Despite Treaty, CVD Dogs RMG Sector

The Counter Valuing Duty (CVD) even after the bilateral trade treaty is haunting the Nepali readymade garment (RMG) industry. Though there were great expectations from the trade treaty, Nepali RMG industry is still awaiting preferential treatment. The trade treaty made during the visit of Prime Minister Madhav Kumar Nepal to India was supposed to support hugely in the economic enhancement granting relief to the Nepali people. However, no attention has been given to the four per cent additional duty charge on the maximum retail price (MRP) of Nepali garment export to India. The 2007-08 garment export to India data show that there was RMG export worth Rs 1620 million to India but due to the additional four per cent duty, the export possibility to India is declining.

"The four per cent CVD is rational but we are having great problems due to the additional duty charge on MRP," said Garment Association of Nepal (GAN) president Prashant Kumar Pokharel adding that they are ready for CVD on transaction value but CVD on MRP is not fair. He pointed out that as it is the MRP itself is four times the factory price and that additional CVD on it makes a great difference in the garment price.

"There should be preferential treatment in trade to Least Developed Countries (LDCs). The trade treaty recognized new products and allowed duty free access to about 65 different products and opened five more customs points but still the garment sector is not getting facilities in export trade," said Pokharel. There is great scope for Nepali RMG in the Indian market as currently 70 per cent of Nepali RMG is exported to India. The export scenario to the United States, which used to be the largest buyer of Nepali RMG, is at zero.

According to Pokharel, a secretary level meeting in Kathmandu on November 10 is scheduled to be held where the government will forward its request for removal of trade barriers and making trade more compatible with India. WTO ministerial meetings will also be organised on November 30, December 1 and December 2 where people representing the private sector will participate.

"We are hopeful that issues related to the Nepali RMG export will be addressed there. We are trying our best to safeguard the garment sector, and we hope the secretary level meeting might help to sort our problems," said Pokharel.

Recent garment export to the US data show that the export of Nepali RMG in September fell by 86 per cent. The total Nepali RMG exported in September was worth $90,860.43.

Morang to Host Major Industrial Trade Fair

Biratnagar of Morang district will host a weeklong agriculture, tourism and industrial trade fair.

Organised by the Morang Industry Association, the trade fair is starting from January 19-25, 2010 with the aim of commercial development of agriculture, tourism and industrial products.

The District Development Committee, Biratnagar Sub-Metropolitan City, Commercial Agriculture Alliance, Regional Agricultural Directorate and Regional Livestock Service Directorate are co-organisers of the fair.

According to the organisers, agriculture machinery and tools, industrial and agriculture products, handicrafts, garments and automobiles will be put on display in the fair. The trade fair will feature at least 16 stalls and around 200,000 people from Sunsari, Jhapa, Udayapur, Siraha, Saptari, Ilam, Panchthar, Dhankuta, Tehrathum, Bhojpur districts as well as from India and Bangladesh are expected to participate. This is the first time that this kind of a trade fair is being organised in Morang.

Meanwhile, Birat Expo 2010 is scheduled from February 19-25, 2010 in Biratnagar. Coordinator of the Fair Organizing Committee Bhim Ghimire said the expo aims to develop and promote industrial and tourism sectors for expanding relations between the producers and consumers. Agricultural tools, industrial products, dairy products, automobiles, garments, handicrafts and other industrial and agricultural products will be kept in the sevenday fair organized by Udhyog Sangathan, Morang,. Different products from India, China, Bangladesh and other neighbouring countries will also be kept for exhibition, said the organizers.

Organizers said 160 stalls will be set up in the exhibition.

They have estimated some Rs 150 million worth of transactions during the expo.

In Kaski district, Pokhara is also going to organise a national industrial fair from Mangsir 11-21 to promote local, national and international industrial, agricultural and handicraft products in Pokhara. The fair will be organised by Pokhara Chamber of Commerce and Industry (PCCI) in association with Federation of Nepalese Chambers of Commerce and Industry. The fair will have 273 stalls.

PCCI chairman Mankaji Makaju said the fair will cost Rs 13.5 million. He said over 200,000 people are expected to visit the fair and transactions worth Rs 6.5 million are expected.

On every ticket, Rs 2 will be allocated for purchasing a fire engine, Re 1 to eliminate child labour and 50 paisa for construction of a suspension bridge over Seti River at Mahendrapul. The fair will feature Lokdohori Tara contest where the winners will bag Rs 51,000 and runners-up Rs 31,000 cash prizes.

Complaint Filed to Halt Asian Life's IPO

A complaint has been registered against the primary issue of Asian Life Insurance here at the Securities Board of Nepal (Sebon).

Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit 100 per cent face value of the shares, which according to the Company Act should be 50 per cent as it has not completed three years of operation.

Asian Life Insurance Company floated its 10,80,000units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit yesterday. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit. The issue is against the Company Act and Sebon Regulation.

Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, he added.

According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value, Ghimire claimed.

But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- called for the 100 per cent call money.

"The promoters have also paid the 100 per cent of their shares," he added.

After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capital at present.

Foreign Jaunt

Pradeep Jung Pandey, vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Tuesday left for Beijing to participate in the Innovative Strategy of Human Resource Development by Employers' Organisation in Asian Region in response to Global Job Crisis. Nippon-Keidanren International Cooperation Centerand NICC and China Enterprise Confederation are jointly organising it .

FNCCI, CII Hail Treaty; to Co-Boost Investment

A meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Indian Industry (CII) welcomed the NepalIndia trade treaty signed on Tuesday. Representatives of both organizations promised to co-work to boost investment and trade between Nepal and India.

FNCCI and CII will work together to explore investment in competitive advantage sectors, find and solve problems faced by jointventure industries and build a suitable environment for investment. They asked the two governments to implement the treaty in the true sense and spirit.

Welcoming the CII delegation, FNCCI president Kush Kumar Joshi thanked the governments of Nepal and India for addressing the demands of entrepreneurs. "The new treaty has abolished irrational taxes, simplified trade and provided large ground for investment," said Joshi.

FNCCI and CII should work together to stop unauthorized trade between the two countries, Joshi said.

Indian joint ventures are operating under difficult conditions but the future will not be so harrowing, he added. He requested Indian entrepreneurs to invest in Nepal.

CII team leader VG Sakthi Kumar hoped the new trade treaty strengthen relations between Nepali and Indian entrepreneurs.

"It is an important step in the Nepal-India trade as India is building freetrade relationship with other countries," he said.

Kumar voiced grave concern over labour disputes, strikes and the energy crisis in Indian joint-venture companies and requested FNCCI to mediate for solving the problems. "Nepali hydropower sector can attract large investments from India," he said. Nepal and India should sign a bilateral promotion agreement, protection agreement and agreement on avoidance of double taxation soon, he said.

CA member and entrepreneur Diwakar Golchha, Nepal-India Chamber of Commerce and Industry presuident Arun Chaudhary and vice-president Suraj Baidhya also stressed on boosting bilateral cooperation between Nepali and Indian entrepreneurs.

IME's ATM

IME Financial Institution Ltd established its ATM service in Chabahil of Kathmandu district from Wednesday October 28, 2009. The finance company has ATMs in Dang, Gongabu, Koteshwor, Jamal, Panipokhari, Kalanki and Chabahil in STC network. The network accepts seven different cards including Visa and Master.

CNI Concerned

Confederation of Nepalese Industries (CNI) on Wednesday will organise an interaction programme on `Challenges and Opportunities of Drafting a New Constitution with Economic Development at the Centrestage'. The programme will have representatives of different political parties, CA members, civil society and constitutional experts, read a release.

