Nepse is more than likely to hand out the contract to design the software for much anticipated Central Depository System (CDS) to Tata Consultancy Services (TSC). “After the preparation of software, there will not be any further delay about starting CDS,” informed Shambhu Pant, Nepse’s acting deputy manager and spokesperson.
“Nepal’s CDS will be based largely on Indian Central Depository Services Ltd (CDSL), a sister concern of the Bombay stock Exchange (BSE) as we are undertaking this project under the financial and technical support of BSE,” he added.
The CDS is a new clearing and settlement system being used in stock exchanges abroad. Under the CDS, the current practice of holding and moving the scrip of quoted shares physically will be replaced by a safe and dependable computerized book entry system. When investors trade under the CDS, there will be no need for delivery and receipt of physical certificates. All the physical scrips of the companies listed on the stock exchange will be recorded centrally, and investors will have CDS accounts which will show their holdings. The seller’s account will be debited and the buyer’s account will be credited when shares are traded by the new system automatically as is practised by major stock exchanges the world over.
“The implementation of CDS will do a great deal in encouraging the investors as there will be hassle-free and swift ownership transfer and instant liquidity,” said Surbir Paudyal, Chairman of Securities Board of Nepal.
The increase in volume and number of share transactions after the automation of Nepse had created demand for the establishment of CDS that offers safety and convenience compared to holding securities in physical form, enhances liquidity by instantaneous transfers and delays, thefts, interceptions and subsequent misuse of certificates eliminated.
The implementation of CDS is supposed to be able to wipe out inconsistency and manipulation in stock trading and make the Nepali secondary market more transparent and a significant reduction in discrepancy rates is expected by Nepse.
Meanwhile, the Nepse has started the process to take the exam for new brokers. The process to add new brokers has halted since long.
Thursday, June 3, 2010
Oman Airs Direct Flight
The Ministry of Tourism and Civil Aviation has granted permission to Oman Air to operate direct flights between Oman and Nepal. An agreement to this effect was signed between the governments of the two countries in Kathmandu on Wednesday. Oman Air is planning to operate Oman-Kathmandu flights from the third week of June. It plans to operate seven flights a week. The ministry said direct Oman-Kathmandu flights will help Nepal Tourism Year 2011, besides facilitating Nepali workers going to Oman for jobs. Nepal government is planning to attract more international airlines for the success of Nepal Tourism Year 2011.
Tuesday, June 1, 2010
Nepal telecom Reduces International Call
Nepal Telecom (NT) is providing international calls through IP Technology, starting from June 1. The new service can be accessed by GSM enabled postpaid subscribers, PSTN services, CDMA services and pre-paid credit limit account users by using the access code 1424, said the NT that has started the service with an aim to provide customers with service to make international calls making the service convinient and cost effective for users. Customers using the technology can call Canada, China, Hong kong, India, Singapore, Thailand and US at Rs 4 per minute.
NIC bank's lending to industries more
Some eight commercial banks have applied for the refinancing facility from the central bank. Out of the eight commercial banks -Citizens Bank International, DCBL, Kumari Bank, NIC Bank, Global Bank, Prime Commercial Bank, NCC Bank, Kist Bank, Laxmi Bank -Citizens Bank International has already received Rs 430 million.
Similarly, the NIC Bank -that has consistently focused on channeling its credit to productive sectors contributing to the country's economic growth -has also applied for Rs 440 million refinancing facility. As of midApril, it has floated 90 per cent of it's total April, it has flo loan portfolio of about Rs 14 billion in over 2,000 diversified industries and businesses, said the bank.
NIC has floated loans in a wide range of industries including food processing, steel, cloth, yarn, cement, paints, jute, ca paints, jute, carpets, paper, handicrafts, hotels, hospitals, education, agriculture, leather, plastics, cables, bricks, and IT. "It has only around 10 per cent exposure in real estate portfolio," it claimed. The bank -that has a large network of 25 branches spread from Jhapa in the east to Mahendra Nagar in the far west -has announced a 27 per cent growth in net profit to Rs 319 million in the first nine months of the current fiscal year compared with the same period last year.
The mid-term evaluation of the Monetary Policy has introduced refinancing facility to pump in liquidity in the banking system for productive sectors like tourism, hydropower, exports, agriculture, small and medium scale industry and other productive sectors.
Similarly, the NIC Bank -that has consistently focused on channeling its credit to productive sectors contributing to the country's economic growth -has also applied for Rs 440 million refinancing facility. As of midApril, it has floated 90 per cent of it's total April, it has flo loan portfolio of about Rs 14 billion in over 2,000 diversified industries and businesses, said the bank.
NIC has floated loans in a wide range of industries including food processing, steel, cloth, yarn, cement, paints, jute, ca paints, jute, carpets, paper, handicrafts, hotels, hospitals, education, agriculture, leather, plastics, cables, bricks, and IT. "It has only around 10 per cent exposure in real estate portfolio," it claimed. The bank -that has a large network of 25 branches spread from Jhapa in the east to Mahendra Nagar in the far west -has announced a 27 per cent growth in net profit to Rs 319 million in the first nine months of the current fiscal year compared with the same period last year.
The mid-term evaluation of the Monetary Policy has introduced refinancing facility to pump in liquidity in the banking system for productive sectors like tourism, hydropower, exports, agriculture, small and medium scale industry and other productive sectors.
Saturday, May 29, 2010
Govt preparing to set up NBF
The government is soon establishing Nepal Business Forum (NBF) -- a public-private body -- to stimulate dialogue and enable the public and private sector to work constructively for improving investment and business climate in the country.
The forum is being set up after the cabinet meeting held recently endorsed the proposal that Ministry of Industry mooted under the aegis of the International Finance Corporation (IFC) of the World Bank group.
NBF is the replica of a model practiced in recent years in various low income countries, where it successfully bridged policy and environment related gaps that impeded business growth.
“We reckon NBF can play an instrumental role to identify constraints and barriers to business and investment, foster commitment and mobilize concerned government agencies to solve the problems promptly,” said Dhundi Raj Pokharel, joint secretary at MoI.
Most importantly, officials believe that NBF being an interactive platform between the private sector, government, civil society and donors will create strong pressure for concerned stakeholders, mainly political leadership, for addressing labor problems, energy crisis and insecurity and bring about other reforms.
Labor problems, energy crisis and insecurity are being tagged as the three major constraints to investment and doing business in Nepal at present. And despite suggesting various measures to deal with them, MoI has not been able to garner strong will and commitment from concerned ministries and political leaders.
The NBF statute endorsed by the government envisages formation of multi-tier bodies, including general assembly, headed by the Prime Minister; steering committee led by Industry Minister; and private sector development committee headed by the Chief Secretary.
While the steering committee will function as the main executive body of NBF, six different sectoral working groups jointly led by concerned government secretary and private sector representatives will work to identify problems, recommend policy reforms and implement reforms related to respective sectors.
The working groups will be formed on industry, trade and services, infrastructure, access to finance, women in business and business registration and tax.
“NBF will have a separate secretariat, which will be manned by experts and supporting staffs,” Pokharel told myrepublica.com, adding, “While work groups will meet more frequently, NBF plenary meeting will be held once a year.”
NBF will include all concerned ministers, secretaries, private sector organizations, donor agencies, civil society representatives and experts. Though its structure and size appears mammoth, concerned officials argued that the inclusion of all stakeholders and ministries, stimulating dialogue among them and making them responsive and accountable are the key to the success of NBF.
“Otherwise, we fear, it will fail just as many other public-private initiatives have failed.”
As for its function, NBF will work for consistent enforcement of law, removal of barriers that investors face in establishing and closing enterprises and provide feedback on policies and regulations that affect the private sector.
It will also field various needs of the industrial sector like taxes and fees cut, relaxing interest rates and ceiling, simplifying rules, improving patent and industrial design protection and predictable environment for foreign direct investment.
The costs of operating NBF will be shouldered jointly by the government, private sector and donors, according to MoI.
The forum is being set up after the cabinet meeting held recently endorsed the proposal that Ministry of Industry mooted under the aegis of the International Finance Corporation (IFC) of the World Bank group.
NBF is the replica of a model practiced in recent years in various low income countries, where it successfully bridged policy and environment related gaps that impeded business growth.
“We reckon NBF can play an instrumental role to identify constraints and barriers to business and investment, foster commitment and mobilize concerned government agencies to solve the problems promptly,” said Dhundi Raj Pokharel, joint secretary at MoI.
Most importantly, officials believe that NBF being an interactive platform between the private sector, government, civil society and donors will create strong pressure for concerned stakeholders, mainly political leadership, for addressing labor problems, energy crisis and insecurity and bring about other reforms.
Labor problems, energy crisis and insecurity are being tagged as the three major constraints to investment and doing business in Nepal at present. And despite suggesting various measures to deal with them, MoI has not been able to garner strong will and commitment from concerned ministries and political leaders.
The NBF statute endorsed by the government envisages formation of multi-tier bodies, including general assembly, headed by the Prime Minister; steering committee led by Industry Minister; and private sector development committee headed by the Chief Secretary.
While the steering committee will function as the main executive body of NBF, six different sectoral working groups jointly led by concerned government secretary and private sector representatives will work to identify problems, recommend policy reforms and implement reforms related to respective sectors.
The working groups will be formed on industry, trade and services, infrastructure, access to finance, women in business and business registration and tax.
“NBF will have a separate secretariat, which will be manned by experts and supporting staffs,” Pokharel told myrepublica.com, adding, “While work groups will meet more frequently, NBF plenary meeting will be held once a year.”
NBF will include all concerned ministers, secretaries, private sector organizations, donor agencies, civil society representatives and experts. Though its structure and size appears mammoth, concerned officials argued that the inclusion of all stakeholders and ministries, stimulating dialogue among them and making them responsive and accountable are the key to the success of NBF.
“Otherwise, we fear, it will fail just as many other public-private initiatives have failed.”
As for its function, NBF will work for consistent enforcement of law, removal of barriers that investors face in establishing and closing enterprises and provide feedback on policies and regulations that affect the private sector.
It will also field various needs of the industrial sector like taxes and fees cut, relaxing interest rates and ceiling, simplifying rules, improving patent and industrial design protection and predictable environment for foreign direct investment.
The costs of operating NBF will be shouldered jointly by the government, private sector and donors, according to MoI.
DDC dominating dairy market for decades
Most of Kathmanduites begin their day with products of Dairy Development Corporation (DDC) as most of them prefer pasteurized milk produced by the state-owned dairy manufacturer for morning tea.
And why not, DDC claims that it enjoys 50 percent share of Nepal´s pasteurized milk market. Not only the pasteurized milk, other products manufactured by DDC have also been dominating the market of dairy products for the last many years.
Dr Ishwari Pd Adhikari, project manager at DDC, said the state-owned dairy manufacturer enjoys 50 percent share of pasteurized milk market in the country. "We are also the market leaders in different varieties of cheese and dairy products like yoghurt, paneer, ghee and butter, among others," Dr Adhikari added.
The demand for pasteurized milk and other milk products has been so high that DDC has been facing difficulty in meeting it.
The main reason behind the increasing popularity of DDC products is because of the credibility that the dairy manufacturer has earned by not compromising on quality of milk and milk products and hygiene and sanitation on its plants across the country, according to Dr Adhikari. "We have modern machineries and a pool of trained manpower that are of international standard," he added.
DDC was established as a government entity under the Corporation Act 2021 BS. Its plants at Lainchaur and Balaju have received ISO: 22000:2005 certifications. It has its head office at Lainchaur and 16 procession centers across the country.
DDC collects 60 million liters milk a day from more than 75,000 farmers through 888 co-operatives spread out in 33 districts. With the sate-of-art infrastructure comprising of fully modern dairy plants, 11 cheese manufacturing units, 45 milk chilling plants and highly qualified dairy specialists, DDC is one of the most important public enterprises in the country.
"We recorded an annual turnover of Rs 3.5 million in the current fiscal year and hope our turnover to rise to Rs 5 billion next year," Ajab Lal Yadav, general manager of DDC, told.
Dr Adhikari further added that strong distribution network was another reason behind the increasing popularity of DDC products in the market.
The state-owned dairy manufacturer is the leading manufacturer of standardized pasteurized milk, full cream milk, sterilized flavored milk (DDC Fresh), cream, yogurt, ice-cream, yak cheese, cheese spread, kanchan cheese, mozzarella (pizza) cheese, processed cheese, paneer, ghee, yak ghee, butter, lalmohan, rasbhari, peda, gundpak and jeera butter milk among others.
It has been producing ghee in Biratnagar plant, lalmohan in Hetauda, canned rasbhari in Butwal plant and mozzarella (pizza) cheese in Lumbini plant. Curd, ice-cream and cheese are manufactured at Lainchaur plant.
"The demand for ice-cream and curd is very high, but we have not been able to meet the growing demand for these products due to limited production capacity," Dr Adhikari told, adding, "We are committed to meeting the demands for our products at the earliest."
And why not, DDC claims that it enjoys 50 percent share of Nepal´s pasteurized milk market. Not only the pasteurized milk, other products manufactured by DDC have also been dominating the market of dairy products for the last many years.
Dr Ishwari Pd Adhikari, project manager at DDC, said the state-owned dairy manufacturer enjoys 50 percent share of pasteurized milk market in the country. "We are also the market leaders in different varieties of cheese and dairy products like yoghurt, paneer, ghee and butter, among others," Dr Adhikari added.
The demand for pasteurized milk and other milk products has been so high that DDC has been facing difficulty in meeting it.
The main reason behind the increasing popularity of DDC products is because of the credibility that the dairy manufacturer has earned by not compromising on quality of milk and milk products and hygiene and sanitation on its plants across the country, according to Dr Adhikari. "We have modern machineries and a pool of trained manpower that are of international standard," he added.
DDC was established as a government entity under the Corporation Act 2021 BS. Its plants at Lainchaur and Balaju have received ISO: 22000:2005 certifications. It has its head office at Lainchaur and 16 procession centers across the country.
DDC collects 60 million liters milk a day from more than 75,000 farmers through 888 co-operatives spread out in 33 districts. With the sate-of-art infrastructure comprising of fully modern dairy plants, 11 cheese manufacturing units, 45 milk chilling plants and highly qualified dairy specialists, DDC is one of the most important public enterprises in the country.
"We recorded an annual turnover of Rs 3.5 million in the current fiscal year and hope our turnover to rise to Rs 5 billion next year," Ajab Lal Yadav, general manager of DDC, told.
Dr Adhikari further added that strong distribution network was another reason behind the increasing popularity of DDC products in the market.
The state-owned dairy manufacturer is the leading manufacturer of standardized pasteurized milk, full cream milk, sterilized flavored milk (DDC Fresh), cream, yogurt, ice-cream, yak cheese, cheese spread, kanchan cheese, mozzarella (pizza) cheese, processed cheese, paneer, ghee, yak ghee, butter, lalmohan, rasbhari, peda, gundpak and jeera butter milk among others.
It has been producing ghee in Biratnagar plant, lalmohan in Hetauda, canned rasbhari in Butwal plant and mozzarella (pizza) cheese in Lumbini plant. Curd, ice-cream and cheese are manufactured at Lainchaur plant.
"The demand for ice-cream and curd is very high, but we have not been able to meet the growing demand for these products due to limited production capacity," Dr Adhikari told, adding, "We are committed to meeting the demands for our products at the earliest."
· 57 YEARS OF FIRST ASCENT More records, celebrations to mark Everest Day today
The government has planned to celebrate the Everest Day with much fanfare, though the uncertain politics has taken the front seat.
Saturday marks the 57 years of the first ascent of Mt Everest. The government has started celebrat ing May 29 as Interna tional Everest Day three years ago. This year too, the day is being celebrated with much gaiety.
The day starts with rally in the morning. The government is honouring Everest summiteers and the Ministry of Tourism and Civil Aviation is giving away Sagarmatha and Tenjing-Hillary awards.
Veteran Everest climber Apa Sherpa will be appointed as SAARC Goodwill ambassador.
Similarly, an Everest marathon, rafting and sanitation campaigns will be organised and tourism entrepreneurs will take out rallies in several places to mark the day. It was Tenjing Norge Sherpa and Sir Edmond Hillary who became the first humans to make it to the top of the world on May 29, 1953, making Nepal popular all across the world.
Since then, around 4,000 mountaineers have scaled the highest peak.
Many records have been created and broken. The government had allowed 25 teams to climb Everest this year. Among them, some made records. Latest in the list of record-hold
ers is Jordon Romeo (13) of the US. He became the youngest to climb the world's tallest peak.
On May 22, veteran climber Apa Sherpa climbed Everest for a record 20 times, breaking his own record.
World cyclist Pushkar Shah, who travelled to 150 countries on bicycle, made it to the top of the world on May 17 and unfurled the flags of all the countries he visited to spread the message of peace and harmony.
Making another record in May is Ang Chhiring Sherpa. He scaled Everest on May 23 and bagged the title of climbing the tallest mountains of all seven continents within 50 days.
The media fraternity has also something to cheer with woman journalist Sailee Basnet scaling Everest. She is the first woman journalist from South Asia to climb the peak. Junko Tabei of Japan holds the record of being the first woman to climb Everest and Pasang Lhamu Sherpa is the first Nepali woman.
Rainhold Messner holds the record of climbing Everest without oxygen; Pemba Dorje Sherpa as fastest Ever est climber and Babu Chiri Sherpa for climbing it with artificial legs. Mt Everest is the most sought-after destination among 14 highest peaks above 8,000 meters around the world.
More than 30 per cent tourists come to Nepal for trekking and mountaineering. Tourism entrepreneurs say celebrating the Everest Day is a big boost to Nepal's mountaineering sector.
"The government's decision to hold golden jubilee celebrations of various mountains has increased morale of tourism entrepreneurs and this will certainly help make Nepal Tourism Year 2011 successful," says president of Nepal Mountaineering Association Aang Chiring Sherpa.
Saturday marks the 57 years of the first ascent of Mt Everest. The government has started celebrat ing May 29 as Interna tional Everest Day three years ago. This year too, the day is being celebrated with much gaiety.
