Koirala’s India visit begins from July 31

Kathmandu, July 24 (RSS):Prime Minister Girija Prasad Koirala is leaving Kathmandu for New Delhi on July 31 on a week long official visit to the Republic of India at the invitation of Mr Atal Behari Vajpayee, Prime Minister of India, according to the Ministry of Foreign Affairs.

Prime Minister Koirala will be accorded a ceremonial welcome at the forecourt of Rashtrapati Bhavan on Aug. 1.

After the ceremonial welcome, Prime Minister Koirala will lay a wreath at the Samadhi of Mahatma Gandhi at Rajghat.

Prime Minister Koirala will call on Mr K. R. Narayanan, President of the Republic of India and later attend a luncheon to be hosted by the President in his honour.

Later in the afternoon, the Prime Minister will call on Mr Krishan Kant, Vice President of the Republic of India.

Prime Minister Koirala will call on Prime Minister Atal Behari Vajpayee and hold one to one meeting.

Later the two Prime Ministers will hold official talks joined by their respective delegates.

Mr Atal Behari Vajpayee, Prime Minister of India will host a dinner in honour of Prime Minister Girija Prasad Koirala in the evening.

Likewise, the Indian Ministers for Home Affairs, Finance, Water Resources and Human Resources Development will call on Prime Minister Koirala at the Rashtrapati Bhavan.

Similarly Ms. Sonia Gandhi, leader of the opposition and the Deputy Chairman of the Planning Commission will call on the Prime Minister.

Prime Minister Koirala will also meet some former prime ministers of India as well as a few distinguished political leaders on the occasion.

Prime Minister Koirala will address a business meeting to be organised by the Confederation of Indian Industries (CII) and will attend a luncheon to be hosted by CII in his honour.

Likewise, the Prime Minister will attend a reception hosted by Royal Nepalese Ambassador Dr. Bhekh Bahadur Thapa at the Royal Nepalese Embassy.

Prime Minister Koirala will also meet journalists and Nepalese community in New Delhi.

On August 3, Prime Minister Girija Prasad Koirala will leave New Delhi for Bangalore.

In Banglore, Prime Minister Koirala will meet the Governor of Karnataka and later attend a dinner to be hosted in his honour by the Governor.

Prime Minister Koirala will visit information system in Bangalore and attend a business meeting to be organised by the Federation of Indian Chamber of Commerce and Industries.

Prime Minister Koirala will be accompanied by his daughter Ms. Sujata Koirala, Mr Chakra Prasad Bastola, Minister for Foreign Affairs, the member of the Parliament, the Chief Secretary and high ranking officials of His Majesty’s Government, distinguished persons, journalists and persons from the business community.

Prime Mnister Koirala will return to Kathmandu on Aug. 6.

Delegation calls on PM

Kathmandu, July 24 (RSS):A delegation led by Sankhuwasabha DDC vice-chairman Hemaraj Ghimire called on Prime Minister Girija Prasad Koirala at the latter’s office today and apprised him of the development problems in the district.

The delegation comprising of CPN-ML politburo member Radhakrishna Mainali put forward various demand including construction of different roads, T.U. approval for private sector colleges, telephone facilities in remote vdcs, electrification, etc.

Dang team meets Khadka

Kathmandu, July 24 (RSS):A delegation led by advisor to the Yadav Samaj Sewa Sangh of Dang Deukhuri Jagatram Yadav met with Minister for Water Resources Khum Bahadur Khadka and demanded necessary cooperation to save the villages of Gadhawa VDC from inundation by the Kakrahawa river.

The delegation has informed the Minister that 900 Bigha of land might be washed away at Rampur, Balakhuri, Balapur, Hansipur, Manpur, Makanhawa and Jhakhaira if the river is not brought under control in time. Ten Bigha at ward No 4 has already been inundated.

The delegation included Rajpur VDC chairman Jagatpal Yogi, Ganga Paraspur VDC chairman Dilli Bahadur Acharya, vice chairman of the Association Santa Ram Yadav and member Dharma Bahadur Yadav.

Meanwhile, a gathering of farmers has constituted a five member save the village committee in Gadhawa village.

Nepal to host WWF conference

Kathmandu, July 24 (RSS):Nepal will be host to the annual conference of World Wildlife Fund (WWF) and a special millennium initiative called " Journey to Kathmanu: Sacred gifts for a living planet" to be held in November, 2000.

Unlike usual international conferences, this is to be a gala event jointly undertaken by Alliance of Religion and Conservation (ARC) and WWF with the Israeli Philharmonic Orchestra.

