End of September saw three of the travel trade related business associations change their leadership.

Meanwhile, Nepal Association of Travel Agents (NATA) has elected its new executive committee under the Chairmanship of Joy Dewan, the executive chairman of Zenith Travels (P) Ltd. replacing Bhola Bickram Thapa who completed his tenure.

Though it is estimated that the country has more than 600 travel agents, NATA has only 177 as its members, thus making it a challenge for the new leadership to bring the rest under its fold. Dewan pledged immediately after being declared elected, that he would work for increasing the membership of the association so as to strengthen it further.

After Article IV consultation with Nepal, International Monetary fund has made some observations about Nepali economy. Major excerpts:

* Growth is estimated to have eased to 5.5% in 2000-01 (from 4.5% in 1998-99 and 6.5% in 1999-2000) owing to dampening effect of higher oil prices and a marked decline in tourism.

* Current account (excluding grants) registered a small surplus of 0.5% of GDP in both 1999-2000 and 2000-01 as strong growth in remittances compensated for deterioration of trade deficit.

* Recent monetary developments were in line with the authorities’ targets. Growth rate of broad money decelerated to 15% in the 12 months to July 2001 after approaching 22% in 1999-2000. Private sector credit increased by 20% during 1999/2000 and by about 17% in the 12 months to July 2001 owing to the strengths of economy. Nominal interest rates declined during the past two years with the yield on treasury bills falling to 5%. The spread between lending and deposit rates remained high at 5%, reflecting weaknesses in the banking system.

* Fiscal performance was generally favourable. The overall deficit (before grants) declined to 4.75% of GDP in 1999-2000 as the ambitious revenue targets were nearly achieved and current expenditures were contained. However, the overall deficit widened to 6.75% of GDP in 2000-01 owing to significant overrun in the current expenditure even though domestic revenue remained close to the budget target.

* Progress in the area of structural reform was limited, with virtually no progress on privatization.

* Executive Directors (of IMF) welcomed the emphasis of 2001-02 budget on revenue improvements and high priority development spending but emphasized that (the targets) will require efforts additional to those included in the budget. They underscored the importance of incorporating in budget targets in future years the fiscal cost of bank restructuring.

* Directors agreed that the exchange rate peg to the Indian rupee remains broadly appropriate.

* Directors encouraged (Nepali) authorities to maintain an open trade and investment regime and access to world markets.

By the time this issues of NBA reaches readers, another consumer fair for nine days - Dashain Mahotsav - will be in the full swing at the same venue organised by House of Rajkarnicar, expecting 100,000 visitors.

On the inaugural day, of Kathmandu Utsav, three elder businessmen Ishworlal Shrestha, Basanta Bahadur Shakya and Tola Ram Dugad were honoured with Utsav Samman Award and two young businessmen Rajendra Khetan and Chandi Raj Dhakal were honoured with Young Entrepreneur Award.

Apart from these two traditional annual fairs, this year also saw third consumer fair called Dashain Fair in the capital.

National Hydropower Company Ltd., that is developing 7.5 MW Indrawati III is to float shares for Rs. 140 million which is 20% of its paid up capital, most possibly by mid-January 2002. The Nepali Promoters are to hold 56% and foreign investors 24% of the company’s shares.

The company expects to start generating power from December this year.

Meanwhile, Nepal Bank of Ceylon Ltd., another NB Group company, has revealed a revised schedule for going public. According to the company sources, the public issue scheduled earlier for Rs 150 million (30% of the capital) could not materialize because of the disturbances in the country following the July 1 incidence in the Royal Palace. Now it plans to complete it within December.

As revealed by the bank, it earned an operating profit of Rs. 13.64 million during the year that ended on July 15, 2001 as compared to Rs. 3.93 million in the previous year. As of July 15, 2001, the bank had Rs. 3772 million as deposits, Rs. 2925 as loans and advances and Rs. 793 million as investment.

Himalayan Distillery Ltd. which was expecting to raise Rs. 173.4 million from the public could collect applications for only Rs. 20 million in one month. As a result, it has now extended the time by one more month, i.e. till November 12.

That perhaps reflects the investors mood at present. Any public issue till recently would have been expected to be oversubscribed by several times.

According to Umesh Lal Shrestha, Managing Director of Quest Pharmaceuticals, the company is launching 22 drugs immediately and 30 more within the coming year.