Nepal Development and Employment Promotion's New Branch

Nepal Development and Employment Promotion (NDEP) Bank has opened its sixth branch in Kavre. It will fulfil all the banking needs of locals in various sectors. The bank has been providing ATM services from its Kamaladi, Patan and Koteshwor branches to its customers. It will open its seventh branch at New Road, Kathmandu.

Rastriya Banijya Bank's 18th ATM

Rastriya Banijya Bank (RBB) on Wednesday opened its 18th ATM counter in Bhairahawa. The bank is planning to establish 50 more ATMs within this fiscal year. The bank in the last fiscal year registered Rs 2.3 billion profit.

Air Kasthamandap Brought Second Aircraft

Air Kasthamandap has brought its second single engine aircraft in the country on October 28.

The aircraft with autopilot system has been manufactured by the Pacific Aerospace Pvt Ltd of New Zealand.

The aircraft will come into operation soon after getting its Nepali registration number and airworthiness certificate. It will fly from Surkhet to Jumla, Simikot, Kolti, Rara and Jufal transporting food products to these places.

NAC may Lease Aircraft for Delhi Flight

The national flag carrier is seeking to lease an aircraft in January for six weeks, as one of its Boeing planes will go for a regular C-check to Israel.

Executive Chairman of the Nepal Airlines Corporation Sugat Ratna Kansakar told THT that an aircraft will be leased to maintain the scheduled flights and reliability of the carrier.

The aircraft is required to operate daily flights on the Kathmandu-New DelhiKathmandu sector and Kathmandu-Dubai-DohaKathmandu sector four times a week. "We do not want to disturb the schedule during the tourist season," he added.

However, NAC Managing Director Captain KB Limbu thinks that it is not economically viable to lease an aircraft for short term. He opines that NAC can fly its passengers on another lowcost airlines for six weeks. Kansakar said NAC might do a rethink on the leasing idea if it turned out to be economically unviable.

NAC has sought an aircraft not older than 15 years from the date of manufacture on Aircraft, Crew, Maintenance and Insurance (wet lease) -- ACMI -basis for six weeks beginning January 3 with 375 guaranteed block hours during six weeks.

The interested parties should send their offers with detailed specification, manufacturing date, configuration, present registration number, valid insurance, present owner, present operator of the aircraft and ACMI rate per block hour by November 12, said NAC.

The aircraft should have a capacity of 150 to 200 seats. Delivery and re-delivery of aircraft will be done in Doha.

"We'll decide whether to lease or not on the basis of ACMI rate per block hour," Kansakar said.

Industrial Fair in Pokhara in Nov-Dec

Pokhara Chamber of Commerce and Industries (PCCI) is organizing an 11-day long industrial fair in Pokhara in a bid to promote local trade, agriculture and tourism sector. The fair would be organized from November 26 to December 6.

Man Kaji Makaju, member of PCCI, said 22 sub-committees have been formed to expedite the preparation works.

“We are expecting over 200,000 visitors are expected Pokhara and other surrounding districts,” Makaju said.

Organizers hoped that such annual events would help promote exports of domestic goods besides strengthening the local market to gradually displace imported goods. Different industrial and agriculture products, handicrafts, medicinal herbs, automobiles and services of financial instructions will be showcased in 273 stalls during the exhibition.

To add more attraction to the fair, different entertainment programs, including Lok Dohori Star contest will also be organized during the fair.

Bindu Kumar Thapa, coordinator of cultural sub-organizing committee, said renowned musical bands and comedians are performing on stage during the fair. Special children park will also be set up for the entertainment of children.

Organizers said earning from the event would be used to buy a fire engine, construct a viewing spot over Seti River and launch programs to discourage use of child labor.

Nepali Traders Pin Hope on New Ambassador to US

Business community has appealed the newly appointed Nepali Ambassador to the US Dr Shankar Sharma to strengthen country´s economic diplomacy to promote exports in the largest consumer market of the world and also attract more foreign investment and technology from the world´s largest economy.

The private sector that organized a series of programs to felicitate Dr Sharma mainly expressed wariness over dropping US investment in Nepal. They also raised concern over sharp drop in exports to the US over the last few years.

“Although we still enjoy trade surplus with US, the extent of surplus has dropped to Rs 880 million now from Rs 5 billion of the past. And this drop can be directly correlated with the decline in garments exports,” said Prashant Pokharel, president of Garment Association Nepal (GAN).

Garment is the prime Nepali exports to the US. However, as its volume of exports nose dive to mere 8 percent of what the country exported in 2002/03, country´s trade linkages with the US has sharply weakened over the last five years.

“This situation must be reversed,” said Pokharel, and expressed hope that the newly appointed envoy in support of the US Trade Representative Office and senators loving Nepal will be able to turn things around in Nepal´s favor.

GAN mainly demanded Dr Sharma to push for the duty-free facility for Nepal´s readymade garment in the US. Experts even suggested him to articulate facts like how the adverse impact in domestic garment industry has hit social stability, human development and employment situation in the country to seek the facility.

In the same note, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) requested Dr Sharma to make endeavor in bringing more US technology in the country. They noted that Nepal, given its potential, can be effectively promoted as highly profitable investment avenue in the sectors like hydropower, information technology, education, tourism and health.

Responding to the business community, Dr Sharma expressed his commitment to pick up the economic and trade related issues with high priority during his tenure for fostering Nepal-US relationships and building more meaningful bilateral engagements.

Nepse Index Dropping

Nepse on Tuesday lost 4.89 points to close at 590.44 points. The single loser -- Everest Bank -- lost Rs 116 per unit share pulling the bank sub-group down by 8.03 points to 571.23 points. Nepse saw 93,511unit shares getting traded on the third day this week.

On the second day, Nepse dropped by 4.1 points to close at 595.33 points. All market propellers, commercial and development banks, finance companies, and hydropower companies, plunged, pulling Nepse down.

Nepse Flooded with Primary Shares

The secondary market is flooded with shares as today on a single day it listed 29.3-millionunit of primary shares of three financial institutions -- two commercial banks and one development bank.

Sunrise Bank and Prime Bank listed their 12.5-millionunit and 10-million-unit primary shares whereas Vibor Bikas Bank listed its 6.8-million unit primary shares.

With the three new financial institutions, the number of listed companies has also gone upto 163 in Nepal Stock Exchange (Nepse). According to Nespe, with the two additions, there are 23 commercial banks in banks subgroup -- the key market propeller. The 23 commercial banks have listed 281.56-million-unit shares.

Similarly, with one new entrance in the development banks sub-group the number of listed development banks has touched 30.

"Vibor Bikas Bank floated 26,52,000-unit shares worth Rs 265.20 million on June 10 for the public including its staff. It listed a total of 6.8 million-unit shares worth Rs 680 million including 41,48,000-unit promoter shares today.

The 30 development banks have listed 66.34-million-unit shares at Nepse that is dominated by banks and financial institutions. They have over 85 per cent of the total trading.

According to rule, shares of listed companies will be traded after a week of listing.

China to Increase Aid

China is willing to make a moderate increment in its grant to strengthen trade and economic ties with Nepal.

During a programme organised on the occasion of 54th Nepal China Friendship day, Chinese ambassador to Nepal Qiu Guohong said though China is affected by the global financial crisis, it will moderately increase the grant assistance.

He said the overall economy of China is not good due to the crisis. He added that China will identify the areas to allow grant assistance and the priority areas will be rural, hydropower, flyover and dry ports. "We will gradually grant more assistance to Nepal and in the future too we will give assistance and will encourage Chinese enterprises to make investment in Nepal."

