Leasing and selling deals
RNAC should learn from past mistakes

By A Staff Reporter

Is the Royal Nepal Airlines Corporation planning to sell off its two Boeing 757s and buy three Airbuses instead? The Airlines, which is reeling from the hurdle it is facing in leasing a plane, has been further rocked by the news of it selling its two Boeings.

Although the Minister for Tourism and Civil Aviation Tarini Dutta Chataut has denied such speculations, but the start of the rumour is an indication that something very serious may be brewing up within RNAC.

No one knows how the rumour surfaced, but many are not willing to believe that it is just some truant played on the RNAC by rumourmongers.

The rumour has gained further momentum because it has come at a time when RNAC is about to decide on leasing a plane - a Boeing. Importantly, it has also come when the RNAC has already made up its mind in favour of leasing an aircraft instead of making a lease purchase. 

According to a source, the rumour was deliberately put in after the proponents of the Annset Worldwide Aviation Services felt that the lease deal was going out of their hands. Annset is one of the bidders for the tender to lease a plane, a Boeing 767-300 ER to RNAC.

Regarding the leasing of the plane, the RNAC management has yet to decide on the tender it had opened on April 18 and 21. Now, it is clear that Babcock & Brown has bid the lowest price, nearly US$ 600 cheaper than the Ansett price. If the deal goes for the cheapest bidder, RNAC will save almost Rs. 200 million in the 18 month lease period.

But many people are surprised why the RNAC management is taking so long to take a decision.

A source within RNAC expressed the opinion that this delay could abort the third tender also.

This makes the timing of the speculations in the media even more suspicious. It seems some interest groups are pressuring influential leaders to opt for an Airbus fleet. Meanwhile, individuals stood to gain both from the selling and purchasing of new aircraft.

Meanwhile experts point out that there are only a few such planes in the lease market, and according to a report one of the two planes that Annset had, has already been leased by a North African airlines.

Even Babcock & Brown’s plane may slip out of RNAC’s hand if it lingers on with the decision, simply because the company can not put the plane on the ground waiting for RA to make a decision. If that happens, RA may squander the opportunity to lease a plane probably at the cheapest rate it could ever imagine, and the whole cycle of leasing may start again.

Coming to the issue selling of the planes, a prompt reaction has come from RNAC’s employee’s union, which has expressed strong reservation about the “reports” in the press. Therefore, the reports can not be brushed aside just as a rumour. The Union has said in a statement that this is another conspiracy to pull down RNAC.

In the last decade, while the Airline has gone through numerous vicissitudes, only those two Boeings, bought in the late 80s, have kept the airliner afloat. RNAC has made a full payment for one of the aircraft and the other will also come under RNAC’s complete ownership this September.

Surprisingly, the issue of selling of the planes has again come when Girija Prasad Koirala is the Prime Minister. Moreover when RNAC is still bearing the great set back it has faced by selling its two B-727s in 1993 at dirt cheap price on the pretext that they had become obsolete, it is shocking to hear of another similar scheme. How decision makers who opted to sell the 727s can be seen by the fact that one of them is said to be coming to Kathmandu on charter flights.

The selling of those planes started the whole cycle of leasing planes to maintain the international flight schedules of the airline. It is estimated that RNAC has already spent about Rs. 5 billion (enough to buy two other planes) for leasing planes. The selling of the B-757s will restart that cycle with more intensity.

Who could be behind this? In 1993, it was widely believed that Sujata Koirala, the daughter of PM Koirala, was behind the deal. This time, too, fingers are being pointed at her for masterminding this venture as a vengeance after Annset, whose plane she wants RNAC to lease, is losing in the tender. It can be hoped both the government and RNAC officials have learnt from past mistakes to not repeat them in the future.

High hopes for refugees

By A Staff Reporter

The United Nations High Commissioner for Refugees Mrs. Sadako Ogata has infused a ray of hope in the otherwise gloomy environment of the Bhutanese refugees camps in Eastern Nepal.

Visiting the Goldhap refugee camp in Jhapa, she said the Bhutanese government is waiting and even willing to welcome its citizens living in the refugee camps in Nepal and that the refugees will be on their way back to their country soon.

