TWO-DAY WEEKLY OFF
Escalating costs defeat rationale

BY A STAFF REPORTER

Kathmandu, Jan 24: Almost two years ago when the then government decided to give two day weekly off days (Saturday and Sunday) within the Kathmandu valley, to reduce unnecessary expenditure on different headings like electricity, water, fuel and telephone, people believed that it would certainly work, however, the unbridled expenditure in the span of two years has made the concerned authority to think whether to continue it or scrap it.

The total expenditure on water and electricity two years ago, in the fiscal year 2054/2055 was, according to the Ministry of General Administration, Rs. 150 million which increased to Rs 200 million in the last fiscal year fiscal year. The expenditure on transportation has increased by almost Rs 20 million. According to Ramananda Mishra, Secretary at the Cabinet Secretariat said that the decision would be made soon whether to continue the existing system or scrap it. It is yet to be decided, he said. However, the source at the Ministry of General Administration informed that no changes would be made in the existing system.

Udaya Raj Soti, Secretary at the Ministry of Local Development while talking to Gorkhapatra, the sister publication of this daily, informed that the existing system would not be changed.

As there is a provision of two days off in the Civil Service Regulations (Second Amendment –2056) of 2055 (Clause 55-1), it has to be amended to scrap the existing system. In fact, the existing system came into force following the decision of the government in 2056 BS.

According to Mukunda Prasad Aryal, Secretary of Ministry of General Administration, the existing system is not going to be changed unless the Civil Service Regulations 055 regarding the number of days off is changed. Secretary Aryal claims that the expenditure on telephone has been significantly reduced owing to two day off system.

According to the Civil Service Regulations –2055 (Second Amendment – 2056) Clause 55- 2 " In case of the offices outside the Kathmandu valley, the office hours can be fixed by publishing notice in the Gazette."

It has been 17 months since the government has implemented the new system, but the general public do not feel at ease with the system. People from outside the Kathmandu valley often have problems due to two days being off. Govind Prasain from Gaur who had come to Kathmandu last month had to stay idle for a couple of days. Banking sector has also faced problems owing to two days being holidays.

Binod Bajracharya, an officer at Nepal Bank Limited, admitted that this weekly off days has created problems in transactions. He does not see any rationale behind two days off system in Nepal. Neither has it helped reduce unnecessary expenditures nor motivated people working in different government and non–government organisations.

Harihar Sharma, general manager of the Cultural Undertaking (National Theatre) says that the system is useless.

Sushma Aryal, a school teacher believes that the existing system of two days off has helped enhance work efficiency. To reduce the unnecessary expenditure in government offices, there should be strict monitoring system, she says.

LDT to host second Int’l Buddhist meet

BY A STAFF REPORTER

Kathmandu, Jan. 24: Lumbini Development Trust (LDT), in co-ordination with the government, is organising the Second International Buddhist Conference from February 1 in Lumbini, the birthplace of Lord Buddha, The Light of Asia. The conference is being organised every two years keeping in mind the commitment done in the first International Buddhist Conference in 1998.

The two-day conference with the theme "Lumbini in New Millennium: The Role of Youth and the Community" is scheduled to be inaugurated by Prime Minister Girija Prasad Koirala in an august ceremony which is aimed at involving youth and the local community for the overall development of Lumbini area.

Buddhist monk Dr. Sugandha and former vice-chairman of National Planning Commission Dr. Mohan Man Sainju will be presenting papers on "Lumbini in New Millennium: Role of Youth" and "Lumbini in New Millennium: Role of Community" which will be respectively commented by Dr. Naresh Man Bajracharya and Dr. Bardi Prasad Shrestha.

Some 56 monks and Buddhist experts from 24 different countries will be participating the meet where there will be 85 observers and 200 intellectuals representing various disciplines of learnings.

Bhutan to send Rijal abroad for medical check-up

By Our Correspondent

Birtamod, Jhapa, Jan. 24: Noted Bhutanese Human Rights activist and a staunch freedom fighter Tek Nath Rijal will be sent abroad for a thorough medical check-up by the government of Bhutan.

According to Rijal’s family sources in Jhapa, the Bhutanese government has decided to send him abroad after he was reported to have suffered from various kinds of physical complications.

Rijal, a renowned Bhutanese leader for the establishment of democracy in the Dragon Kingdom for the past several years, has been suffering from abdominal disorders and swelling problem.