Ambassador Guohong also focused on Nepal-China relations and urged both countries to work for mutual benefit and stronger bilateral relations.

Speaking on the occasion, deputy prime minister Bijay Kumar Gachhedar insisted on attracting industrial investments from China.

He said the nation should try and focus on attracting investment here. There must effectiveness in trade relations between Nepal and China, he said.

During the programme, participants from different political parties opined that there must be infrastructure development to increase trade between Nepal and China along with tourism promotion for Nepal Tourism Year 2011.

According to them, Nepal is making numerous investments in African countries but it has failed to encourage the African countries to make investment here due to political instability.

They also urged for the development of the North-South Road to develop trade relations between two the countries and minimise trade imbalance.

LG Incentive

On Dashain and Tihar, LG brand has been successfully running festive consumer incentive scheme called Ahai LG. Under this scheme, consumers are entitled to sureshot instant prizes and LG Bada Bumper Prize comprising a set of LG products. CG Electronics Pvt Ltd handed over LG Bada Bumper Prize to Pradip K Paudyal (coupon no. 8281), purchaser of an LG refrigerator from TV World, New Baneshwor. The Bada Bumper set includes various LG products like LG refrigerator, TV, washing machine, vacuum cleaner, microwave oven, DVD, home theatre and mobile set.

G'Five Mobile Here

G'Five mobile entered the Nepali market on Tuesday, appointing Call Mobility Pvt Ltd as its authorized dealer. G'Five brand is popular in South-East Asia, MiddleEast and South America, the company's press note read. Call Mobility Pvt Ltd has promised to maintain the goodwill of the brand.

New Trade Treaty With India Comes into Effect

It will reduce hurdles in trade between the two countries and create better environment -- Indian Minister for Commerce and Industries Anand Sharma The new treaty will help Nepal reduce trade deficit with India -- Minister for Commerce and Supplies Rajendra Mahato

Nepal and India today signed Treaty of Trade and Agreement of Cooperation to Control Unauthorised Trade here. Minister for Commerce and Supplies Rajendra Mahato and Indian Minister for Commerce and Industries Anand Sharma signed the treaty that will come into effect immediately.

New trade treaty is the revision of 1991 treaty. It addresses changes that took place in bilateral, regional and international trade in the last 18 years, said Mahato. "The new treaty will help Nepal reduce trade deficit with India," he said, "It will be a milestone for Nepali exports if Nepal can produce quality goods at competitive prices," he added.

Two-third of Nepali trade is with India and the trade volume has been growing. Since 1996, Nepali export to India has grown 13 times but import from India has dominated the trade. The new treaty has removed non-tariff barriers and made trade more transparent. It has made a provision for simplification of trade and transport related documents. It makes rules of origin, duty refund procedure and tariff rate quota in favour of both the countries.

Indian minister Anand Sharma hopes that both Nepal and India will benefit from the treaty. "It will reduce hurdles in trade between the two countries and create better environment," he said. There will be no restriction on the quantity of export of Nepali products to India hereafter, he added.

He said the treaty had room for improvement and simplification of trade and commerce between the two countries. "India wants to see prosperous neighbours and the treaty is a step to ensure peace and prosperity in Nepal," he said.

The revision of agreement of cooperation to control unauthorised trade allows re-export of goods manufactured and produced in one contracting party to third countries through the territory of another contracting party without any manufacturing activity.

Market Experiences Liquidity Shortage Inter-banking Lending Rate Rises to 8 pc

In an early indication of tightening liquidity in the money market, the inter-banking lending rate has scaled up to a new height and the discount rate on 91-day treasury bills has also increased.

Bankers told myrepublica.com that due to shortage of liquidity that the market experienced after the end of festivals, the inter-banking rate has increased to 8 percent from around 3 percent when the market opened after festival holidays.

Though a light liquidity shortage is a usual post-festival phenomenon in Nepal, this time it has been aggravated further by sluggish government expenditure due to delay in endorsing fiscal year budget from the parliament, said a leading banker.

According to a senior official of Nepal Rastra Bank (NRB), the shrinking bid amount submitted by the banks against the latest 91-day treasury bills is the strongest proof that the financial institutions are in shortage of liquidity. The NRB offered treasury bills worth Rs 500 million on Monday but the bid amount submitted by the banks totaled Rs 980 million and the discount rate offered has also gone up to 4.48 percent from 3.75 percent recorded two weeks back.

"Though the bid amount is more than the offered amount, the worrisome fact is that the bid amount in the past used to be four to five times more than the offered amount but this it is not even double now," said the official.

Bankers said the latest shortage of liquidity was also an impact of chronic note shortage that the country witnessed just before Dashain, Nepal´s biggest festival. As the banks are demanding more cash to settle intra-branch flow of funds made during the crisis, there is higher demand of liquid cash, said a banker.

He also added that pace of deposits coming back to banks has remained slow compared to previous years´ trend, may be due to the shattered confidence of depositors as they had to be in long queues outside banks to withdraw cash just before the Dashain festival.

Market Wxperiences liquidity shortage Inter-banking lending rate rises to 8 pc

In an early indication of tightening liquidity in the money market, the inter-banking lending rate has scaled up to a new height and the discount rate on 91-day treasury bills has also increased.

Bankers told myrepublica.com that due to shortage of liquidity that the market experienced after the end of festivals, the inter-banking rate has increased to 8 percent from around 3 percent when the market opened after festival holidays.

Though a light liquidity shortage is a usual post-festival phenomenon in Nepal, this time it has been aggravated further by sluggish government expenditure due to delay in endorsing fiscal year budget from the parliament, said a leading banker.

According to a senior official of Nepal Rastra Bank (NRB), the shrinking bid amount submitted by the banks against the latest 91-day treasury bills is the strongest proof that the financial institutions are in shortage of liquidity. The NRB offered treasury bills worth Rs 500 million on Monday but the bid amount submitted by the banks totaled Rs 980 million and the discount rate offered has also gone up to 4.48 percent from 3.75 percent recorded two weeks back.

"Though the bid amount is more than the offered amount, the worrisome fact is that the bid amount in the past used to be four to five times more than the offered amount but this it is not even double now," said the official.

Bankers said the latest shortage of liquidity was also an impact of chronic note shortage that the country witnessed just before Dashain, Nepal´s biggest festival. As the banks are demanding more cash to settle intra-branch flow of funds made during the crisis, there is higher demand of liquid cash, said a banker.

He also added that pace of deposits coming back to banks has remained slow compared to previous years´ trend, may be due to the shattered confidence of depositors as they had to be in long queues outside banks to withdraw cash just before the Dashain festival.

NAC Decides to Buy Two Airbuses

One plight of the national flag carrier of Nepal seems finally to be nearing an end. Nepal Airlines Corporation (NAC) has finally chosen the planes it will be buying. A meeting of NAC´s executive committee on Monday decided in favor of two aircraft from Airbus, the European manufacturer, it said in a statement. The committee has settled on one plane in the A320-200 series, at a cost of US dollars 41.289 million, and one in the A330-200 series, at 92.845 million dollars, the statement said.

The proposed wide-body A330-200 has a seat capacity of 279 while the narrow-body A320-200 has a seat capacity of 150.

“After analyzing the proposals that we received, the proposal forwarded by Airbus was found to be more profitable, commercially and otherwise,” the statement reads. NAC had called for bids on April 7 this year to supply the planes. According to NAC, apart from Airbus, American aircraft manufacturer Boeing had also submitted a proposal.

