Experts fear NC devaluation amid global market changes

BY A STAFF REPORTER

Kathmandu, Sept. 18: If the value of Indian currency (IC) against the US dollar in India further depreciates tomorrow, economists, bankers and foreign currency dealers here do not decline a possibility of devaluation of the Nepalese currency against the green back.

However, the depreciation of IC will depend upon the value of stocks in the Bombay Stock market, which is determined by the New York Stock Exchange (NYSE), which opened after six days following the terrorist attacks on New York and Washington. Within the last seven days, the value of NC has been depreciated by one rupee. Considering the volatility of IC against the US dollar, the NC was devaluated at different period of time. Around 20 paisa was depreciated on September 9, and 80 paisa depreciated after the New York incident.

Instability of IC is the prime reason of devaluation of NC at the moment, says Prof. Guna Nidhi Sharma. Prof. Sharma - a monitary economist indicates the possibility of further decline in the NC due to instability of Indian currency. Everything depends on the New York Stock market. If the value of stocks at New York Stock Exchange goes down, its ripples will be felt worldwide and the Bombay Stock market will be greatly affected that will further intensify IC devaluation. Ultimately, NC will be forced to depreciate against the dollar. "We will have no choice at that time," says Prof. Sharma while talking to this daily. Its result will be too expensive for the Nepalese economy, he says.

However, Tula Raj Basyal, Spokesman of Nepal Rastra Bank (NRB) declines any such possibility of NC devaluation. There arises no question to devaluate the NC since the NRB has plenty of foreign currency reserve at the moment.

Till the end of Ashad 2058 Nepal Rastra Bank had a total of Rs. 105.17 billion worth of foreign currency reserve. Out of which 80.16 billion was convertible and remaining 25.1 billion was inconvertible. We have sufficient foreign currency reserves, he says. Regarding the depreciation by one rupee, he says, "It is short term phenomenon."

But the reality is different. According to FEDAN, NRB had to intervene by selling 22 million US dollars to the commercial banks yesterday.

B. B Shrestha, President of Foreign Exchange and Money Dealers' Association of Nepal (FEDAN) does not see any possibility of further devaluation of the Nepalese currency. The price of IC was Rs 48.25 against a dollar Monday. But the arbitrage gap between IC and NC is just ten paisa. This is very insignificant to trigger devaluation, economists say.

But given the present situation at the New York Stock market Shrestha hopes there will be no such adverse impact in the world market.

Pramod Rijal former chairman of FEDAN also speaks in a similar vein. He says the possibility of devaluation is very thin. But one cannot predict it, he says.

It is to be noted that the NC was devaluated to Rs 76.10 from Rs 74.10 against the US dollar in the last seven days.

Income Tax Bill broad-based: Mahat

BY A STAFF REPORTER

Kathmandu, Sept. 18: Finance Minister Dr. Ram Sharan Mahat today said the proposed Income Tax Bill was comprehensive, liberal and broad-based, and has targeted foreign investment in the country.

"We need modern and comprehensive tax law to fare better in the globalised world," Dr. Mahat told an interaction on the proposed Tax Bill here this afternoon. "We will be unable to attract foreign investment if our tax law fails to be at par with the international tax norms."

Dr. Mahat, however, conceded that the Bill was difficult to understand, adding the ongoing discussions had gone into simplifying it. He said some of the comments of the industrialists and businessmen were subjective and added, "The business community should not be involved in trade unionism."

He denied that the government was rigid about making amendments in the Bill and said there was still time to get it amended. "Besides, if any problems come up after it comes into force, they can be corrected through the Finance Bill at the time of budget speech every year."

Dr. Mahat said the provisions of self-assessment, depreciation, loss carry forward and adjustment and the rights and responsibilities of the taxpayers were the positive features of the Bill.

The representatives of the private sector, however, disagreed that all was well the proposed Bill.