For the refugees, who have been living there for more than a decade, it sounded too good to be true, almost unbelievable.

The UN High Commissioner is on a four-day visit to Nepal, after making a visit to Bhutan.

She said she held talks with high level officials of Bhutan and that the Bhutanese government is willing to take back its citizen.

She also said she is keeping a close watch on the Bhutanese refugee issue and her present visit to Nepal and Bhutan is meant to prepare an environment for the repatriation of the Bhutanese refugees. Earlier, Mrs. Ogata had also indicated that the UNHCR was willing to mediate in the talks between Nepal and Bhutan.

So, far the 8-round of ministerial-level talks have failed to make any breakthrough in finding a way for the repatriation of the refugees.

Changes in state media institutions

By A Staff Reporter

The state owned media institutions are still considered vital by virtually all the governments, be it of the Nepali Congress or the CPN (UML). This can be seen by the fact that this is the sector that gets the attention of any new government and transfers and appointments are made there first.

The present government led by Prime Minister Girija Prasad Koirala has been no different. Though it is almost like a continuation of the government of the same party, still it has replaced the appointees of the previous government.

However, Minister for Information and Communication Jaya Prasad Prakash Gupta seems to have done well by not appointing too many political appointees, at least till now. Naturally he has been criticised by some groups within the Nepali Congress itself, but Gupta has fended off a major chunk of the opposition by putting in Ministry men in places like Gorkhapatra, Radio Nepal and NTV, all of which had political appointees before. It is only in national news agency RSS, that one political appointment has been made, but he is the same man, Ganesh Ballav Pradhan, who was appointed chairman of NTV by the previous Krishna Prasad Bhattarai government.

The people, specially journalists, working in these organisations are still apprehensive of whether this is a long term policy or just a stop gap solution, but still, they are happy insiders are being appointed in key posts.

Many times, there have been incidents when political appointees have caused losses to media institutions like Gorkhapatra Corporation, which survives with its own income and even pays almost Rs. 10 million as taxes annually.

Breakthrough for Indian Diplomacy

By A Staff Reporter

The hard-at-work Indian diplomacy seems to have made a vital break-through as far as impressing the United States is concerned. Soon after being charmed by President Bill Clinton who paid an official visit to India in March, the US State Department has “outlined in stark language that Pakistan was sending mixed messages by harbouring and aiding known terrorists, many of whom were fighting for wresting Kashmir from India”.

Such a damaging statement for Pakistan has been taken jubilantly by Indian politicians and diplomats, who have been pressing the United States to declare Pakistan a “terrorist state”.

In its annual report on terrorism, the Department of State has said there has been a geographic shift in the focus of terrorism, from West Asia to South Asia and the main havens for such terrorist are Pakistan and Afghanistan.

India and Pakistan had a serious confrontation last year, when Pakistani troops and Islamic rebels allegedly intruded into Indian territory in the harsh mountainous regions along their border. Both the sides faced huge losses in the clashes that lasted for almost a month.

India had gone all out against Pakistan since then, accusing it of aiding and abetting terrorists in Kashmir and elsewhere. If the Indian media is to be believed, then Nepal too has not been spared. Furthermore, with the hijack of an Indian Airlines plane which had taken off from Kathmandu’s Tribhuvan International Airport and then subsequently the arrest of a Pakistani diplomat with fake Indian currency notes here, Indian officials have alleged that Pakistani agents are using Kathmandu as a conduit for their terrorist activities.

It may be recalled that in the past during the Cold War, it was Pakistan and not India which was an ally of the United States. With the present report of the US State Department and also the reluctant and very brief “visit” to Pakistan by President Clinton, it seems the tables have been completely turned.

Now the US seems to be taking India as its partner for economic progress and also in the battle against terrorism.

In the report released on Monday and covered by the international media including CNN, it says though there were fewer deaths, the number of terrorist attacks have increased. The religiously motivated terrorist groups are today seeking biological, nuclear and chemical weapons of mass destruction rather than the conventional car or truck bombs they used in the past, it says.

While for Afghanistan this scathing US report may not make much of a difference, it is a great set back for Pakistan, which under military leader Gen. Parvez Musharaff, is trying to portray a clean international image. In this regard it must be a relief to Pakistani  authorities that the report has also said it is a friendly state that is trying to tackle the terrorist problem, though its record needs improvement.