NAC had formed a 14-member committee to evaluate the bids submitted by both manufacturers. The committee submitted its report in June. The committee leaned towards Airbus as the operating cost of the A330-200 was found to be 40 percent less than the wide-body Boeing 767 and Boeing 777 that had been proposed by Boeing. NAC also wanted to go for Airbus to maintain operational homogeneity in its fleet, which includes two Boeing 757s.

It had been recommended that NAC go for Airbus for the narrow-body aircraft instead of buying one Boeing and one Airbus because the airline would not need different sets of people to fly and maintain these two aircraft. The same set of pilots and technicians could fly and maintain both the A320-200 and A330-200. According to NAC sources, if they had gone for the new Boeings these would be completely different from the two Boeings NAC currently has and they would need to train people to fly and maintain them.

The Airbuses will be the first planes that NAC is buying after it bought two Boeings, in 1987 and 1988. The purchase is part of a five-year plan under which NAC aims to add six jets.

The flag carrier has been under fire for a long time as the planes that it has for international flights have been grounded again and again due to technical failures and NAC is losing customers even as more and more airlines are making their way to Nepal.

New Trade Treaty to be Signed on Tuesday

Nepal and India are finally signing the new bilateral trade treaty on Tuesday.

Commerce Minister Rajendra Mahato and his Indian counterpart Ananda Sharma are inking the revised treaty amid a function on Tuesday. The signing will bring the new bilateral trading provisions into enforcement with instant effect.

• No non-tariff barriers and extra-customs duty on Nepali exports
• India to recognize Nepali standard certification
• DRP, channeling agency on vegetable ghee exports to be annulled
• Trade via air to be recognized
• Five new trading routes to be opened up, including TIA
• Treaty will last for seven years
  

The revised treaty is the outcome of two years long negotiations between the technical committees of the two countries. While carrying forward the unilateral tariff preferences on Nepali exports to India, the new treaty also provides non-tariff and other preferences for Nepal. This, traders said, will give impetus to country´s export trade with the largest trading partner. Mainly, they believed it will support the export of agricultural and primary goods, which otherwise were facing different impediments in the past.

What´s in the new treaty?

The new trade treaty promises to exempt Nepali exports to India from all forms of non-tariff barriers, something which had been seriously dampening growth prospect of Nepali primary goods and discouraging exporters.

The treaty also binds India to recognize Nepal´s standard certification. It also puts the responsibility of upgrading Nepal´s laboratory on India´s shoulder, a provision which officials said will ensure enforcement of standard accreditation provision. Once that happens, exporters of Nepali tea, cardamom, ginger and other agricultural produces will no longer need to produce quality certification from Indian laboratories in Kolkata or Patna for entering their produces to India.

This will prevent traders from losses they incurred while waiting for a week for certification to come, and thus will boost the export of primary goods.

In the new treaty, India has for the first time formally agreed not to impose extra-customs duty on Nepali goods. This provision will free Nepali exports from 4 percent special additional duty (SAD) and other countervailing measures that India has been imposing in the past.

Once into effect, this provision will enable Nepal´s readymade garment and dozens other commodities to be free from SAD that the Indian government has imposed at present. “For the purpose, Nepal will have to formally make a request, highlighting the case of SAD imposition. On receiving the request, India will complete its internal procedures and issue notification on its exemption on Nepali exports,” said the source.

Traders stated that this provision will lay down predictable trading environment and hence will boost Nepal´s export to India and also help Nepal get more investment than in the past.

Imposition of non-tariff barriers, certification problems and extra-customs duties, which debilitated Nepal´s competitiveness, have been badly affecting Nepal on the exports front. Sharp rise in consumption, on the other hand, has caused its trade deficit to widen to more than Rs 108 billion.

The new treaty will be valid for next seven years, contrary to previous arrangements of five years.

The new treaty will also annul duty-refund procedure and the system of exporting vegetable ghee through a channeling agency. It will enable traders dealing on Indian currency to enjoy excise and all other facilities as enjoyed by traders dealing on convertible currency.

The new treaty will, for the first time open, bilateral trade via air route as well. For the purpose, Tribhuvan International Airport (TIA) will be used as the official port for exports and airports in Delhi, Mumbai, Kolkata, Bangalore and Chennai will be ports for imports.

It will also add four new land routes, namely, Maheshpur (Nawalparasi), Sikta (Parsa) Gulariya (Bardiya) and Laukahi (Siraha) for bilateral trade.

The treaty also provisions setting up a new mechanism including local customs, government and chamber´s officials to instantly address trade related problems.

Wholesale Price Up

The y-o-y wholesale price inflation rose to 12.6 per cent against 10.3 per cent last year. Agricommodities increased by 29.7 per cent compared to the 0.7 per cent increase a year ago. Within the agricultural commodities group, the price index of cash crops increased by 84.3 per cent against the decline of 23.2 per cent a year ago. Likewise, the prices of livestock, fruits and vegetables and spices also increased by more than double to 42.5 per cent, 30.9 per cent and 20.2 per cent respectively against the increase of 13.3 per cent, -22.1 per cent and 10 per cent last year.

Price Hike Cools, Salary Increases

Salary and wages increased by double in comparison to the price hike in the second month of the current fiscal year.

According to Nepal Rastra Bank's (NRB) data of mid-September, overall year-on-year (yo-y) salary and wage rate index rose by 20.8 per cent but inflation moderated to 9.7 per cent.

The price hike was 13.5 per cent in the same period last year.

The price index of food and beverages group increased by 16.3 percent. Similarly, the index of non-food and services group rose only by 2.1 percent. The index of food and beverages and non-food and services group rose by 14.2 per cent and 12.8 per cent, respectively, last year.

Rise in prices of vegetables and fruits contributed to the price hike as their indices increased by a whopping 43.5 per cent -- in sharp contrast to a decline of 14.6 per cent in the same month last year. Similarly, the price indices of sugar and sugar related products also increased by 40.5 per cent in comparison to an increase of 38.9 per cent during last year's same month, said the NRB.

The price index of meat, fish and eggs has doubled to 29 per cent against an 14.5 per cent increase in same period last year.

However, the grains and cereal products subgroup witnessed an increment of 5.8 per cent against a 23.8 per cent hike in the same month last year. The price index of transport and communication declined by 8.7 per cent against the increase of 23.1 per cent in same month last year.

Region-wise, the Tarai was the most expensive as the price index there rose by 9.9 per cent followed by 9.6 per cent in Kathmandu Valley and 9.4 per cent in the hills. The respective rates were 13.5 per cent, 14.1 per cent and 12.7 per cent last year.

The y-o-y core inflation rose to 10.9 per cent from 12.1 per cent a year ago, said the report.

However, the overall y-o-y salary and wage rate index rose by 20.8 per cent in comparison to a rise of 9.1 per cent a year ago. "The salary index increased by 32.8 per cent due to increase in basic salary and allowances for civil servants," said NRB. The wage rate index increased by 17.1 per cent compared to an increase of 12.3 per cent in the same month last year.

Wages of agricultural, industrial and construction labourers increased by 18.1 per cent, 15.8 per cent and 16.4 per cent respectively against increase by 19.5 per cent, 2.7 per cent and nine per cent, respectively, in the same month last year.

Inflation Drops to Single Digit Despite Rising Food Prices

Nepal´s inflation moderated to a single digit for the first time over the last one year and stood at 9.7 percent in mid-September 2009, Nepal Rastra Bank (NRB) has reported.

Despite the drop, consumers continued to reel under galloping rise of food prices. According to the central bank data, prices of food and beverages increased by 16.3 percent, which was higher than the rate at which the food and beverages prices rose in the same period last year.