Joint verification
Bhutanese team arrives in Jhapa

By Lok Raj Dhakal

Birtamod, Jhapa, Jan 24: A six-member Bhutanese team led by Director of the Home Ministry of Bhutan, Dr. Sonam Tenzing, arrived here this afternoon to join hands with its Nepalese counterpart in a bid to prepare groundwork for the joint verification of Bhutanese refugees in Nepal.

From tomorrow, the joint verification team of both the Himalayan Kingdoms will start working for the logistics required for the verification process expected to begin within a week’s time.

Nepalese team headed by Joint Secretary at Home Ministry Usha Nepal had already arrived here earlier this week for the groundwork.

"The joint team from both the countries will first prepare the logistics," said Gyan Chandra Acharya, Spokesman at the Ministry of Foreign Affairs.

Following the ground work, a joint verification team of Nepal and Bhutan will begin the identification of genuine refugees for the peaceful repatriation of the nearly 100,000 Bhutanese refugees languishing in UNHCR-maintained camps in this and the neighbouring Morang districts since 1990.

As agreed during the 10th round of bilateral talks between Nepal and Bhutan on the refugee issue last month, the joint verification team, with five members from each side, will begin work from one of the seven camps.

The joint team of Nepalese and Bhutanese officials gathered here will decide which camp would that be.

The verification process is taking place after 10 round of bilateral talks between Nepal and Bhutan in the last seven years. Amidst increasing international pressure, the Druk Yul last month showed a little bit of flexibility in its long maintained rigidity on the refugee issue.

Nepal and Bhutan had stiff differences on the process of verification of the refugees for more than three years.

Five robbers killed in encounter

Birgunj, Jan. 24 (RSS): Five individuals who had robbed the passengers of a bus after putting up a barrier across the Mahendra Highway died on the spot in an exchange of fire with a police patrol.

As seven incidents of robbery against bus passengers had been reported along the Mahendra Highway in Bara district within the last six months, a police patrol had Tuesday gone to a place called Chaudhakilo where robbers had set up a barrier across the road and were carrying out a robbery.

On seeing the police, the robbers opened fire. The police retaliated, killing five robbers on the spot, it is learnt from Deputy Superintendent of Police of Bara district Parameshwar Singh Sijapati.

Police have also seized two long barrel guns, a country made gun, a local gun, live cartridges and an axe.

One of the dead robbers is Bhavikhan Sahani Malah of Parsa district Ramanagari village while other the deceased have not yet been identified, it is learnt from police sources.

World Bank’s ‘foot-dragging’ on Melamchi

BY NAVIN SINGH KHADKA

Kathmandu, Jan.24: Counted in as one of the allied donors for the Melamchi Water Supply Project (MWSP) for long, the World Bank (WB) has not yet even internally discussed, let alone decide, if it would fund the biggest ever drinking water project — thus hinting an equal chance of staying out.

Stemming that indication is the fact that the multilateral agency has only recently begun to study the ABC of the above US$ 400 million project – closely observed by its donors for more than two years now.

At a time when other donor agencies, one after another, are already approving their part of assistance to give the MWSP a kick start anytime now, WB still take at least good one year to decide whether it is signing in or out, a senior World Bank official told The Rising Nepal.

"And within that time, the bank’s senior management can any time approve or disapprove the project," said Tashi Tenzing, Senior Sanitary/Environmental Engineer at the World Bank.

For its part of US$ 15 million loan-assistance to correct the capital valley’s water distribution network under the MWSP, the Bank has only recently begun to draw the concept of the project. While MWSP is something that was long ago detail-designed with other donors’ approval.

Expected to be completed by February end next month, the skeleton of the project — being prepared by the WB — will then after be given a concrete shape including the social, environmental, financial and economic issues related to MWSP.

What will follow is the project appraisal when the bank would point out what it feels are the major issues, if any, in the project – touted as the elixir of the acute water shortage in Kathmandu Valley.

Which means, within these three stages – that will consume one year – the bank can any time cite its reservations on the MWSP, according to WB officials.

The WB’s foot-dragging on the MWSP comes even after the Asian Development Bank (ADB), the co-ordinator among Melamchi donors, approved US$ 120 million for the project last month. Other donors including Norway, Japan, Sweden, among others, are all set to endorse their assistance for the project.

The WB would have perhaps decided on its part of funding had the rehabilitation of the distribution network not been linked with MWSP, the bank officials said.