"The tax law must be simple," first vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Binod Bahadur Shrestha told the programme organised by the Society of Economic Journalists-Nepal (SEJON). "The proposed Bill, however, defies this principle."
Maintaining that the tax law should be in coherence with the economic situation of the country, Shrestha said the Bill had come at a time when the industrial sector was far from robust. He said the capital gain tax had created crisis in the capital market, adding the Bill contained punitive measures. "The government should instead take initiatives to eliminate the crisis of confidence between the tax authority and the taxpayers."

FNCCI Revenue Committee Chairman Jagadish Prasad said the Bill was ‘good’ but had come early. "Our economy is not advanced enough for the proper enforcement of the propose Bill." He said the Bill aimed at binding the taxpayers and not the tax officials, adding capital gain tax in all cases would be unjustified.

"The Bill lacks clarity about the burden of proof," Former President of the FNCCI, Mahesh Lal Pradhan said. "If the tax authority feels that a taxpayer’s self-assessment is not right, it should establish the proof and punish the guilty instead of asking the businessmen to prove that his assessment is right."

Tax lawyer Gandhi Pundit maintained the Bill was conceptually good but admitted that its language was a bit unfamiliar.

From the Chair, Society President Gajendra Bista stressed on transparent tax administration and said the taxpayers should comply to build a healthy economy. SEJON General Secretary Gopal Tiwari delivered a vote of thanks.

Radical reforms must: Nepal

BY A STAFF REPORTER

Kathmandu, September 18: Leader of main opposition party in the Parliament and General Secretary of CPN-UML Madhav Kumar Nepal today said that radical reforms in the existing social and economic structure are a must to resolve the crises faced by the country at present.

"I urge all political parties of the country to seriously review the 12 years of post-democracy era and thereby move accordingly to address the burning needs and expectations of the common peoples," opposition leader Nepal told the House of Representatives today.

Speaking at the Special Hour of the Lower House meeting, Nepal said that all parties must realise the need of the changes and move ahead with new vision and thinking by rising themselves above the narrow-mindedness. "A thinking of status quo, which can not touch the root of the problem, only further damages the country," he added.

As the country has not moved according to the popular will after the restoration of the mutli-party democracy, the country is now beset with serious problems which ultimately led the emergence of the Maoist insurgency, Nepal remarked.

Nepal also said that the UML had floated a 22-point agenda aiming to bring radical reforms in the social, economic, political and cultural fronts of the country.
The government should give priority to Dalits, ethnic, Madhesi communities, people of the remote areas and the woman while chalking out national programmes and policies.

He further noted that the government even should go to amending the Constitution to bring special package and provide privileges to uplift and bring them into the main stream of the national development.

Nepal blamed that the government had feared to table the Bill on the parental rights of women in the Parliament. The UML was firm that the women must get the property right. "The society should treat the sons and daughters equally," he said.

On the Maoist issue, opposition leader appreciated the government for clearly putting its views in the second round of the government-Maoist talks.

"The second round of talk has made positive gestures in solving the six-year old Maoist problem," Nepal said in his about half hour-long speech in the House of Representatives.

However, the government and the Maoists must reach to the bottom of the problem, he said. "The both parties should not deceive each other while holding the talks."

The UML chief alleged the government and Maoists for conducting atrocities in the country. He asked Maoists to halt activities such as forceful collection of donation, resignation of elected representatives and use of public transport among others.

He also lambasted the government for introducing the prohibition on the mass meeting, procession and other public activities for one month. "This move of the government has violated the constitutional rights of the people achieved from the Popular Movement of 2046 BS," he said.

Rather, the government should control the illegal activities of the Maoists, he said

He demanded that the government immediately withdraw the prohibition and restore the fundamental rights of the people.

He harshly come down on the government for raids by army in universities and other places of the Kathmandu Valley and raised the question mark to the ability of the policemen.

He also criticised the government for the arrest of the MP Lilamani Pokharel on Monday saying it has violated the privileges of MPs.

He further remarked that the Maoists should be encouraged to come to the open politics.

