Total export increases by 41.6%

BY A STAFF REPORTER

Kathmandu, June 5: In the review period of FY 2000, total foreign trade increased by 32.8 per cent over that of corresponding period of the previous year and reached to Rs. 101,809.3 million.

During the review period, there was a tremendous increase of 52.4 per cent in trade with India to a total of Rs. 40,308.1 million while trade with other countries increased by 22.5 per cent totaling to Rs. 61,501.2 million. The share of trade with India, as a result, stands at 39.6 per cent of the total foreign trade, against 34.5 per cent of such trade during the review period of the previous fiscal year, while that of other countries is 60.4 per cent, according to the Economic Survey, 1999-2000.

Total export during the review period increased by 41.6 per cent to Rs. 32,501.4 million compared to that of the corresponding period of the previous year.

Export to India, as indicated above, rose tremendously by 80.7 per cent to Rs. 13,904.3 million and that with other countries rose by 21.8 per cent and reached Rs. 18,597.1 million. India's share in total export increased to 42.8 per cent as against 33.5 per cent during the corresponding review period of the year before, the Economic Survey says.

Total imports increased by 29.1 per cent of Rs. 69,307.9 million during current year's review period as compared to the corresponding period of the year ago. Import from India increased by 40.7 per cent to Rs. 26,403.8 million while that from other countries increased by 22.8 per cent to Rs. 42,904.1 million during the review period. Continued expansion in import from India can be attributed to the use of facility to pay in convertible currency against import of certain commodities.

Despite the export growth surpassed import growth during the review period of the current fiscal year, the total trade deficit increased by 19.8 per cent to Rs. 36,806.5 million, due to bigger import base.

Deficit trade balance with India rose by 12.9 per cent to Rs. 12,499.5 million while that with other countries increased by 23.6 per cent to Rs. 24,307 million over the corresponding period of previous fiscal year, it is stated in the Economy Survey.

As regards the composition of export during the review period of the current fiscal year, export to India included traditional items such as mustard and mustard seeds, medicinal herbs, dry ginger, pulses, oil cakes, catechu, jute products and sal seed oil.

Export of all of these showed an increase. Increases were encouraging in export of industrial commodities as well, such as, toothpaste (139.5 per cent), polyster yarn (86.4 per cent), aurvedic medicine (103.4 per cent) and soap (40.0 per cent). Along with this, new products such as yarn, beer, zinc oxide, shoes, sandals, juice, particles board, plastic goods and GPI sheets registered a high increase. Export of Pasmina-ware (fine lamb's wool) to India also increased significantly.

Export of items like cardamom, noodles, vegetable ghee, rice bran oil, leather and hides, however, decreased in the review period. Export to other countries excepting India is predominated, as has been the case, by two items, namely, the woollen carpets and the ready-made garments with their combined share of over 80 per cent of such export.

The share of this segment in total export of the review period further increased to 84.2 per cent compared to 82.2 per cent during the previous year's review period. Export of ready-made garments showed an increased of 50.2 per cent over that of previous year to a total of Rs. 9,344.9 million while that of woollen carpets showed a marginal decline of 0.2 per cent to the total of Rs. 6,312.1 million. Export of handicrafts, tea, gold and silver jewellery as traditional items has continued their gradual upsurge.

The boost in imports from India during the current year's review period was fuelled by the imports of industrial raw materials and construction materials for which payments in convertible currency is exclusively allowed. Imports under such payments facility increased by 55.0 per cent to a total of Rs. 4,820 million occupying 18.3 per cent of total imports from India during the review period. Increased import included mechanical equipment, M.S. billets, steel sheets, M.S. wire rod, industrial chemicals, various types of yarn, cement, G.I. wire etc. while the imports of electrical equipment, polyster fibre, carbon block, caustic soda and transport equipment decreased. Import from the Third countries during the review period of last year had decreased but it increased by 22.8 per cent during the current year. Gold, machinery and spare parts, computers and their accessories, were the items helping import to rise while the import of petroleum products, medicines, raw wool, electrical goods, raw silk, crude oil, writing and printing papers, declined.