The bank had actually begun work on the distribution network and the private sector participation in water supply project since the early 90’s. The US$ 60 million project came to a close on March, 1999 with not even one-third of the amount used.

The scheme ended in a fiasco with one of its prime mission – getting private operator at the Nepal Water Supply Corporation’s (NWSC) management – unaccomplished within the specified end of 1999 deadline.

As the bank was left "disappointed", the officialdom shifted the Kathmandu Valley’s water supply rehabilitation project under the MWSP. The move, it now appears, paved way for the bank to dictate the terms.

"Since the rehabilitation part has been pegged with the MWSP now, the bank will first require to study the Melamchi Project as a whole," said Tenzing.

What’s more, the bank has been harping on what it calls sequencing of the project. "The bank feels that there should first be the private sector management at NWSC and that the MWSP should be considered in the long term only," said Tenzing.

MWSP officials, however, claim that the process to privatise the management of the NWSC is already underway. They point at the amended NWSC Act and the Drinking Water Bill and the Private Sector Water Supply Regulatory Bill that will be presented in the upcoming winter session of the Parliament.

"Since Melamchi will take six years to complete, the privatisation of the NWSC management and the main project work can go hand in hand," they say.

If that is possible, why should the WB resent MWSP? "It all has to do with the big brother attitude," said a highly placed official requesting anonymity. "It (WB) does not seem to like ADB’s lead role in the project. Otherwise, why should it obstruct now when all the other donors are convinced?"

The professional rivalry between WB and ADB, in MWSP’s case, dates back to 1998 when the two multilateral agencies had serious differences on how private operators should be selected for the NWSC management.

The WB then had stressed on "stringent" ways of choosing the operators while the ADB had pressed on "lenient" measures. In yet another disagreement, the WB had advocated for a 10-year management contract to the private party while the ADB had voiced for 15 years initially and later demanded a five year contract.

Now that the ADB is all out supporting the multi-million US Dollars project, the WB is still undecided on the scheme that aims to pipe in 170 million litres of water in a day in its initial phase from the Melamchi River.

It was the same WB that had okayed the project having studied its feasibility in the past. "But that was only a quick study that concluded that Melamchi could be a least cost solution for Kathmandu’s water shortage," defended Tenzing.

And, it was the same WB that had "boycotted" three public-hearing MWSP meetings well-attended by other donors here last year.

BY A STAFF REPORTER

Kathmandu, Jan. 24: The total overseas export of the nation has increased by nearly 25 per cent during the first four months of the current fiscal year in comparison to the corresponding period during the previous year.

This is due largely to a whooping 372 per cent rise in the export of the pulses from mid-July to mid-Nov. 2000. The country exported 5,329 metric tons of pulses during the reported period worth Rs. 196 million. Besides, the export of pashmina shawls to the overseas countries rose by 170 per cent. The total export value of the pashmina shawls during the first four months of the current fiscal year amounted to Rs. 2.18 billion, up from Rs. 753 million during the corresponding period of the earlier year.

The readymade garments, handicrafts, tea, raw leather and silver jewelleries were other items that contributed to trade expansion, according to Trade Promotion Centre (TPC) sources.

The export of carpet - second only to the readymade garments - however fell by 13 per cent during this period compared to the corresponding period previous year. The export of carpet totalled 776 thousand sq. metres with a value of Rs. 3.2 billion.

Meanwhile, TPC’s annual publication "Nepal Overseas Trade Statistics" showed that the value of the country’s overseas trade stood at Rs. 166 billion during 1999/2000. The total export value stood at Rs. 51 billion (30.7 per cent) while the total import amounted to Rs. 115 billion (69.3 per cent).

The publication showed that the country’s export to India was increasing substantially during the recent years constituting 44.4 per cent of the total export during 1999/2000. Nepal’s export to the overseas and India constituted 54.6 per cent and 1.0 per cent respectively. The export to the overseas stood at Rs. 27.8 billion while the value of export to India and Tibet amounted to Rs. 22.6 billion and 500 million respectively.

The readymade garments, woollen carpets, pashmina shawls, handicrafts, silver jewelleries, leather, niger-seed, and pulses were the major items exported. The export value of readymade garments and woollen carpets amounted to Rs. 11.1 billion and 10.4 billion rupees.

The imports from India during 1999/2000 amounted to Rs. 40.9 billion (35.6 per cent), while the overseas import stood at Rs. 69.8 billion (60.8 per cent). The import from Tibet amounted to Rs. 4.2 billion (3.6 per cent).