Nepal said that the proposed land reform programme would not benefit the poor, landless and landless squatters since the proposed ceiling would not take out the surplus land from the country. He demanded that the government implement the report of the Badal Commission to bring a sweeping land reform throughout the country.

He also demanded the stern action against those who are spreading the communal riot in the different parts of the country.

Opposition leader said that Indian army had openly encroached the Nepalese land and kidnapped five Nepalese from Bardiya district.

Nepal condemned the terrorist attack on Pentagon, New York and Washington DC and the murder of the Bhutanese refugees leader R. K. Budhathoki.

Lastly Nepal urges all nationalists, Leftists and democratic forces to forge alliance to protect the nation.

Meanwhile, RSS adds: Khemraj Bhatta "Mayalu" of the Nepali Congress, speaking at the special hour of the House of Representatives today, raised strong objection to the kidnapping of five farmers including Shivalal Tharu of Bhimapur, Bardiya district by Indian police on September 11 and demanded that the government take steps to free the farmers from Indian police custody.

Informing the House that the kidnapped farmers in Baraich of Uttar Pradesh state, the NC legislator said that the Indian police were hesitating to release them.

Stating that the Indian police had violated the pledge made by the then prime minister P. V. Narsimha Rao that such police intrusions would not take place in future, Mayalu demanded that His Majesty’s Government take immediate steps to check repetition of such incident in future.

CPN-UML's Hem Narayan Yadav and Suresh Kumar Karki accusing engineer Yogendra Kumar working at the Lahan roads division under the eastern regional roads office and the district education officer and public health office chief of Siraha district of indulging in corruption demanded that His Majesty's Government take immediate action against them, and urged the government to replace the Upper Koshi dam with the Sunkoshi-Kamala diversion in the interest of the people.

Dilaram Acharya of Rastriya Janamorcha referring to damage caused by the Maoist counteraction committees in different VDCs of Parsa district demanded that the government provide proper compensation to the victims and take action against 15 persons on the committees.

Narayan Man Bijukche of NWPP said the Purano Chemdaladda in Bhaktapur district was illegally brought down by Guthi Sansthan and urged the local bodies and the department of archeology to preserve and protect such ancient monuments.

NC's Homnath Dahal demanded clarification from the government on the precautionary measures planned by the government taking into consideration the effect on Nepal of possible air strikes on Afghanistan by the United States in retaliation for the terrorist attacks in Washington and New York.

National campaign to control HIV-AIDS on anvil

Lalitpur, Sept. 18 (RSS): Health Minister Sharat Singh Bhandari has said that preparations have been made to control HIV-AIDS on a national campaign basis.

Addressing the 42th anniversary of the Nepal Family Planning Association (NFPA) here today, Minister Bhandari said all classes of society should be alert for controlling this disease as it has greater chances of spreading in Nepal because of the open border with India.

Minister Bhandari said if we are able to control population growth this will help alleviate poverty to some extent, adding that the government also has been working with priority towards reducing maternal and infant mortality.

On the occasion, Minister Bhandari gave away cash prizes to the winning students in a school level essay competition organised by the youth branch of the NFPA and to employees who have completed 25 years of service.

At the function presided over by president of NFPA Chhatra Giri, various other speakers including ex-president Sunil Kumar Bhandari and Director General of the association Dr. Nirmal Kumar Bista also expressed their views.

Late Singh remembered
Academy to be built to produce ENT experts Govt will assist: Deuba

Kathmandu, Sept 18 (RSS): Prime Minister Sher Bahadur Deuba laid the foundation stone of the building for the Ganesh Man Singh Memorial Academy for ENT (ear, nose, throat), head and neck studies at a function at T.U. Teaching Hospital today.

The main objective of the academy is to produce four ENT expert surgeons every year and provide their services to regional and district hospitals, to prepare secondary level manpower in ENT sector by providing basic education and skill to bachelor level students, to produce primary level health manpower for basic treatment of ENT, to train and motivate the community leaders and local schools teachers in public awareness generating activities, to conduct education programmes for primary and expert level ENT health workers and to conduct community level field based education programmes through post graduate and bachelors level medical students.