Under the chairmanship of His Royal Highness Prince Gyanendra Bir Bikram Shah, a patron committee has been set up to prepare for the event in which over a thousand international guests will be arriving in Kathmandu.

A host committee has also been formed under the chairmanship of Minister of Foreign Affairs Chakra Prasad Bastola. The host committee met this afternoon for the first time at the Ministry of Foreign Affairs.

Toursim, religion, conservations and conflict resolution are the important themes of this event that are part of Nepal’s tradition for which we are honoured to be a part of, Minister Bastola said.

He further added that the committee would do its best to make the event a success.

"Journey to Kathmandu: Sacred gift for a living planet" is one of WWF’s international initiatives to ensure positive, responsible use of our planet’s natural resources in the 21st century and beyond.

Members of the host committee are the Minister of State for Forest and Soil Conservation, a member of National Planning Commission, the Press Secretary to His Majesty the King, the secretaries of various ministries (culture, tourism and civil aviation, foreign affairs, forest and soil conservation, and home affairs), the brigadier of the Royal Nepalese Army, the Inspector General of Police, the Mayors of Bhaktapur, Kathmandu and Lalitpur, King Mahendra Trust for Nature Conservation (KMTNC) trustees Prabhakar Shamsher J. B. Rana and Basanta Raj Mishra, KMTNC member-secretary Jai Pratap Rana and WWF Nepal programme advisors Dr. Harka Gurung and Dr. Arju Rana-Deuba.

Report presented

Kathmandu July 24 (RSS):At the meeting of the House of Representatives today, chairman of Foreign Affairs and Human Rights Committee Som Prasad Pandey presented the committee report concerning the dam and embankment constructed by the Government of India on the Rapti river and its effect on the Nepalese territory.

Presenting the report, chairman Pandey said that the committee found that India had constructed an embankment unilaterally without the consent of Nepal resulting in the inundation of thousands of bighas of Nepalese territory in the area.

Nepal in Chinese list for visit

Kathmandu, July 24 (RSS):The State Council of the People’s Republic of China has included Nepal in the list of countries approved for visits by Chinese Nationals, the Ministry of Culture, Tourism and Civil Aviation has disclosed.

Chinese law requires understanding to be reached between the Chinese National Tourism Administration, the Foreign Ministry and the Public Security Ministry and the tourism, foreign affairs and immigration bodies of the countries concerned before permission is given to Chinese citizens to visit these countries.

No plan to raise power tariff, Khadka tells House

BY A STAFF REPORTER

Kathmandu, July 24:Water Resources Minister Khum Bahadur Khadka in the House of Representatives today said that the government had no plan to raise the electricity tariff.

He was responding to the lawmakers’ queries regarding the government’s agreement with the Asian Development Bank on rural electrification. The opposition parties had obstructed two earlier House proceedings demanding the copies of the agreement that requires NEA to have 23 per cent of self-financing and six per cent of rate of return.

The opposition parties agreed to proceed the House business this afternoon after the government provided them with the copies of the agreement

"The government and Nepal Electricity Authority cannot increase the tariff on their own without recommendation of the Electricity Tariff Fixing Commission that includes independent persons," he told the House. "This is a three month long process which has not begun yet."

The government is well aware of the people’s problems that would worsen following the electricity tariff hike, he said adding "The electricity tariff will not rise in the near future."

Responding to the Minister’s reply, Nepal’s Congress’s Dr. Ram Sharan Mahat said that the government would not be able to maintain the current tariff unless it made NEA efficient and financially sound by checking electricity leakage and sacking the ‘redundant’ staff in the state-run hydro-power projects.

According to the official data, the current electricity leakage in Nepal is over 23 per cent. In the developed countries the figure is about ten per cent whereas it is as high as 14 per cent in the developing countries.

Unless this done, the NEA would not be able to meet the required 23 per cent of self financing, Dr. Mahat said.

Rajendra Pandey of the Communist Party of Nepal (Unified Marxist-Leninist) said that agreement should be reviewed if it did not match with Nepal’s social and economic context.

He charged the government of providing the document only after the opposition parties obstructed the House proceedings. "Such tendencies should be stopped."

Rastriya Prajatantra Party’s Pashupati Shamsher Rana and National People’s Front’s Lilamani Pokharel asked the government to uphold to its commitment even after the reshuffle in the cabinet.

RPP’s Dr. Prakash Chandra Lohani charged the government of making the power purchase agreement with the private power producers in dollars. "This will outflow the country’s limited foreign exchange reserve."