The day starts with rally in the morning. The government is honouring Everest summiteers and the Ministry of Tourism and Civil Aviation is giving away Sagarmatha and Tenjing-Hillary awards.
Veteran Everest climber Apa Sherpa will be appointed as SAARC Goodwill ambassador.
Similarly, an Everest marathon, rafting and sanitation campaigns will be organised and tourism entrepreneurs will take out rallies in several places to mark the day. It was Tenjing Norge Sherpa and Sir Edmond Hillary who became the first humans to make it to the top of the world on May 29, 1953, making Nepal popular all across the world.
Since then, around 4,000 mountaineers have scaled the highest peak.
Many records have been created and broken. The government had allowed 25 teams to climb Everest this year. Among them, some made records. Latest in the list of record-hold
ers is Jordon Romeo (13) of the US. He became the youngest to climb the world's tallest peak.
On May 22, veteran climber Apa Sherpa climbed Everest for a record 20 times, breaking his own record.
World cyclist Pushkar Shah, who travelled to 150 countries on bicycle, made it to the top of the world on May 17 and unfurled the flags of all the countries he visited to spread the message of peace and harmony.
Making another record in May is Ang Chhiring Sherpa. He scaled Everest on May 23 and bagged the title of climbing the tallest mountains of all seven continents within 50 days.
The media fraternity has also something to cheer with woman journalist Sailee Basnet scaling Everest. She is the first woman journalist from South Asia to climb the peak. Junko Tabei of Japan holds the record of being the first woman to climb Everest and Pasang Lhamu Sherpa is the first Nepali woman.
Rainhold Messner holds the record of climbing Everest without oxygen; Pemba Dorje Sherpa as fastest Ever est climber and Babu Chiri Sherpa for climbing it with artificial legs. Mt Everest is the most sought-after destination among 14 highest peaks above 8,000 meters around the world.
More than 30 per cent tourists come to Nepal for trekking and mountaineering. Tourism entrepreneurs say celebrating the Everest Day is a big boost to Nepal's mountaineering sector.
"The government's decision to hold golden jubilee celebrations of various mountains has increased morale of tourism entrepreneurs and this will certainly help make Nepal Tourism Year 2011 successful," says president of Nepal Mountaineering Association Aang Chiring Sherpa.
Nepal Bangladesh Bank and Oman International Exchange LLC join hands
Nepal Bangaldesh Bank Ltd (NBBL) and Oman International Exchange LLC entered into an agreement to expand remittance service from Oman. Chief Executive Officer of NBBL Givinda Babu Tiwari and chairman of Oman International Exchange Al Khurisi signed the agreement on Friday on behalf of their respective organisations amid a function. Oman International Exchange established in 1985 has 12 branches throughout the country. Around 10,000 Nepalis are believed to working in Oman.
LG Launches new set
CG Impex Pvt Ltd -the authorised distributor of LG mobiles -has launched five new handsets in the market: GB 195, GU 230 in the multi media series, GU285 in the 3G series and GS 290, GS 500 in the Cookie Series.
GS290 is a slim and light phone with 3" touch screen. The set -priced at Rs 11,499 -has a 2 MP camera with active flash UI. Similarly, GS500 -priced at Rs 18,590 comes with 3" touch screen, accelerometre sensor, a 3 MP camera with multimedia player and a Bluetooth.
GU285 is a 3G Slider phone that is priced at Rs 9,499 and has 1.3 MP Camera and VGA with Audio and Codec.
The set also has Bluetooth, FM and Video Call with an expandable memory up to 2 GB. The other set GU230 -priced at Rs 7,699 -has 1.3 MP camera with video recording, MP3 player, FM, Bluetooth and expandable memory up to 2 GB with long battery life.
Its GB 195 -priced at Rs 4,699 -comes with a MP3 player, wireless FM and camera.
LG Mobile has a range of service centres throughout the country making it the highest in the service network, claims the company, said the company.
"Every set comes with free 1 GB or 2 GB memory card accord ing to the conditions applied."
Under the `LG Mo bile Sun Chandi Of fer' Every customer purchasing a LG mo bile priced less than Rs 10,000 gets a five gram silver coin and mobile priced at Rs 10,000 or above gets a 10 gram silver coin.
GS290 is a slim and light phone with 3" touch screen. The set -priced at Rs 11,499 -has a 2 MP camera with active flash UI. Similarly, GS500 -priced at Rs 18,590 comes with 3" touch screen, accelerometre sensor, a 3 MP camera with multimedia player and a Bluetooth.
GU285 is a 3G Slider phone that is priced at Rs 9,499 and has 1.3 MP Camera and VGA with Audio and Codec.
The set also has Bluetooth, FM and Video Call with an expandable memory up to 2 GB. The other set GU230 -priced at Rs 7,699 -has 1.3 MP camera with video recording, MP3 player, FM, Bluetooth and expandable memory up to 2 GB with long battery life.
Its GB 195 -priced at Rs 4,699 -comes with a MP3 player, wireless FM and camera.
LG Mobile has a range of service centres throughout the country making it the highest in the service network, claims the company, said the company.
"Every set comes with free 1 GB or 2 GB memory card accord ing to the conditions applied."
Under the `LG Mo bile Sun Chandi Of fer' Every customer purchasing a LG mo bile priced less than Rs 10,000 gets a five gram silver coin and mobile priced at Rs 10,000 or above gets a 10 gram silver coin.
Strong greenback takes toll on gold price
The strong dollar coupled with international price hike have spoiled the party of the domestic gold traders.
“Stronger dollar pushed the price of precious yellow metal up in the domestic market,” said Nepal Gold and Silver Dealers’ Association (NEGODISA) general secretary Manik Ratna Shakya.
“The rising gold price is hurting the trade before the marriage season,” he said adding that the price in the international market is also increasing.
The precious metal — in the international market — was traded at $1,178 per ounce on Sunday but it went up to close at $1,210 on Friday. Though, it had touched a high of $1,245 per ounce.
Taking the cue from the international price, the domestic market also witnessed price fluctuation, though the price has increased by only Rs 555 per 20 gram during the week.
On Sunday, 10 gram of gold was sold at Rs 29,625 which did not change till Tuesday but on Tuesday
it looked up to Rs 30,110 and hit the another record high on Wednesday as it was traded at Rs 30,605 for 10 gram.
The market has witnessed a record price of Rs 35,700 per tola (11.664
gram) also due to strong dollar against the rupee on Tuesday. On the closing day — today — however gold price came down to Rs 30,180 per 10 gram.
Similarly, silver opened at Rs
per 10 gram for the week but decreased to Rs 463 per 10 gram on Monday. On Tuesday it continued to decrease to Rs 460.5 before rebouncing by Rs 13.5 to Rs 474 per 10 gram to close today. The US dollar — that has shot the price of precious yellow metal — had decreased from Sunday’s Rs 75.96 to Rs 75.29 on Friday. On Tuesday, it was at its highest — in the week — to Rs 76.44 pushing the gold price up.
According to Nepal Rastra Bank (NRB), dollar fluctuated throughout the week before settling at Rs 75.29 at the end of the week.
The US dollar is gaining strength, currently as most of the European countries are going through economic crisis. The Greece crisis has spread to other Eurozone nations making it difficult for the EU to cope up with.
The investors have been after the gold as a hedge against their weak currency and crisis looming large in EU.
The experts have estimated the precious yellow metal to touch $1400 per ounce if the crisis situation continues in the Eurozone countries making the euro more weaker.
“Stronger dollar pushed the price of precious yellow metal up in the domestic market,” said Nepal Gold and Silver Dealers’ Association (NEGODISA) general secretary Manik Ratna Shakya.
“The rising gold price is hurting the trade before the marriage season,” he said adding that the price in the international market is also increasing.
The precious metal — in the international market — was traded at $1,178 per ounce on Sunday but it went up to close at $1,210 on Friday. Though, it had touched a high of $1,245 per ounce.
Taking the cue from the international price, the domestic market also witnessed price fluctuation, though the price has increased by only Rs 555 per 20 gram during the week.
On Sunday, 10 gram of gold was sold at Rs 29,625 which did not change till Tuesday but on Tuesday
it looked up to Rs 30,110 and hit the another record high on Wednesday as it was traded at Rs 30,605 for 10 gram.
The market has witnessed a record price of Rs 35,700 per tola (11.664
gram) also due to strong dollar against the rupee on Tuesday. On the closing day — today — however gold price came down to Rs 30,180 per 10 gram.
Similarly, silver opened at Rs
per 10 gram for the week but decreased to Rs 463 per 10 gram on Monday. On Tuesday it continued to decrease to Rs 460.5 before rebouncing by Rs 13.5 to Rs 474 per 10 gram to close today. The US dollar — that has shot the price of precious yellow metal — had decreased from Sunday’s Rs 75.96 to Rs 75.29 on Friday. On Tuesday, it was at its highest — in the week — to Rs 76.44 pushing the gold price up.
According to Nepal Rastra Bank (NRB), dollar fluctuated throughout the week before settling at Rs 75.29 at the end of the week.
The US dollar is gaining strength, currently as most of the European countries are going through economic crisis. The Greece crisis has spread to other Eurozone nations making it difficult for the EU to cope up with.
The investors have been after the gold as a hedge against their weak currency and crisis looming large in EU.
The experts have estimated the precious yellow metal to touch $1400 per ounce if the crisis situation continues in the Eurozone countries making the euro more weaker.
Govt spending up, budget surplus also up
Despite registering the increment of 30.9 per cent in the government expenditure, in the first nine months of the current fiscal year, government has observed the budget surplus of Rs 10.3 billion.
According to the Nepal Rastra Bank (NRB)’s macroeconomic report of nine months of the current fiscal year, the government budget surplus on cash basis stood at Rs 10.30 billion compared with a budget surplus of Rs 12.72 billion in the same period last fiscal year.
“The budget surplus stood at Rs 4.94 billion in the eighth month of the current fiscal year,” according to the central bank.
Meanwhile, the total government spending has increased by almost a double at 30.9 per cent amounting to Rs 140.09 billion, due to higher recurrent and capital expenditure, in the mid-April, which had increased by 18.5 per cent only in the same period last fiscal year.
The recurrent expenditure alone has increased by 28.5 per cent to Rs 90.94 billion due to increased salary and allowances of civil servants, rising expenditure on special security plan, larger subsidies to public schools, increased eco
nomic assistance,” the report said. Similarly, capital expenditure has also increased by 47.5 per cent to Rs 28.35 billion which had declined by 2.5 per cent in the same period last year.
“Only 26.7 per cent of the budget estimate on capital expenditure has been spent so far,” the NRB said. The low expenditure has been due to delay in the approval of budget,
lingering in the contract process, absence of representatives in local bodies as well as weak law and order situation in the country. In the eighth months, only Rs 79.37 billion of recurrent budget and Rs 22.45 billion of capital budget had been spent.
A positive impact of ‘Tax Compliance Year’, increase in PAN number holders, mobilisation of tax volunteers, con
trol in revenue leakages and tax administration reforms has contributed to 28.2 per cent growth of revenue mobilisation to Rs 126.53 billion, whereas in the eight months the revenue mobilisation was at Rs 105.58 billion. The revenue collection has slowed down as in the last fiscal year’s same period, government had been able to register a growth of 39.3 per cent. “Value Added Tax (VAT) contributed most to the total revenue as it grew by 40.6 per cent to Rs 38.50 billion. It had increased by only 23.2 per cent in the same period last year,” said the report. “In the eighth month also, VAT had grown by 43 per cent registering Rs 33.36 billion in the government’s kitty.” Increased consumptions and reforms in VAT administration has been attributed to such a growth in VAT. Similarly, Increase in imports of high tax yielding vehicles and spare parts pushed the customs revenue up by 35.9 per cent to Rs 25.07 billion compared with 25.7 per cent rise in the same period of last year. Customs collection had grown by 43 per cent in the eighth months of the current fiscal year.
Excise revenue increased by 60.3 per cent to Rs 16.94 billion against an increase of 45.1 per cent in the same period of last year. Likewise, a positive impact of tax compliance year and increase in PAN number holders has attributed to 22.2 per cent increase in income tax amounting to Rs 23.47 billion.
In the first eight months, it had grown by 20.7 per cent to Rs 17.52 billion.
However, non-tax revenue has declined by 8.6 per cent to Rs 16.07 billion compared with an increase of 68.7 per cent in the same period last year.
According to the Nepal Rastra Bank (NRB)’s macroeconomic report of nine months of the current fiscal year, the government budget surplus on cash basis stood at Rs 10.30 billion compared with a budget surplus of Rs 12.72 billion in the same period last fiscal year.
“The budget surplus stood at Rs 4.94 billion in the eighth month of the current fiscal year,” according to the central bank.
Meanwhile, the total government spending has increased by almost a double at 30.9 per cent amounting to Rs 140.09 billion, due to higher recurrent and capital expenditure, in the mid-April, which had increased by 18.5 per cent only in the same period last fiscal year.
The recurrent expenditure alone has increased by 28.5 per cent to Rs 90.94 billion due to increased salary and allowances of civil servants, rising expenditure on special security plan, larger subsidies to public schools, increased eco
nomic assistance,” the report said. Similarly, capital expenditure has also increased by 47.5 per cent to Rs 28.35 billion which had declined by 2.5 per cent in the same period last year.
“Only 26.7 per cent of the budget estimate on capital expenditure has been spent so far,” the NRB said. The low expenditure has been due to delay in the approval of budget,
lingering in the contract process, absence of representatives in local bodies as well as weak law and order situation in the country. In the eighth months, only Rs 79.37 billion of recurrent budget and Rs 22.45 billion of capital budget had been spent.
A positive impact of ‘Tax Compliance Year’, increase in PAN number holders, mobilisation of tax volunteers, con
trol in revenue leakages and tax administration reforms has contributed to 28.2 per cent growth of revenue mobilisation to Rs 126.53 billion, whereas in the eight months the revenue mobilisation was at Rs 105.58 billion. The revenue collection has slowed down as in the last fiscal year’s same period, government had been able to register a growth of 39.3 per cent. “Value Added Tax (VAT) contributed most to the total revenue as it grew by 40.6 per cent to Rs 38.50 billion. It had increased by only 23.2 per cent in the same period last year,” said the report. “In the eighth month also, VAT had grown by 43 per cent registering Rs 33.36 billion in the government’s kitty.” Increased consumptions and reforms in VAT administration has been attributed to such a growth in VAT. Similarly, Increase in imports of high tax yielding vehicles and spare parts pushed the customs revenue up by 35.9 per cent to Rs 25.07 billion compared with 25.7 per cent rise in the same period of last year. Customs collection had grown by 43 per cent in the eighth months of the current fiscal year.
Excise revenue increased by 60.3 per cent to Rs 16.94 billion against an increase of 45.1 per cent in the same period of last year. Likewise, a positive impact of tax compliance year and increase in PAN number holders has attributed to 22.2 per cent increase in income tax amounting to Rs 23.47 billion.
In the first eight months, it had grown by 20.7 per cent to Rs 17.52 billion.
However, non-tax revenue has declined by 8.6 per cent to Rs 16.07 billion compared with an increase of 68.7 per cent in the same period last year.
Wednesday, May 12, 2010
NMB Bank Profit
NMB Bank Ltd posted a profit before tax worth Rs 149.2 million during the third quarter of the current fiscal year and recorded a growth of 87 per cent compared with the same period last year. Despite ongoing liquidity crunch in the local market, NMB achieved a growth in both deposits as well as Risk Assets by 11 per cent and eight per cent respectively when compared with the previous quarter. "The bank continues to focus on its strength on its balance sheet and remains well capitalised with a very comfortable capital adequacy ratio of 18.03 per cent.
It has maintained strong liquidity position with CD Ratio at 72 per cent and Net Liquid Assets of about 27 per cent of its total deposits.
Overall credit quality of the bank's risk assets portfolio also continues to remain good as evidenced by low NPA at 0.34 per cent." During the period the bank expanded its footprints by opening four new branches -in Kumaripati, Chabahail, Nepalgunj and Dhanghadhi -and has added three new ATMs. The bank has also planned to gradually expand its footprints to new strategic locations next year.
It has maintained strong liquidity position with CD Ratio at 72 per cent and Net Liquid Assets of about 27 per cent of its total deposits.
Overall credit quality of the bank's risk assets portfolio also continues to remain good as evidenced by low NPA at 0.34 per cent." During the period the bank expanded its footprints by opening four new branches -in Kumaripati, Chabahail, Nepalgunj and Dhanghadhi -and has added three new ATMs. The bank has also planned to gradually expand its footprints to new strategic locations next year.
NIC Bank's lending
NIC Bank has disbursed a total of Rs 438 million worth of loan for micro-finance lending under its Deprived Sector Lending Programme. Micro-finance lending helps support people at the bottom of the pyramid by providing seed capital for micro enterprises or farming or other income generating activities. These loans which are capped at a maximum of Rs 60,000 per individual are given without security. NIC Bank provided these loans through micro-finance intermediaries operating in rural areas.
Through the bank's conscious diversification of its deprived sector portfolio among the geographically scattered micro finance intermediaries, the bank has benefited about 22,000 families for getting access to the services. NIC Bank is exploring opportunities to finance renewable energy, micro and Pico hydro-power, agribusiness and rural tourism for the development of the economy to uplift the standard of living in the rural community.
Through the bank's conscious diversification of its deprived sector portfolio among the geographically scattered micro finance intermediaries, the bank has benefited about 22,000 families for getting access to the services. NIC Bank is exploring opportunities to finance renewable energy, micro and Pico hydro-power, agribusiness and rural tourism for the development of the economy to uplift the standard of living in the rural community.
Electronic driving license on cards
The government has initiated a process for implementing electronic driving license and Embossed Number Plate system in an effort to systematize recordkeeping and monitoring of vehicles across the country.
A government panel formed to execute the scientific system on Sunday invited tender from interested parties to undertake supply and delivery of vehicle number plate monitoring card -- including software, IT equipment and accessories -- and personalization, smart card and embossed number plate. The dateline for bidding has been set for June 23. The government has authorized the panel to select the qualified firm competing in the bidding process.
