NATIONAL 1 (Spotlight Weekly)]

‘Security Is Far Better Now'

— DR. RAM SHARAN MAHAT

After representing Nepal at the United Nations General Assembly last month,Finance Minister DR. RAM SHARAN MAHAT left Kathmandu Monday to extend invitations for the 11th SAARC Summit to the heads of state/government of Sri Lanka, India and the Maldives. The former foreign minister spoke to BHAGIRATH YOGI at the Tribhuvan International Airport briefly. Excerpts:

Besides extending the invitation, what will you discuss with the outgoing SAARC chair, Sri Lanka?

This visit is mainly in preparation of the SAARC summit. Besides extending invitation, we will be discussing issues to be raised during the upcoming summit. Issues of bilateral and common interest may also be discussed.

Have SAARC members expressed concern about the state of emergency in Nepal?

[They know that] the state of emergency was necessary against terrorism and have supported the Nepal government's move. No SAARC member has taken it as an uncomfortable or unnatural event. In fact, from the point of view of law and order, the situation is far better now and it will not have any adverse impact on the forthcoming SAARC summit.

While in New Delhi, will you discuss the latest developments in Nepal?

When officials from two countries meet, naturally issues of bilateral interests are discussed. So, the present situation in Nepal, terrorist activities and emergency will certainly be discussed.

You have said that there will be financial constraints for development projects due to rising security expenditure. Will this issue be also discussed?

We are not going to discuss this issue with other SAARC countries. But we are discussing it within the country with major donors. We are aware of any adverse impact that could hamper the development projects in Nepal while trying to fulfill our security obligations. So, we have been consulting with the donors within the country and there is no need to go on a visit [on this issue]. That is not the objective of the visit.

With only a month left for the SAARC summit, how are the preparations going on?

The preparations are in full swing. We had also made preparations earlier. Paperwork had been completed. Now we are updating, reviewing and revising them. Other physical preparations are also being undertaken. We could organize the summit even at a notice of 15 days. So, there isn't any difficulty in organizing the summit.

LIC Nepal Launches Its Operation

Life Insurance Corporation (LIC) Nepal Ltd., a joint venture between the Life Insurance Corporation of India and the Vishal Group of Nepal, launched its operations formally beginning Monday. Out of the capital base of Rs 250 million, the LIC India owns 55 percent stake in the new company while the Vishal Group owns 25 percent. The rest will be sold to general public. The Company has introduced two policies, namely Money Back and Term-Rider, to begin with. Inaugurating the Company amid a function, Minister of State for Finance, Bharat Kumar Shah, said the government had decided to open the life insurance sector to make it competitive and thereby benefit the people. LIC Nepal is the fourth life insurance company, which got operating license in August 2001.