Bastola holds discussion on PM visit

Kathmandu, July 24 (RSS):Foreign Minister Chakra Prasad Bastola exchanged views with representatives of various political parties at the Foreign Ministry today on the matters that should be raised during the Prime Minister’s official visit to India starting next week.

Participating in the discussions were MPs Bharat Mohan Adhikari and Som Prasad Pandey of the main opposition party CPN UML, Hari Bahadur Basnet of RPP, Gajendra Narayan Singh of Nepal Sadbhavana Party, Lila Mani Pokharel of Samyukta Janamorcha and Rajeshwar Devkota of RPP (Chand), CPN ML general secretary Bam Dev Gautam, Nepal Workers Peasants Party leader Narayan Man Bijukche MP and Chitra Bahadur KC MP of Rastriya Jana Morcha.

The participating leaders dwelt at length on their respective suggestions on the main issues that should be raised with the Indian government during the visit.

PM’s India visit to further enhance relations

BY CHIRANJIBI PAUDYAL

Kathmandu, July 24 (RSS):The forthcoming goodwill visit of Prime Minister Girija Prasad Koirala to India is believed to be very fruitful for building confidence between the two friendly countries with similar religious, cultural and social traditions.

Prime Minister Koirala is paying an official visit to India at the invitation of Indian Prime Minister Atal Behari Vajpayee after a long gap of over four years.

No official visit had been made by the Nepalese Prime Minister since the former prime minister Sher Bahadur Deuba’s visit to India more than four years ago.

Similarly former Indian Prime Minister Inder Kumar Gujral had paid an official goodwill visit to Nepal in June, 1997.

Being a very close neighbour with open border between Nepal and India, the two countries share common traditions since time immemorial.

The exact date of the contact between the two countries cannot be traced but it is believed that the relations existed since thousands of years.

Though there was people to people contact between the two countries since ancient time, the official relations started during the time of British-India.

The high level visit of Prime Minister Koirala is expected to further enhance the close, cordial and warm friendship between the two nations with the tradition of ancient civilisation.

The visit is viewed as a "confidence building" nature as the contact at the prime ministerial level is taking place is expected to help in initiating dialogue on various fronts.

The rumours, suspicions and speculations regarding the relations between the two countries have created some difficulties but these are temporary and will not effect the excellent relationship based on solid foundation of the two countries.

Hijacking of Indian Airlines flight from Kathmandu in last December and suspension of the flights for about five months from India to Nepal also created some suspicions but this was resolved amicably and Indian Airlines flights have resumed as usual.

The resumption of talks on various levels between Nepal and India and the forthcoming visit of the Prime Minister are positive signs that needs to be further encouraged for the promotion of bilateral economic ties.

A number of far reaching decisions taken to elevate the bilateral relationship between the two democratic countries including the Mahakali Treaty, trade and transit treaty, power trade agreements aimed at encouraging private sector participation in the development of hydropower projects in Nepal are some of the remarkable achievements made for the promotion of economic relations between the two countries.

Only agreements are not enough but that needs to be implemented. The Mahakali Treaty which was ratified by two third majority in parliament has not been moved even to prepare the detailed project report (DPR) for the benefit both the countries.

There is great prospects for investment in Nepal’s abundant water resources sector which occupies second position in the world. It is said that Nepal has the capacity of generating 83,000 megawatts of electricity and the power deficit in northern India is 9,600 MW which is expected to increase to 15,000 MW in 2005 and 20,000 MW by 2010. Utilisation of this water resources potential will be very beneficial for both the countries.

Prime Minister Koirala has recently stated that the forthcoming visit to India will be significant for creating an atmosphere of "confidence building" between the two countries.

In the words of the Prime Minister, "Great achievements could be made if an atmosphere of confidence is created between the two countries."

Prime Minister is paying the visit of India during the parliament session so it is quite clear that he wants to further enhance the friendly relations and promote economic cooperation between the two countries.

Though the Minister of Foreign Affairs so far has not published the agenda of the Prime Minister’s visit, it is said that all aspects of Nepal-India relations will be discussed during the visit.

General secretary of CPN-UML Madhav Kumar Nepal says- all aspects of Nepal-India relations will be discussed during the Prime Minister’s visit to India for the benefit of the country after carrying out extensive home work.

Opposition parties have also said that the 1950 treaty, Bhutanese refugee, withdrawal of Indian soldiers from Kalapani, border regulations and Laxmanpur barrage issues should be raised seriously during the visit.