Anil Gurung, director of Department of Transport Management (DoTM), said necessary technical networking and system will be installed by the DoTM to execute the new system once the supply of Vehicle Number Plate Monitoring Card, Smart Card and Embossed Number Plate begins. “The new system will be implemented from the next fiscal year,” Gurung told Republica. on Monday.
The government has announced in the budget for the current fiscal year that the process of maintaining electronic database of driving license would be completed within this fiscal year and new vehicle registration, route permit and new driving license would be distributed and renewed electronically from November 16, 2010.
Gurung said the new system is aimed at ending duplication of licenses and other vehicle related documents as well as number plates, upgrading distribution of number plate as per international trend and making collection of tax from transportation sector effective.
The embossed number plate includes name of vehicle owners, model of vehicles, chassis number and tax payment status, among others. It also maintains uniformity in number plates and keeps exact record of vehicles registered with the government.
The electronic smart card will replace the existing driving licenses. The smart card will have personal details of license-holder and date of issue and expiry, among others. Likewise, the vehicle monitoring card will help officials about the technical and other details of the vehicles.
“Linkage of all cards will be established with all 13 Transport Management Offices across the country through a computerized system,” Gurung added.
In the absence of scientific recordkeeping and numbering system, officials are not in a position to tell the exact number of vehicles plying within the country. As per the recent record, more than 970,000 vehicles have been registered across the country.
A government panel formed to execute the scientific system on Sunday invited tender from interested parties to undertake supply and delivery of vehicle number plate monitoring card -- including software, IT equipment and accessories -- and personalization, smart card and embossed number plate. The dateline for bidding has been set for June 23. The government has authorized the panel to select the qualified firm competing in the bidding process.
Anil Gurung, director of Department of Transport Management (DoTM), said necessary technical networking and system will be installed by the DoTM to execute the new system once the supply of Vehicle Number Plate Monitoring Card, Smart Card and Embossed Number Plate begins. “The new system will be implemented from the next fiscal year,” Gurung told Republica. on Monday.
The government has announced in the budget for the current fiscal year that the process of maintaining electronic database of driving license would be completed within this fiscal year and new vehicle registration, route permit and new driving license would be distributed and renewed electronically from November 16, 2010.
Gurung said the new system is aimed at ending duplication of licenses and other vehicle related documents as well as number plates, upgrading distribution of number plate as per international trend and making collection of tax from transportation sector effective.
The embossed number plate includes name of vehicle owners, model of vehicles, chassis number and tax payment status, among others. It also maintains uniformity in number plates and keeps exact record of vehicles registered with the government.
The electronic smart card will replace the existing driving licenses. The smart card will have personal details of license-holder and date of issue and expiry, among others. Likewise, the vehicle monitoring card will help officials about the technical and other details of the vehicles.
“Linkage of all cards will be established with all 13 Transport Management Offices across the country through a computerized system,” Gurung added.
In the absence of scientific recordkeeping and numbering system, officials are not in a position to tell the exact number of vehicles plying within the country. As per the recent record, more than 970,000 vehicles have been registered across the country.
All MDGs impossible to achieve: UNCTAD
Representatives of civil society organisations, businesses, universities, and Parliaments lamented this morning the enduring effects of the global recession on developing economies and urged financial reform and new thinking to help the world's poor even as the Greek debt crisis shows that the current world economic recovery is fragile.
UNCTAD secretary-general Supachai Panitchpakdi said in opening the organisation's second annual public symposium that since the crisis hit in 2008, some 53 million people in the developing world have fallen below the poverty line "and more than 100 million additional people are going hungry.
These numbers are not moving in the right direction."
"Prior to the crisis, the chances of achieving the Millennium Development Goals (MDGs) were deteriorating," he told the meeting. "Now, after the crisis, it will be near to impossible to achieve all of the MDGs." The goals are centred on the target of halving extreme poverty by 2015.
The secretary-general said developing countries should look to one another for support, noting that `South-South' regional trade and financial arrangements have been vital in recent years for providing investment, stable economic arrangements, and climbing trade. He cautioned that it is unlikely that industrialised economies "will constitute reliable sources of recover from the current crisis.
He also said impetus appeared to be dwindling for deep and meaningful reforms to the international financial system, and urged that the United Nations, rather than just the G20 group of countries, be given a lead role in devising reforms. "A truly inclusive multilateralism must be based on the G192, the number of all member States of the UN," he said.
In a panel discussion on "Responding to global crisis: new development paths" that followed, the secretary general termed developing countries "the innocent bystanders of the most severe recession in 70 years. We cannot just go on with business as usual. We have yet to see `human recovery' from the recession."
Jean Feyder, president of UNCTAD's Trade and Development Board, said, "We consider that States should play a major role in development" as poorer nations struggle to recover, noting."
"It is very important to put more money into agriculture," as productivity, especially in Africa, has lagged far behind farming yields in more developed regions. When food shortages surfaced in 2008," Olivier De Schutter, United Nations Special Rapporteur on the Right to Food, said adding that the result was that these countries were unable to respond.
Anne Jellema, International Policy and Campaign Director of ActionAid International, South Africa, told the meeting that international financial markets `dictate for many countries what is and what isn't possible' and described those markets as `a global casino'.
Speakers from the floor cited such issues as the extent of extreme poverty, now estimated at 1.5 billion people and the effects of financial speculation.
UNCTAD secretary-general Supachai Panitchpakdi said in opening the organisation's second annual public symposium that since the crisis hit in 2008, some 53 million people in the developing world have fallen below the poverty line "and more than 100 million additional people are going hungry.
These numbers are not moving in the right direction."
"Prior to the crisis, the chances of achieving the Millennium Development Goals (MDGs) were deteriorating," he told the meeting. "Now, after the crisis, it will be near to impossible to achieve all of the MDGs." The goals are centred on the target of halving extreme poverty by 2015.
The secretary-general said developing countries should look to one another for support, noting that `South-South' regional trade and financial arrangements have been vital in recent years for providing investment, stable economic arrangements, and climbing trade. He cautioned that it is unlikely that industrialised economies "will constitute reliable sources of recover from the current crisis.
He also said impetus appeared to be dwindling for deep and meaningful reforms to the international financial system, and urged that the United Nations, rather than just the G20 group of countries, be given a lead role in devising reforms. "A truly inclusive multilateralism must be based on the G192, the number of all member States of the UN," he said.
In a panel discussion on "Responding to global crisis: new development paths" that followed, the secretary general termed developing countries "the innocent bystanders of the most severe recession in 70 years. We cannot just go on with business as usual. We have yet to see `human recovery' from the recession."
Jean Feyder, president of UNCTAD's Trade and Development Board, said, "We consider that States should play a major role in development" as poorer nations struggle to recover, noting."
"It is very important to put more money into agriculture," as productivity, especially in Africa, has lagged far behind farming yields in more developed regions. When food shortages surfaced in 2008," Olivier De Schutter, United Nations Special Rapporteur on the Right to Food, said adding that the result was that these countries were unable to respond.
Anne Jellema, International Policy and Campaign Director of ActionAid International, South Africa, told the meeting that international financial markets `dictate for many countries what is and what isn't possible' and described those markets as `a global casino'.
Speakers from the floor cited such issues as the extent of extreme poverty, now estimated at 1.5 billion people and the effects of financial speculation.
Thamel wears deserted look
Thamel -the major tourist hub in Kathmandu -has seen a drop in the number of tourists in recent days, causing worries to the entrepreneurs and business owners in the area.
Although the UCPNMaoist withdrew the sixday long general strike on May 7, the presence of tourists in Thamel had thinned out since last two weeks.
Shekhar Adhikari -proprietor of Kurathai Restaurant -a famous eatery in Thamel, expressed anxiety over the dwindling tourism business even during the peak season and blamed the political instability for hurting the sector. He said his restaurant used to have business worth Rs 50,000 on a normal day but it has now dropped to Rs 5,000 per day due to the deteriorating situation.
Shiva Marhattha who has been selling the traditional Thanka art at Thamel since the last few years lamented that his business has seen a sharp decline over the last three weeks. "Now it will be difficult for him to even make up for the heavy losses suf fered due to the protracted general strike," he added.
Tourism entrepreneurs here have expressed fears that the protracted general strike ahead of the tourism year will send out negative messages to the incoming tourists which might further hit the already sagging tourism industry.
Meanwhile, the number of tourists visiting Bhaktapur has increased this year compared with previous year, the Bhaktapur Municipality said.
Chief at the Bhaktapur Municipality tourism centre, Damodar Suwal said a total of 112,684 foreign tourists visited Bhaktapur during last Nepali year ending on April 13.
This number does not include tourists from the SAARC countries.
Suwal said altogether 44,443 tourists from SAARC countries visited the ancient town last year alone. Tourists come to Bhaktapur mainly for observing the local historical and cultural heritage. The main tourism destinations in Bhaktapur are the famous Nyatapola Temple, the Bhairab Temple, Durbar Square, the fifty-five Window Palace, the Golden Gate, the Dattatraya Square and many more.
Although the UCPNMaoist withdrew the sixday long general strike on May 7, the presence of tourists in Thamel had thinned out since last two weeks.
Shekhar Adhikari -proprietor of Kurathai Restaurant -a famous eatery in Thamel, expressed anxiety over the dwindling tourism business even during the peak season and blamed the political instability for hurting the sector. He said his restaurant used to have business worth Rs 50,000 on a normal day but it has now dropped to Rs 5,000 per day due to the deteriorating situation.
Shiva Marhattha who has been selling the traditional Thanka art at Thamel since the last few years lamented that his business has seen a sharp decline over the last three weeks. "Now it will be difficult for him to even make up for the heavy losses suf fered due to the protracted general strike," he added.
Tourism entrepreneurs here have expressed fears that the protracted general strike ahead of the tourism year will send out negative messages to the incoming tourists which might further hit the already sagging tourism industry.
Meanwhile, the number of tourists visiting Bhaktapur has increased this year compared with previous year, the Bhaktapur Municipality said.
Chief at the Bhaktapur Municipality tourism centre, Damodar Suwal said a total of 112,684 foreign tourists visited Bhaktapur during last Nepali year ending on April 13.
This number does not include tourists from the SAARC countries.
Suwal said altogether 44,443 tourists from SAARC countries visited the ancient town last year alone. Tourists come to Bhaktapur mainly for observing the local historical and cultural heritage. The main tourism destinations in Bhaktapur are the famous Nyatapola Temple, the Bhairab Temple, Durbar Square, the fifty-five Window Palace, the Golden Gate, the Dattatraya Square and many more.
Tuesday, May 11, 2010
NOC seeks Rs 1b loans from govt
Nepal Oil Corporation (NOC) has sought Rs 1 billion in loans from the government to beef up stock of petroleum products, citing political deadlock and Maoist´s strike threat that could hit supplies in the days to come.
Digambhar Jha, NOC chief, who forwarded a letter to this connection to Ministry of Commerce and Supplies on Monday, said NOC´s storage tanks across the country have less than two-thirds fuel in stock at present.
Given its recent deteriorating fund flow, NOC has said that it would not be able to replenish stock from its own resources.
"When we were making profits, we served interests and loans. But we have continued to operate with net loss for the last four months," Jha told Republica.
NOC has argued that loan was needed for building up strategic stock so that it could continue to maintain supplies in case political fiasco continued and unfortunate mishaps struck the country.
The request from NOC comes at a time when it still has loans of over Rs 7 billion to repay to the government. It had taken those loans to finance imports over the span of four years when government´s continued apathy to adjust domestic oil prices in line with import rates turned it bankrupt.
NOC said it has just about 18,000 kiloliters (KL) of diesel in stock, which is far less than its storage capacity of 42,370 KL. Likewise, its nationwide petrol stock stands at 3,030 KL, which is about 60 percent of its total storage capacity. Its kerosene stock stands at 11,800 KL, which is three-fourths of its storage capacity, and aviation fuel stock stands less than two-thirds of its capacity.
Stock of fuel at Thankot, the main supply outlet for the Kathmandu Valley, stands much lower than our national average stock, Jha said.
"We have continued to serve loans whenever we could. But to prepare for possible adverse situation, we still have no option but to turn to government for finances," he said, referring to recent rise in loss figures of petroleum import monopolist.
The government has continued to adjust prices of oil over the last four months, when international crude prices started to jump. However, it has preferred to left prices of liquefied petroleum gas (LPG) untouched. This single product accounts for more than two-thirds of the total loss of NOC.
The latest import rates and fund flow estimates of NOC show it will suffer a loss of Rs 190 million -- from its estimated loss of Rs 310 million in the month of May -- from LPG business alone.
"Our loss figure on diesel too has jumped to Rs 4.10 per liter this month from about Rs 3 of April," Jha said.
Meanwhile, NOC has reported a loss in its profit margin from aviation fuel to Rs 8 per liter from Rs 15 of the past and kerosene to Rs 4 per liter from Rs 7 of April.
Due resurfaces with IOC
As NOC imported more fuel than what it actually paid to the Indian Oil Corporation (IOC), its outstanding due to its sole supplier of fuel has surfaced yet again. "As at April end, we have some Rs 340 million in outstanding account to settle to the IOC," said Jha.
He said rise in volume of consumption and NOC´s downturn fund flow over the last few months were behind the reemergence of the situation.
Digambhar Jha, NOC chief, who forwarded a letter to this connection to Ministry of Commerce and Supplies on Monday, said NOC´s storage tanks across the country have less than two-thirds fuel in stock at present.
Given its recent deteriorating fund flow, NOC has said that it would not be able to replenish stock from its own resources.
"When we were making profits, we served interests and loans. But we have continued to operate with net loss for the last four months," Jha told Republica.
NOC has argued that loan was needed for building up strategic stock so that it could continue to maintain supplies in case political fiasco continued and unfortunate mishaps struck the country.
The request from NOC comes at a time when it still has loans of over Rs 7 billion to repay to the government. It had taken those loans to finance imports over the span of four years when government´s continued apathy to adjust domestic oil prices in line with import rates turned it bankrupt.
NOC said it has just about 18,000 kiloliters (KL) of diesel in stock, which is far less than its storage capacity of 42,370 KL. Likewise, its nationwide petrol stock stands at 3,030 KL, which is about 60 percent of its total storage capacity. Its kerosene stock stands at 11,800 KL, which is three-fourths of its storage capacity, and aviation fuel stock stands less than two-thirds of its capacity.
Stock of fuel at Thankot, the main supply outlet for the Kathmandu Valley, stands much lower than our national average stock, Jha said.
"We have continued to serve loans whenever we could. But to prepare for possible adverse situation, we still have no option but to turn to government for finances," he said, referring to recent rise in loss figures of petroleum import monopolist.
The government has continued to adjust prices of oil over the last four months, when international crude prices started to jump. However, it has preferred to left prices of liquefied petroleum gas (LPG) untouched. This single product accounts for more than two-thirds of the total loss of NOC.
The latest import rates and fund flow estimates of NOC show it will suffer a loss of Rs 190 million -- from its estimated loss of Rs 310 million in the month of May -- from LPG business alone.
"Our loss figure on diesel too has jumped to Rs 4.10 per liter this month from about Rs 3 of April," Jha said.
Meanwhile, NOC has reported a loss in its profit margin from aviation fuel to Rs 8 per liter from Rs 15 of the past and kerosene to Rs 4 per liter from Rs 7 of April.
Due resurfaces with IOC
As NOC imported more fuel than what it actually paid to the Indian Oil Corporation (IOC), its outstanding due to its sole supplier of fuel has surfaced yet again. "As at April end, we have some Rs 340 million in outstanding account to settle to the IOC," said Jha.
He said rise in volume of consumption and NOC´s downturn fund flow over the last few months were behind the reemergence of the situation.
Crisis management team to help tourists
Effective preparations to support tourists during strikes and bandh
Tourism Crisis Management Committee is actively coming up with plans to support and facilitate tourists during bandh and strike programmes.
“We are making effective preparations to tackle the situation and help tourists during bandh and agitation programmes,” Bikram Neupane, coordinator of Tourism Crisis Management Committee and Security, and chairman of Himalayan Rescue Association (HRA) said.
Frequent strikes and bandh is affecting tourism industry.
Decline in the number of tourists arrival, cancellation of hotel bookings and reservations are negative impacts paralysing the tourism industry. Though, the Tourism Crisis Management Committee was formed a year ago to provide special facilities and packages to avoid inconvenience to tourists during any kind of disruption, it is now planning to develop precautionary measures packages in affiliation
with hotels and restaurants for tourists during bandhs. "It is also starting shuttle services in coordination with locals at remote areas incase of transportation strike and use identical uniforms for people working in tourists transportation during emergency situations," Neupane said adding that there are also concerns shown by different tourism entrepreneurs to grant facilitation in visa during Nepal Tourism Year 2011.
Meanwhile, Hotel Association Nepal (HAN) has said that most of the hotels had bookings and reservations cancellation due to the recent general strike. “Indian tourists and European tourists did majority of the hotel booking cancellations,” informed Madhav Om Shrestha, executive chairman
of HAN.
“Due to the general strike hotel sector faced a total loss of about one billion,” he said adding that there is a need to flow positive information to avoid tourists decline in the next peak season. “We are suffering losses due to booking cancellation of May, June and July but we have to make up our loss in the next season,” Shrestha said. “The cancelled booking also has higher possibilities to get revised if peace and security is maintained in the coming months.” According to TIA immigra
tion office, this is the eleventh consecutive month that has witnessed growth in the international tourists arrival confirming the improved prospects for Nepal due to the rising business and consumer confidence. In the first four months of 2010 a robust 21 per cent cumulative growth has been observed in comparison with the same period last year.
However, tourism entrepreneurs opined that there must be special publicity programmes and flow of positive informations to help increase the tourist arrivals.
Hotel booking cancellation Hotel De l Annapurna 20 pc Hotel Everest 20 pc Hotel Malla 30 pc Hotel Radisson 30 pc Hotel Shangri-La 7 pc Hotel Soaltee 50 pc Hotel Shanker 25 pc (Source: Hotel Association of Nepal) May arrivals to decline KATHMANDU: The number of tourists arrival is likely to drop in May compared to the same period last year due to Icelandic volcanic eruption that has disturbed airlines services across Europe and general strike in Nepal.