Kathmandu Metropolitan City will construct the academy building and T.U. Teaching Hospital provide necessary manpower and equipment for running the academy.

The four-storey building covering an area of 2242 square metres will be built in four phases at an estimated cost of Rs 41,654,087.

The building will accomodate a large variety of treatment facilities including out patient department, 50-bed ward, post operative ward, emergency treatment ward, centre for primary ear care, teaching and learning units, library and rooms for experts, staff and students.

A sum of Rs 9,962,116 has already been received for construction of physical infrastructures of the academy and equipment worth Rs 25 million received through impact Nepal.

Of the Rs 5 per square feet charged by the Kathmandu Metropolitan City as building permit charges, Rs 2 will be deposited in the Ganesh Man Singh ENT and head and neck studies building until the project is completed.

Likewise, T.U. Teaching Hospital will provide 7,000 square metres of land for construction of the building.

Addressing the foundation laying ceremony, Prime Minister Deuba expressed confidence that the academy will play a significant role in reducing the trend of Nepalese going outside for treatment by providing proper treatment facilities within the country.

His Majesty’s Government is making efforts to provide medical facilities to the people with its means and resources, Mr Deuba said, adding that the government would provide necessary additional assistance to the academy.

Member of the Nepali Congress central committee Prakash Man Singh said that the Nepalese people who fought a battle of conscience for the welfare of the country and people have paid genuine tributes to supreme leader of the democratic movement late Ganesh Man Singh by carrying out such a commendable work in memory of him.

Rector of Tribhuvan University Prof. (Dr) Prem Raj Pant stressed the need to become self-reliant in producing skilled manpower in the field of medicine.

Referring to the shortage of ENT experts in the country, chief of the ENT department Dr. Ramchhaya Man Amatya expressed the view that it would be impossible to provide the services of ENT surgeons in all the district even in the next 40 years.

At the function chaired by Mayor of Kathmandu Metropolis Keshav Stapith, executive director of T.U. Teaching Hospital Prof. (Dr) Mahendra Nepal and dean Prof. (Dr) Harigovinda Shrestha also expressed their views.

Khadka informs House
Prohibitory orders lifted

Kathmandu, Sept. 18 (RSS): Home Minister Khum Bahadur Khadka informed the House of Representatives today that the prohibitory orders issued by district administrations in all three districts in Kathmandu valley against any protest demonstrations including public gatherings and processions have been lifted effective from 3:00 p.m. today.

Making a statement of public importance at the Lower House of Parliament today, Home Minister Khadka said in view of the law and order situation in Kathmandu Valley returning to normal instructions were given to the Kathmandu, Lalitpur and Bhaktapur chief district officers to withdraw the prohibitory orders issued on Sept. 16.

He also informed parliament that the Ministry of Foreign Affairs has been urged to take necessary initiatives through diplomatic channels to secure the release of five persons abducted on Sept. 11 by a team of the Indian police from Bhimapur VDC-5 Ishworigunj in Bardia near the Nepal-India border.

The Home Minister made it clear that as the government is committed to resolving the Maoist problem through dialogue it has not taken action against the Maoists despite continuation of the use of force, extortions and lootings by them.

Stating that with a view to building an environment congenial for peace talks, the government has already released Maoists workers taken into custody under the peace and security act, he said the government also decided yesterday to release 40 other Maoist workers facing various legal charges.

As the government is working responsibly for resolving the problem peacefully, the Maoists also should reciprocate on an equal footing, the Home Minister said.

Meanwhile, Home and Local Development Minister Khum Bahadur Khadka has said that the bill designed to amend some Nepal acts which are contrary to the Local Self-Governance Act-2055 B.S. has been registered at the parliament secretariat in order to make the relevant acts more timely.

Minister Khadka was responding to verbal queries from MPs at the meeting of the House of Representatives today.