Press censorship in the offing?

By A Staff Reporter

If the recent comments made by the Minister for Information and Communications, Jaya Prakash Prasad Gupta, is any indication, the present government may be preparing to enforce strict new laws to curb what has been dubbed as “terrorist journalism”.

Minister Gupta, speaking at a programme of the Editors’ Society last week, was referring to reports that have been coming in several newspapers considered close to the Maoists.

The Minister blamed those newspapers of misusing the freedom of press and expression by carrying objectionable news and reports and creating a situation of terror among the common people.

The Minister even suggested the Nepal Press Council, an independent body which is supposed to look after the interest of the journalists, to take the matter seriously.

There indeed are several newspapers which not only support the Maoists but also act more like the mouthpieces of the insurgents. They often launch a media blitz or propaganda in support of the Maoists and against the government, the present political system and the constitution.

According to the Nepal Press Council, there are about a dozen newspapers, all of them Nepali-language weeklies, which are either run or closely associated with the Maoists and their ideology.

This does not mean other newspapers don’t carry news of the Maoists. They do, but these are usually related to only the clashes that occur between the police and the insurgents only. The newspapers, even those which are close to the ruling Nepali Congress party, are also critical of the successive governments for failing to adroitly handle the Maoist affair and of not having a consistent policy to fight the insurgency. But they don’t support the Maoist movement, unlike the several newspapers pointed out by the Minister.

Meanwhile, the Minister’s statement of introducing stringent new regulations to curb the freedom of expression is certain to face stiff oppositions from the media sector. This will be seen as the violation of the freedom of expression guaranteed by the constitution.

Many may even take this as an attempt to revive the draconian law of the panchayat days when newspapers were censored, confiscated, banned and the editors and the publishers fined and even sentenced. But some have also expressed the view that there has to be some limits within which newspapers have to work, specially when the security of the nation is at stake.

Don't leave nothing to imagination

By A Staff Reporter

Exposed belly buttons, low cut tops, huge platform shoes or sharp pencil heels, shiny tear drop plastics stuck around the eye area - the list is endless for the fashion conscious. It is great to see a well toned, well shaped flat belly exposing its button but it is a visual sin to see a fat dotted belly jiggling, struggling to contain itself within the tight boundaries of skin tight pants and tops. And what an unwholesome sight it is when an hairy, dirty armpit sees the daylight!

Making a fashion statement.

It feels great to follow the dictates of fashion but not at the cost of making others cringe in distaste. Taste is what it boils down to. Good taste saves one from being a fashion victim. A correct assessment of oneself, one’s positive and negative points helps one to play up one’s assets and play down the disadvantages. After all, dressing up or down is to feel good about, to be admired and not to be smirked at.

To look and feel good, cleanliness is priority number one. Shiny hair, clean teeth and nails, well scrubbed heels and elbows, no body odour all contribute to a presentable you. This clean body now has to be encased in gears that are best suited to your body type and personality. A dress that looks great on the model might just look a sight on someone not blessed with a model’s body and face.

Each individual is unique and so should be the dressing style. This seems to be forgotten these days when most sport similar hairstyle, clothes and accessories. This homogeneity looks so predictable and boring. Any one experimenting with something totally different that goes well with ones physical and mental makeup comes as a fresh breath of air.

Exposing it all in no way guarantees that it will look make one look more attractive, more desirable. Less is better when it comes to make up and donning accessories but cutting down on how many inches of cloth you don, puts great demands on the state of your physique. A litmus test that rarely fails helps - if your brother raises his eyes with appreciation at your get up and the neighbour next door suddenly smiles at you, you can safely step out with confidence highlighting your step. However, if your brother screams and laughs at you and the neighbourhood Romeos start jeering and following you, step back in and take a good look at yourself once again and change your gears fast.  Often, it pays well to leave a lot just to imagination.