Tourism Crisis Management Committee is actively coming up with plans to support and facilitate tourists during bandh and strike programmes.
“We are making effective preparations to tackle the situation and help tourists during bandh and agitation programmes,” Bikram Neupane, coordinator of Tourism Crisis Management Committee and Security, and chairman of Himalayan Rescue Association (HRA) said.
Frequent strikes and bandh is affecting tourism industry.
Decline in the number of tourists arrival, cancellation of hotel bookings and reservations are negative impacts paralysing the tourism industry. Though, the Tourism Crisis Management Committee was formed a year ago to provide special facilities and packages to avoid inconvenience to tourists during any kind of disruption, it is now planning to develop precautionary measures packages in affiliation
with hotels and restaurants for tourists during bandhs. "It is also starting shuttle services in coordination with locals at remote areas incase of transportation strike and use identical uniforms for people working in tourists transportation during emergency situations," Neupane said adding that there are also concerns shown by different tourism entrepreneurs to grant facilitation in visa during Nepal Tourism Year 2011.
Meanwhile, Hotel Association Nepal (HAN) has said that most of the hotels had bookings and reservations cancellation due to the recent general strike. “Indian tourists and European tourists did majority of the hotel booking cancellations,” informed Madhav Om Shrestha, executive chairman
of HAN.
“Due to the general strike hotel sector faced a total loss of about one billion,” he said adding that there is a need to flow positive information to avoid tourists decline in the next peak season. “We are suffering losses due to booking cancellation of May, June and July but we have to make up our loss in the next season,” Shrestha said. “The cancelled booking also has higher possibilities to get revised if peace and security is maintained in the coming months.” According to TIA immigra
tion office, this is the eleventh consecutive month that has witnessed growth in the international tourists arrival confirming the improved prospects for Nepal due to the rising business and consumer confidence. In the first four months of 2010 a robust 21 per cent cumulative growth has been observed in comparison with the same period last year.
However, tourism entrepreneurs opined that there must be special publicity programmes and flow of positive informations to help increase the tourist arrivals.
Hotel booking cancellation Hotel De l Annapurna 20 pc Hotel Everest 20 pc Hotel Malla 30 pc Hotel Radisson 30 pc Hotel Shangri-La 7 pc Hotel Soaltee 50 pc Hotel Shanker 25 pc (Source: Hotel Association of Nepal) May arrivals to decline KATHMANDU: The number of tourists arrival is likely to drop in May compared to the same period last year due to Icelandic volcanic eruption that has disturbed airlines services across Europe and general strike in Nepal.
General strike badly affected the farmers
The indefinite strike called by the UCPN-Maoist had shut down much of Nepal during the agitation programme.
Across the country, most food retailers were unable to re-stock their supply during the period of the strike due to road transportation restrictions. This had varied affects. In Terai markets, there was generally no major problems faced with stock as the majority of food in Nepal is produced in the region and there is relatively fluid border with India. However, as a result of the strike, agricultural producers and traders were unable to move their produce to major consumer markets at large scale. The strike compelled the vegetables farmers to throw their rotten vegetables. This had cost farmers and traders millions of Nepali Rupees. In the Eastern Tarai alone, the Agro-Products Market Operation Committee estimated the loss at over five million, at
the same time, in other areas markets were constrained by food shortages.
As per a report by the World Food Programme the indefinite strike came at a time when traders in Nepal's Mid and Far Western districts were highly re liant on the transportation sec tor. This is because in the com ing month's monsoon will cause landslides and transportation routes become more danger ous, and in some areas blocked all together. To cope with mar ket isolation, traders in these re mote hill and mountain districts have traditionally adopted a pre-monsoon stock piling strategy. However, the strike prevented this for a number of days.
The report also stated that most food retailers were unable to re-stock their supply during the period of the strike due to road transportation restrictions .In Kathmandu, vegetables per ishing on large scale was wit nessed at Kalimati vegetable market. Retail supply of fruit and vegetables in the Valley was also getting low.
The transportation restric tion on vegetables within the Valley was lifted to allow retail ers to restock. Supply con straints for other perishable items such as milk also oc curred. However, the govern ment of Nepal assessed that non-perishable food supply in Kathmandu was generally sub stantial for one month.
Across the country, most food retailers were unable to re-stock their supply during the period of the strike due to road transportation restrictions. This had varied affects. In Terai markets, there was generally no major problems faced with stock as the majority of food in Nepal is produced in the region and there is relatively fluid border with India. However, as a result of the strike, agricultural producers and traders were unable to move their produce to major consumer markets at large scale. The strike compelled the vegetables farmers to throw their rotten vegetables. This had cost farmers and traders millions of Nepali Rupees. In the Eastern Tarai alone, the Agro-Products Market Operation Committee estimated the loss at over five million, at
the same time, in other areas markets were constrained by food shortages.
As per a report by the World Food Programme the indefinite strike came at a time when traders in Nepal's Mid and Far Western districts were highly re liant on the transportation sec tor. This is because in the com ing month's monsoon will cause landslides and transportation routes become more danger ous, and in some areas blocked all together. To cope with mar ket isolation, traders in these re mote hill and mountain districts have traditionally adopted a pre-monsoon stock piling strategy. However, the strike prevented this for a number of days.
The report also stated that most food retailers were unable to re-stock their supply during the period of the strike due to road transportation restrictions .In Kathmandu, vegetables per ishing on large scale was wit nessed at Kalimati vegetable market. Retail supply of fruit and vegetables in the Valley was also getting low.
The transportation restric tion on vegetables within the Valley was lifted to allow retail ers to restock. Supply con straints for other perishable items such as milk also oc curred. However, the govern ment of Nepal assessed that non-perishable food supply in Kathmandu was generally sub stantial for one month.
LG brings new offer
CG Electronics, the authorised manufacturer and distributor of LG electronics in Nepal, has launched `LG Ko Sathma World Cup Hatma' scheme for LG television. Ac cording to the schema, consumers will receive LG wrist watch on the on the purchase of 14" and 15" LG TVs and LG T-shirt of LG football for LG 21'' to LG 29" TVs. And the consumers purchasing LG LCD TV 26" and above will get LG DVD Player. Similarly, with the purchase of every LG TV, consumers need to write down the name of their favourite team and it the nation wins the World Cup then through the lucky draw one person will get to win a World Cup replica along with 5 tolas of gold.
Sunday, May 9, 2010
Workers opting for informal mode to remit money
Though the number of Nepalis leaving for overseas jobs has grown by double-digits, flow of remittances has continued to decrease in recent months, indicating that more people are opting for informal mode of money transfer.
The government had initially attributed the drop in remittances to time-lag impact of the global financial crisis, when Nepalis faced cut in working hours and earned less. But given that more people have continued to find overseas jobs, experts now assess it could be due to increased transfers through hundi, the informal channel.
Latest statsitics of Nepal Rastra Bank (NRB) shows that Nepal received remittances amounting Rs 143.95 billion during the first eight months of 2009/10, growing at just at 9.9 percent over that received in the same period last year. Number of Nepalis leaving for overseas job, on the other hand, has continued to grow by over 11 percent during the period.
Statsitics from the Department of Foreign Employment shows that 173,297 Nepalis left for overseas jobs during the period, up from 155,734 recorded during the same period last year.
“Drop in the value of US dollar, slashed working hours and drop in earning are few big factors behind the low growth rate of remittances.
But what we also doubt is, more people could be using informal channels to send money back home,” said Ganesh Gurung, migration expert and member of National Planning Commission, who looks after foreign employment.
He attributed such possible shift in mode of transfer to lower service charge of Hundis as compared to formal money transfers. As per the government estimation, around 40 percent of the remittance enter the country through informal channel such as hundi and hand carry.
Chandra Dhakal, chairman of IME, a leading money transfer company, agrees, "Fresh reports even pinpoints that foreign agents too are paying commissions to Nepali manpower agents through informal channel,” he told Republica.
Manpower agents did not agree with the report though. Instead, they claimed that workers might have refrained from remitting money because the value of US dollar has declined in recent months.
Despite such new trends, foreign employment agents said that remittance inflow would grow in months to come due to easing of the impact of global financial crisis.
“Earnings of Nepali workers for last couple of months have started to increase of late. This will have its impact on remittances inflow figures in coming months,” said Gyan Prasad Gaire, vice president of Nepal Association of Foreign Employment Agencies (NAFEA).
The government had initially attributed the drop in remittances to time-lag impact of the global financial crisis, when Nepalis faced cut in working hours and earned less. But given that more people have continued to find overseas jobs, experts now assess it could be due to increased transfers through hundi, the informal channel.
Latest statsitics of Nepal Rastra Bank (NRB) shows that Nepal received remittances amounting Rs 143.95 billion during the first eight months of 2009/10, growing at just at 9.9 percent over that received in the same period last year. Number of Nepalis leaving for overseas job, on the other hand, has continued to grow by over 11 percent during the period.
Statsitics from the Department of Foreign Employment shows that 173,297 Nepalis left for overseas jobs during the period, up from 155,734 recorded during the same period last year.
“Drop in the value of US dollar, slashed working hours and drop in earning are few big factors behind the low growth rate of remittances.
But what we also doubt is, more people could be using informal channels to send money back home,” said Ganesh Gurung, migration expert and member of National Planning Commission, who looks after foreign employment.
He attributed such possible shift in mode of transfer to lower service charge of Hundis as compared to formal money transfers. As per the government estimation, around 40 percent of the remittance enter the country through informal channel such as hundi and hand carry.
Chandra Dhakal, chairman of IME, a leading money transfer company, agrees, "Fresh reports even pinpoints that foreign agents too are paying commissions to Nepali manpower agents through informal channel,” he told Republica.
Manpower agents did not agree with the report though. Instead, they claimed that workers might have refrained from remitting money because the value of US dollar has declined in recent months.
Despite such new trends, foreign employment agents said that remittance inflow would grow in months to come due to easing of the impact of global financial crisis.
“Earnings of Nepali workers for last couple of months have started to increase of late. This will have its impact on remittances inflow figures in coming months,” said Gyan Prasad Gaire, vice president of Nepal Association of Foreign Employment Agencies (NAFEA).
Govt shortlists 10 consultants
Ministry of Tourism and Civil Aviation (MoTCA) has shortlisted ten consultants to conduct feasibility study for upgrading Bhairahawa-based Gautam Buddha Airport into a regional airport.
Among the selected companies, BDA, ERMC and Meh Consultant are the firms that have been providing consultancy services to different airport construction projects.
Keshav Prasad Bimali, under secretary at MoTCA, told Republica that different consultants employed in project coordination unit and implementation unit will assess the technical, archeological and social aspects of the airport adjoining the birthplace of Lord Buddha.
The project estimated to cost $46.5 million is expected to complete within five years. OPEC Fund is making a loan investment of $15.5 million in the project, while Asian Development Bank (ADB) is chipping in with grant assistance worth $12 million. The government is arranging the remaining $6 million from state treasury.
Suman Shrestha, director of Civil Aviation Authority of Nepal (CAAN), said the government would select local contractor for construction works.
CAAN and Lumbini Development Trust are the implementing partners of the project.
According to MoTCA sources, the selection process of consultants and contractors will complete within this year and the project will be completed by 2015. Donor agencies have already expressed their commitments to invest in the project.
Under the upgradation works, the government will expand the existing 1800m long runway to 2,600 meters and also construct apron and air ring-road.
“The loan and grant assistance would be executed from 2011,” Bimali said.
CAAN officials said the land acquisition works for the project would be completed by the first quarter of fiscal year 2010/2011.
The government recently allocated an additional Rs 100 million for land acquisition. Earlier, it had released Rs 160 million for the purpose.
Apart from upgradation works, the project will also promote co-operatives for the overall development of local community in 7 village development committees of Kapilvastu.
Among the selected companies, BDA, ERMC and Meh Consultant are the firms that have been providing consultancy services to different airport construction projects.
Keshav Prasad Bimali, under secretary at MoTCA, told Republica that different consultants employed in project coordination unit and implementation unit will assess the technical, archeological and social aspects of the airport adjoining the birthplace of Lord Buddha.
The project estimated to cost $46.5 million is expected to complete within five years. OPEC Fund is making a loan investment of $15.5 million in the project, while Asian Development Bank (ADB) is chipping in with grant assistance worth $12 million. The government is arranging the remaining $6 million from state treasury.
Suman Shrestha, director of Civil Aviation Authority of Nepal (CAAN), said the government would select local contractor for construction works.
CAAN and Lumbini Development Trust are the implementing partners of the project.
According to MoTCA sources, the selection process of consultants and contractors will complete within this year and the project will be completed by 2015. Donor agencies have already expressed their commitments to invest in the project.
Under the upgradation works, the government will expand the existing 1800m long runway to 2,600 meters and also construct apron and air ring-road.
“The loan and grant assistance would be executed from 2011,” Bimali said.
CAAN officials said the land acquisition works for the project would be completed by the first quarter of fiscal year 2010/2011.
The government recently allocated an additional Rs 100 million for land acquisition. Earlier, it had released Rs 160 million for the purpose.
Apart from upgradation works, the project will also promote co-operatives for the overall development of local community in 7 village development committees of Kapilvastu.
Call to change taxation policy
Impractical taxation policy for gold traders has decreased the gold transaction volume, blamed the traders.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association of Nepal (NEGOSIDA) said that the government taxation policy is not practical for the traders.
"According to the policy, government has imposed tax on more than 15 per cent of profit, which is not practical for gold and silver traders," said Shakya.
According to him, in raw gold total profit a trader gets is 0.001 per cent while incase of ornaments the profit is only 0.5 per cent to two per cent which is quite minimum.
"During the transaction of one kg of gold we have to invest about Rs 2.7 million and the profit earned from it ranges from Rs 4,000 to Rs 5,000 on an average and rarely its upto Rs 8,000," Shakya said adding that government should revise the taxation policy for the gold and silver traders.
At present, traders need PAN number to buy gold from the banks but most of the traders do not have transactions record as they are suffering from low N volume of transactions.
e "The traders are afraid of s the ineffective taxation system d that is neither encouraging nor effective for the gold traders," he added. "It has also decreased the volume of transaction and has increased black marketing."
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association of Nepal (NEGOSIDA) said that the government taxation policy is not practical for the traders.
"According to the policy, government has imposed tax on more than 15 per cent of profit, which is not practical for gold and silver traders," said Shakya.
According to him, in raw gold total profit a trader gets is 0.001 per cent while incase of ornaments the profit is only 0.5 per cent to two per cent which is quite minimum.
"During the transaction of one kg of gold we have to invest about Rs 2.7 million and the profit earned from it ranges from Rs 4,000 to Rs 5,000 on an average and rarely its upto Rs 8,000," Shakya said adding that government should revise the taxation policy for the gold and silver traders.
At present, traders need PAN number to buy gold from the banks but most of the traders do not have transactions record as they are suffering from low N volume of transactions.
e "The traders are afraid of s the ineffective taxation system d that is neither encouraging nor effective for the gold traders," he added. "It has also decreased the volume of transaction and has increased black marketing."
DRI penalizes Paragon school
Department of Revenue Investigation (DRI) has slapped fine worth Rs 3.7 million to Kathmandu-based Paragon Public School on the charges of evading taxes.
An official at the department told Republica that nearly a year-long investigation carried out by DRI concluded that the school evaded both the education service fee and income tax. DRI slapped a fine of Rs 1.86 million for evading education service fee, while the remaining Rs 1.85 million was imposed for dodging income tax.
The government had imposed a five percent education service fee on admission and monthly tuition fee from last year.
The penalty was slapped on the transactions of the school recorded till the fiscal year 2009/10. The fine is on the top of Rs 4.5 million that the school management had paid to the government under the Voluntary Tax Disclosure Scheme (VDIS) launched by the Maoist-led government last year.
The investigation found that though the school management was paying income taxes on a regular basis, the amount it paid was far less the amount required by the law, said an official at the department.
We found some of the transactions were not properly recorded while filing taxable transactions like rent tax, salary income tax and profit tax among others, said a DRI official.
The official further added that they were closely watching transactions of some big schools in Kathamandu and said they would take action once the initial investigation unearths some clues.
An official at the department told Republica that nearly a year-long investigation carried out by DRI concluded that the school evaded both the education service fee and income tax. DRI slapped a fine of Rs 1.86 million for evading education service fee, while the remaining Rs 1.85 million was imposed for dodging income tax.
The government had imposed a five percent education service fee on admission and monthly tuition fee from last year.
The penalty was slapped on the transactions of the school recorded till the fiscal year 2009/10. The fine is on the top of Rs 4.5 million that the school management had paid to the government under the Voluntary Tax Disclosure Scheme (VDIS) launched by the Maoist-led government last year.
The investigation found that though the school management was paying income taxes on a regular basis, the amount it paid was far less the amount required by the law, said an official at the department.
We found some of the transactions were not properly recorded while filing taxable transactions like rent tax, salary income tax and profit tax among others, said a DRI official.
The official further added that they were closely watching transactions of some big schools in Kathamandu and said they would take action once the initial investigation unearths some clues.
Nepse continues free fall
The stock market opened today after a week-long closure. However, the market could not cheer the investors as it dropped by 6.26 points to close the day's trading at 413.02 points from the morning opening at 419.28 points.
The float index -the real barometre of the trading -dropped by 0.59 points to 34.71 points.
The others and commercial banks sub-groups dragged the Nepse down as these sub-groups plunged by 9.4 points to 513.46 points and 7.31 points to 368.53 points. All the sun-groups that witnessed trading lost today.
Nepal Telecom lost Rs 8 per unit pulling the others sub group. Similarly, most of the commercial banks -Standard Chartered Bank, Everest Bank and Laxmi Bank lost Rs 75, Rs 51 and Rs 30 per unit -lost to pull the sub group down. Hydropower, insurance and development banks sub groups also followed by shedding 4 points, 3.31 points and 3.03 points, respectively.
The investors were hopeful that Nepse might look upwards after a week-long closure as it also had happened last time when they had closed the secondary market protesting the government apathy towards the market.
Individually Arun Valley Hydropower and DCBL gained Rs 8 and Rs 4 per unit share.