The acts contrary to the Local Self-Governance Act are the Statistics Act-2015, film (production, exhibition and distribution) Act-2026, Local Administration Act-2028, Natural Calamity Act-2039, Sports Development Act-2028, Environment Protection Act-2053, Consumer Protection Act-2054, Animal Health and Animal Services Act-2055, Animal Slaughter and Meat Checking Act-2055 and Construction Management Act-2055 B.S.

Minister Khadka clarified that regular renovation and maintenance of roads under road projects to be carried out by the rural infrastructure programme can be done by local users' committees and only the complex work of periodic renovation and reconstruction is carried out through contractors.

Stating that mid-term evaluation of the rural infrastructure development programme and rural infrastructure project run under the Local Development Ministry showed satisfactory progress, he said agriculture roads and other district level road-related programmes have had a positive effect on people's participation, social mobilisation and management of resources.

On behalf of the government, Minister Khadka also gave assurances of relief and compensation to the political sufferers (except the family of martyrs) of the chintang murder case.

Permanent police posts in Awalaching and Matela VDCs of Surkhet district will be gradually re-established following consolidation of the state of law and order in the country, he added.

He also said the government is positive about setting up an ilaka administration office in the southern region of Bhojpur district.

Minister Khadka replied to queries from MPs Sherdhan Rai, Hridaya Ram Thani, Durga Linkha, Netra Lal Shrestha, Bijaya Subba and Chandra Mani Kharal.

Maoists should lay down arms: Koirala

Itahari, Sept. 18 (RSS): Nepali Congress president and ex-prime minister Girija Prasad Koirala has said that the government-Maoist talks will be instrumental in finding a desirable way out of the problem only after the rebels, who are raising arms against the Nepalese people, speak up on whose purpose they are serving and come to the negotiating table with a clear concept and by laying down arms.

NC president Koirala was speaking at the inaugural function of a three-day free health check-up and surgery camp for hearing the impaired organised jointly by the B.P. Koirala Institute of Health Sciences, Dharan and the B.P. Koirala Indo-Nepal Foundation at Madhuban of Sunsari today.

He reiterated that the peace talks will take shape only after the Maoists, who are looting arms from the people and the police to use them against the Nepalese people themselves, lay down the arms.

It is now known to all that the Maoists want to go to elections after forming an interim government, he said and wondered how an armed group and unarmed people can go to elections together.

As murder and violence is the only thing the Maoists can think about now and they seem totally devoid of any idea about politics and economy, they should first make clear to the people their ideas, he observed.

Stating that almost all political parties in the country have a negative impression of the Maoists and have, therefore, started considering strategies for resisting their activity, he said I am also discussing with all parties collective resistance against the violent activities. Koirala also made it clear that the Maoists will soon see resistance from a wider people's front.

Describing the existing education system as an obstacle to the country's development, he stressed the need for a skill-oriented education system.

Vice-chancellor of B.P. Koirala Institute of Health Sciences Prof. Shekhar Koirala said pursuant to B.P. Korala's principle of social revolution the foundation is working on a campaign footing to revolutionise the health sector.

Secretary of B.P. Koirala Indo-Nepal Foundation Manoj Bharati, ENT specialists Arun Agrawal, Subas Chandra Mishra, Ashok Kakkar and NC Sunsari district president Ram Bahadur Basnet also expressed their views.

Meanwhile, Nepali Congress president and ex-prime minister Girija Prasad Koirala inaugurted a Janasanstha and Family Health Post building constructed at Madhuban VDC in Sunsari district amid a function here today.

NC president Koirala also inspected the building which was constructed at a cost of Rs 58 00,000 with the assistance of the International Development Association of the Population and Family Health Project on 11 kathas of land provided by Madhuwan VDC free of charge.

The building has 6 treatment rooms and 4 rooms for living quarters.

Koirala also discussed problems with the NC Sunsari workers and officials of sister organisations at Madhuban today.

He also took stock of law and order in the district.