The business community of Nepal view that the trade treaty with India was instrumental in increasing the export of Nepalese goods to India but the newly imposed four per cent additional duty on Nepalese goods needs to be scrapped and the case of Kodak Company should also be discussed during the visit.

President of Federation of Nepalese Chamber of Commerce and Industry Pradip Kumar Shrestha says- the Nepalese export to India has increased by 74 per cent and import about 34 per cent is a very positive sign but the four per cent additional duty levied by India on Nepalese goods should be scrapped.

During 1996/97 fiscal year, trade deficit with India was 27.7 per cent of Nepal’s global trade deficit, which went up to 30.1 per cent in 1997-98 and further to 37.9 per cent in the following year. However, this is predominantly due to Nepal’s falling imports from third countries. The Nepal Rastra Bank (NRB) statistics in respect of Nepal’s foreign trade show that the new trade treaty has contributed widely to the increase in the Nepalese exports to India.

According to NRB published figures, Nepal’s (CIF) imports from India during 1998/99 were Rs. 32.43 billion and exports to India were Rs. 13.08 billion.

The overall Nepalese exports have gone up by 32 per cent, whereas exports to India have the major share in this growth amounting to 48.8 per cent. The total imports of Nepal have fallen by 1.9 per cent, whereas imports from India have continued to grow at 18.7 per cent.

The trade balance with India has shown a positive growth at 4.3 per cent compared to the last year when it had fallen by 5.6 per cent.

As of July 31, 1999, there are over 170 approved Indian joint ventures and investment projects in Nepal, with a cumulative Indian investment amounting to about 36 per cent of the total foreign direct investment in Nepal.

These joint ventures are in practically every sector, including tourism, infrastructure, consumer durables and non-durables, medicines, toothpastes and export oriented industries like garments and carpets. Some of these joint ventures are primarily responsible for adding significantly to Nepalese exports to India causing a tremendous impact to reduce the trade deficit between the two countries.

There are a number of Indian aided projects in many sectors which include transport, infrastructure development, health, education, irrigation and others which have made a significant contributions in the development of Nepal.

B.P. Koirala Institute of Health Sciences and 22 bridges built along the East West Highway are the major Indian projects of the recent years which is said to have a total cost of over Rs. 1.43 billion.

Likewise, a number of welfare schemes have been launched in various parts of the country for the benefit of the ex-Gurkha soldiers.

Nepal and India, member of the South Asian Association for Regional Cooperation, should understand the sensitivity of each other and resolve the problems through bilateral talks and the prime minister’s goodwill visit will be a good forum to discuss these issues.

As Prime Minister Koirala has said- "The forthcoming visit will be significant for creating an atmosphere of mutual trust between the two countries and great achievements could be made if an atmosphere of trust is created between the two countries," there is enough reasons to be hopeful for the success of the visit.

Subsidised water not reaching to poor

BY A STAFF REPORTER

Kathmandu, July 24:The subsidised water tariff originally designed for the poor in Kathmandu Valley are not reaching them forcing them to rely on many sources — most of them unhygienic, a report launched here today said.

"While Nepal Water Supply Corporation’s (NWSC) supply to poor communities takes many forms including public standposts, shared connections and household connections, in general the poor have little access to NWSC supplies and so they rely on many other sources," the report said.

Jointly prepared by three Non Government Organisations — Lumanti Support Group for Shelter, Nepal Water for Health, and Water Aid — and supported by Water and Sanitation Programme, South Asia, the report was brought out in a workshop here today.

Researchers surveyed 11 slum and squatter communities and three middle class water-stressed communities in the Capital Valley.

According to Lumanti, one of the NGOs involved in the research, an estimated 65 squatter communities live in Kathmandu Valley. These communities consist of 3,000 families and 18,000 people. Most of the squatters are centred in Kathmandu District while few are in Patan.

Here is how the report explains that poor are not benefiting from the tariff structure of the NWSC. Even if poor consumers, using shared connections, are required to pay a minimum of Rupees 40 per 10,000 litres of water — the same amount paid by private connections — the per 1000 litre price shoots up to around 10 Rupees.

While private connection, meaning middle and high-class families, are required to pay only four Rupees per 1000 litres. Why the discrepancy? The report explains that NWSC charges 10 Rupees per 1000 litres for the additional litres of water in the shared connections — mostly used by poor consumers.

It is the additional price of the water in the shared connection that sends the per litre price of water high for the poor in Kathmandu. "As a result, the poor consumers with a relatively low level of service pay more for their water, on a per litre basis, than better off consumers with house connections."

