promotion department of Nepal Tourism Board Tek Bahadur Dangi.

Mr Dangi also said that the recent incident of hijacking has led to some slackness in the number of tourists arrival but it will not have a long-term effect and the rate of tourist arrivals will increase further.

New century brings new hope, says Annan

-BY A STAFF REPORTER

Kathmandu, Jan. 4: In a new year message, United Nations’ Secretary General Kofi Annan has expressed satisfaction that "the most of the world is at peace" and that more people are educated and "can expect to live longer with greater freedom and a wider range of choices".

He has also noted that the world, however, has ugly facets too. He has maintained, "A new century brings new hope, but can also bring new dangers- or old ones in a new and alarming form." He has noted that people are grappled by the fear of job loses and life being destroyed by economic change, spread of bigotry, violence or diseases and ruining of global environment.

Secretary General Annan has said that the "dangers" threatening the peace of mind of the world people can be "mastered only if we face it together".

He has said that through the United Nations we are working together to preserve peace, to outlaw weapons that kill and maim indiscriminately, to bring mass murders and war criminals to justice. He has further said that the UN is working to defeat AIDS and other epidemics, to control climate change, to make clean air and water available to everyone and to ensure that the global market benefits everybody, allowing the poor to lift themselves out of poverty. He has also added that the UN is working to make human rights "a reality for everyone - to give all human beings real choices in life and a real say in decisions that affect their lives".

Secretary General Kofi Annan has said, "The UN is working for you. But it can do little without you. After all, it belongs to you - you, the peoples of the world. And therefore it can work much better with your help and your ideas."

Kerosene shortage, cold hit east dists

Biratnagar, Jan. 4 (RSS): As here has been shortage in the supply of kerosene in the eastern Terai for the last few days, consumers are forced to stand in lines at the petroleum products selling depots.

As the Nepal Oil Corporation (noc) has reduced the supply of kerosene by 25 per cent in the border areas from where it has been smuggled to India, there has been artificial shortage, it is learnt.

At present oic is giving only five litres of keroene to a person.

After the introduction of community forest development policy, most of the people of the Terai region have been found to be using kerosene as alternative source of energy.

Noc has a stock of 2.9 million litres of kerosene at present while the stock at the same time last year was only nine hundred thousand litres, according to some of the local people.

The noc has stated that there is no stock of kerosene at present at Pathari, Urlabari, Dabaisha, Dainiya, and Rangeli of Morang district, Bhadrapur and Chandagadhi of Jhapa district, Makhar and Rajbiraj municipal area of Saptari district and Lahan municipal area of Siraha district and made it clear that it cannot be supplied immediately at present.

Meanwhile, the cold here has started to increase since the fourth week of December.

It is foggy till 10 to 11 A.M. And sometimes even throughout the day while a cold breeze that blows around evening makes people shiver.

The sale of winter clothing along the footpaths such as jackets, sweaters, caps and mufflers has been increasing because of the cold.

In poor families parents are finding it difficult to send their children to school on account of the weather.

Farmers are worried over the likely damage to the vegetable crop because of fog.

The cold in the plains is somewhat different from that of the valley and the hills, according to experienced people.

Work honestly to keep law, order, cops told

Bharatpur, Jan. 4 (RSS): Minister for Home, and Information and Communications Purna Bahadur Khadka has said that the police personnel of all levels should work honestly to maintain law and order in the country.

He was distributing prizes to the participants of the police officers and men’s basic training held at mid-regional police training centre at a passing out ceremony here today.

On the occasion, igp Achyut Krishna Kharel asked the police officers and men to put into practice the knowledge and skills gained from the training.

A total of 261 police officers and men participated in the training.

Also today, Minister Khadka issued instructions to nc workers at the nc district office, Bharatpur.

He asked the party workers to dedicate themselves to the country’s development.

He also spoke about the measures being taken by the government to maintain law and order in the country.

NC district president Tek Prasad Gurung apprised the minister of various problems of the district.

Waiver of diplomatic status sought

-BY A STAFF REPORTER

Kathmandu, Jan.4:The government has requested Pakistani mission to waive off the diplomatic status of a senior official, who remains detained since early Monday on charge of dealing with counterfeit Indian currency, sources said.

"The request was forwarded to the Pakistani government yesterday, but we have not received any response from the embassy here," officials said on condition of anonymity today.