However, the prices of non-food and services rose at nominal rate of 2.1 percent during the period. It is for this reason that inflation effectively moderated. Otherwise, if the trend of food prices is to be considered, the drop in inflation that central bank reported is meaningless for general consumers.

Among the food items also, NRB said the prices of vegetables and fruits soared by a whopping 43.5 percent during the period. The prices of sugar and sugar related products too increased by 40.5 percent. Similarly, the price indices of meat, fish and eggs as well as pulses increased by 29 percent and 25.6 percent respectively during the period.

Only sign of relief for consumers is that the prices of grains and cereal products increased at nominal rate of 5.8 percent, compared to 23.8 percent increase in the same period last year.

Likewise, the central bank has reported that the overall salary and wage rose by 20.8 percent during the period, cushioning the salaried staff and wage earners from the soaring food prices.

According to the report, salary mainly soared by whopping 32.8 percent during the period due to rise in basic salary and allowances of civil servants and its simultaneous effect on salary of the private sector.

Wages of agricultural, industrial and construction laborers too increased by 18.1 percent, 15.8 percent and 16.4 percent respectively during the period, says the report.

Bhaktapur Night on Nov 2

Bhaktapur Tourism Development Committee will hold the ninth Bhaktapur Night on November 2 on the occasion of Saaki-Manna Punhi -- a festival to commemorate harvesting season on the first full moon of November. There will be images of gods and goddesses made from cereals and sweets at major shrines in as thanksgiving. The objective of the fair is to preserve historic cultural dances and music and promote night tourism activities.

Major attractions be Devi dance, Asta Matrika dance and more by cultural troupes from Bhaktapur and Madhyapur Thimi.

Food will be on the spot with live courts. GFood has to be purrchased but the cultural programme is free.

The programme is jointly supported by the Bhaktapur DDC, municipality, Madhyapur Thimi municipality, Bhaktapur Chambers of Commerce and Industries and is promoted by Nepal Tourism Board.

Carlsberg Announces Winner of Trip to Best Bars Campaign

Gorkha Brewery conducted the lucky draw for ´Win a Trip to Probably the Best bars in the World´ campaign that was conducted in around 2,200 outlets all over the country here on Monday.

Dilendra Raj Shrestha, former president of Restaurant and Bar Association of Nepal (REBAN), picked coupon number 638271 as the winner of the campaign through a lucky draw.

According to the company, the winner and a friend will get an opportunity to enjoy the ultimate bar experience at probably the best bars in the world in Copenhagen, Dubai and Rome. Gorkha Brewery will bear all travel and hospitality costs of the duo.

More than 650,000 people participated in the campaign.

The winner will have to claim the prize within seven days of announcement with the remaining half of the coupon and Nepali Passport at the company´s office in Hattisar.

Earlier, Yugesh B Shrestha and Subash C Adhikari had won an all expenses paid trip to watch a football match at Anfield and award Man of the Match to Steven Gerrand and Javier Mascherano through a ´Win the Football Trip of a Lifetime´ conducted by the company.

NAC Holding Short End of Business Stick

Ninety per cent of the international air business has been taken over by foreign airlines, with just a 10 per cent share left for the national carrier, according to experts.

However, the Ministry of Tourism and Civil Aviation (MoTCA) and Nepal Airlines Corporation (NAC) both are working to increase the share of the national carrier.

"Domestic airlines should target for the rest 90 per cent share also," said Tourism and Civil Aviation Minister Sharat Singh Bhandari during a programme on `Aircraft Financing in Nepal -- Problems and Prospects,' here today.

He also said that if the domestic airlines want to compete in the international market too, government is open to supporting their initiative.

"Here, we do not lack money in the market. It is the flow of investment that is lacking," Bhandari said adding that along with NAC, the private airlines sector should also come up with new plans. T alking about NAC, Bhandari said that NAC should make proper business plans and enhance its corporate and management sectors to garner profits.

"Currently, 22 international airlines operate in Nepal and even these existing international airlines are on their way to increasing the frequency of flights and seat capacity," said MoTCA secretary Nagendra Prasad Ghimire.

According to Ghimire, foreign airlines are profit-oriented so they will stay here as long as they get benefits from their flights operations.

Thus, they can also minimise flight operation if their business goes down.

Ghimire also informed about the preparations going on for a second full-fledged international airport.

He said, "The government has come up with a plan to establish an international airport at Nijgarh. The feasiblility study for it is going on and the study should be completed within 10 months. Within five years, Nepal can be developed into an international standard transit hub."

Talking about plans for boosting the number of NAC aircraft, NAC executive chairman Sugat Ratna Kansakar said, "We are planning to purchase aircraft rather than take them on lease as leasing aircraft creates numerous problems."

"However, for the purchase we need investments and funds," he added. According to Kansakar, Employee's Provident Fund is ready to grant Rs 10-12 billion but only if the government is ready to stand guarantee.

"Not only international flights, we are facing pressure to increase domestic flights too," added Kansakar.

During the programme, people from the civil aviation sector urged for establishing financial discipline along with responsible corporate behaviour so that the airlines corporation can get major financing support.

According to Civil Aviation Authority of Nepal director general Keshab Raj Khanal, domestic banks are not capable of major financing in this sector.

"The Cape Town Convention should be ratified and the government should allow funding in this sector," Khanal suggested.

Virgin Mobile Prizes

Thirteen people won prizes while scratching the coupons provided by Virgin mobile showroom to customers on every mobile set deal. According to showroon owner Bibek Sharma, the offer has ended for Nokia range but remains valid for all other sets.

Spice Mobile's 'Flexi Dual' Phone

Teletalk Pvt Ltd, the authorized distributor of Spice Mobile for Nepal, has unveiled the ´flexi dual´ D-6666, which runs on dual SIM mode using combinations of either GSM and CDMA or GSM and GSM SIM cards.

“The amazing feature gives its users a complete sense of flexibility and freedom,” Teletalk said in a statement.

The phone also allows users to record what is being broadcast on FM station. The device has an MP3 player, a 2 megapixel camera with flash, Stereo Bluetooth system, among others. Other features include an Email2SMS that allows users to get emails via SMS; Hindu Teethi calendar, and an SMS scheduler.

Teletalk provides a 1GB card free with every set.

Sunrise Lists Share

Sunrise Bank and Nepal Stock Exchange (Nepse) have entered into an agreement to list the 1,25,00,000-unit of primary shares of the bank in the secondary market.

The face value and paid-up value of the 23rd commercial bank's share is Rs 100 per unit. According to the Nepse rule, shares of companies will start trading after a week of listing at Nepse.

Sanima Announces 100% Auto-loan Scheme

Sanima Bikas Bank Limited has announced a new car-loan scheme. In a statement issued Monday, the bank said it was providing a 100 percent loan on vehicle purchases.

To avail the service, clients will have to deposit 20 percent of loan amount in the bank in the client´s savings account for the period of the loan. The bank said it would provide the client interest on the deposit.

“In other such loans, the amount is taken as a down payment and paid to the seller. But with us the clients will not only get back the 20 percent but also the accumulated interest after he/she has paid off the loan,” the statement said.

FedEx Expands to Pokhara

Everest De Cargo Pvt Ltd, licensee of cargo company FedEx Express for Nepal, has expanded to Pokhara.

Issuing a statement Monday, Everest De Cargo said it has appointed Open Heart Travel and Tours Pvt Ltd as FedEx Authorized Ship Center (FASC). The FASC, located at New Road in Pokhara, will serve as a drop-off point for outbound documents and packages, it said.