The private connections are required to pay only Rupees four per 1000 litres.

NWSC supplies water to around 100,000 private connections from a mixture of ground and treated surface water sources. Supply ranges from 120 million litres of water per day in the wet season to 80 million litres of water per day. While the demand is more than double the supply. By 2001, the demand will reach 213 million litres water per day.

Unaccounted for water is estimated to be at 30-40 per cent of the total supply.

NWSC charges different rates for metered and unmetered domestic supplies. Unmetered house connections with half inched pipes are charged a flat rate of 177 Rupees per month for main line and 59 Rupees per month for branch lines.

Metered charges are based on an Increasing Block Tariff (IBT). The IBT allows upto 10,000 litres consumption per month for a minimum charge of 40 Rupees. Additional consumption of water is charged around 10 Rupees per 1000 litres — double the basic rate. "Since few households consume more than 10,000 litres per month, the IBT provides no incentive to limit consumption."

Natikaji, Kaji Prasad feted

Kathmandu, July 24 (RSS):Minister for Information and Communications Jayaprakash Prasad Gupta today felicitated musician Natikaji and lyricist Kali Prasad Rijal for their special contribution made in the field of music.

Speaking on the occasion Minister Gupta said the acceleration in the development of information technoloy sector has helped to identify various aspects of culture including songs and music.

At the function chaired by singer and musician Amber Gurung, senior film artist Chetan Karki, Music Nepal chairman Santosh Sharma, singer Yam Baral and other speakers also pointed out the need to use electronic equipments in preserving the originality of music.

CD and audio cassette of a new song album of Yam Baral entitled "Mann" was also released on the occasion.

64,720 cases pending in different courts of Nepal

Kathmandu, July 24 (RSS):A total of 64,720 cases are left to be decided at Supreme Court, Appellate Courts and District Courts of the Kingdom till the end of fiscal year 2056/57.

Out of this, the Supreme Court has to decide some 16,000 cases, Appellate Courts 14,000 cases and District Courts 33,000 cases.

Eighty-two per cent of the cases clinched by the Appellate Courts are appealed at the higher court.

Chief Justice Keshav Prasad Upadhyaya gave this information while inaugurating the 8th conference of the justices of the Supreme Court and the chief judges of the Appellate Courts here today.

Speaking of the need to think of how we can make the judiciary more effective in order to meet the expectations of the people in the new era of globalization sweeping around the world, Mr. Upadhyaya observed that the judiciary cannot function well if legal practitioners do not realise their responsibility, no matter how much democratic our constitution and the laws are and no matter how equipped with physical means and resources the courts are.

We can keep the people’s faith in the judiciary intact only if we can enliven it through our continuous study, dedication and honesty, he noted.

Since wording in the constitution and the laws alone will not improve conduct and activity of those who are in power, healthy constitutional practices and culture are necessary for this, he said, adding mutual cooperation between the courts and legal practitioners can ensure dispensation of justice.

Minister for Law, Justice and Parliamentary Affairs Mahantha Thakur said the constitution has empowered the judiciary to provide remedy to those whose rights have been violated.

Stating that efforts have been initiated over some time for timely reforms in the judicial sector, Mr. Thakur noted that framing of the judicial council procedural regulations, efforts made for simplifying court procedures and studies aimed at physical development of courts are praiseworthy.

The Law and Justice Minister also expressed confidence that conclusions drawn at the conference will go a long way in upholding the people’s faith in and dignity of the judiciary by making dispensation of justice more effective, expeditious and transparent.

Supreme Court Justice Laxman Prasad Aryal remarked that the report of the court management committee has contributed a good share to modernising the judiciary, complaining that there is a demand for a legal academy for the last five years, but this has not been realised yet.

Attorney General Badri Bahadur Karki promised to extend utmost help to strengthen the judicial sector.

Member of the Judicial Council Hiranyashwor Man Pradhan spoke of the need to identify problems plaguing the judicial sector and resolve them.

Chief judge of the Appellate Court Patan Min Bahadur Rayamajhi complained that responsibilities of courts are growing, but budgetary allocations are decreasing. No government or political parties should do anything that is likely to weaken the courts, he added.

Various other speakers including Supreme Court registrar Sri Prasad Pandit, president of the Nepal Bar Association Harihar Dahal and president of the Supreme Court Bar Association Prem Bahadur Khadka spoke of the need to pay attention to the challenges facing the judicial sector.