Appropriation head
Lawmakers continue debate

Kathmandu, Sept. 18 (RSS): Deliberations on the appropriation head pertaining to the office of the Prime Minister, Council of Ministers and Ministries of Defence, Foreign Affairs, Industry, Commerce and Supplies, General Administration, Women, Children and Social Welfare, Land Reform and Management, Science and Technology, Law, Justice and Parliamentary Affairs and the National Planning Secretariat under the appropriation bill-2001 continued at the meeting of the House of Representatives today.

Taking part in the deliberations, MPs from the opposition parties said the National Planning Commission has not formulated plans with the concept of balanced development following the spirit of the MPs, food transportation in the remote districts is not systematic, revolutionary land reform programme does not correspond to the Badal Commission's Report and no programme was introduced to encourage cottage industries.

They suggested that an extensive project should be introduced in the interest of children and disabled, sufficient home-work should be carried out prior to joining the World Trade Organisation and the bill concerning women's rights should be passed in the current session of parliament.

Those making the suggestions were MPs Fatik Bahadur Thapa, Hari Acharya, Renu Kumari Yadav, Shiva Bahadur Deuja, Gokarnaraj Bista, Devi Lal Thapa, Shanker Nath Sharma Adhikari, Sherdhan Rai, Dan Bahadur Chaudhary, Bir Bahadur Lama, Ananda Prasad Pokharel and Pashupati Chaulagain.

Likewise, treasury bench MPs expressed the view that the land reform programme introduced by the government is timely and that emphasis should be given on its enforcement, emphasis should also be given to export-oriented industries, food and salt should be supplied to the remote hilly districts regularly, monitoring and evaluation of projects by the National Planning Commission should be more effective, land should be distributed to poor farmers after providing them with their citizenship certificates, a separate school should be established for disabled and helpless students and the National Women’s Commission should be constituted.

Ruling side MPs taking part in the deliberations were Arjun Prasad Joshi, Lekhnath Neupane, Umakanta Chaudhary and Kashi Poudel.

The House of Representatives will meet again at 11:00 am tomorrow.

'Nepal can learn many things from US'

Kathmandu, Sept. 18 (RSS): Charge D'affaires of the United States Embassy Larry M. Dinger hosted a reception to celebrate the formation of the International Visitors Programme (IVP) Alumni Society here this evening.

About 400 professionals from various fields have so far participated in the IVP programme of the US government since 1953.

In a message sent on the occasion, Prime Minister Sher Bahadur Deuba said as a new democracy, Nepal can learn many things from the United States which has championed the cause of democracy, individual freedom, human rights and freedom of the press.

"The USA besides being a source of inspiration for a new democracy like ours, is also actively participating in our nation building process by providing valuable economic assistance," the Prime Minister has said in the message.

"From my own experience as an IVP alumni, I believe that the programme is very much fruitful and illuminating one", he said adding, "This programme gives Nepalese people a glimpse of American history, culture, lifestlye, and knowledge and understanding about the largest democracy and the most advanced country in the world."

Prime Minsiter Deuba, expressing happiness over the formation of the IVP Alumni Society, has wished for the success of the society in coming days.

On the occasion, charge D'Affaires Dinger said the participants of the IVP programme have an excellent opportunity to gain in many ways and the society will be very fruitful in sharing the ideas and experiences of the alunmni and contributing to the development of the country.

He also appreciated the overwhelming support received from various sides in Nepal during the tragic terrorist attacks in US cities.

Director of the American Center Robert Kerr, wishing the success of the society, said the participants of the IVP programme will be able to contribute in the development efforts of Nepal and for that the American Center will provide every possible cooperation.

Vice president of the society S.B. Pradhan, shedding light on the programme, said the society was formed with a view to maintaining contacts and fostering interaction among the IVP alumni and sharing experiences between the intellectuals of the two countries.

Member of the society Manohar Bhattarai, reading out the message from the Prime Minister, shed light on the programme of the society.