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December, 2002 |
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Biznews |
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Nepal to get More Aid from World Bank Appreciating the track record of Nepal over the last one year in reforming its economic system, the World Bank has announced that Nepal is now eligible to get up to US $ 100 million as new lending from the World Bank per annum, provided the progress in implementing the reforms is maintained. As per the Country Assistance Strategy (CAS) prepared by the Bank in 1998, Nepal was eligible for only up to US $ 50 million as new lending from the Bank per year. A new CAS is slated to be developed next year. Meanwhile, the World Bank has also approved a US $ 16 million credit in support of the Financial Sector Technical Assistance Project under which Nepal is restructuring and reengineering the Central Bank, initiating commercial banking reform by introducing stronger bank management in Nepal Bank Ltd. and Rastriya Banijya Bank and improving the environment for financial sector reform. This credit is a part of the financial plan totaling US $ 30.1 million out of which Department of International Development (DFID) of Britain will finance US $ 10 million and Nepali government US $ 4.1 million. The
latest news is received as a very encouraging development for the Nepali
authorities as the World Bank’s gestures are normally followed by all
the other donors. FNCCI,
Trade Unions Agree on Labour Law Reform Employers’ Council of FNCCI, the apex chamber, has been successful to hammer a ground breaking piece of understanding with all the three national level federations of trade unions to reform the labour laws. The
understanding is to work together in reforming the law, thus abandoning
the past practice of lobbying separately. Trade
union federations that are the parties to the understanding are Nepal
Trade Union Congress (NTUC), General Federation of Nepalese Trade Unions
(GEFONT) and Democratic Confederation of Nepalese Trade Unions (DECONT). According
to a press release by FNCCI, any forthcoming reforms in the labour law
are to be postponed till a common view is developed between FNCCI and
the trade union federations on the seven major areas to be covered in
the law such as social security, labour flexibility (e.g. appointment,
retrenchment etc.) gender issues, labour administration, informal
sector, trade union and collective bargaining and exit policy. As
per the plan, both FNCCI and trade unions are to form their separate
committees on each of the seven areas. By the second week of January, a
2-day closed workshop at bipartite level is to be held with trade unions
and employer association as participants. That is to be followed by a
national level conference within 45 days. This conference is to provide
inputs for the forthcoming labour law reforms. India
Withdraws Anti-Dumping Duty on Two Nepali Items India
has withdrawn the anti-dumping duty levied by it on acrylic yarn and
zinc oxide exported there from Nepal. But this facility is extended only
for exports up to the quota fixed in Nepal-India Trade Treaty, according
to a press release issued by the Indian Embassy in Kathmandu. Revised in March 2002, the treaty has put a quantitative restriction at 10,000 MT of acrylic yarn and 2,500 MT of zinc oxide produced in Nepal for concessional entry into the Indian market. For quantity in excess to the quota, the anti-dumping duty will be continued to be applied in addition to the normal Indian duties. The
March revision has imposed quota restriction also in two other Nepali
products – vegetable ghee (100,000 MT/year) and copper products (7,500
MT/year). The
recent withdrawal of anti-dumping duty is the second positive gesture
from India to Nepali exports since August 2002 when the Special
Additional Duty (SAD) of 4% imposed by India on three Nepali items –
vegetable ghee, copper wire and acrylic yarn – was withdrawn. SAD was
imposed on these items in February 2002 when the negotiations for the
renewal of the trade treaty were continuing. FNCCI-National Excellence Award-2059 FNCCI
has initiated the selection process for FNCCI-National Excellence
Award-2059 to be presented on the occasion of the third Industry
Commerce Day which is to be observed on April 11, 2003. Apart
from the actual selection process, FNCCI is also planning to organize
seminars and group counsellings to industrial units in Kathmandu and
other two industrial towns in order to promote awareness about
performance excellence. As
in the last year, New Business Age is appointed the official media also
for this year’s FNCCI-National Excellence Award. Details about other
official media and the formation of the selection committee were not
announced till this matter went to the press. Also to be announced are
the schedules such as applications deadline and other details. Surya
Tobacco Company (P) Ltd. (now changed to Surya Nepal (P) Ltd.) received
the award last year (2002), though no one was found eligible for it in
2001, the year of its establishment. The
selection for the award is based on nine criteria which in turn are
based on 7-points criteria of Malcolm Baldridge Award and 10-points
criteria of Demming Application Award. Some
entrepreneurs have suggested to incorporate social contribution aspect
as well among the selection criteria for the award. Fourteen
companies had taken part in the contest in 2001. This increased to 34 in
2002. Tourist Arrivals Drop 28% The total number of tourist arrivals in Nepal by air in 2002 dropped 28 percent over the year to 215,922, recording a net loss of 82,534 numbers, according to Nepal Tourism Board (NTB). The drop was higher (36%) in arrivals from countries other than India, while the arrival from India registered a positive growth of 2%. Though insignificant the positive growth in arrivals from India helps to boost the spirit of the industry as well as that of the authorities.