"The request was made so that the government is in a position to initiate legal action against the senior official, who has been identified as Asam Saboor," a reliable source at the Foreign Ministry said.

Pakistani officials could not be reached for their fresh comments today despite several attempts until late in the evening.

However, the embassy in a statement yesterday said: Three notes verbale have been sent to Foreign Ministry requesting consular access to the nabbed official, his safety and security, and immediate redressal quoting immunities of the Embassy’s officials under the Criminal Jurisdiction of Vienna Conventions as against Civil and Administrative Jurisdictions.

The statement said that a police patrol broke into the apartment of the Paksitani official and nabbed him at six a.m. on Monday.

News reports here said the Pakistani was caught red handed with 50,000 IC bank notes by an undercover police operation on Monday.

After a delayed order, police made a thorough search of his apartment early Monday morning, the reports said. "The initial police search of the apartment had been in vain," read yesterday’s press statement of the Pakistani Embassy. "The Ambassador informed the police officials that action involving any Embassy functionary had to be routed through the Foreign Ministry."

Mr, Miss 2000 to be organised soon

-BY A STAFF REPORTER

Kathmandu, Jan 4 : ‘Dreams’ the International school of modelling Pvt Ltd is organising a contest "Mr and Miss 2000",on 13th February 2000 at Royal Nepal Academy, Kathmandu. This will be the first entertaining contest in Nepal, in which Bollywood stars are also going to perform, it was disclosed at a press meet held here this afternoon.

Top technician team from Bollywood which includes the famous art director, T. Patole, special effect director, Raj Deo, I. Rajak, Choreographer, Bunty Sharma and many more are coming to make the contest, an actual contest. They are the same personalities, who have participated in Femina Miss India Contest and Siyaram’s Mr. India Contest. Some special guests from Bollywood who are coming to give their performance on the stage are film actress Rupa Ganguli, Bollywood singer Dimple, who bagged twenty national awards of India and current Femina Miss India Gul Parag.

Some special techniques which are going to be implemented are-laser beam lighting with echo chips panel, colourful fog machines, twenty thousand watt D J Compact German sound system.

"We are organising this contest for our students (models), professional models and sales promotion of our sponsoring companies", said Alok Kumar, Marketing Director of ‘Dreams’.

Bhandari gives away prizes

Pokhara, Jan. 4 (RSS): The second national inter-municipality level duet song contest organised by Pokhara Submunicipal Corporation on the occasion of the 55th auspicious birthday of His Majesty the King concluded here yesterday.

Bharatpur Municiality, Pokhara Submunicipal Corporation, Waling Municipality and Dang District Development Committee Teams were declared first, second, third and fourth respectively in the contest.

Narayani Kala Mandir Chitwan secured the first position in costume event while Jhilbaryang vdc, Parbat secured first position in discipline and won the shield and Rs. 1,000 each.

Likewise, the teams securing first, second, third and fourth positions respectively received Rs. 25,000, Rs. 12,000, Rs. 5,000, Rs. 2,000 and shield.

Thirty-two teams from 18 municipalities, one ddc and other institutions and organisations participated in the contest held from December 29.

Minister for Youth, Sports and Culture Sharat Singh Bhandari, giving away cash prizes, shields and certificates to the winning teams and members of jury, said that this contest will help protect and promote folk culture.

Pokhara mayor Krishna Thapa was on the chair. On the same occasion, Minister Bhandari felicitated artist Prajapati Parajuli on behalf of the municipality by presenting her a shawl.

Chamber set up

Kathmandu, Jan. 4 (RSS): Nepal-Scandinavia Chamber of Commerce and Industries has been recently established with an objective of enhancing joint cooperation in various areas including industry and commerce with the Scandinavian countries.

The chamber has been constituted under the chairmanship of Dr. Yadav Prasad Pant with Mohan Gopal Khetan as the vice-president, Suryaram Shrestha the general secretary, Giridhari Sharma the secretary and Uddav Mohan Ranjit the treasurer.

Likewise, Dr. Jayahari Raj Pandey, Manaraja Shrestha, Sailendra Shumsher J. B. Rana and Surya Prakash Shrestha are members of the association while Chandra Prakash Khetan and Soren Thegisen are advisors.

The Scandinavian countries includes Denmark, Finland, Norway, Sweden and Iceland.