“Now people from Pokhara can directly send their shipment using custom cleared, door-to-door FedEx Express service to over 220 countries worldwide within two to four days,” Neelisha Pradhan, marketing director of Everest De Cargo, said in the statement.

The company has its head office in Kantipath and service centers in Kamaladi and Kantipath in Kathmandu and Pulchowk in Lalitpur.

Two Win Bajaj Platina in Nokia Offer

Two people who bought Nokia phones have won a Bajaj Platina 100 motorcycle each, the authorized sellers said Monday.

According to a joint statement from authorized distributors of Nokia for Nepal -- Neoteric Nepal Private Limited and Paramount Electronics, and the authorized branded retail partner Mobiletron, Shivaram Gurung of Nawalparasi (Coupon No. 245657) and Raju Gupta of Janakpur (Coupon No. 109316) were picked as the winners of the bikes from the sixth and final lucky draw of the ´Nokia Yaspaliko Dashain Tihar Double Babal´ offer at a function held on Monday.

The campaign, which started on August 25 and ends on October 18, offers a draw coupon on every purchase of Nokia phones from authorized sellers with a lucky draw held every week for prizes including two Bajaj Platina motorcycles, and cash and mobile phone sets every week.

The statement also said 16 Nokia customers had won mobile phone sets while six had won cash prizes of Rs 5,000 each. The coupon numbers of winners of mobile phones this week are 205794, 217837, 224841, 209515, 223274, 216601, 216122, 200101, 47877, 107719, 147048, 127132, 136898, 147016, 135775 and 110284, while customers with coupon numbers 219383, 219331, 202862, 125120, 106429, 133046 won the cash prizes, the statement said.

Soaltee Hotel Declares Dividends

Soaltee Hotel has announced bonus shares and cash dividends.

The 161st board of directors' (BoD) meeting of Soaltee Hotel Ltd on Wednesday proposed 20 per cent bonus shares and 11.5 per cent cash dividend to its shareholders.

The proposal is subject to approval from its annual general meeting (AGM), said the hotel that has decided to hold its 35th AGM on December 17.

There are only four hotels listed under the hotels subgroup in Nepal Stock Exchange (Nepse).

Hotel Yak & Yeti, Soaltee Hotel, Taragoan Regency (Hyatt) Hotel and Oriental Hotel (Radisson) have listed a total of 24,225,898-unit shares in the secondary market.

But Soaltee Hotel has a paidup value of Rs 10 per unit share whereas the remaining three have Rs 100 paid-up value per unit share. However, the secondary market has witnessed a regular trading of only two hotels -- Soaltee Hotel and Oriental Hotel (Radisson). The shares of Taragoan Regency (Hyatt) Hotel also is being traded though, irregularly.

Oriental Hotel (Radisson) has held its 12th annual general meeting on September 16. Both the shares of Oriental Hotel and Soaltee Hotel have been trading for around Rs 200 per unit.

Hotel Yak & Yeti that has listed 2,209,208-unit of shares with a face value of Rs 100 per unit, wants to be delisted from Nepse.

Hotel Yak & Yeti could be delisted soon, according to Nepse. According to the rule, if a company does not pay annual renewal fee for three consecutive years, it can be delisted. The hotel has not paid its renewal fee for three consecutive years.

The Nepse board has also discussed the hotel's request to be delisted but has not taken any decision.

Meanwhile, Kist Bank's board of directors' meeting has also proposed 1:1.5 rights shares and 3.5 per cent cash dividends from the profits of the fiscal yaer 2008-09.

The youngest commercial bank --- that has upgraded from the Class-C finance company to Class A commercial bank -- has planned its annual general meeting on November 14. The AGM will approve the BoD's decision. It will have its books closure for the AGM from October 30 to Novermber 14. The bank has planned to increase its paidup capital to Rs 5 billion -- the largest amount among commercial banks in the country.

According to Nepal Rastra Bank (NRB), a commercial bank needs to have Rs 2 billion paid-up capital.

Meanwhile, Nepse again dropped below the 600-point mark to close trading on the first day of the week at 599.22 points. Nepse lost 1.94 points from the morning's opening of 601.16 points.

NRNs to Work as Gratis Economic Ambassadors

Non Resident Nepalese (NRNs) can contribute to Nepal by br inging skills and knowledge from the countries of their residence.

"We can also hand over the technologies," said Non Resident Nepalese Association (NRNA)president Devman Hirachan at a felicitation programme organised by Nepal Chambers of Commerce (NCC) here today. NRNs have formed their own organisations in 55 countries to work for the promotion of Nepal and Nepali labour and tourism market abroad.

During the programme, Hirachan stated that NRNs are ready to work as representatives for promoting business free of cost.

NCC president Surendra Bir Malakar expressed his happiness at the formation of NRNA, which according to him was conceptualised by the chamber in the be ginning. "We hope and expect that N R N s would be more active in the d a y s a h e a d and contribute to the social transformation of the country by promoting industrial as well as social sectors of Nepal," he said adding that the government should provide the facilities de manded by NRNs as it would encourage them to invest in the industrial and financial sectors of the country. "It would also help strengthen the public-pri vate partnership (PPP)," Malakar added.

NCC vice-president Suresh Kumar Basnet, trea surer Rajendra Malla and secretary Kamlesh Agrawal said in the present context the private sector cannot be underestimated.

Department of Transport Management Puts on Hold nixing of LPG-Powered Dymakions

Department of Transport Management (DoTM) has postponed its decision to scrap the LPG-run tempos for an indefinite period. DoTM has written a letter to the Bagmati Zone Transport Management Office directing it not to implement the process without further direction.

"DoTM wants to settle the problem through talks, so we took this step," said DoTM director general Sharad Chandra Poudel. Further negotiations with tempo operators will be held at the Ministry of Labour and Transport Management (MoLTM) at October 29. Minister Mohammed Aftab Alam will deal with the issue, he added. "The decision will come after the talks," he said.

MoLTM had taken the decision to phase-out LPG-run three-wheelers on September 9 at the recommendation of DoTM. In February, the department had formed a study committee under Poudel's leadership to study the situation. The committee has suggested MoLTM to give 75 per cent compensation to the LPG-run tempo owners.

MoLTM had provided up to 99 per cent tax exemption on import of new vehicles in place of Vikram tempo from Kathmandu valley on 1998. Vikram tempo owners had got 75 per cent and 99 per cent exemption in customs duty while importing diesel microbus and LPG-run tempos.

"We hoped that the Ministry of Finance would support the move but it did not," said Poudel, "That is the root of the prevailing problems."

The newly-formed tempo owners' association -- Self-reliant Transport Entrepreneurs Association (STEA) -- has asked for tax exemptions, like for Vikram tempos. "We want 99 exemption in customs duty and secure route permits," said STEA joint secretary Dhurba Raj Shrestha.

LPG-run tempo owners organized a sit-in protest under the STEA aegis on DoTM's premises today demanding at least 75 per cent rebate in customs duty. The protest has supported by the Supreme Federation of Nepal National Transport Entrepreneurs.

Around 940 LPG-run tempos have registered in Bagmati zone and 460 of them are in operation.

Tourist Arrival Gone Up

Tourist arrivals have gone up after an alternate road was constructed to Siddha Gufa (cave) at Bimalnagar in Bandipur VDC-6 of Tanahun. It is said to be the largest cave in Asia. The cave earlier reached in an hour from Bimalnagar near the Prithvi highway can be reached in 20 minutes now via the alternate road.

