Briefs (Spotlight Weekly)

SAMUEL TAMRAT, SPECIAL POLITICAL ADVISER to the United Nation’s Secretary General Kofi Annan, met with Prime Minister Sher Bahadur Deuba on Tuesday (June 15). Tamrat conveyed Annan’s message to the PM. He reiterated the UN’s willingness to help Nepal in its attempts to restore peace and security.

THE SURVEY OF PROPOSED RASUWAGADHI-SYAPHRUBESI road section has been completed. This will be the second highway linking Nepal and China after Kodari highway. Chinese government has agreed to construct this highway. According to Madan Gopal Malegu, director general of Department of Road, the Chinese technicians will conduct ‘design estimate’ after monsoon this year following which the construction will begin.

DESPITE THE UNFAVORABLE ECONOMIC SITUATION of the country, the income received through remittances has helped increase the deposit collection by the commercial banks. According to Nepal Rastra Bank (NRB), till mid-April of the current fiscal year, the total deposit by the banks and financial institutions have reached to Rs 221.4 billion – which is 13 percent more than a year ago. However, the loan flow could not increase much. Till mid-April, the banks have made loan investment worth Rs 135.8 billion.

HIGH COURT IN KOLKATA HAS DECIDED that the process of export of Nepalese vegetable ghee to Indian states for the last one year is illegal and that customs of 30 percent on all these exports need to be imposed. The decision has further complicated the ghee export from Nepal. For the last one year, Nepalese Vanaspati ghee manufacturers had been exporting ghee through State Trading Corporation (STC) of India. In this period, Nepalese manufacturers had exported over 52,000 metric tons of ghee. Imposition of 30 percent customs on this quantity will be equal to Rs 960 million. The court has asked STC to pay this much of custom. A case had been filed by Indian ghee manufacturers at the High Court against STC’s authority.

THE NEPALESE GOVERNMENT OFFICIALS are preparing to reach into a transport accord to facilitate direct road link between Kathmandu and Lhasa, the capital of Tibet Autonomous Region. Similar, accord had been reached with India a few months ago. According to Lilamani Poudel, Nepalese consul general at Lhasa, said that since the railway link between Tibet and mainland China will be completed by 2006, such transport accord will be necessary in view of likelihood of increased flow of tourists. At present, Nepal and China have six transit points. Meanwhile, the building and land, which has been housing Nepal’s consulate in Lhasa for the last 148 years, will finally be bought by Nepalese government. Nepal will be paying Rs 37.5 million to own the land and house.

A VISITING DELEGATION OF MALAYSIAN officials led by its Home Minister Dato Azme Bin Khaled has expressed commitment to help Nepalese workers. During their meeting, Nepalese officials have asked them to open Malaysian job market for Nepalese women not only in domestic but also in technical sectors; re-open jobs of security guards; and simplify immigration procedures. The Malaysian officials agreed to Nepal’s request, officials say. Malaysian Home Minister said that in view of their honesty and diligence, he will make every effort to fulfill their demands and concerns. “We are knowledgeable about their problems. However, we drew the attention of Prime Minister Sher Bahadur Deuba about the need to set up proper mechanism to send workers from here,” the Malaysian Home Minister said after meeting with PM Deuba. He added that Malaysia would soon review its earlier decision of prohibiting Nepalese workers in jobs of security guards. He also expressed sadness over the issue of deportation of 100 Nepalese workers last month and stressed the need to monitor agents on both countries. The two counties are also in the process of finalizing a labor pact.

PRESSING THE MANAGEMENT TO FULFILL their demands, the employees of the Nepal Stock Exchange Limited have organized strike. On the first day of their strike on Thursday (June 17), transactions worth millions of rupees were affected. According to Mukunda Raj Adhikari, general secretary of the Employees Association, said the strike has been called because of the management’s lackadaisical approach towards their demands submitted 11 months ago. Their demands include hike in house rent and other allowances. “The halt in stock market trading has affected share transactions to the tune of over Rs 5 million,” said Ishwari Rimal, president of Nepal Stock Brokers’ Association.

THE GOVERNMENT IS PREPARING TO COME UP with a Special Economic Zone (SEZ) Ordinance with the provisions giving huge income tax relief, concessions in import of raw materials and so on to the industries that are set up within such zones. The Ordinance, which is in the final stages, proposes to provide 5 – 25 years of income tax waiver. “In order to promote industrialization in those regions, more subsidies and concessions will be given to industries based in SEZ in mid-western and far-western region,” sources said. “No local taxes will be imposed on the industries set up in SEZs.”

THE INDIAN OFFICIALS HAVE AGREED TO SIMPLIFY and expedite the Duty Refund Procedure (DRP). At the end of the four-day customs director general-level meeting between the two countries on Sunday (June 20), Indian officials agreed to adopt new duty refund procedure to expedite the refund of excise duties imposed by Indian customs on goods being exported to Nepal. The Indian side, led by T.R. Rustagi, Director General of Inspection, Customs and Central Excise (DGICCE), has agreed to refund the amounts to Nepal every month. The two sides also signed a memorandum of understanding for the implementation of accords reached during the meeting. As per the agreement, both countries have agreed to adopt a new software called ‘System for Nepal Refund (SNEPAR)’, developed by DGICCE for fast and reliable duty refund on the monthly basis. “Nepal has agreed to implement the new system from forthcoming fiscal year,” said Krishna Hari Baskota, director general of Department of Customs, who led the Nepalese delegation in the meeting. As per the Nepal-India Trade Treaty, India collects 16 percent excise duty on goods exported to Nepal and later refunds it through government channels. Nepal has already received Rs 2.53 billion under the DRP during the first 11 months of current fiscal year, 26 percent more than the targeted amount for this fiscal year.