The conference aims to identify the reasons for delay in dispensation of justice in the present context of globalization, outlining the programme for enhancing the capacity of judges, identifying the problems of Appellate Courts and finding solutions, and discussing various other issues.

Participating in the three-day conference are 34 justices of the Supreme Court and chief judges of Appellate Courts.

Women, children welfare schemes lack fund: Pant

BY A STAFF REPORTER

Kathmandu, July 24: State Minister for Women, Children and Social Welfare Kamala Pant today said that her Ministry was unable to push ahead women empowerment and children welfare programmes effectively due to resource constraints.

"How can the Ministry address the problems facing children when the yearly budget provided to the District Children Welfare Committee is a meagre 20,000 rupees?" Pant told a press conference at her office this morning.

"Besides, the line ministries have not been co-operative enough to the Ministry of Women, Children and Social Welfare (MWCSW) in matter of running schemes for the uplift of women and children."

"The Ministry is doing what it can with the limited resources it has," Pant said. Established four years ago (as Ministry of Women and Social Welfare) with a view to raise women’s status, the Ministry has been providing production credit to rural women. Asian Development Bank funded micro-credit programme and Mahila Jagriti (Women Awareness) scheme are other packages targeted to women.

With the approval of new ministerial structure a couple of months ago, its jurisdiction expanded to include children. "The Ministry is working to amend the Children Act-2048 with a view to check exploitation of the children in the name of operating children welfare centres," Pant said.

"We are at the final stage of preparing the amendment draft," Secretary at the MWCSW Urmila Shrestha said.

They however did not specify when the amended act would come into effect.

The Ministry is also training the selected girls and women form girl trafficking prone villages to check the malady, Shrestha said. "With their training, the women and the girls have been playing a crucial role in raising awareness and motivating other women to income generating activities."

Women’s Skill Development Centre has been assisting the women to enhance their professional skills, she added.

With 562 temporary staff, the Ministry - contrary to the government’s policy of downsizing its administrative set-up, is lobbying for their permanence. "How can we serve the cause of women and children in absence of a sizeable staff?" Pant asked.

NRB devalues NC against US dollar

BY RAJKUMAR K.C.

Kathmandu, July 24:Again the US dollar has gone up against Nepalese currency. In an interval of one month period Nepal Rastra Bank has depreciated the Nepalese currency by Rs 0.25 against US dollar. Just a few days ago, the central bank had devalued the local currency following the depreciation of the Indian Currency against dollar.

The selling rate of a dollar was Rs 71.10 till Saturday which had to be adjusted to Rs 71.35 Sunday.

NRB takes the depreciation in a light manner, but economists say that it will have tremendous pressure on the overall economy.

However, Dr. Yubaraj Khatiwada, Chief Economic Advisor at NRB observes that the depreciation ‘will not make significant difference’ in the money market. "It has been done to adjust the crossrates with Indian Currency," Khatiwada said.

Asked as to why the NRB has to take such measures as and when IC devaluation takes place, Dr. Khatiwada says "It happens when we are in pegged regime."

For him, it was not quite necessary to devaluate the NC against dollar. Commercial banks, he says, have over-reacted to the depreciation of the Indian currency. ‘Our economy can easily bear the impact of the minor fluctuation in the Indian currency.’

There arises a question as to why the NRB did not intervene this. It is said that either NRB has a weak mechanism to monitor the fiscal instrument or turns deaf ear to hanky panky dealings of the commercial banks.

In view of Dr. Khatiwada also the differences of upto Rs 2 in crossrates makes no difference or practically has no adverse impact on the Nepalese economy. "We have already experienced the difference of Rs 2 in the past," he said.

But Prof. Guna Nidhi Sharma takes the devaluation as a pressure to the Nepalese economy. "It cannot and should not be taken lightly in the context of today’s economy," says Prof. Sharma.

The devaluation intensifies the circulation of IC in the money market, on one hand, and increases debt burden on the other. "In totality it has multiplier effect to the entire Nepalese economy and mounts pressure in the price, which in turn poses negative impact on the trade," says Prof. Sharma.

Sharma accuses NRB of failing to check of pressure of commercial banks and questions about its efficacy in regulating the money market. "Such activities reflect the weak personality of NRB," he said.

To reduce the effect of depreciation, according to Sharma, NRB either has to make fiscal instrument more effective or the government has to initiate some economic measures.

In India the bank rate was raised recently by one percentage point to eight per cent and the cash reserve ratio was raised by 0.5 per cent.