The statistics showed that the trade deficit was widening with an increasing gap between import and export. The total trade deficit of the country touched Rs. 64 billion during 1999/2000. The deficit in Nepal-India front was Rs. 18 billion while the deficit in overseas and Nepal-Tibet front was Rs. 42 and four billion respectively.

TPC’s Acting Director General Naresh Chandra Lamichhane said that Nepal presently exports more than 80 items to over 90 countries including India, the United States of America, Germany, the United Kingdom, Belgium, France, Japan, Hong Kong, Switzerland and Spain.

Forex up due to surplus in BoP: NRB

BY A STAFF REPORTER

Kathmandu, Jan 24 The foreign exchange holdings of the banking system increased substantially due to a surplus in the balance of payments emanating from the growth in capital inflows and decline in the trade deficit, according to a press release of Nepal Rastra Bank on recent macroeconomic situation in Nepal.

Based on the five months’ merchandise imports statistics, the foreign exchange reserves was sufficient to cover more than eleven months of merchandise imports. In the share market, share transaction decelerated compared to the previous month. In the money market, treasury bills rate continued at around five per cent, whereas the inter-bank rate stood at 4.7 per cent, the press release states.

The first five months of the FY 2000-2001, monetary sector marked a deceleration in both narrow and broad money. Total government expenditure decelerated due to mainly to a deceleration in the growth of regular expenditure despite a significant growth in development. During the review period, resources mobilisation increased by 16.9 per cent as a result of higher growth in revenue collection than that in the previous year. However, because of higher government spending, budgetary deficit widened during the review period. The rate of inflation, on point to point basis, was recorded at less than three per cent owing to a decline in the prices of food and beverages group. In the external front, a robust growth of exports accompanied by a comparatively slower growth of imports helped the trade deficit to improve during the review period, the NRB press release says.

During the first five months of the FY 2000/01, broad money registered a decelerating growth of 3.1 per cent (Rs.5741.5 million) to Rs. 191862.4 million compared to a growth of 7.7 per cent (Rs. 11710.3 million) during the same period last year. A deceleration in the growth of net domestic assets, despite a marginal increment in net foreign assets compared to last year, is attributed for such a deceleration in broad money.

The downward revision in interest rates on deposits, upsurge in the stock market activities and rapid growth in foreign currency deposits with banks has led to the deceleration in the growth of time deposits from 7.5 per cent (Rs.7665.7 million) last year to 2.7 per cent (Rs.3437.1 million) this year.

Narrow money also decelerated to 3.8 per cent (Rs.2304.4 million) during the review period compared to a growth of 7.9 per cent (Rs.4044.6) million during the same period last year.

In spite of the higher growth of credit to government as well as government enterprises, total domestic credit of the banking system decelerated from 6.6 per cent (Rs.8854.8 million) last year to 5.7 per cent (Rs.9071.5 million) this year due mainly to the deceleration of credit to the private sector.

The flow of bank credit to the private sector decelerated to 6.3 per cent (Rs.6944.8 million) during the review period compared to a growth of 8.8 per cent (Rs.7965.5 million) in the preceding year as a result of the sluggish demand for credit for imports.

On the fiscal front, total government expenditure during the review period registered a comparatively lower growth of 23.2 per cent amounting to Rs.21606.9 million which was 26.1 per cent during the same period last year. Of the total expenditure, development expenditure accelerated by 34.8 per cent and regular expenditure increased by 21.2 per cent followed by a normal growth of 5.4 per cent in freeze account.

During the review period, revenue collection increased by 15.1 per cent to Rs.15694.1 million compared to a lower growth of 13.1 per cent last year.

However, lower foreign cash grant receipts resulted in a lower growth of resources mobilization to 16.9 per cent compared to 19.1 per cent last year. The lower growth rate of resources mobilization than government expenditure caused a higher budget deficit of Rs.4180.9 million during the review period. To meet the resources gap, the government mobilized foreign cash loan of Rs.2087.1 million, issued treasure/bills of Rs.563.5 and used overdraft of Rs.1530.3 million from Nepal Rastra Bank.