Public governance demands special attention in South Asia

By A Staff Reporter

The B.P. Koirala India-Nepal Foundation, in collaboration with the Nepal Administrative Staff College, organised a lecture on ‘Improving Public Governance in South Asia’ by Tejendra Khanna, Chairman, Ranbaxy Laboratories and formerly Lt. Governor of Delhi and Commerce Secretary to the Government of India, on April 26 at Nepal Administrative Staff College. K.V. Rajan, Ambassador of India and Co-chairperson, BPKF and Shambhu Prasad Sharan Kayastha, Executive Director, NASC also spoke on the occasion. The lecture was attended by intellectuals, civil servants, members of diplomatic corps and press, says BPKF press release.

Recently, the question of good governance has emerged as one of the major concerns for policy makers and administrators all over the world. Khanna said that the issue of improvement of public governance demands special attention in the countries of South Asian region. Some of the important challenges for the present administrative situation in South Asia are: deterioration in the maintenance of law and order, decline in work culture and internal discipline in public bodies, low productivity in the use of financial resources, high level of corruption, poor accountability of public functionaries and declining service ethic and lack of serious political focus and intent aimed at effecting meaningful administrative reforms. The solution lies in making the entire mode of administrative structure ‘people friendly’.

The B.P. Koirala India-Nepal Foundation was instituted in December 1991 through an MoU between His Majesty’s Government of Nepal and the Government of the Republic of India. The BPKF was set up to foster educational, cultural, scientific and technical cooperation and to promote mutual understanding between the peoples of India and Nepal. Among its wide range of activities, the BPKF has been organising lectures and discussions on themes of contemporary relevance. Mention may be made of the last three lectures delivered by distinguished personalities like J.N. Dixit, former Foreign Secretary of India, Dr. Abid Hussain, eminent scholar and former Ambassador to the United States, and I.K. Gujral, former Prime Minister of India.

First popular music award on June 3

By A Staff Reporter

San Miguel Music Award 2000, the first popular listeners’ award, is scheduled to be held on June 3, 2000 at Birendra International Convention Centre, Kathmandu. It was informed at a press conference held on Monday.

The listener’s will be directly choosing their favorite artists in various categories. The listener’s will be given opportunity to choose their best artists for the Best Female Singer (Modern), Best Male Singer (Modern), Album of the year (Male, Modern), Album of the year (Female, Modern) and Best Lyrics (Modern). Similarly, they will also choose for the Best Female Singer (Pop), Best Male Singer (Pop), Best Duo or Band (Pop), Album of the year (Pop), Best Composition (Pop), Folk Song of the Year, Best Visual and Film Song of the year, a press release issued on the occasion said.

A panel comprising of 12 judges has already decided five nominations for each of the above categories. The nomination forms are printed in the Kantipur and Nepal Samacharpatra dailies. The audience are requested to fill out the form and post them to the even organizer, Vogue Advertisement and Even Management. The nominations will be counted and the final result will be announced during the final event.

For the first time in Nepal, the organizers have also placed the nomination forms in the Internet at the site www.sanmiguelaward.com.np. The site has been developed, updated and hosted by Unlimited Numedia. As such, Nepali music lovers living in any part of the world can cast their vote through the Internet. The organizers have already started getting nomination forms from the Nepali music lovers from  Australia and America.

The people who visit the site can also listen to a fragment of the song and decide which they like the best. The last date for the nomination forms to reach the organizers is May 23, 2000.

Nepali film at International Film Festival

By A Staff Reporter

A Nepali feature film Mukundo is scheduled to be screened thrice at the prestigious San Francisco International Film Festival from April 21 to May 4, according to Mila Productions press release here.

The event is noteworthy on two counts. The film is the feature directorial debut of Tsering Rhitar Sherpa, whose documentary, The Spirit Doesn’t Come Anymore, won the top prize at the South Asia Documentary Film Festival, organised by Himal Magazine in 1997. Second, and especially noteworthy is the fact that the San Francisco International Film Festival has selected Mukundo as an entry in its competitive award category. The festival has therefore especially invited the director, Tshering Rhitar Sherpa, to present the film. The festival, rated among the top three in the US, is credited with introducing the works of great filmmakers such as Akira Kurosawa, Andrezej Wajda, Satyajit Ray, Michelangelo Antonioni, and Luchino Visconti.