The total turnover today stood at Rs 9.638 million through 615 transactions of 30,536 shares. The market capitalisation -that has topped 600,000 million last year -stood at Rs 320,761.02 million. The float market capitalisation (real transaction) stood at Rs 80,633.45 million. Bank of Kathmandu, Vibor Bikas Bank and Prime Commercial Bank topped the chart in terms of highest turnover.
Twice -in last two months time period from February 21 to May 1 -the stock market closed and the government and Security Board of Nepal (Sebon) were least bothered.
The secondary market -that operated even during the 19-day Jana Andolan II in 2006 -closed for the whole week and the government, stock exchange and regulatory authority became mere spectators. They did nothing to boost the confidence of the 1.5 million investors.
The investors had closed the Nepse for a week -from February 21 to 26 -demanding the central bank's regulation be changed as, according to them, it was not favourable to them.
The float index -the real barometre of the trading -dropped by 0.59 points to 34.71 points.
The others and commercial banks sub-groups dragged the Nepse down as these sub-groups plunged by 9.4 points to 513.46 points and 7.31 points to 368.53 points. All the sun-groups that witnessed trading lost today.
Nepal Telecom lost Rs 8 per unit pulling the others sub group. Similarly, most of the commercial banks -Standard Chartered Bank, Everest Bank and Laxmi Bank lost Rs 75, Rs 51 and Rs 30 per unit -lost to pull the sub group down. Hydropower, insurance and development banks sub groups also followed by shedding 4 points, 3.31 points and 3.03 points, respectively.
The investors were hopeful that Nepse might look upwards after a week-long closure as it also had happened last time when they had closed the secondary market protesting the government apathy towards the market.
Individually Arun Valley Hydropower and DCBL gained Rs 8 and Rs 4 per unit share.
The total turnover today stood at Rs 9.638 million through 615 transactions of 30,536 shares. The market capitalisation -that has topped 600,000 million last year -stood at Rs 320,761.02 million. The float market capitalisation (real transaction) stood at Rs 80,633.45 million. Bank of Kathmandu, Vibor Bikas Bank and Prime Commercial Bank topped the chart in terms of highest turnover.
Twice -in last two months time period from February 21 to May 1 -the stock market closed and the government and Security Board of Nepal (Sebon) were least bothered.
The secondary market -that operated even during the 19-day Jana Andolan II in 2006 -closed for the whole week and the government, stock exchange and regulatory authority became mere spectators. They did nothing to boost the confidence of the 1.5 million investors.
The investors had closed the Nepse for a week -from February 21 to 26 -demanding the central bank's regulation be changed as, according to them, it was not favourable to them.
Stock trading resumes
Nepal Stock Exchange (Nepse) resumed trading after a hiatus of 11 days on Sunday but saw its index drop by 1.49 percent or 6.26 points. Stock trading resumed after UCPN (Maoist) called off their nationwide strike on Friday.
Sensitive index, which measures the trading of Category ´A´ companies listed in the secondary market, also went down by 1.63 points to settle at 100.9 points.
Though transactions resumed after a long gap, share investors did not show up as expected due to eroding investment confidence in the secondary market.
“We had limited investors and majority of them were willing to sell their shares,” a stockbroker told Republica.
All trading groups saw their sub-indices go down on the day´s trading, dragging the the Nepse index down. Banking and Development Bank groups declined by 7.31 points and 3.03 points to close at 368.53 points and 425.37 points respectively.
Similarly, the sub-indices of Hydropower and Finance groups plunged by 4 points and 1.17 points to settle at 647.1 points and 410.83 points respectively.
Insurance and Others groups also shed 3.31 points and 9.4 points in their sub-indices to close at 552.82 points and 513.46 points respectively.
A total of 30,536 units of shares and 56 scrips worth Rs 9.63 million changed hands through 615 transactions on Sunday. Total market capitalization -- total value of listed shares - was recorded at Rs 320.76 billion.
Sensitive index, which measures the trading of Category ´A´ companies listed in the secondary market, also went down by 1.63 points to settle at 100.9 points.
Though transactions resumed after a long gap, share investors did not show up as expected due to eroding investment confidence in the secondary market.
“We had limited investors and majority of them were willing to sell their shares,” a stockbroker told Republica.
All trading groups saw their sub-indices go down on the day´s trading, dragging the the Nepse index down. Banking and Development Bank groups declined by 7.31 points and 3.03 points to close at 368.53 points and 425.37 points respectively.
Similarly, the sub-indices of Hydropower and Finance groups plunged by 4 points and 1.17 points to settle at 647.1 points and 410.83 points respectively.
Insurance and Others groups also shed 3.31 points and 9.4 points in their sub-indices to close at 552.82 points and 513.46 points respectively.
A total of 30,536 units of shares and 56 scrips worth Rs 9.63 million changed hands through 615 transactions on Sunday. Total market capitalization -- total value of listed shares - was recorded at Rs 320.76 billion.
NCC bank posts profit
Nepal Credit and Commerce (NCC) Bank has earned profit of Rs 468 million in the third quarter of the current fiscal year. In the last quarter reserve fund declined by Rs 6 million while in this quarter the reserve fund increased by Rs 45.8 million. The bank was able to collect deposit worth Rs 9.784 billion and floated the loans worth Rs 8.708 billion. In this quarter bank's total nonperforming loans have been decreased by 2.6 per cent.
Visa fee exemption
Thailand has re newed its tourist visa fee exemption scheme, which was terminated on March 4 this year; this year's scheme will start from May 11 lasting till March 31 next year. This scheme also covers exemption of the fee for Visa on Arrival (VOA); the exemption scheme is not extended to Non-Immigrant visa and Transit visa. The visa applicants who apply for Tourist Visa do not need to attach demand draft for visa fee. However, ordinary passport holder who wishes to obtain Tourist Visa is required to apply through VFS Thai Visa Application Centre and VFS service charges will be applicable.
NATO welcomes move
Nepal Association of Tour Operators (NATO) has welcomed the decision taken by the UCPN Maoist to call off its nationwide general strike. According to the press note, NATO has also appreciated UCPNMaoist for facilitating the movement of tourists during the general strike. The association has urged all the responsible parties, including the UCPNMaoist and the government to resolve the existing political problem through talks.
NFTA hails Maoist step
Nepal Foreign Trade Association (NFTA) releasing a press note has thanked UCPN-Maoist for withdrawing the general strike. According to the press note, strike badly paralysed industries, businesses and general public. NFTA has urged the party to settle the disputes with mutual talks and agreement.
Nepal at Arabian Travel Market
Middle East -specially Dubai -comprises of a higher share of potential economic centers with its growing cosmopolitan cultural juncture where people from different nationality and diverse ethnic group reside in the well maintained harmony with the locals. It has also been emerging as the prime destination for the tourists from the world. With the view to cater and enhnace the traffic flow from the middle east market. The NTB -in association with Nepal Airlines Corporation and eight travel trade companies -took part at Arabian Travel Market being held in Dubai International Convention and Exhibition Center from may 4-7. Gorkarna Forest Golf Resort, The Everest Hotel, Hyatt Regency, Kathmandu, De'l Annapurna Hotel, Yeti Travels, Kundalini Tours and Travels, Nepal Nova Treks and Expedition, Explore Nepal took part in the expo.
The opening ceremony was conducted amongst thousands of Travel Trade visitors from across the world on the gracious presence of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai on May 4. Arjun Bahadur Thapa, ambasaador & Dipak Adhikari, deputy chief of mission in Nepal Embassy Abudhabi welcomed the visiting VVIPs and delegates at the Nepal stall. `Nepal Tourism Year 2011' became the center of attraction throughout the fair amongst the persuants specifically the media and tarde visitors who have shown a high enthusiasm to visit Nepal.
The opening ceremony was conducted amongst thousands of Travel Trade visitors from across the world on the gracious presence of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai on May 4. Arjun Bahadur Thapa, ambasaador & Dipak Adhikari, deputy chief of mission in Nepal Embassy Abudhabi welcomed the visiting VVIPs and delegates at the Nepal stall. `Nepal Tourism Year 2011' became the center of attraction throughout the fair amongst the persuants specifically the media and tarde visitors who have shown a high enthusiasm to visit Nepal.
NTY promotion at Indian border cities
Nepal Tourism Year (NTY) 2011 Coordinating Committee -with an aim to bring 3,00,000 Indian tourists -is going to start its promotional programme at the Indian border cities.
"We are set for the promotion programme at Gorakhpur, Lucknow, Raxual, Sitamadi, and Sunauli and other places at the Nepal-India border cities," said Dhruba Narayan Shrestha, coordinator of tourism sector at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and a member of NTY 2011 working committee.
For the promotion of NTY 2011, the committee has already made feasibility study of bordering cities. The study has been done at 10 different border points of Nepal, Shrestha said adding that to facilitate the visitors Nepal Tourism Board (NTB) along with private sector will develop a one window system at the border area.
"For all the visitors, we are planning one window system at different border points that will facilitate Immigration, Custom, Transportation Office, Food court, Nepali Handicraft Exhibition Centre and other facilities required for tourist when they reach the border points," said Shrestha.
The study has been made on border points like Birgunj, Biratnagar, Bhairahawa, Kakarbhitta, Dhangadi, Pashupati Nagar, Janakpur and Nepalgunj. It is expected to provide cross border facilities for tourist and visitors on reaching the border points. "We are setting up to attract around 3,00,000 Indian tourists and 1,00,000 Chinese tourists for the year 2011," he said.
On an average some 35,000 Chinese tourist visit Nepal annually. In April, there has been sustained growth of 45.3 per cent in China visitors as China is one of the fastest growing tourist markets for Nepal. Similarly, visitors' arrival from India -which is the largest source market for Nepal -has registered sustained growth since the beginning of 2010 but it witnessed a soft decline by 2.6 per cent in April.
Tourism is one of the largest industries in Nepal which is the largest source of foreign ex change and revenue.
Shrestha said that the sup port given to tourism sector from the Maoist during their general strike is quite appreciating though the strike has hit the tourist arrivals.
"The strike and bandhs will have less impact on Indian tourist as they can even make bookings and reservation 15 days or a month before but in case of tourists other than In dia, the bookings are done six months or a year earlier," he sid adding that "therefore Indi an tourists are in focus for the year 2011.
With a surge in the arrival of Indian tourist number, Indian Airlines is also on its way to start its flights to Kathmandu.
According to the tourism en trepreneurs, Indian tourists are quality tourist with high purchase capacity. Indian tourists spend 40 per cent more than tourist coming from other countries.
With three Indian airlines Indian Airlines, Jet Airlines and Kingfisher Airlines -a total of 57 flights land at the Trib huwan International Airport.
With the most advanced infra structure among urban areas in Nepal, Kathmandu's econo my is tourism centric account ing for 3.8 per cent of the GDP in 1995-96 that declined since then due to political unrest but is picking up slowly.
"We are set for the promotion programme at Gorakhpur, Lucknow, Raxual, Sitamadi, and Sunauli and other places at the Nepal-India border cities," said Dhruba Narayan Shrestha, coordinator of tourism sector at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and a member of NTY 2011 working committee.
For the promotion of NTY 2011, the committee has already made feasibility study of bordering cities. The study has been done at 10 different border points of Nepal, Shrestha said adding that to facilitate the visitors Nepal Tourism Board (NTB) along with private sector will develop a one window system at the border area.
"For all the visitors, we are planning one window system at different border points that will facilitate Immigration, Custom, Transportation Office, Food court, Nepali Handicraft Exhibition Centre and other facilities required for tourist when they reach the border points," said Shrestha.
The study has been made on border points like Birgunj, Biratnagar, Bhairahawa, Kakarbhitta, Dhangadi, Pashupati Nagar, Janakpur and Nepalgunj. It is expected to provide cross border facilities for tourist and visitors on reaching the border points. "We are setting up to attract around 3,00,000 Indian tourists and 1,00,000 Chinese tourists for the year 2011," he said.
On an average some 35,000 Chinese tourist visit Nepal annually. In April, there has been sustained growth of 45.3 per cent in China visitors as China is one of the fastest growing tourist markets for Nepal. Similarly, visitors' arrival from India -which is the largest source market for Nepal -has registered sustained growth since the beginning of 2010 but it witnessed a soft decline by 2.6 per cent in April.
Tourism is one of the largest industries in Nepal which is the largest source of foreign ex change and revenue.
Shrestha said that the sup port given to tourism sector from the Maoist during their general strike is quite appreciating though the strike has hit the tourist arrivals.
"The strike and bandhs will have less impact on Indian tourist as they can even make bookings and reservation 15 days or a month before but in case of tourists other than In dia, the bookings are done six months or a year earlier," he sid adding that "therefore Indi an tourists are in focus for the year 2011.
With a surge in the arrival of Indian tourist number, Indian Airlines is also on its way to start its flights to Kathmandu.
According to the tourism en trepreneurs, Indian tourists are quality tourist with high purchase capacity. Indian tourists spend 40 per cent more than tourist coming from other countries.
With three Indian airlines Indian Airlines, Jet Airlines and Kingfisher Airlines -a total of 57 flights land at the Trib huwan International Airport.
With the most advanced infra structure among urban areas in Nepal, Kathmandu's econo my is tourism centric account ing for 3.8 per cent of the GDP in 1995-96 that declined since then due to political unrest but is picking up slowly.
Vegetable price back to normal
Vegetable prices came down and started to normalise in the markets of Kathmandu as UCPN-Maoist called off the indefinite general strike. “Green vegetable prices are returning to normal, Bipin Poudel,” a wholesaler at the Kalimati Fruits and Vegetables Market (KFVM).
Price of vegetable is coming down due to huge supply from nearby districts — Dhading, Nuwakot, Kavre and Chitwan. Over 1,100 metric tonnes (MT) of fresh vegetables entered the KFVM today morning which is around 70 per cent more than the normal day’s supply of 650 MT.
“The fresh supply has reduced green vegetable price significantly,” Pralhad Kafle, another wholesaler said. “I lost Rs 10 in a kg of lady finger within six hours as the price came down to Rs 11 kg per kg by the evening,” he said.
He had bought 200 kg lady finger at the rate of Rs 22 kg. Wholesalers are selling tomato, pumpkin and cucumber at Rs 28 per kg, Rs 14 per kg and Rs 18 per kg. The price was Rs 80, Rs 40 and Rs 60 Yesterday. The price of Cabbage has come down to Rs 10 from Rs 25-30.
Thousands of consumers thronged KFVM to buy vegetable at reasonable price today. “Buyers have doubled today,” said Muskan Maharjan, a tea seller at the KFVM. “I am here to buy vegetables in cheap price,” said Sabina Shakya of Shoka Tole.
Consumers are buying vegetable in bulk as the uncertainty still continues.
Rita Gurung of Kuleshwor bought 60 kg vegetables for a week. “I am buying vegetables for next two week as the situation is not clear yet,” she said. Usually she buys 25-30 kg vegetables to feed her 11 member family.
Dissimilarity in prices is also seen in markets of Kathmandu Valley — Bagbazar, New Baneshwor, Kalanki and Lagankhel.
Vegetable wholesaler of New Baneshwor are selling Tomato, pumpkin and cucumber in around two rupees more in a ka than of Kalimati.
Price of vegetable is coming down due to huge supply from nearby districts — Dhading, Nuwakot, Kavre and Chitwan. Over 1,100 metric tonnes (MT) of fresh vegetables entered the KFVM today morning which is around 70 per cent more than the normal day’s supply of 650 MT.
“The fresh supply has reduced green vegetable price significantly,” Pralhad Kafle, another wholesaler said. “I lost Rs 10 in a kg of lady finger within six hours as the price came down to Rs 11 kg per kg by the evening,” he said.
He had bought 200 kg lady finger at the rate of Rs 22 kg. Wholesalers are selling tomato, pumpkin and cucumber at Rs 28 per kg, Rs 14 per kg and Rs 18 per kg. The price was Rs 80, Rs 40 and Rs 60 Yesterday. The price of Cabbage has come down to Rs 10 from Rs 25-30.
Thousands of consumers thronged KFVM to buy vegetable at reasonable price today. “Buyers have doubled today,” said Muskan Maharjan, a tea seller at the KFVM. “I am here to buy vegetables in cheap price,” said Sabina Shakya of Shoka Tole.
Consumers are buying vegetable in bulk as the uncertainty still continues.
Rita Gurung of Kuleshwor bought 60 kg vegetables for a week. “I am buying vegetables for next two week as the situation is not clear yet,” she said. Usually she buys 25-30 kg vegetables to feed her 11 member family.
Dissimilarity in prices is also seen in markets of Kathmandu Valley — Bagbazar, New Baneshwor, Kalanki and Lagankhel.
Vegetable wholesaler of New Baneshwor are selling Tomato, pumpkin and cucumber in around two rupees more in a ka than of Kalimati.
No Trading at NEPSE due to general strike
It can only happen in Nepal.
Twice — in two months time period from February 21 to May 1 — the stock market closed and the government and Security Board of Nepal (Sebon) were least bothered.
The secondary market — that operated even during the 19-day Jana Andolan II in 2006 — closed for the whole week and the government, stock exchange and regulatory authority became mere spectators. They did nothing to boost the confidence of the 1.5 million investors.
“The government is more revenue-centric,” said Mahesh Pandit, an investor, who wanted to sell his shares to send his son for further study but could not due to closure of the Nepse.
“It is quite rare in the world that the stock market is closed,” he said adding that the government and Finance Ministry has no interest in capital market development and investors protection. “I also doubt the Finance Minister’s ability of understanding of stock market and its value in the economy,” he added.
Earlier, investors closed the Nepse for a week — from February 21 to 26 — demanding the central bank’s regulation be changed as, according to them, it was not favourable to them.
Last fiscal year, Nepse had contributed around Rs 930
million to the government coffer but this year, it would plunge three times lower due to poor performance and repeated closure.
Like government, some investors have also taken the closure of Nepse lightly. “The Nepse has been performing poorly due to low confidence,” said an investor without wanting to be quoted. “On one hand, the closure has stopped the free fall of Nepse and on the other, after the closure, there is a chance of Nepse looking up,” he added.