The National Urban Consumer Price Index, on point to point basis, went up by 2.6 per cent during the review period compared to 3.2 per cent rise last year. A fall in the prices of food and beverages group helped the rate of inflation to be contained at a low level. Of the overall price index, price index of food and beverages group declined by 1.3 per cent during the review period compared to a decline of 0.4 per cent during the same period last year. The rate of increment in the price index of non-food and services group also decelerated from 7.8 per cent in the previous year to 7.3 per cent during the review period. Regionwise, price index of Hills and Kathmandu increased by the same rate of 4.6 per cent, while price index of Terai increased marginally by 0.7 per cent. A sizeable decline (4.1 per cent) in the price index of food and beverages in the Terai helped overall price index to remain at a very low level.

Because of the depreciation of Nepalese currency and rise in the prices of petroleum products, the price index of imported goods increased by 2.8 per cent during the review period compared to a rise of 2.9 per cent last year. Likewise, prices of government controlled goods increased to 13.6 per cent during the review period, compared with 7.6 per cent last year as a consequence of upward revision of the prices of petroleum products.

On the external front exports registered a decelerated growth of 29.3 per cent to Rs.24616.8 million during the review period compared with a growth of 39.7 per cent amounting to Rs.19040.9 million during the same period last year. Exports to India went up by 38.1 per cent whereas exports to third countries increased by 22.8 per cent. The exports of readymade garments, woollen carpets and jewellery to third countries declined whereas that of Pashmina, tanned skin and pulses increased significantly compared to that of last year. During the review period, Rs. 3.23 billion worth of Pashmina was exported. The above mentioned exportable items to third countries occupied 92 per cent share in the third countries exports and more than 50 per cent in the total exports.

During the review period, imports growth decelerated to 11.6 per cent from 38.2 per cent during the same period last year and reached Rs.46542.9 million.

Imports from India remained high whereas that from third countries decelerated sharply. The increase in imports was attributed mainly to a higher imports of vehicles and parts, textile, thread, cement, chemicals, chemical fertiliser, agricultural tools and machineries from India and raw wool, petroleum products, beetle nuts, crude oil, plastic granules, copper wire and sheet, thread textile, transportation goods and spare parts, computer parts, aeroplanes parts, medical equipment and palm oil from third countries.

During the review period, the growth rate of exports was high while that of imports remained quite low compared to last year. As a result, trade deficit during the review period declined by 3.3 per cent amounting to Rs.21926.1 million compared to a high growth of 37.0 per cent in the previous year. The export-import ratio, which was 45.7 per cent in the previous year, improved to 2.9 per cent during the review period.

Based on the balance of payments statistics for the first three months of the current fiscal year, the balance of payments remained favourable by Rs.1605.0 million.

During this period, decline in net services income as well as transfer income resulted in the current account deficit of Rs.1604.3 million in spite of a decrease in trade balance compared to the same period last year.

However, a substantial capital inflow helped the balance of payments to remain favourable. Based on the monetary statistics for the first five months of the current fiscal year, the overall balance of payments recorded a surplus of Rs.4571.1 million. Foreign exchange holdings of the banking system increased by 30.1 per cent to Rs.105509.4 million as at mid-December 2000.

Of the total reserves, 81.2 per cent accounted for convertible currency and 18.8 per cent for non-convertible currency.

In the share market, market capitalization of the listed companies in the Stock Exchange decelerated to Rs.59.46 billion at mid-December, 2000 from Rs.63.54 billion in the previous month. Likewise, NEPSE index also decreased from 519.3 in the previous month to 486.1 at mid-December, 2000.

Fund constituted

BY A STAFF REPORTER

Kathmandu, Jan. 24:A Shankar Lamichhane Essay Fund has been established with an objective to publish and promote late essayist Lamichhane’s writings in Kathmandu.

This was declared at a function, organised Tuesday. Royal Nepal Academy Vice Chancellor Mohan Koirala, essayist Dr. Taranath Sharma, poet Manjul, musician Ambar Gurung, critic Dr. Keshav Upadhyaya and writer Peter J Karthak shed light on the personality and literary contribution of late Shankar Lamichhane.

Nepal elected vice-president of Asian MPs’ body for peace

Kathmandu, Jan. 24 (RSS): Nepal has been elected vice-president of the first conference of the Association of Asian MPs for Peace that got under way Tuesday in Phnom Penh, the capital of Cambodia.

National Assembly chairman Mohammad Mohsin is leading the Nepali delegation at the conference.

According to the Parliament Secretariat, countries from Asia and the Pacific Region are attending the five-day conference.

Cambodian King Norodom Sihanouk granted audience to leader of the Nepalese delegation Dr. Mohsin.

Dr. Mohsin also called on Prime Minister of Bangladesh Sheikh Hasina.