The film is based on an original screenplay by Kesang Tseten Lama, imagined around a real event. It is a tale of an ordinary couple with a perfectly normal desire to have a son, until it leads them to a spirit medium, a Shamaness, who harbors a deep ambivalence about her role as a Shamaness. In a confluence of tradition, circumstance and passion thwarted, the characters are pitted against each other in fine religio-psychological drama, set in a modernizing Kathmandu. The film elicits fine performances by Mithila Sharma, Gauri Malla and Ratan Sebudi in the lead roles.

Produced by Tsering Rhitar Sherpa and NHK of Japan. Mukundo (Mask, full title: Mask of Desire) was critically received at the 3rd Asian Film Festival in Tokyo in December last year. It was recently screened at the Goteberg International Film Festival in Sweden and at the Fribourg International Film Festival in Switzerland. The film is scheduled for release in Kathmandu this August.

Tall Boy enters small Kingdom

By A Staff Reporter

AVCO International (P) Ltd., the Authorized Dealer for Hyundai Motor Company, South Korea and Hyundai Motor India Limited, launched Hyundai ‘Santro’ -- The Complete Family Car, in the Himalayan Kingdom of Nepal on Friday.

Santro, designed by Hyundai Motor Company’s Chief Designer, is a unique breakthrough in traditional car design. Boasting the ‘Tall Boy’ design that is the hallmark of this car, it has the interior space and performance of a big car in a small car body and price.

Tall Boy Hyundai Santro-The complete Family Car.

The Hyundai Epsilon engine is one of the most advanced 1000 CC power-plants in the world and is easily the most powerful in its class, a press release issued on the occasion said.

“But, more power does not mean low mileage because of the Multi-Point fuel Injection system which sends just the right amount of fuel at the right time ensuring maximum fuel efficiency,” it further added.

Santro is one of the few cars on the road with an onboard engine management computer that continuously monitors engine performance for optimum driver satisfaction.

The newly launched car is engineered to meet Euro-1 pollution norms and Nepal Vehicle Mass Emission Standard 2056 making it one of the most eco-friendly cars on the road today. It has also been designed to meet the tough road conditions of the South-Asia region. The car is available in a variety of eye catching colors like blue, red, silver and green.

The Santro has met with tremendous success in its launch in India. In just 9 months Santro captured an amazing 10% of the huge Indian market and its sales are still rising steadily. It is a proven performer in India and drivers just love its sleek looks and amazing versatility.

“Since January this year, Hyundai Santro is the number one car in India outnumbering the local Maruti cars,” said J. H. Kim, Executive Director Marketing and Sales at Hundai Motor India Limited.

Santro sales in Nepal are the highest among foreign countries in the SAARC region. Santro with its outstanding performance in every category is quickly leaving other cars behind in the race to drive the nation forward in the new millennium.

According to AVCO Chairman Capt. R. P. Pradhan,  it targets to sell more than 300 cars this year in Nepal. “With a full-fledged service center established at Maitidevi, AVCO is committed to provide better service to its clients,” AVCO Chairman said. 

HAN open to joint tourism promotion between Nepal & Goa

By A Staff Reporter

A delegation of Hotel Association Nepal led by  Narendra Bajracharya, President-HAN met with Chief Minister of Goa Franciso Sardinha and Victoria Fernades, Minister for Tourism in Goa who have arrived in Kathmandu to participate in Goa Festival organised at Hotel Soaltee Crowne Plaza, Kathmandu in association with Embassy of India, B.P. Koirala India-Nepal Foundation and Government of Goa and discussed joint cooperation to enhance tourism in Nepal and India. On the occasion Narendra Bajracharya, President-HAN expressed warm welcome to the guests and said that there are immense potentialities to develop tourism in Nepal and India by drawing the attention of tourism entrepreneurs from both countries and requested for establishing direct air service between Goa and Kathmandu. He added that tourism could be promoted by developing joint packages, for which we would like to work together. He hoped that Goa will play a leading role to develop tourism in both countries.

 Franciso Sardinha assured full cooperation from Goa State Government for enhancing tourism promotion of both countries and hoped for the same from the Nepalese side.

