NRB to adopt flexible monetary policy: Rawal

BY A STAFF REPORTER

Kathmandu, Dec. 12: Nepal Rastra Bank Governor Dr. Tilak Rawal today said the Central Bank was thinking about adopting a flexible monetary policy to maintain stability in the national economy.

"The country’s economy is hard pressed at this time and we are considering about a policy that will stop our economy from further affliction," Dr. Rawal told an interaction programme at NRB premises. "We will continue to show flexibility whenever and wherever required."

NRB organised the interaction to hear the experiences of the Governor of the central bank of Uganda who is presently in Nepal.

Uganda’s central bank Governor Emmanuel Kirenga Baryabota said the government needs to stand firmly behind the Governor and the Finance Minister to speed up economic reform and the overall development of the nation. "The government needs to be aware to keep its promises of going forward."

Baryabota said loosening Nepal’s monetary policy further could ruin macroeconomic stability. "Maybe you should focus on fiscal measures."

Responding to a query on whether Nepal should open capital account convertibility, Baryabota said, "I don’t think it would be wise to open the capital account now."

He said increased manufacturing leading to increased income was the key to reduce poverty in Uganda. Poverty in Uganda came down from 56 per cent in 1991 to 35 per cent in 1999. Liberalisation of coffee marketing played a crucial role to improve the poor people’s quality of life.

Baryabota said Uganda legalised the black market, liberalised the current account, privatised the banks and provided autonomy to the central bank to put its economy in track. Uganda has made a remarkable progress during the last decade. The gross domestic product (GDP) increased from 3.4 per cent in 1991 to 7.1 per cent in 1999 while Nepal’s GDP was 4.6 per cent in 1991 which came to 4.8 per cent in 1999.

NRB’s Deputy Governor Ram Babu Pant said Nepal would take lessons from Uganda.

AOAN, CAN meet

BY A STAFF REPORTER

Kathmandu 13: A joint meeting of the government officials, executive body of Nepal Association of Travel Agents (NATA), chairman of Air Operators Association of Nepal (AOAN) and Director General of the Civil Aviation Authority of Nepal (CAAN) held here today discussed on how to make the distribution and sale of domestic air tickets systematic and well-managed.

According to a press statement issued by NATA Secretariat, domestic airlines have agreed not to provide air tickets for sale and distribution to non-travel agencies from now onwards. The airlines used to provide air tickets in stock for sale to the non-travel agencies in the past and it created an unhealthy competition in the market. Some stock holding companies and agencies were found selling tickets at heavily discounted rates.

Speaking at the meeting, Bikash Rana, Chairman of AOAN, said that the domestic airlines will not distribute the stocked tickets to the non-travel agencies. He also assured that AOAN will step up necessary steps regarding offering discounts to buyers after holding discussions with the consumers’ forums.

CIDA signs deal for hydel project

Nuwakot (RSS): An agreement was reached here on tuesday between the local Likhu VDC and the Canadian organisation, CIDA to run a Micro Hydel Project at the ‘Sarephant’ in the Likhu river located in between Ward Nos 1 and 6 of the VDC.

According to the VDC, under the agreement the Canadian organisation will provide Rs. 2314,000 for the project while an additional Rs. 800,000 will be supported by the VDC and the local people.

The social service and infrastructure institute will provide its technical service for the project which is to be completed within a year.

The hydel project on completed is expected to provide electricity services to some 260 houses in WARD NOS. 1, 5, 6 and 7 of the VDC, said the vdc chairman Dinesh Adhikari.