Balance of payments during the first six months of the current fiscal year, continued to be favourable by Rs. 5,792.6 million compared to Rs. 5,919.0 million during the last year's review period. Trade deficit during the review period increased by 31.0 per cent to Rs. 28,403.0 million as compared to that of last year's review period. Income under Services heading increased by 13.2 per cent totaling Rs. 21,665.7 million during this period against payment of Rs. 8,447.6 million resulting in net income of Rs. 13,218.1 million under this heading. Likewise, income under Transfer heading also registered an increased of 13.2 per cent totaling Rs. 12,093.5 million against payment of Rs. 1,316.5 million resulting in net income of Rs. 10,777.0 million.

As the combined total of net income under Services and Transfer headings was not enough to bridge the gap in overall trade balance, the deficit in current account emerged as Rs. 4,407.9 million. Nevertheless, due to inflow of direct foreign investment to the tune of Rs. 234.4 million receipt of Rs. 2821.5 million as net foreign capital and the receipt of Rs. 7,144.6 million with a meteoric rise of 235.6 per cent under Miscellaneous Capital, the overall balance of payments is in surplus of Rs. 5,792.6 million after meeting the current account deficit. This surplus is marginally lower than Rs. 5,919.0 million of the last year's review period, the Economy Survey 1999-2000 states.

As regards the foreign currency reserve, in increased by 17.9 per cent to Rs. 90,378.7 million by mid-March 2000 in comparison to that of mid-July 1999. Of this total, Nepal Rastra Bank and the commercial bank held Rs. 63,517.7 million (70.3 per cent) and Rs. 26,861.0 million (29.7 per cent) respectively. As of mid-March 2000, convertible currency portion showed an increased by 14.8 per cent to Rs. 79,184.2 million of which Rs. 53,914.6 million (68.1 per cent) is held by the Nepal Rastra Bank and Rs. 25,269.6 million (31.9 per cent) by the commercial banks. This level of reserve is enough to sustain Nepal's import for almost 10 and a half months, it is said.

International market becoming tough: NEFFA

BY A STAFF REPORTER

Kathmandu, June 5: A discussion programme on the simplification of international trade was held the other day between the members of Nepal Freight Forwarders Association (NEFFA) and Royal Nepalese Ambassador to Switzerland as well as Nepal's Permanent representative for the Geneva based United Nations and other international organisations.

On that occasion Ambassador and Nepal's permanent representative, Dr. Sambhu Ram Simkhada opined that international trade plays an important role in order to be competitive in international market and emphasised the need to give priority in providing efficient service in view of the transportation charges becoming expensive for a land locked country like Nepal, a NEFFA release said.

NEEFA's President Rabindra Man Singh apprised that NEFFA has been supporting Nepal's export import trade and added that it has become very difficult to become competitive in international market due to transportation cost as Nepal has to face various problems for being a land locked country.

Singh also informed that NEFFA has been working closely with UNCTAD to make Nepalese products and services competitive in international market and added that the Nepalese businessmen should also think about the field of investments by which more benefits can be acquired.

He also informed that the freight forwarders have to face numerous problems while doing trade with the third countries because of the non-availability of Nepalese container trucks. He further emphasised that the private and His Majesty's Government should work together to solve problems such as the theft of goods during transit through India, strikes at Indian ports and similar of others problems.

Although NEFFA is in the process of preparing a Standard Trading Conditions with a view to increased the professionalism of the freight forwarders, Singh requested Ambassador Simkhada to help NEFFA in becoming the member of International Federation of Freight Forwarders Association, Geneva, so that NEFFA will be able to acquire professional knowledge with regard to freight forwarding with the freight forwarders of the European countries complying the importance of freight forwarders in export/import trade.

President of Nepal Chamber of Commerce Rajesh Kaji Shrestha assured his cooperation to help NEFFA.

On that occasion Vice President of NEFFA Dhurba Narayan Shrestha gave vote of thanks. In the discussion programme those who attended included Deputy Director General, of Customs Madhav Prasad Ghimire, Director of Nepal Multi Modal and Transit Facilitation Project Puroshottam Ojha, President of Nepal Association of Travel Agents, Bhola Bikram Thapa and representatives from UNCTAD and NEFFA.