After a week-long closure of Nepse — due to investors’ strike — in the last week of February, the Nepse started looking up. “But the trend could not continue,” he said.
The market had closed at 485.14 points on February 18. After a week-long strike,when the market opened on March 1, the Nepse gained 12.72 points to 497.86 points. But the growth could not continue and after two weeks it came down to as low as 481.19 points.
The new investors might loose confidence in the market, if the market repeatedly closes. At a time when the capital market is bearish due to low investors’ confidence, its going to have negative impact on the investors’ psychology and the chances of panic selling might bring the Nepse down.
The market has closed at 419.28 points a week ago.
Twice — in two months time period from February 21 to May 1 — the stock market closed and the government and Security Board of Nepal (Sebon) were least bothered.
The secondary market — that operated even during the 19-day Jana Andolan II in 2006 — closed for the whole week and the government, stock exchange and regulatory authority became mere spectators. They did nothing to boost the confidence of the 1.5 million investors.
“The government is more revenue-centric,” said Mahesh Pandit, an investor, who wanted to sell his shares to send his son for further study but could not due to closure of the Nepse.
“It is quite rare in the world that the stock market is closed,” he said adding that the government and Finance Ministry has no interest in capital market development and investors protection. “I also doubt the Finance Minister’s ability of understanding of stock market and its value in the economy,” he added.
Earlier, investors closed the Nepse for a week — from February 21 to 26 — demanding the central bank’s regulation be changed as, according to them, it was not favourable to them.
Last fiscal year, Nepse had contributed around Rs 930
million to the government coffer but this year, it would plunge three times lower due to poor performance and repeated closure.
Like government, some investors have also taken the closure of Nepse lightly. “The Nepse has been performing poorly due to low confidence,” said an investor without wanting to be quoted. “On one hand, the closure has stopped the free fall of Nepse and on the other, after the closure, there is a chance of Nepse looking up,” he added.
After a week-long closure of Nepse — due to investors’ strike — in the last week of February, the Nepse started looking up. “But the trend could not continue,” he said.
The market had closed at 485.14 points on February 18. After a week-long strike,when the market opened on March 1, the Nepse gained 12.72 points to 497.86 points. But the growth could not continue and after two weeks it came down to as low as 481.19 points.
The new investors might loose confidence in the market, if the market repeatedly closes. At a time when the capital market is bearish due to low investors’ confidence, its going to have negative impact on the investors’ psychology and the chances of panic selling might bring the Nepse down.
The market has closed at 419.28 points a week ago.
Central Bank to Issue Citizen Bond
Nepal Rastra Bank (NRB) is issuing Citizen Bond worth Rs 5 billion. The ‘Citizen Bond 2070 ka’ — that as a maturity period of in three years — offers 9.5 per cent interest.
The Public Debt Management Department of the NRB is floating ‘Citizen Bond 2070 ka’ from May 12 to June 1. “The interest rate will be paid every six months until the maturity period,” said the central bank.
“The bond will be listed at the Nepal Stock Exchange (Nepse) and can be used as a collateral against loan.” Though the secondary market has listed 16 government bonds and 13 corporate bonds, the Nepse has not witnessed any trading of bonds so far. The government bonds started to be listed at the secondary mar
ket in November 2005.
According to the Nepse, it has listed a total of 224 million units of government bonds worth Rs 22.4 billion. Among the listed fifteen development bonds four will mature within this year.
Similarly, Nepse has also listed corporate debenture of commercial banks. A corporate debenture is also a bond issued by a company to raise money in order to expand its business.
Nepse has listed 4.975 million units of corporate debenture worth Rs 1000 per unit amounting to Rs 4.975 billion.
NEA has listed the highest number of bond — 1500 unit — worth Rs 1.5 billion. Nepse has also alloted the time of trading for the bonds. “Every morning — from Sunday to Friday — the bonds could be traded from 10.30 to 11.30,” according to the Nepse.
All the listed bonds make up about 25 per cent of the total listed securities in the secondary market. The government bonds covers around 20 per cent of the total paid up value of the securities listed in the Nepse. Similarly, corporate bonds cover the 4.43 per cent of total paid up value of the listed securities. A bond is a debt security, in which the authorised issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.
Despite being the safest investment instrument, the domestic secondary market has not seen trading of government bonds. “Stocks, bonds and mutual funds are the most popular asset classes but in domestic secondary market the stocks are more popular due to high and quick return,” said Rabindra Bhattaria, a renowned market analyst.
“Bonds and stocks are both securities but the major difference between the two is that stockholders have an equity stake in the company means stock holders are owners, whereas bondholders are only lenders,” he said adding that another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. The ignorance of the general public about bonds and lust of high return in short time from stocks made investors trade only stocks. “High return means a high risk also,” Bhattarai said adding that the bonds is the safest instrument.
The Public Debt Management Department of the NRB is floating ‘Citizen Bond 2070 ka’ from May 12 to June 1. “The interest rate will be paid every six months until the maturity period,” said the central bank.
“The bond will be listed at the Nepal Stock Exchange (Nepse) and can be used as a collateral against loan.” Though the secondary market has listed 16 government bonds and 13 corporate bonds, the Nepse has not witnessed any trading of bonds so far. The government bonds started to be listed at the secondary mar
ket in November 2005.
According to the Nepse, it has listed a total of 224 million units of government bonds worth Rs 22.4 billion. Among the listed fifteen development bonds four will mature within this year.
Similarly, Nepse has also listed corporate debenture of commercial banks. A corporate debenture is also a bond issued by a company to raise money in order to expand its business.
Nepse has listed 4.975 million units of corporate debenture worth Rs 1000 per unit amounting to Rs 4.975 billion.
NEA has listed the highest number of bond — 1500 unit — worth Rs 1.5 billion. Nepse has also alloted the time of trading for the bonds. “Every morning — from Sunday to Friday — the bonds could be traded from 10.30 to 11.30,” according to the Nepse.
All the listed bonds make up about 25 per cent of the total listed securities in the secondary market. The government bonds covers around 20 per cent of the total paid up value of the securities listed in the Nepse. Similarly, corporate bonds cover the 4.43 per cent of total paid up value of the listed securities. A bond is a debt security, in which the authorised issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.
Despite being the safest investment instrument, the domestic secondary market has not seen trading of government bonds. “Stocks, bonds and mutual funds are the most popular asset classes but in domestic secondary market the stocks are more popular due to high and quick return,” said Rabindra Bhattaria, a renowned market analyst.
“Bonds and stocks are both securities but the major difference between the two is that stockholders have an equity stake in the company means stock holders are owners, whereas bondholders are only lenders,” he said adding that another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. The ignorance of the general public about bonds and lust of high return in short time from stocks made investors trade only stocks. “High return means a high risk also,” Bhattarai said adding that the bonds is the safest instrument.
International Market Pushes Gold Price Up
Taking cue from the international price, the gold witnessed the rise in price in the domestic market, though the market didnot see any trading during the whole week due to UCPNMaoist called general strike since Sunday. Tej Ratna Shakya, president Nepal Gold and Silver Traders Association (Negosida) said that the whole week did not see a single trading of gold, though the market has a demand of 10 kg of gold per day at present. However, the precious metal witnessed a price rise of Rs 455 per 10 gram to close at Rs 28,415 this Thursday. The price was not fixed on Friday.
Gold that was closed at Rs 27, 940 last Friday opened at Rs 28,100 on Sunday. On Monday it went up to Rs 28,102 and continued rising
on Tuesday to Rs 28,175 per 10 gram. The price cooled a little on Wednesday to Rs 28,160 but the international price again pushed the price up to Rs 28,415 per 10 gram on Thursday. At present the bankers provide tentative price of gold to traders within 10:30 am for local market pricing, unlike earlier practice of price fixing by the Negosida it self.
After settling at a fivemonth high, gold sharply extended gains above $1,200 an ounce — In the international market — as a perceived safe haven when US equities cratered on European sovereign debt fears and worries about regulatory changes. Most actively traded gold, for June delivery, hit $1,211.90 in electronic activity on the Comex division of the New York Mercantile Exchange after the Dow Jones Industrial Average lost nearly 1,000 points. It was the metal’s strongest price since early December.
The intensified fear boosted the flight-to-safety buying in gold that had already helped the metal sharply higher during the day. The June gold contract settled its regular floor session $22.30, or 1.9 per cent higher at $1,197.30 an ounce. The higher gold price is notable because it comes despite the continued rally in the US dollar.
Normally, a higher buck pressures the dollar-denominated metal by making it more expensive for buyers using other currencies, hurting demand.
In addition to moving into the dollar as a refuge, participants are shifting assets into dollar-denominated gold and Treasurys. The fact that the greenback and gold are up at the same time indicates investors are moving into both in their traditional roles as safe havens.
Gold that was closed at Rs 27, 940 last Friday opened at Rs 28,100 on Sunday. On Monday it went up to Rs 28,102 and continued rising
on Tuesday to Rs 28,175 per 10 gram. The price cooled a little on Wednesday to Rs 28,160 but the international price again pushed the price up to Rs 28,415 per 10 gram on Thursday. At present the bankers provide tentative price of gold to traders within 10:30 am for local market pricing, unlike earlier practice of price fixing by the Negosida it self.
After settling at a fivemonth high, gold sharply extended gains above $1,200 an ounce — In the international market — as a perceived safe haven when US equities cratered on European sovereign debt fears and worries about regulatory changes. Most actively traded gold, for June delivery, hit $1,211.90 in electronic activity on the Comex division of the New York Mercantile Exchange after the Dow Jones Industrial Average lost nearly 1,000 points. It was the metal’s strongest price since early December.
The intensified fear boosted the flight-to-safety buying in gold that had already helped the metal sharply higher during the day. The June gold contract settled its regular floor session $22.30, or 1.9 per cent higher at $1,197.30 an ounce. The higher gold price is notable because it comes despite the continued rally in the US dollar.
Normally, a higher buck pressures the dollar-denominated metal by making it more expensive for buyers using other currencies, hurting demand.
In addition to moving into the dollar as a refuge, participants are shifting assets into dollar-denominated gold and Treasurys. The fact that the greenback and gold are up at the same time indicates investors are moving into both in their traditional roles as safe havens.
Biz leaders press for consensus
Business leaders, who played a crucial role to pressurize Maoists to postpone their indefinite general strike, have taken fresh initiatives to pile pressure on political parties to seek solution to the current political stalemate through consensus.
On Sunday, a delegation of business community lead by President of Federation of Nepalese Chambers of Commerce and Industries (FNCCI) Khus Kumar Joshi met with Prime Minister Madhav Nepal and Acting President of Nepali Congress Sushil Koirala and asked them to end the deadlock through consensus.
The delegation, which met the prime minister at his residence, told the prime minister that FNCCI, with support from professional organizations, organized peace assemblies across the country to save the country from sliding into chaos.
The business leaders complained that the business community has been suffering from Maoist extortion and asked the government to take effective measures to discourage illegal donation collection drive of the Maoists, said a statement issed by the FNCCI.
In response, the prime minister told the business community that he would take initiatives to bring together the three major parties if the Maoists cooperate to evacuate the cantonments and disband the paramilitary structure of Young Communist League.
He further said there would not be environment of trust until the Maoists continue to have armed combatants, the prime minister´s Press Advisor Bishnu Rijal said in a statement.
On Sunday, a delegation of business community lead by President of Federation of Nepalese Chambers of Commerce and Industries (FNCCI) Khus Kumar Joshi met with Prime Minister Madhav Nepal and Acting President of Nepali Congress Sushil Koirala and asked them to end the deadlock through consensus.
The delegation, which met the prime minister at his residence, told the prime minister that FNCCI, with support from professional organizations, organized peace assemblies across the country to save the country from sliding into chaos.
The business leaders complained that the business community has been suffering from Maoist extortion and asked the government to take effective measures to discourage illegal donation collection drive of the Maoists, said a statement issed by the FNCCI.
In response, the prime minister told the business community that he would take initiatives to bring together the three major parties if the Maoists cooperate to evacuate the cantonments and disband the paramilitary structure of Young Communist League.
He further said there would not be environment of trust until the Maoists continue to have armed combatants, the prime minister´s Press Advisor Bishnu Rijal said in a statement.
Monday, April 19, 2010
FNCCI sends two more JITCO trainees
Federation of mbers of Com Nepalese Chambers of Commerce and Industry (FNCCI) has sent two industrial trainees to Japan under Japan International Training Co-operation Organisation (JITCO). Tila Hamal of Bardiya and Chemjong Tamang of Rasuwa district left for Japan on Monday to get advance training in fishery. FNCCI has already sent six trainees to Japan last year and it is planning to send 36 to 20 female and 16 male trainees in near future.
Manpower agencies decry GAMCA monopoly
Nepali outsourcing agencies and health professional promised to fight jointly against the Gulf Cooperation Council (GCC) approved Medical Centre’s Association (GAMCA), which has monopoly in medical check up for overseas-bound Nepali migrant workers.
“We should be united to solve the problem,” Kumud Khanal, general secretary of Nepal Association of Foreign Employment Agencies (NAFEA) said in a programme organised here today. He urged Nepal Health Professional Federation (NHPF) to take the case seriously and start pressurising the government. “We should handle the case diplomatically,”
he said adding that traditional type of protest programmes could not solve the problem.
NHPF has been fighting against GAMCA monopoly in medical check up of Nepali migrant workers going to GCC countries since March 2009. The umbrella organisations of 153 medical centres have already staged sit-in, street
protest and padlocked five GAMCA offices in Kathmandu.
The GCC countries include Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates (UAE), Oman, and Yemen. Among them Saudi Arabia, Qatar and the UAE are the major destinations for Nepali migrant workers. Those countries have hired around
12,849 Nepalis from mid-March to mid-April that is over 40 per cent of total migrant workers.
Gyanu Gaire, second vice-president of NAFEA promised joint efforts to solve the problem by providing equal opportunities for NHPF members. “NAFEA wants equal opportunity for 153 medical centres registered under Foreign Employment Act,” he said, “At least GAMCA biding process should be acceptable to all.” GAMCA has criteria — while appointing medical centres — like a medical centre should have adequate physical facilities and expertise to accommodate the pressure of clients, must abide by the GCC standard in medical examinations and must pay inspection fees, registration fees and membership fees in time.
“We should be united to solve the problem,” Kumud Khanal, general secretary of Nepal Association of Foreign Employment Agencies (NAFEA) said in a programme organised here today. He urged Nepal Health Professional Federation (NHPF) to take the case seriously and start pressurising the government. “We should handle the case diplomatically,”
he said adding that traditional type of protest programmes could not solve the problem.
NHPF has been fighting against GAMCA monopoly in medical check up of Nepali migrant workers going to GCC countries since March 2009. The umbrella organisations of 153 medical centres have already staged sit-in, street
protest and padlocked five GAMCA offices in Kathmandu.
The GCC countries include Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates (UAE), Oman, and Yemen. Among them Saudi Arabia, Qatar and the UAE are the major destinations for Nepali migrant workers. Those countries have hired around
12,849 Nepalis from mid-March to mid-April that is over 40 per cent of total migrant workers.
Gyanu Gaire, second vice-president of NAFEA promised joint efforts to solve the problem by providing equal opportunities for NHPF members. “NAFEA wants equal opportunity for 153 medical centres registered under Foreign Employment Act,” he said, “At least GAMCA biding process should be acceptable to all.” GAMCA has criteria — while appointing medical centres — like a medical centre should have adequate physical facilities and expertise to accommodate the pressure of clients, must abide by the GCC standard in medical examinations and must pay inspection fees, registration fees and membership fees in time.
Dutch aid key to Nepal
50th anniversary of diplomatic tie
Dutch economic co-operation has played an important role in the socio-economic development process of Nepal over the last 50 years, said Pramesh Kumar Hamal, Nepali ambassador to BENELUX countries and EU while inaugurating the 50th anniversary programme of establishment of diplomatic relations between Nepal and the Netherland.
“Economic agenda would take the centre stage once the political issues are settled in Nepal,” he said calling for a more effective partnership between the two countries for the promotion of tourism in Nepal.
He also emphasised the importance of multiple economic linkages between the two friendly countries in the days ahead. “Netherlands attached importance to the relationship with Nepal,” said Representative of Dutch Foreign Ministry and head of South Asia Division Harry Van Dyke. “Assistance to Nepal
would continue through channels of multilateral and non-governmental organisations,” he added.
On the occasion, European Economic Chamber of CommerceNepal (EECC) displayed items of Nepali export products like tea, coffee, Pashmina and handicrafts.
Over 300 distinguished persons representing the Dutch foreign Ministry, other government offices, politicians, ambassadors and senior diplomats, Non-resident Nepalese Association of Nepal (NRNA), NGOs, friends of Nepal, travel agents and tour operators, private business houses, and many took part in the programme.
Embassy of Nepal in Brussels with active co-operation from the office of the Consul General of Nepal in Amsterdam, the NRNA-Netherlands Chapter, Arke fly Group, Nepal Development Academy, Nepal Tourism Board (NTB), and Nepal Music Foundation jointly organised the anniversary celebration programme in Hague city.
Dutch economic co-operation has played an important role in the socio-economic development process of Nepal over the last 50 years, said Pramesh Kumar Hamal, Nepali ambassador to BENELUX countries and EU while inaugurating the 50th anniversary programme of establishment of diplomatic relations between Nepal and the Netherland.
“Economic agenda would take the centre stage once the political issues are settled in Nepal,” he said calling for a more effective partnership between the two countries for the promotion of tourism in Nepal.
He also emphasised the importance of multiple economic linkages between the two friendly countries in the days ahead. “Netherlands attached importance to the relationship with Nepal,” said Representative of Dutch Foreign Ministry and head of South Asia Division Harry Van Dyke. “Assistance to Nepal
would continue through channels of multilateral and non-governmental organisations,” he added.
On the occasion, European Economic Chamber of CommerceNepal (EECC) displayed items of Nepali export products like tea, coffee, Pashmina and handicrafts.
Over 300 distinguished persons representing the Dutch foreign Ministry, other government offices, politicians, ambassadors and senior diplomats, Non-resident Nepalese Association of Nepal (NRNA), NGOs, friends of Nepal, travel agents and tour operators, private business houses, and many took part in the programme.