 S.S. Keshkamat, Director of Tourism, Goa elaborated Goa Government’s policy for   development of tourism and said that Goa Government is providing all facilities to tourism industry. Electricity and Water tariff of tourism industry in Goa has been made as par the tariff of other industries in Goa, which is quite lower that the commercial rate. Vikram Dev Dutta, secretary of the Chief Minister of Goa also highlighted the Goa State Government’s various programmes for tourism development in Goa.

Indian Airlines flying in soon?

By A Staff Reporter

Nepalese government officials and also some tourism entrepreneurs are expressing optimistic views regarding of the resumption of Indian Airlines flights to Kathmandu. In fact, speaking to a vernacular weekly the other day, Minister for Tourism and Civil Aviation Tarini Dutt Chataut even went as far as to say that the IA flights could resume as early as “in one or two days time!”.

Meanwhile tourism entrepreneurs are hoping that the flights will start before Prime Minister Girija Prasad Koirala makes his official visit to India. The visit should take place within the middle of June. Those close to the government have forecast that Indian Airlines, which used to fly 14 times a week to Kathmandu from cities like New Delhi and Patna, will start flights after Nepalese and Indian foreign ministers meet before Koirala’s visit to India.

However, though there is full belief that the flights will start soon, nobody is certain how the security arrangements will be made at the Tribhuvan International Airport here. It may be recalled that Flight 814 of Indian Airlines had been hijacked soon after it took off from TIA on December 24, 1999. One passenger was killed and others were held captive for more than a week. The passengers were freed only after the Indian government freed some Islamic extremists from Indian jails.

The Indians blamed the poor airport security for the hijack. Though Nepalese officials quickly denied this, tourism entrepreneurs admit that TIA does not have enough security.

“Just increasing manpower is not enough,” said a manager of a travel agency, who did not want to be named. He further pointed out that there was no facility to check the cargo by any X-ray machine. “That is why cargo is not allowed during VIP flights,” he revealed.

Meanwhile an Indian embassy official argued that there was provision for airlines to put their own security personnel in most of the international airports of the world. When the International Civil Aviation Organisation (ICAO) has provided such provisions, it is difficult to see why so much hue and cry has to be made if Indian Airlines makes such a demand within ICAO regulations.

The biggest concern for Nepal is that it is losing a lot of tourists because of the cancellation of the IA flights. “Yes, Indian Airlines is too losing money, but we are suffering more,” said a tourism expert. IA brought in a little over 30 per cent of the tourists coming to Nepal.

The Nepalese Flag Carrier RNAC, could have utilised this opportunity to the fullest and increased flights, but the shortage of aircraft and also the unreliable image it has internationally, proved abortive to any such plans.

International travellers mention how other airlines too have their security people at different airports, including famous ones like Changi International Airport at Singapore, Heathrow in London, Frankfurt and also New Delhi. “If it is for the security of the passengers, then IA too should be allowed to do the same,” a senior journalist commented.

A secretary level meeting between Nepal and India has already taken place regarding the resumption of IA flights. No agreement could be arrived at through that meeting. There were different speculations on what went wrong, but no official word was spoken on why the flights could not be re-started.

World Press Freedom Day

By A Staff Reporter

Secretary-General of the United Nations Kofi Annan and UNESCO Director General Koichiro Matsuura in their joint message on first World Press Freedom Day of the new century and in the context of the International Year of the Culture of Peace, have urge all actors in conflict situations around the world — governments, local authorities and armed forces — to protect the right of all citizens to reliable information and the right of journalists to provide it without fearing for their security, their freedom or their life.

In their joint message the UN Secretary General and the UNESCO Director General have said that in every society, freedom of the press is essential to transparency, accountability, good governance and the rule of law. “It cannot be suppressed without dire consequences for social cohesion and stability. When it is sacrificed. Whatever the reasons invoked, the chances are that conflict is not far down the road.”

They have emphasised that all states should ratify the relevant international human rights instruments and should scrutinize their domestic legal systems with a view to bringing them into line with international standards governing the right to freedom of opinion and expression.

“In times of conflict, the media’s responsibilities for independent and pluralistic reporting are more important than ever. They can help to prevent the worst atrocities. But when billigerents see freedom of expression as an enemy to their cause and the media as a tool for propaganda journalists who attempt to report in a non-partisan way face pressure manipulation, intimidation, or even elimination,” And when they are forced to leave the cycle of violence does not end. The only remaining eye-witnesses — aid workers and local residents — often become the next targets,” they have said.