Over 80% of foreign tourists in Nepal enter the country by air. According to NTB, the positive growth in Indian arrivals is a testimony to the success of its marketing efforts in India made during the year. Country-wise data show that arrivals from all the third countries registered a negative growth in 2002, though the trend has been milder during the recent months, with December recording the lowest decline, according to NTB. The total arrivals in December alone have shown positive growth of about 20 percent and Indian arrivals have shown a marked growth of 92 percent. After a long period, tourism industry has seen a positive growth in any month, notes an upbeat NTB, which also indicates to some signs of improvement in third country market as well. “Consistent improvement in Japanese market is well observed”, it says noting that the Japanese market has been growing for the last seven months and December has registered a growth of 14 percent. In December, arrivals from Australia, Austria, Italy, Spain, Taiwan registered a growth of 14%, 277%, 43%, 53%, 72% respectively. The negative growth of USA, UK, Netherlands market is becoming milder”. However,
as a particular disappointment for authorities the arrivals from China
has gone down both in annual term as well as in the month of December.
In 2002, a total of 3490 Chinese visited Nepal as compared to 3,968 in
2001. Similarly, in December 2002, the total Chinese arrivals were 281
as compared to 356 in the same month previous year. Chamber Activities * HRH Crown Prince Paras declared open the Butwal Industrial Fair on December 26. Scheduled to run till January 5, 2003, the fair is jointly organized by Nepal Chamber of Commerce (NCC) and Butwal Chamber of Commerce and Industry on the occasion of the Golden Jubilee Celebration of NCC. * With the new Finance Ordinance around the corner, Chambers started calling on the Finance Minister. Those chamber which have already met the Minister and put forward their respective suggestions include the Federation of Contractors Association of Nepal, Hotel Association of Nepal and Confederation of Nepalese Industries. *
Dr. Dev Kaji Dangol has been appointed the honorary trade envoy of FNCCI
in Qatar. He is currently working as the General Manager of
International Trading and Transport Company headquartered in Doha. FNCCI
has already appointed such envoys in China and Japan. * Nepal-Britain Chamber of Commerce and Industry organized a discussion program with a senior British Police Officer about how to avoid or tackle the cases of kidnapping.
* Nepal Chamber of Commerce organized an interaction on Economic Diplomacy on December 18 to furnish suggestions to the Economic Diplomacy Coordination Committee set up recently under the Chairmanship of the Prime Minister. * Federation of Contractors Association of Nepal has demanded immediate amendment in the Financial Administration Rules – 2056. This demand was made by a delegation of the federation when it met the Finance Minister. * Nepal Cable TV Association held an interaction program in Kathmandu about the problems of cable TV operators. * Central Carpet Industries Association held its 12th AGM on December 20. On the occasion, Prime Minister Lokendra Bahadur Chand called for increased use of Nepali wool in the carpets.
The AGM reelected AG Sherpa unopposed as its President. Madhusudan Shrestha and Tsering Lama too have been elected unopposed as Vice President and Treasurer. Kapil Prasad Bajgain is the new General Secretary of the Association * Nepal Chartered Accountants Association organized an interaction on the topic of preparing for WTO. The discussions were focused on the WTO provision regarding trade on services in general and the question of allowing foreign participation in auditing and accounting services in Nepal in particular. * Nepal Printers Association held its 9th AGM on December 21. On the occasion, Minister for Industry, Commerce and Supplies Mahesh Lal Pradhan laid the foundation stone for the building of the Association. * Nepal-German Chamber of Commerce and Industry held its 11th AGM on December 20 with “peace for prosperity” as the main theme. * The registration of Gorkha Chamber of Commerce and Industry is reported to be cancelled by the district administration for the failure of the chamber to renew the registration. * Nepal Petroleum Dealers Association held its 29th AGM on December 21. On that occasion Minister for Industry, Commerce and Supplies Mahesh Lal Pradhan called upon the businessmen to be aware of consumer interests, while the officiating president of FNCCI triggered a controversy by declaring that the private sector was not yet capable to take up the petroleum business if the government wanted to privatize it. The AGM elected a new executive committee of the Association with Saroj Pandey as the President replacing Hikmat Bahadur Mali. Pandey was the General Secretary in the outgoing executive committee. Among the other office bearers of the Association are: Nabin Chandra Shrestha and Shiva Prasad Ghimire as the first and second Vice President, Sharad Kumar Bhandari as the General Secretary and Lilendra Pradhan as the Treasurer. Raghunath Prasad Shah is the Executive Secretary and Sitaram Timilsina the Liaison Secretary. The new executive committee will be there for three years while so far the term of the committee used to be only for two years. * Bhaktapur Chamber of Commerce and Industry organized a two-day seminar on industrial relations in cooperation with FNCCI and International Labour Organization.
Forthcoming Events * 22nd Annual Convention and AGM of Management Association of Nepal (MAN) at Soaltee Crowne Plaza on February 7, 2003 with a theme of "Managing Emerging Conflicts". * 23rd AMG of Lalitpur Chamber of Commerce & Industry, January 6&7, at Staff College, Jawalakhel. * Industrial Trade Fair, Jan 9-16, at Chitwan, being organized by FNCCI in cooperation with local district chamber and export promotion committee. * 3rd AGM of Nepal Terry Towel Export Association, at Hotel Yak & Yeti, Kathmandu on January 5. * CAN Info-Tech 2003, being organized by Computer Association of Nepal, January 23-28, 2003. |
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