Embassy of Nepal in Brussels with active co-operation from the office of the Consul General of Nepal in Amsterdam, the NRNA-Netherlands Chapter, Arke fly Group, Nepal Development Academy, Nepal Tourism Board (NTB), and Nepal Music Foundation jointly organised the anniversary celebration programme in Hague city.
IFC, Clean Energy Development Bank seal deal
IFC — a member of the World Bank Group — has partnered with Clean Energy Development Bank Ltd to help the bank increase finance for sustainable energy and energy efficiency projects.
IFC is advising the bank to adopt an approach that will help the bank identify opportunities for renewable energy and energy efficiency financing. IFC’s assistance will include training for staff to improve their skills when evaluating proposals on energy efficiency and renewable energy financing, as well as product development and marketing, and engineering due diligence for energy efficiency projects.
The bank also will benefit from IFC’s initiatives on energy auditor development, market potential studies, and targeted awareness and training activities related to sustainable energy finance.
“The energy crisis in Nepal is acute,” Manoj Goyal, CEO of the Clean Energy Development Bank, said at the signing ceremony here in Kathmandu today. “At the same time, there is a huge potential for renewables in this country,” he said adding that with IFC’s support, the bank would be able to expand the sustainable energy finance market in Nepal.
The SouthAsia Enterprise Development Facility — managed by IFC in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development Cooperation — is providing advisory support to the Clean Energy Development Bank and the financial sector to train bankers on energy efficiency and renewable energy financing.
“Clean Energy Development Bank has pioneered sustainable energy finance initiatives in Nepal,” Ian Crosby, Head of the SouthAsia Enterprise Development Facility, said. “We are excited to be able to support them in promoting renewable energy and energy efficiency projects and manage risks better.” IFC is a member of the World Bank Group and creates opportunity for people to escape poverty and improve their lives.
Similarly, Clean Energy Development Bank, is a national level development bank established with a primary focus on developing clean energy and the hydropower sector in Nepal. In commercial operation since September 2006, the bank has a technical collaboration with Winrock International, an international organisation working in Nepal in energy sector, and is supported by USAID.
Besides debt financing, the bank offers assistance to the clean energy and hydropower projects by way of private equity and advisory and consulting services.
IFC is advising the bank to adopt an approach that will help the bank identify opportunities for renewable energy and energy efficiency financing. IFC’s assistance will include training for staff to improve their skills when evaluating proposals on energy efficiency and renewable energy financing, as well as product development and marketing, and engineering due diligence for energy efficiency projects.
The bank also will benefit from IFC’s initiatives on energy auditor development, market potential studies, and targeted awareness and training activities related to sustainable energy finance.
“The energy crisis in Nepal is acute,” Manoj Goyal, CEO of the Clean Energy Development Bank, said at the signing ceremony here in Kathmandu today. “At the same time, there is a huge potential for renewables in this country,” he said adding that with IFC’s support, the bank would be able to expand the sustainable energy finance market in Nepal.
The SouthAsia Enterprise Development Facility — managed by IFC in partnership with the United Kingdom’s Department for International Development and the Norwegian Agency for Development Cooperation — is providing advisory support to the Clean Energy Development Bank and the financial sector to train bankers on energy efficiency and renewable energy financing.
“Clean Energy Development Bank has pioneered sustainable energy finance initiatives in Nepal,” Ian Crosby, Head of the SouthAsia Enterprise Development Facility, said. “We are excited to be able to support them in promoting renewable energy and energy efficiency projects and manage risks better.” IFC is a member of the World Bank Group and creates opportunity for people to escape poverty and improve their lives.
Similarly, Clean Energy Development Bank, is a national level development bank established with a primary focus on developing clean energy and the hydropower sector in Nepal. In commercial operation since September 2006, the bank has a technical collaboration with Winrock International, an international organisation working in Nepal in energy sector, and is supported by USAID.
Besides debt financing, the bank offers assistance to the clean energy and hydropower projects by way of private equity and advisory and consulting services.
Spice brings QT 44 mobile phone sets
Teletalk Private Ltd — the authorised distributor of Spice brands of Mobile phone sets in Nepal — has launched QWERTY series’ of mobile phones; Spice QT 66 sets.
The same series’ of Spice QT 44 and Spice QT 55 are already being sold in the market. Spice QT 66 — priced at Rs 8,890 — is a multi SIM phone with QWERTY keypad, the company said. “It has Wi-fi system so that a customer can surf net and use social networking sites freely.” The handset has 8 GB expandable memory, wireless FM, stereo Bluetooth, GPRS/EDGE and 2 MP camera.
The same series’ of Spice QT 44 and Spice QT 55 are already being sold in the market. Spice QT 66 — priced at Rs 8,890 — is a multi SIM phone with QWERTY keypad, the company said. “It has Wi-fi system so that a customer can surf net and use social networking sites freely.” The handset has 8 GB expandable memory, wireless FM, stereo Bluetooth, GPRS/EDGE and 2 MP camera.
Phillips New Offer
Syakar Company Ltd the sole distributor for Philips consumer lifestyle products in Nepal since 1982 -has brought an innovative New year offer `Old is Sold' which allows customers to get the new Philips LCD TV in exchange of an old one or any old electronic items in any conditions will be valued at minimum Rs 8,000. This offer is applicable in 32" & above sized LCD TV and will be available at all Philips Showrooms and dealers across Nepal. Philips is one of the world's largest electronics company offering wider range of products such as Television, Home Theatre System, DVD player, Music System, CD Player, Mobile Phone, Computer Monitor, Lighting Materials and Home Appliances.
New Hotel in Sauraha
Jungle Safari Lodge a new hotel has started its services in Sauraha from the New Year’s Day.
The hotel’s sales and marketing manager Suman Ghimire said that the hotel is looking forward to cater to both local and international tourists. “The hotel is established to fill the void of standard hotels in Sauraha,” he said adding that they have tried to provide all the amenities that an ‘A’ grade hotel offers. “The hotel is completely reconstructed and is new”, Ghimire said. “The hotel offers 20 air-conditioned rooms with wi-fi facility.” Similarly, it has labelled itself as a handicapped-friendly and wishes to provide comfortable stay for all its guests, according to him, “We have already spent Rs 300 million for the hotel.” It has also introduced different packages for the internal tourists on the occasion of New Year.
The hotel’s sales and marketing manager Suman Ghimire said that the hotel is looking forward to cater to both local and international tourists. “The hotel is established to fill the void of standard hotels in Sauraha,” he said adding that they have tried to provide all the amenities that an ‘A’ grade hotel offers. “The hotel is completely reconstructed and is new”, Ghimire said. “The hotel offers 20 air-conditioned rooms with wi-fi facility.” Similarly, it has labelled itself as a handicapped-friendly and wishes to provide comfortable stay for all its guests, according to him, “We have already spent Rs 300 million for the hotel.” It has also introduced different packages for the internal tourists on the occasion of New Year.
Wednesday, April 14, 2010
SDBL's safe locker
Siddhartha Develop ment Bank Ltd (SDBL) has started a safe deposit locker facility. At present, this facility is available at SDBL's central office in Tinkune. The bank's customers can keep their valuables and documents in its lockers for safekeeping. SDBL plans to extend this service to other branches as well.
Civil Bank gets provisional Letter of Intent
Civil Bank Ltd (proposed) has received a provisional Letter of Intent (LoI) from Nepal Rastra Bank, the central authority. “The proposed commercial bank is planning to deposit 45 per cent cash of the promoters’ share in around 10 days to get the LoI,” said Kishore Maharjan, chief executive officer (CEO) of the bank.
Earlier, some of the proposed commercial banks could not deposit the required sum at the central bank forcing the central bank to revise its rule of awarding Letter of Intent. Currently, Nepal Rastra Bank (NRB) provides provisional LoI first and gives a month’s time to deposit the 45 per cent deposit before awarding the Letter of Intent.
“We are planning to start operations from the first week of the next fiscal
year," Maharjan said adding that the proposed commercial bank has 149 promoters -mostly l from the housing busi ness. The proposed bank will have Rs 2 billion au thorised capital.
l It is the 12th company of Civil Group -a renowned name in the housing busi ness. The Civil Group also has Civil Merchant Bittiya Sanstha and Civil Savings and Credit Cooperative.
There are total of 27 commercial banks at prel sent and a couple of pro posed commercial banks have also acquired Letters of Intent. Megha Bank Nepal, Century Commer cial Bank, Business Bank, l Commerce and Trust Bank are some of the pro posed commercial banks in the pipeline.
NRB had temporarily stopped the registration of new financial institutions -including commercial banks, development l banks and finance compa nies — in August 2009 citing that the existing number of banks in a small economy like Nepal was already more than enough.
However, Maharjan thinks that there is still room for new financial institutions “as the outlet of the financial institutions is much less than required, though the number of financial institutions seems to be more.” Since only a quarter of the population has access to banking channels, the central bank also could not decide on the exact number of financial institutions that Nepal needs.
According to the central bank’s data, by the end of the first six months of the current fiscal year, there are 255 financial institutions in the country. “By the end of Poush (December-January), there were a total of 845 branches of commercial banks,” said the central bank.
Earlier, some of the proposed commercial banks could not deposit the required sum at the central bank forcing the central bank to revise its rule of awarding Letter of Intent. Currently, Nepal Rastra Bank (NRB) provides provisional LoI first and gives a month’s time to deposit the 45 per cent deposit before awarding the Letter of Intent.
“We are planning to start operations from the first week of the next fiscal
year," Maharjan said adding that the proposed commercial bank has 149 promoters -mostly l from the housing busi ness. The proposed bank will have Rs 2 billion au thorised capital.
l It is the 12th company of Civil Group -a renowned name in the housing busi ness. The Civil Group also has Civil Merchant Bittiya Sanstha and Civil Savings and Credit Cooperative.
There are total of 27 commercial banks at prel sent and a couple of pro posed commercial banks have also acquired Letters of Intent. Megha Bank Nepal, Century Commer cial Bank, Business Bank, l Commerce and Trust Bank are some of the pro posed commercial banks in the pipeline.
NRB had temporarily stopped the registration of new financial institutions -including commercial banks, development l banks and finance compa nies — in August 2009 citing that the existing number of banks in a small economy like Nepal was already more than enough.
However, Maharjan thinks that there is still room for new financial institutions “as the outlet of the financial institutions is much less than required, though the number of financial institutions seems to be more.” Since only a quarter of the population has access to banking channels, the central bank also could not decide on the exact number of financial institutions that Nepal needs.
According to the central bank’s data, by the end of the first six months of the current fiscal year, there are 255 financial institutions in the country. “By the end of Poush (December-January), there were a total of 845 branches of commercial banks,” said the central bank.
Kawasaki Ninja 250 strikes
After generating overwhelming response in India, Bajaj Auto today announced the launch of the muchawaited Kawasaki Ninja 250R. It is widely acknowledged as the best 250 cc motorbike in the world. In Nepal, it will be available exclusively through the recently-opened Bajaj Probiking Corner at HH Bajaj in Kathmandu.
Commenting on the launch, Hansraj Hulashchand and Co-executive director Shekhar Golchha s a i d , "We are v e r y pleased to launch the super sports Kawasaki Ninja 250R in Nepal which has unmatched performance yet at an affordable price". He added that it is the no. 1 selling bike in the world.
The sales target as stated by Golchha is about 100-150 bikes within 2010.
However, fifteen bikes have been already booked before the launch. The bike -powered by a 250cc parallel twin engine that belts out 33 hps-is a true supersport motorcycle that draws its lineage from the legendary larger Kawasaki Ninja. But what makes it unique is its perfect combination of performance, riding comfort and ease of handling.
Commenting on the launch, Hansraj Hulashchand and Co-executive director Shekhar Golchha s a i d , "We are v e r y pleased to launch the super sports Kawasaki Ninja 250R in Nepal which has unmatched performance yet at an affordable price". He added that it is the no. 1 selling bike in the world.
The sales target as stated by Golchha is about 100-150 bikes within 2010.
However, fifteen bikes have been already booked before the launch. The bike -powered by a 250cc parallel twin engine that belts out 33 hps-is a true supersport motorcycle that draws its lineage from the legendary larger Kawasaki Ninja. But what makes it unique is its perfect combination of performance, riding comfort and ease of handling.
Himalayan Bank opens branch at Sohrakhutte
Himalayan Bank Ltd inaugu rated its 28th branch at Kathmandu's Sohrakhutte on Wednesday. "We'll be pro viding full-fledged banking services to the people of Sorhakhutte and adjacent areas," said the bank that has collected Rs 37.07 bil lion deposit and lent Rs 31.46 billion in the first eight months of the current fiscal.
Tuesday, March 30, 2010
NAC, NATTA joining hands for NTY 2011
National flag carrier to go the extra mile to regain lost turf
Nepal Airlines Corporation (NAC) and Nepal Association of Travel and Tour Agent (NATTA) are moving on with different plans for the success of Nepal Tourism Year 2011. NAC, the national flag carrier, is working for its brand image publicity while NATTA is moving ahead with its plans for Heritage Trail Development.
As international airlines have taken over the market with 90 per cent share, NAC is struggling to develop its marketing plans so as to recover its market. NAC has only 7-8 per cent of the total market share. Now, it has plans to increase its market share to 30 per cent over the next few years.
Talking about the need for developing new marketing strategies, NAC executive chairman Sugat Ratna Kansakar said, “The corporation at the earliest requires new marketing strategies and promotional programmes to publicise itself at both the national and international levels.“
For this, NAC is preparing economy tour packages in collaboration with some of the travel and tour operators here that will be for both outbound and inbound tourists, he said. To warm up its market, NAC is ready to hype its brand image publicity.
Kansakar said that besides the foreign tourist traffic the trend of traveling abroad during vacations is increasing among the middle class and upper middle class Nepalis.
Thus, NAC is developing strategies to offer economy and optimum tour packages to all kinds of tourist.
“It will take about two months, we are in the initial stage,“ he said.
Meanwhile, NATTA is moving on with Heritage Trail Development.
Informing about the developments of trails, NATTA president Arjun Prasad Sharma they are working on development of some trails which have remained unused for long.
“With the identification of new trekking routes, some of the old routes have fallen into disuse and we are trying to revive these trails,“ Sharma said.
Within this week, NATTA will be informing people about the different heritage trails that will be developed for the coming event of NTY 2011.
The NTY secretariat has asked all the people to fly the national flag and display the logo of NTY 2011 in preparation for the mega event.
Nepal Airlines Corporation (NAC) and Nepal Association of Travel and Tour Agent (NATTA) are moving on with different plans for the success of Nepal Tourism Year 2011. NAC, the national flag carrier, is working for its brand image publicity while NATTA is moving ahead with its plans for Heritage Trail Development.
As international airlines have taken over the market with 90 per cent share, NAC is struggling to develop its marketing plans so as to recover its market. NAC has only 7-8 per cent of the total market share. Now, it has plans to increase its market share to 30 per cent over the next few years.
Talking about the need for developing new marketing strategies, NAC executive chairman Sugat Ratna Kansakar said, “The corporation at the earliest requires new marketing strategies and promotional programmes to publicise itself at both the national and international levels.“
For this, NAC is preparing economy tour packages in collaboration with some of the travel and tour operators here that will be for both outbound and inbound tourists, he said. To warm up its market, NAC is ready to hype its brand image publicity.
Kansakar said that besides the foreign tourist traffic the trend of traveling abroad during vacations is increasing among the middle class and upper middle class Nepalis.
Thus, NAC is developing strategies to offer economy and optimum tour packages to all kinds of tourist.
“It will take about two months, we are in the initial stage,“ he said.
Meanwhile, NATTA is moving on with Heritage Trail Development.
Informing about the developments of trails, NATTA president Arjun Prasad Sharma they are working on development of some trails which have remained unused for long.
“With the identification of new trekking routes, some of the old routes have fallen into disuse and we are trying to revive these trails,“ Sharma said.
Within this week, NATTA will be informing people about the different heritage trails that will be developed for the coming event of NTY 2011.
The NTY secretariat has asked all the people to fly the national flag and display the logo of NTY 2011 in preparation for the mega event.
NAC to buy aircraft worth $356 million
Nepal Airlines Corporation (NAC) is working on its most ambitious plan yet to purchase six new aircraft worth $356 million to recapture its declining market share.
As per the NAC new business plan that has been submitted to the Ministry of Finance, NAC will purchase two wide body for $94 million each and four narrow body aircraft for $42 million each from a multinational European Airbus company.
According to NAC executive chairman Sugat Ratna Kansakar, the corporation has submitted its new business plan to the Ministry of Finance. With the addition of six new aircraft Kansakar expects that business by the national flag carrier will increase and it will recover its market share.
At present, NAC has gross revenue Rs 6.5 billion. NAC, the national flag carrier, has only 7-8 per cent market share while the remaining market share is held by foreign airlines. “Within four or five years, we are targeting to regain up to 30 per cent of the total market share,“ said Kansakar adding that with the increase in number of students going abroad and the trend of Nepalis going abroad for vacations will help increase the market share of NAC in the future. Earlier, the Public Accounts Committee had directed NAC to scrap the purchase of new aircraft. The PAC has also directed the Finance Ministry to realise the advance payment made to the Airbus company and take action against those NAC officials who did not abide by the public procurement procedure. The Budget 2009-10 has made a special arrangement of Rs 10 billion for NAC to buy two aircraft on state guarantee. NAC is also planning to add new aircraft to its domestic fleet as well.
On the domestic routes, NAC has been flying four 19seat DHC-6 Twin Otter aircraft though it has seven Twin Otters. Apart from the two much talked about wide-body aircraft, NAC was keen to add six aircraft on international routes. On international routes, NAC is flying a Boeing B-757 and a Boeing 757-200 aircraft -Karnali and Gandaki -each with 190-seat capacity.
Nepal's national carrier, NAC is modernising its international fleet with six new aircrafts. The new Airbus aircraft will be deployed on international services to Japan and will for the very first time connect Nepal to Europe with direct flights.