Economic outlook brighter

By A Staff Reporter

Though Nepal shows promising higher economic growth rate during the current year, it still faces major challenges on sustainable reform and poverty alleviation programmes, the Asian Development Bank (ADB) said Wednesday.

“The prospects for the year 2000 are for significantly higher growth,” said Dr. Richard Vokes, Resident Representative of ADB, said while launching it’s annual Outlook report in Nepal.

“If the new government, as promised, push forward with implementation of a second round of economic reforms, then the outlook for 2001 is for continued strong growth,” he pointed out.

“If Nepal is to achieve the levels of sustained growth necessary to lift it out of poverty, the government needs to take advantage of its majority position to pursue a broad-based reform agenda, with financial sector reform and civil service reform at the core,” Dr. Vokes said. 

In its annual report, the ADB also warned the governments of Bangladesh, Bhutan, India, Nepal and Sri Lanka that the relaxation of economic reform programmes could result in an economic downturn.

It also pointed out that more sustained and deeper reforms are needed to ensure future economic development in South Asia and alleviate crushing poverty in the region.

Fueled by a recovery of the agriculture sector and continued strong performance in other sector including the carpet and garment industries, Nepal’s economy should achieve an economic growth rate of 5 to 6 percent in 2000, the annual ADB publication speculated.

The Outlook notes that the macroeconomic situation in Nepal was stable in 1999 despite the uncertainty caused by the change in government. Real GDP growth rose to 3.3 percent from 2.3 percent in the previous year due to the better results obtained in agriculture and industry sectors.

However, inflation rose to almost 13 percent in 1999 due to the rise in food prices. The budget deficit remained at 6.1 percent in 1999, with domestic revenue collection substantially lower than the budgeted amount, with actual revenues about 10 percent of GDP. The shortfall in revenues was balanced by slower-than-budgeted growth in development expenditures.

Nepal’s current account deficit declined dramatically in 1999 because of strong export growth and a contraction in imports, mainly related to foreign aid, the report said.

Price performance in 2000 will benefit from bumper harvests throughout the region. As a result, inflation is expected to fall to 5 percent despite increase in prices of kerosene, diesel, and electricity. Actual revenue performance will critical depend on the effective implementation of the value added tax (VAT).

It also project fiscal deficit to reach 7 percent and to continue to rise in 2001. Similarly, the current account deficit is expected to widen to reach about 8 percent of GDP in 2000 and more than 9 percent of GDP in 2001, as aid-related imports return to their previous levels. The debt-service ratio should remain at a low 6 percent, as much of the debt is concessional.

On the issue of corporate and financial sector reform, which is one of the special themes in this years Outlook, it represented a great challenge to the region and Nepal, an even greater challenges is the task of improving the quality of life of the millions of people who remain in poverty. The ADB is supporting the process of improving corporate and financial governance through a series of technical assistance projects and possibly loans.

The report lauded the government’s Reform Agenda for Poverty Reduction set out in it’s Country Memorandum presented at the recent Nepal Development Forum in Paris, along with a paper highlighting the government’s Priority Reform Actions.

“We believe there is still scope for further prioritization of the government’s reform agenda, the effective implementation of this reform agenda will remain a major challenge not only to the government, but also to the intended beneficiaries and wider civil society, as well as Nepal’s development partners, including the ADB.”

Princess Jotshana Basnyat (l.) gave away prizes to the winners of the First King’s Cup Open Tennis Tournament held from April 22-29, at the newly constructed tennis complex at Satdobato, Lalitpur. A record number of 140 participants including 20 women and 39 foreigners participated in the tournament organized by All Nepal Lawn Tennis Association to celebrate King Birendra 55th birthday. Kamal Bhandari (receiving the cup) and Shradha Basnyat lifted the men’s and women’s singles crown respectively. The main sponsors and cosponsors of the tournament were International Leasing & Finance Co. Ltd., National Life & General Insurance Co. Ltd and Himalayan Bank Ltd. ANLTA President Siddheshwar K. Singh is seen in the centre.