More than hundred tourists come daily, said Siddha Gufa Management Committee chairman Lalkaji Shrestha. Earlier, around 60 visitors used to come daily, he said. Indian, Japanese, Chinese, US and Swiss tourists and internal tourists from Gorkha, Pokhara, Kathmandu, Birgunj, and Dharan also come. The scenery around the cave is enchanting. Nepal Tourism Board constructed the one-km alternate road.

Himstar Fest

Himstar marked the International Day of Climate Action by distributing CFL bulbs for free in different parts of the country. It has drawn the people's attention to the heat given off by normal bulbs and shown the advantages of CFL bulbs and their environment-friendly benefits. The campaign was helped by students of Rato Bangala School with the slogan "CFL for 350". Over 25 students volunteered for the programme and showed their concern at climate change. CFL uses less power and has a longer rated life giving enough amount of light.

Garment Sector Cries for Support, Urges Lobbying

One of the most promising export sectors -- the garment industry that was the highest contributor of foreign currency -now needs strong lobbying in the international market.

Speaking at a press meet, Nepal's ambassador to the US Dr Shanker Sharma said that the US has a total GDP of $13 trillion in which its import stands at $3 trillion. "Therefore, it is not such a big deal for it to grant duty free access to Nepali readymade garments. The RMG sector requires lobbying," he said.

According to Sharma, Non Resident Nepalese (NRNs) and businessmen should concentrate on sustainable trade investments that can create benefits for Nepal. The most exportable products to the US are garments, carpets, pashmina and handicrafts. For their sustainable export there must be continuous lobbying, said Sharma. He added it is his target to lobby for Nepali RMG during his stay in the US.

Sharma is scheduled to leave for the US in November. "We need to promote our achievements in the international market and mitigate negative information there," he said.

With the end of the Multi Fiber Agreement (MFA) along with quota phase-out, Nepali RMG is observing a great decline in the US market. The Nepali RMG industry is now seeking preferential treatment abroad to reform the industry as a whole. The industry is in need of quick relief for its existence domestically.

Garment Association Nepal (GAN) has been urging for a stable and flexible labour policy.

Before the end of Multi Fiber Agreement, Least Developed Countries (LDCs) benefited with some duty free access for the exporters.

However, as per the WTO Agreement on Textiles and Clothing (ATC) member countries agreed to eliminate quotas applied on trade and textiles.

Garment and carpet industries that contributed about 25 per cent to the total GDP , have fallen behind. At least 80 per cent of the export to the US earlier comprised Nepali garments but now RMG export to the US is around zero.

There has been as high as an 84 percent decline in garment exports to the US after the quota system was phased out, according to GAN. Amongst the major export commodities to other countries, according to the first month's comparative data for fiscal year 2008-09 the RMG export has declined by -37 per cent in 2009-10.

During the fiscal year 2007-08 the total garment exported was worth Rs 445.8 million, in 2008-09 it was worth Rs 428.1 million and it was worth Rs 269.9 million in the first month of the present fiscal year.

Training Workshop on Commodities Concludes

The commodities market is emerging, it has immense growth potential and will continue to expand in multiple horizons within two years, said experts at a twoday workshop on `Futures and Derivatives Market (Commodities, Forex, Options, Structured Products)' that concluded here today.

Since the market is complicated and ruled by international events, economies, new investors need to be educated fundamentally and technically. A training workshop was the need of the hour, Frank Reudi from Swisscontact said in the programme organised by Jamb Technologies with technical assistance of Swisscontact in close coordination with Morningstar Investment Service (a subsidiary of Jamb) and United Finance.

There are 50 registered brokers involved in commodities business and the business has already spread Kathmandu Valley. According to estimates, there are around 8,000 traders of whom 5,000 are active in the market, Morningstar Investment Service said.

With the growth of the market, more complaints and greivances are also coming up and to address them a regulation is a must.

"Intially, we didn't have a market, but now we have a market spread all over Nepal, and it needs to be regulated," according to Morningstar. "Tax imposed on commodites trading should also be scientifically addressed as there should be the provision of rebate and charges on net profit not on gross profit such as what prevails.

Swisscontact is the organisation of the Swiss private sector for development cooperation which promotes private economic and social development in selected countries of South and East Asia.

Commodities and Metal Exchange Nepal (COMEN) that started its operations in 2007. Mercantile Exchange Nepal (MEX) and Nepal Derivative Exchange Ltd have just started.

Department of Commerce to Step Up Market Monitoring Intensity

The Department of Commerce (DoC) has decided to expand its market monitoring and inspection of the service sector. It took the decision on Friday after it got a large number of complaints.

"DoC has decided to expand its market monitoring and inspection of the service sector," said inspection officer Kamal Bahadur Thapa. There are dozens of complaints about the service sector, he added. Previously, DoC was monitoring the commodities sector also.

"We will enter into all sectors that are associated with consumers," he said.

"DoC will enter the medicine sector as well soon," he said, "We got complainta about date expired and substandard medicines being sold in the market."

DoC along with the Department of Medicine will start intensive monitoring and inspection campaign from next week, he added.

"Protection of consumers' rights is DoC's prime concern," he said, "We will destroy date expired and substandard goods on the spot."

Moreover, DoC is planning to enter the industrial sector. It is doing homework for that with other agencies, he said.

DoC has continued market monitoring and inspection after Dashain and Tihar. It has destroyed large amounts of consumer goods from three shops -- Sulabh Store, Palpali Store and Gautam General Store -- in Buddhanagar last week.

"We have also issued orders to register the shops within a week as many were found operating without registration," he said.

The department also directed the shops to display price-list as per the Consumer protection Act.

The act has listed 26 commodities as basic consumer goods.

ADB to Help Municipal Finance Study in India

Rapid urbanisation is placing significant stress on the budgets of India's local governments and more must be done to improve their financial status to enable them to fund infrastructure projects and delivery of essential services.

To address the issue, the Asian Development Bank (ADB) has agreed to a request from the government of India to support a study to assess the state of India's local government finances and identify key areas for fiscal and financial reform.

The e-Asia and Knowledge Partnership Fund will provide a $500,000 grant to the India Municipal Finance Study. The Fund was set up at ADB in 2006 through a $20 million contribution from the Republic of Korea. The government will contribute $170,000 to the study, said the ADB.

India is rapidly urbanising, with the population in urban areas expanding at an annual rate of 2.4 per cent, outpacing the 1.5 per cent nationwide population growth rate. Over the next decade, the urban population in the country is expected to increase by at least 100 million people. The Government estimates that nearly $475 billion will be required to fund infrastructure development for the next five years.

"India's local governments are responsible for providing basic infrastructure and services in cities and towns," said Kyeongae Choe, Principal Urban Development Specialist in ADB's South Asia Department. "But these local bodies -- particularly small and medium-sized organisations -- are plagued by low municipal revenues and poor financial management skills, and therefore they struggle to finance the kind of essential infrastructure that a rapidly growing population needs."

Choe said the study will identify problems affecting the finances of urban municipalities in four to six selected states, as representative sample cases.

The study will provide an overview of the issues of the local government finance structure, and identify key reform measures in India's rapidly changing urban context. The 18month ADB-aided study is expected to be complete by February 2011.

CG Bumper Prize

CG Electronics Pvt Ltd handed over LG Bada Bumper Prize to Pramila Shrestha (coupon no. 5477). The Bada Bumper set includes various LG products like LG refrigerator, TV, washing machine, vacuum cleaner, microwave oven, DVD, home theatre and mobile set. LG launched its festival offer on the occasion of Dashain and Tihar.