Ambassador Simkhada opined that it is His Majesty's Government's duty to make policies related to industry and commerce simpler and that His Majesty's Government is working to make more easy and simpler. "As simplification plays a vital role to increase trade, we should have comprehensive knowledge with regard to the modules of transit and transportation of the developed nations," he said. Saying that he was concerned from the very beginning to expand Nepal's trade, he added "now my responsibilities have increased more because I am now Nepal's permanent representatives to the UN and other bodies located in Geneva".

REDP funded small hydel projects completed

Kathmandu, June 5 (RSS): Five small hydel projects have been successfully completed in Tanahu district under the Rural Energy Development Programme first phase launched jointly by HMG and UNDP.

A total of 107 kilowatt of electricity has been generated from the projects, benefiting 702 households.

Besides that, 81 solar energy systems, 45 bio-gas plants and 400 improved ovens have been built in the area under the same programme and another 65 bio-gas plants are now under construction, according to the Rural Energy Development Programme, Tanahu.

The projects are located in Deurali, Kauhushivapur, Baidi, Bhirkot, and Kotdurbar VDCs.

The programme has been extended to Chhimkeswori, Firfite, Raipur, Kota and Gajarkot VDCs from this fiscal year.

Under the programme, 73 kilowatt of electricity will be generated from five small hydel projects, benefiting 720 households.

Similarly, a survey has been completed for 28 peltric sets, which will add 45 kilowatts of energy and provide electricity to 463 households. The peltric sets will be set up by the end of 2000, according to energy advisor to the rural energy development programme, Tanahu Yogesh Pradhanang.

The rural and alternate energy service centre has been set up with cooperation from the DDC rural energy development branch for the construction and repair of alternate energy systems and the aim is to publicise the energy system model by establishing the energy development branch as a separate technology promotion centre.

The DDC has allocated a budget of Rs 400,000 this year for a district energy fund besides formulating energy policies for the uplift of rural living standards by developing alternate energy in the district.

A total of Rs 16,686,470 has been invested so far under resource mobilisation, the Rural Energy Development Programme has stated.

Similarly in Charikot the Bhadrawati Small Hydro Power Project will start distributing electricity at Lalipang VDC in Dolakha district by mid-July.

Under the project run by the Rural Energy Development unit of UNDP, a 350-metre canal has already been prepared, while construction of the power house and laying in of penstock pipes is underway.

According to engineer Ananda Pradhan, mechanical and electrical materail required for the 15-kw project have already arrived here.

The total cost of the project is Rs 1,724,298 million, of which the Rural Energy Development unit will provide Rs 725,298 and His Majesty's Government Rs 380,000.

The project will benefit 159 households of Lapilang VDC Ward Nos. 5, 6 and 7.

Commercilisation of agriculture essential for development

Kathmandu, June 5 (RSS): Minister of State for Agriculture Baldev Sharma Majgainya gave away certificates to participants of an advance commercial bee-keeping training conducted by Gandaki bee concern recently.

On the occasion, he expressed the conviction that employment generation through commercialisation of the agriculture sector by properly utilising the country's means and resources would be of help for poverty eradication.

Minister of State Majgainya said that the nation could become self-reliant in tea, poultry farming and fish and training in such fields including bee-keeping would be helpful for raising the social and economic status of people living below the poverty line.

MP Hari Bhakta Adhikari said that the government had accorded priority for the development of bee-keeping as it could become a reliable source of income and also contribute significantly in the preservation of environment.

Executive director of Gandaki Bee Concern Dev Bahadur Gurung said that as bee-keeping could lead the country toward self-reliance in sugar-like commodities and also help earn foreign currency, the government should give special attention to bee-keeping here where the climate is favourable for it.

Ex- Minister of State Amar Raj Kaini, from the chair, said that nobody need to go abroad in search of employment if the agricultural sector is modernised and commercialised.

Chief of the District Agricultural Office, Kathmandu Shambhu Kumar Shrestha also spoke of the importance of bee-keeping.

Altogether 17 trainees took part in the training.