As per the NAC new business plan that has been submitted to the Ministry of Finance, NAC will purchase two wide body for $94 million each and four narrow body aircraft for $42 million each from a multinational European Airbus company.
According to NAC executive chairman Sugat Ratna Kansakar, the corporation has submitted its new business plan to the Ministry of Finance. With the addition of six new aircraft Kansakar expects that business by the national flag carrier will increase and it will recover its market share.
At present, NAC has gross revenue Rs 6.5 billion. NAC, the national flag carrier, has only 7-8 per cent market share while the remaining market share is held by foreign airlines. “Within four or five years, we are targeting to regain up to 30 per cent of the total market share,“ said Kansakar adding that with the increase in number of students going abroad and the trend of Nepalis going abroad for vacations will help increase the market share of NAC in the future. Earlier, the Public Accounts Committee had directed NAC to scrap the purchase of new aircraft. The PAC has also directed the Finance Ministry to realise the advance payment made to the Airbus company and take action against those NAC officials who did not abide by the public procurement procedure. The Budget 2009-10 has made a special arrangement of Rs 10 billion for NAC to buy two aircraft on state guarantee. NAC is also planning to add new aircraft to its domestic fleet as well.
On the domestic routes, NAC has been flying four 19seat DHC-6 Twin Otter aircraft though it has seven Twin Otters. Apart from the two much talked about wide-body aircraft, NAC was keen to add six aircraft on international routes. On international routes, NAC is flying a Boeing B-757 and a Boeing 757-200 aircraft -Karnali and Gandaki -each with 190-seat capacity.
Nepal's national carrier, NAC is modernising its international fleet with six new aircrafts. The new Airbus aircraft will be deployed on international services to Japan and will for the very first time connect Nepal to Europe with direct flights.
Call for more extensive public-private partnership
Financing required from both public and private sectors at domestic and international levels
Experts on public-private partnerships (PPP) have agreed that more PPP will be needed to meet the demand for infrastructure finance estimated at $300 billion a year in Asia, and $93 billion in sub-Saharan Africa.
“So much could be gained from tapping the private sector participation in infrastructure development,“ said Margarito Teves, finance secretary of the Philippines. “Public-private partnership schemes can combine the strengths of governments, which have the responsibility to ensure the provision of public goods, with the strengths of the private sector -in particular, its ability to move swiftly and deliver highquality services on time. Such involvement can come in a number of forms, from the traditional turnkey type arrangements for construction to complicated Build-OperateTransfer agreements.“
Teves made the remarks in his keynote address to PublicPrivate Partnership (PPP) Days, an annual meeting cohosted in Manila by the Asian Development Bank (ADB) and the World Bank Institute. The event allows public sector practitioners from around the world to share experiences on new financing models for infrastructure-such as sustainable transport, water supply, health and education-that have emerged during the global economic crisis.
“Governments face higher borrowing costs, lower levels of credit, and reduced international capital flows as a result of the crisis,“ said Sanjay Pradhan, vice-president of the World Bank Institute. “This makes it all the more urgent to find innovative ways to combine public and private financing to meet the mounting demand for infrastructure.“
ADB's managing director General Rajat M Nag praised PPPs for coming up with timely solutions to budget gaps.
“Through collaborative efforts of the multilateral development banks, the PPP approach has emerged as an effective tool for governments to enhance the private investments in infrastructure and social sectors needed for economic development and poverty alleviation,“ said Nag.
Infrastructure gaps are an urgent development challenge. In Africa, $93 billion in infrastructure investment is needed annually over the next decade, about half of which is needed in the power sector.
The new estimate amounts to roughly 15 per cent of the continent's GDP , or comparable to what the people's Republic of China has invested in infrastructure over the last decade.
In Asia the figure is estimated to be $300 billion per year and the magnitude of the problem is even greater. These investment needs are based on the amount required to provide over a billion people access to safe water and 2.6 billion people access to basic sanitation.
In addition, curbing rising levels of greenhouse gases and helping countries adapt to anticipated impacts of climate change will also require substantial investments in infrastructure. Last week in Manila, the Clean Technology Fund (CTF), implemented jointly by ADB, World Bank and other multilateral development institutions, endorsed plans for four more countries, including Indonesia, to help provide such investments. There are now 13 CTF investment plans in place around the world and some $4.3 billion of CTF co-financing allocated to projects ranging from solar power development to the greening of public transport systems.
This is expected to leverage an estimated $36 billion in the coming years from other sources, including the private sector through PPPs, bringing the total to be mobilized to US$40 billion.
To meet these needs, financing must come from both the public and private sectors, domestic and international. This means more PPPs on a scale not yet realised or even contemplated.
“The last 18 months have been challenging for PPP financing,“ said Clive Harris, Manager of the World Bank Institute's Public-Private Partnership Practice Group. “The costs of financing are higher, and projects need greater support and risk-bearing from governments. PPP Days discussed how governments can best design programs to bring in financing while also providing value-for-money. The conference also focused on the frontier areas for PPP investment, such as health, education, reducing the carbon footprint of cities, and sustainable urban transport.“
“PPP assistance is most effective when it is part of a longterm engagement effort and integrated with broader sector reforms and institutional capacity development,“ said Jo Yamagata, deputy director General of Private Sector Operations Department of the ADB and Chair of the PPP Task Group in ADB. “With this in mind, ADB endeavours to play a proactive role in PPP advocacy along with other donors and private sector stakeholders.“
Experts on public-private partnerships (PPP) have agreed that more PPP will be needed to meet the demand for infrastructure finance estimated at $300 billion a year in Asia, and $93 billion in sub-Saharan Africa.
“So much could be gained from tapping the private sector participation in infrastructure development,“ said Margarito Teves, finance secretary of the Philippines. “Public-private partnership schemes can combine the strengths of governments, which have the responsibility to ensure the provision of public goods, with the strengths of the private sector -in particular, its ability to move swiftly and deliver highquality services on time. Such involvement can come in a number of forms, from the traditional turnkey type arrangements for construction to complicated Build-OperateTransfer agreements.“
Teves made the remarks in his keynote address to PublicPrivate Partnership (PPP) Days, an annual meeting cohosted in Manila by the Asian Development Bank (ADB) and the World Bank Institute. The event allows public sector practitioners from around the world to share experiences on new financing models for infrastructure-such as sustainable transport, water supply, health and education-that have emerged during the global economic crisis.
“Governments face higher borrowing costs, lower levels of credit, and reduced international capital flows as a result of the crisis,“ said Sanjay Pradhan, vice-president of the World Bank Institute. “This makes it all the more urgent to find innovative ways to combine public and private financing to meet the mounting demand for infrastructure.“
ADB's managing director General Rajat M Nag praised PPPs for coming up with timely solutions to budget gaps.
“Through collaborative efforts of the multilateral development banks, the PPP approach has emerged as an effective tool for governments to enhance the private investments in infrastructure and social sectors needed for economic development and poverty alleviation,“ said Nag.
Infrastructure gaps are an urgent development challenge. In Africa, $93 billion in infrastructure investment is needed annually over the next decade, about half of which is needed in the power sector.
The new estimate amounts to roughly 15 per cent of the continent's GDP , or comparable to what the people's Republic of China has invested in infrastructure over the last decade.
In Asia the figure is estimated to be $300 billion per year and the magnitude of the problem is even greater. These investment needs are based on the amount required to provide over a billion people access to safe water and 2.6 billion people access to basic sanitation.
In addition, curbing rising levels of greenhouse gases and helping countries adapt to anticipated impacts of climate change will also require substantial investments in infrastructure. Last week in Manila, the Clean Technology Fund (CTF), implemented jointly by ADB, World Bank and other multilateral development institutions, endorsed plans for four more countries, including Indonesia, to help provide such investments. There are now 13 CTF investment plans in place around the world and some $4.3 billion of CTF co-financing allocated to projects ranging from solar power development to the greening of public transport systems.
This is expected to leverage an estimated $36 billion in the coming years from other sources, including the private sector through PPPs, bringing the total to be mobilized to US$40 billion.
To meet these needs, financing must come from both the public and private sectors, domestic and international. This means more PPPs on a scale not yet realised or even contemplated.
“The last 18 months have been challenging for PPP financing,“ said Clive Harris, Manager of the World Bank Institute's Public-Private Partnership Practice Group. “The costs of financing are higher, and projects need greater support and risk-bearing from governments. PPP Days discussed how governments can best design programs to bring in financing while also providing value-for-money. The conference also focused on the frontier areas for PPP investment, such as health, education, reducing the carbon footprint of cities, and sustainable urban transport.“
“PPP assistance is most effective when it is part of a longterm engagement effort and integrated with broader sector reforms and institutional capacity development,“ said Jo Yamagata, deputy director General of Private Sector Operations Department of the ADB and Chair of the PPP Task Group in ADB. “With this in mind, ADB endeavours to play a proactive role in PPP advocacy along with other donors and private sector stakeholders.“
Sebon union on warpath
Securities Board of Nepal (Sebon) -the regulatory authority of the capital market -is in trouble since last week due to the dispute between the union and Sebon's chairman. The union closed the office of the chairman last week saying chairman Dr Soorbir Poudel was not serious about solving the problems of the secondary market. “From today all the departments of the Board have been padlocked,“ said the union members.
NMB's further public issue
The capital market is experiencing a new phenomenon -further public issue -for the first time in its history of over one-and-a-half decade. NMB Bank Ltd has floated further public issue for the first time. It has floated 7,15,000-unit of shares for the public at Rs 285 per unit -adding Rs 185 premium to the face value of Rs 100. The 25th commercial bank has floated the further public issue since last Friday
Secondary market bled dry, govt unconcerned
Oversupply,low demand create low confidence
Oversupply and low demand coupled with government apathy has bled the secondary market white over the last couple of months.
The secondary market index today lost 3.65 points to close at 469.17 points as all sub-groups performed poorly.
Among the listed companies, Everest Bank became the top loser as it lost Rs 82 per unit in today's trading whereas groupwise, hydropower sub-group -that has only three hydropower companies under its belt -lost heavily.
Among the nine sub-groups, hydropower saw a whopping fall of 9.66 points to close at 729.58 points. Others sub-group declined by 8.22 points to 531.08 points and development bank sub-group dropped by 5.79 points to 491.98 -bringing the secondary market down.
Technically, the market has also seen loss of confidence of among the investors as they have been sustaining repeated shocks.
However, the bear will continue to dominate Nepse, according to the Securities Research Center and Services (SRCS) study.
“If Nepse starts gaining, the first resistance point comes at 509.69 points. Even if it crosses that, it will again face an important resistance point at 512.48 points,“ said the centre that has projected the data based on the index of March 1, when Nepse index was at 497.86 points. If the bearish trend continues, the first major support will be at 466.89 points. However, if Nepse crosses this level too, the next support level would be at 447.75 points, according technical analysis done by SRCS.
“Liquidity crunch also has hit the secondary market,“ said Rabindra Bhattarai, a renowned market analyst and lecturer at Shanker Dev College.
Oversupply and low demand coupled with government apathy has bled the secondary market white over the last couple of months.
The secondary market index today lost 3.65 points to close at 469.17 points as all sub-groups performed poorly.
Among the listed companies, Everest Bank became the top loser as it lost Rs 82 per unit in today's trading whereas groupwise, hydropower sub-group -that has only three hydropower companies under its belt -lost heavily.
Among the nine sub-groups, hydropower saw a whopping fall of 9.66 points to close at 729.58 points. Others sub-group declined by 8.22 points to 531.08 points and development bank sub-group dropped by 5.79 points to 491.98 -bringing the secondary market down.
Technically, the market has also seen loss of confidence of among the investors as they have been sustaining repeated shocks.
However, the bear will continue to dominate Nepse, according to the Securities Research Center and Services (SRCS) study.
“If Nepse starts gaining, the first resistance point comes at 509.69 points. Even if it crosses that, it will again face an important resistance point at 512.48 points,“ said the centre that has projected the data based on the index of March 1, when Nepse index was at 497.86 points. If the bearish trend continues, the first major support will be at 466.89 points. However, if Nepse crosses this level too, the next support level would be at 447.75 points, according technical analysis done by SRCS.
“Liquidity crunch also has hit the secondary market,“ said Rabindra Bhattarai, a renowned market analyst and lecturer at Shanker Dev College.
Monday, March 22, 2010
No currency devaluation: Finance Minister
Finance Minister Surendra Pandey rejected speculation about the devaluation of Nepali currency despite thinning foreign exchange reserves. “It is a rumour,“ he scoffed at a press meet organised at the ministry here today.
“Our foreign exchange reserves can accommodate import for seven months and there is no problematic situation,“ he said adding that the government is preparing export promotion programmes to increase foreign exchange reserves. “The Economic Activities Monitoring and Advisory Committee will draw up concrete programmes to boost export,“ he added.
FM Pandey assured that the government was ready to control excessive import. “The government decision to increase customs duty on gold is an instance,“ he said. The government has increased custom duty on gold earlier this week from Rs 130 per 10 gram to Rs 470 per 10 gram duty to stop illegal cross-border trade with India.
However, still there is a difference of Rs 10 per 10 gram in Nepal's and India's duty even after revision.
Import of goods and services significantly increased this year compared to the previous year. There was an average monthly import of goods and services equal to Rs 17.43 billion in the fiscal year 2007-08 and which reached Rs 30.81 billion this year. Last year, the average monthly import was Rs 21.97 billion.
The great growth in import was fuelled by excessive import of gold this year. The country saw gold worth Rs 5.6 billion imported per month while the rate was Rs 1.46 billion a year ago. “If we can manage it, we can save Rs 4.14 billion monthly,“ he explained.
FM Pandey also voiced grave concern over the liquidity crunch. Deposit in banks and financial institutions is not increasing at the ratio of money in the market, he said.
Growth of deposit in commercial banks decreased to four per cent this year from 13 per cent last year.
The government has identified irregularities in cooperatives and wants to regularize the sector.
“The government and Nepal Rastra Bank (NRB) are exploring how the irregularities can be controlled,“ he said adding that the department of Cooperatives (DoC) has studied the financial position of 10 big cooperatives in Kathmandu Valley.
According to FM Pandey, low foreign exchange reserves occurred because of increased trade deficit and marginal growth in remittance. “We have two major challenges -managing the liquidity crunch and maintaining the BoP at the earliest to ease the situation,“ he said.
The minister also expressed worry over increasing expenditure of the government.
“Salary increment of civil servants, special security plan and the cholera out-break in the country's far-western region are major causes of increased expenditure,“ he said. However, the ministry will meet the revenue target, he added pointing out at the same time that revenue is not export-based that could propel economic activities in the country. Rather, it is an import-fuelled revenue growth that will not help the economy.
“The government is planning to present a supplementary budget in the Legislative Constituent Assembly to cope with the growing general expenditure,“ he said.
FM Pandey also voiced concern over the price rise and bearish capital market, though he has done nothing to curb inflation and boost the confidence of investors.
Inflation here is at 12 per cent in first seven months of the current fiscal year contrary to MoF's projection of seven per cent.
“Our foreign exchange reserves can accommodate import for seven months and there is no problematic situation,“ he said adding that the government is preparing export promotion programmes to increase foreign exchange reserves. “The Economic Activities Monitoring and Advisory Committee will draw up concrete programmes to boost export,“ he added.
FM Pandey assured that the government was ready to control excessive import. “The government decision to increase customs duty on gold is an instance,“ he said. The government has increased custom duty on gold earlier this week from Rs 130 per 10 gram to Rs 470 per 10 gram duty to stop illegal cross-border trade with India.
However, still there is a difference of Rs 10 per 10 gram in Nepal's and India's duty even after revision.
Import of goods and services significantly increased this year compared to the previous year. There was an average monthly import of goods and services equal to Rs 17.43 billion in the fiscal year 2007-08 and which reached Rs 30.81 billion this year. Last year, the average monthly import was Rs 21.97 billion.
The great growth in import was fuelled by excessive import of gold this year. The country saw gold worth Rs 5.6 billion imported per month while the rate was Rs 1.46 billion a year ago. “If we can manage it, we can save Rs 4.14 billion monthly,“ he explained.
FM Pandey also voiced grave concern over the liquidity crunch. Deposit in banks and financial institutions is not increasing at the ratio of money in the market, he said.
Growth of deposit in commercial banks decreased to four per cent this year from 13 per cent last year.
The government has identified irregularities in cooperatives and wants to regularize the sector.
“The government and Nepal Rastra Bank (NRB) are exploring how the irregularities can be controlled,“ he said adding that the department of Cooperatives (DoC) has studied the financial position of 10 big cooperatives in Kathmandu Valley.
According to FM Pandey, low foreign exchange reserves occurred because of increased trade deficit and marginal growth in remittance. “We have two major challenges -managing the liquidity crunch and maintaining the BoP at the earliest to ease the situation,“ he said.
The minister also expressed worry over increasing expenditure of the government.
“Salary increment of civil servants, special security plan and the cholera out-break in the country's far-western region are major causes of increased expenditure,“ he said. However, the ministry will meet the revenue target, he added pointing out at the same time that revenue is not export-based that could propel economic activities in the country. Rather, it is an import-fuelled revenue growth that will not help the economy.
“The government is planning to present a supplementary budget in the Legislative Constituent Assembly to cope with the growing general expenditure,“ he said.
FM Pandey also voiced concern over the price rise and bearish capital market, though he has done nothing to curb inflation and boost the confidence of investors.
Inflation here is at 12 per cent in first seven months of the current fiscal year contrary to MoF's projection of seven per cent.
Sagarmatha Insurance Tabled its Report
Sagarmatha Insurance Company (SIC) tabled its report in the 13th annual general meeting held on Wednesday. Chairman Ram Krishna Manandhar said SIC had 10.92 per cent growth in 2008-09 compared to the preceding fiscal year. To shareholders, SIC will distribute 11 per cent of its paid-up capital as cash dividend and 10 per cent bonus shares. Ram Krishna Manandhar, Padma Jyoti, Lokmanya Golchha, Divyamani Rajbahandari, Ashok Kumar Todi from Group A, Ajith R Gurbardane and Patrick Elvis from Group B and Ram Bahadur Adhikari from Group C were elected members of the executive committee.
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