Sanima Home Loan

Sanima Bikas Bank Ltd has introduced home loan scheme with free life insurance coverage for the first time in the country's banking industry`. The scheme provides free life insurance coverage until tenure of Home Loan which includes purchase of land & building, house construction and equity financing against land & building. The scheme provides insurance coverage up to 50 per cent of the loan amount or Rs 25 lakh whichever is lower.

In case of death of the borrower during tenure of loan, insurance coverage amount shall be reimbursed by the Insurance Company which shall go towards settlement of Home Loan.

Himalayan Bank Limited has 44 ATMs

Himalayan Bank Ltd (HBL) on Saturday opened its ATM counters at Durbar Marg, Putalisadak, Maitidevi, Chetrapati and Damak. According to the bank, with the five additional ATMs it has a 44ATM network. The bank plans to open 15 more ATMs within the current fiscal year.

Slight Decline in NEPSE

Nepal Stock Exchange (NEPSE) opened just for two days -- Wednesday and Thursday -- for trading last week due to public holiday during Tihar festival. That's why, the market turnover dropped significantly. The NEPSE index witnessed a decline of 0.05 points to 601.16 points on Thursday against 601.21 points on Wednesday.

The groups comprising development banks and finance companies witnessed a decrease in their indices by 5.25 points and 2.71 points, respectively, contributing to a slight decline in NEPSE index.

However, the book closure (the period any company transfers dividends and other benefits to shareholders) of Everest Bank also contributed to the downfall in NEPSE index. The EBL's per share price declined to Rs. 2022 on Oct. 21 when the market opened from Rs. 2390 on Oct. 15, the last day of trading before Tihar festival.

The index of commercial banks remained positive by 0.55 points which could remain higher if EBL's share price had not come down relatively higher level.

The hydropower sector also witnessed an increase of 7.12 points in its index. The indices of manufacturing, hotel, trading and others groups however remained the same.

A total of 121,900 shares of 67 companies worth Rs. 73.2 billion were traded.

The Class 'A' companies witnessed a transaction of Rs. 41.3 million which covered 56.48 share of total turnover. The sensitive index that measures the transactions of Class 'A' companies witnessed a decline of 0.02 points last week. Nepal Telecom and Pashupati Development Bank topped in terms of turnover and number of shares traded, respectively. The shares of two government bonds (Development Bond 2071 and Development Bond 2073) were listed in NEPSE last week.

The number of shares of first bond stands at Rs. 30 million and second at Rs. 2.75 million, respectively.

Nepal Telecom Tops in Transaction

Yet fails to save the secondary market or the others sub-group

Nepal Telecom (NT) topped the chart both in terms of transaction amount and number of share units traded this week -- with Rs 9.28 million for 17,000-unit of shares, but it could neither save Nepse nor the others sub-group that has NT under its belt. The others sub-group dropped by 17.62 points to close at 640.32 points from last Thursday's closing of 657.94 points.

Of the nine sub-groups, only the hydropwer group that gained this week -- adding 7.12 points to reach 821.07 points from last week's closing of 813.95 points.

However, development banks, others, commercial banks, finance and insurance sub-groups plunged, pulling Nepse down by 8.39 points to 601.16 points from last week's closing of 609.55 points.

Development banks lost a whopping 35 points to 624.72 points. Others and commercial banks lost 17.62 points and 11.75 points to drop to 640.32 points and 583.88 points respectively. The books closure of Everest Bank dragged down the commercial banks sub-group.

The finance and insurance sub-groups shed 2.55 points and 0.03 points to drop to 624.72 points and 609.29 points, respectively.

Three sub-groups -- trading, hotels and manufacturing -did not see any trading this week that unlike regular five-day trading witnessed only two-day trading due to festivals.

During the two-day trading, only 67 companies saw their shares traded as against the 93 companies shares traded during the last five-day week. The minimal trading days also made the trading amount plunge by five times to Rs 73.23 million this week from last week's Rs 370.10 million.

The Group-A companies' contribution -- in overall trading -- also dropped to 44.89 per cent from last week's 56.48 per cent while the 78-scrip sensitive index -- a barometer of Group-A companies -- lost 1.90 points to drop to 151.77 points from the earlier closing of 153.67 points. The float index -- calculated on the basis of real transactions -- also dropped by 0.68 point to drop to 57.48 points from the earlier closing of 58.16 points.

Standard Chartered Bank Nepal followed NT in terms of transaction, with Rs 9.17 million. Standard Finance with Rs 4.08 million, Nepal SBI Bank with Rs 3.76 million and Nabil Bank with Rs 3.02 million managed to come in the top five slots.

In terms of number of transactions Pashupati Development Bank topped the chart with 254 transactions this week.

This week, 57.5-million-unit of development bonds were listed in the secondary market but these bonds till date have not seen any trading.

NEPAL-INDIA TRADE TREATY - Yawning Gulf Between Nepal's Import, Export

Though total exports expanded by 12.4 percent in the first month of this fiscal year in comparison to a rise of 4.5 per cent in the same month last fiscal year, exports to India went up by only 6.6 per cent.

Though according to Nepal Rastra Bank's (NRB) data the rise in exports to India was attributed to the rise in the exports of polyester yarn, thread, jute goods, textiles and copper wire rod, overall export to the largest trading partner has not been satisfactory. Export is not going up but import is growing fast.

In the total trade, import's share stands at 80.4 per cent and exports at less than onefourth -- at 19.6 per cent -widening the gap between import and export.

Since India is the largest trading partner of Nepal, and the negligible export to India has hurt the trade balance creating a huge deficit of over Rs 108 billion with a single country.

However, entrepreneurs are hoping that the revised trade treaty between Nepal and India will accelerate Nepal's exports to India.

"The revised trade treaty -- the outcome of two years' negotiations -- provides additional facilities to Nepal's export trade," a trader said categorically adding that the implementation is -- as always -- yet another factor that could either help boost or bust exports to India.

After the signing of the treaty by minister for commerce and supplies Rajendra Mahato and his Indian counterpart Anand Sharma on Tuesday, the treaty will have a seven-year shelf life.

The two ministers will also sign a new agreement upgrading the 1996 agreement to control unauthorised trade from third countries as such trade has also hit Nepal.

The over one month belated signing of the bilateral trade treaty was been initialled during Prime Minister Madhav Kumar Nepal's five-day visit to New Delhi in August.

The revised trade treaty will see bilateral trade being conducted in Indian rupees (IRs) at par with trade in convertible currency in respect of tax rebates and other benefits available to such trade. It is expected to simplify the current mechanism of tax refunds.

The switch will provide Nepal direct control over customs duty revenues on the import of manufactured goods from India. Other tax rebates and export promotion benefits will also become available on exports from India to Nepal, with the combined impact making imports from India cheaper both for sale and further manufacture in Nepal.

According to the treaty, India will allow several new items to the list of primary products Nepal wants to export, like floriculture products, wheat flour, bran, husk, bristles, herbs, stone aggregates, boulder, sand and gravel. "Duty free access of these goods without any quantitative restriction to India will help boost Nepal's exports," said the trader.

Apart from that, India will also facilitate export under the Most Favoured Nation (MFN) treatment of articles manufactured in Nepal which do not fulfil the criteria for preferential access and establish four additional Land Customs Stations (LCS) and open air traffic for bilateral trade.

The treaty will boost Nepal's technical standards, quarantine and testing facilities and related human resource capacities. Both countries have agreed to facilitate cross-border flow of trade through simplification, standardisation and harmonisation of customs, transport and other trade-related procedures and development of border infrastructure.