Saturday, October 31, 2009

Nepse plunges, investors nervous

Nepse this week plunged by 22.94 points to close at 578.19 points from Sunday morning's opening of 601.13 points.
Psycological pressure of book closures, fresh supply of stocks, financial institutions margin call -- due to continuous decrease in price of shares -- made investors more nervous forcing them to exit from the market.
In comparision to the new listing, the number of investors did not increase giving some smart investors a chance to sell off their shares at the current price and buy at a much lower price afterwards as according to them, the secondary market index is expected to drop further.
This week itself, primary shares of Sunrise Bank (12.5-million-units), Prime Comercial Bank (10-million-units), Vibor Bikas Bank (6.8-million-units) and rights shares of Civil Merchant Bittiya Sanstha (4,99,270-units), People's Finance (666962-units), Pokhara Finance (12,720-units), Narayani Development Bank (99884-units) and Nirdhan Utthan Bank (20,9936-units) were listed at Nepal Stock Exchange, making the total number of listed shares over 928.72-million-units, including promoters' shares, corporate debentures, bonds, preferred shares and mutual funds.
Of the total 26 commercial banks, Nepse has 23 commercial banks (with over 281.56-million-unit shares) under its banks sub-group that is the key player in the domestic market. Of the remaining three commercial banks, Nepal Bank Ltd has been delisted, Agricuture Development Bank is floating its shares worth Rs 960 million soon and Rastriya Banijya Bank is a complete government undertaking.
Thirty 30 development banks are listed at Nepse in the development banks sub-group with a total of over 66.34-million-unit shares. Sixty-two finance companies are listed at Nepse with 81,932,204-unit shares.
Though there are 18 companies in the manufacturing sub-group, the sub-group is the least traded and the weakest player in the domestic secondary market unlike the global secondary market practice.
Market pandits think that the institutional investor is the need of the hour as the existing investors are unable to hold the fresh supply of shares. Apart from the nervousness of current investors, the continuous bearish trend has repelled new investors from the secondary market as the major market player -- commercial banks sub-group -- this week also lost a whopping 34.69 points to close at 552.19 points from Sunday morning's opening of 586.88 points.
Bank of Kathmandu topped the chart in terms of transaction this week with Rs 31.19 million followed by Kist Bank with Rs 27.59 million, Nepal SBI Bank with Rs 26.20 million, Standard Chartered Bank Nepal with Rs 20.57 million and Nabil Bank with Rs 14.70 million.
In terms of number of share units traded this week, Kist Bank dominated the secondary market with its 76,000-unit of shares changing hands. Pashupati Development Bank topped the chart in terms of transaction number with 566 tradings in its kitty.
During the five-day session, 95 companies saw their shares being traded. The contribution of Group-A companies increased to 64.48 per cent against last week's 56.48 per cent while the 78-scrip sensitive index -- a barometer of Group-A companies -- also lost 7.20 points to drop to 144.57 from Sunday morning's opening of 151.77 points.
The float index -- calculated on the basis of real transactions -- also dropped by 1.22 points to slide to 56.26 points from its opening of 57.48 points.

Friday, October 30, 2009

Asian Life's primary issue oversubscribes, closes

Asian Life Insurance's primary issue closed today after it was oversubscribed more than sixteen fold.
"By the end of today we expect the collection to exceed Rs 1.65 billion," said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit -- was floated on October 27.
"After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million," he said adding there is Rs 252 million paid-up capital at present.
At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. "People may have found the IPO more lucrative as there has been no IPO for some time," Bhattarai said.
Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also. The maximum limit for application was upto 20,000-units.
After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets was the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
Meanwhile, Prime Life Insurance also is in the pipeline for issuing primary shares to the public.

Thursday, October 29, 2009

Revenue collection exceeds target

The finance ministry exceeded its taget of Rs Rs 28.61 billion and collected Rs 34.32 billion revenue by the third month (September 15-October 15) of the current fiscal year.
"The collection is also 53 per cent higher than the collection in the same month last year," said revenue secretary Krishna Hari Baskota. During the same month last fiscal year, the the collection was Rs 22.3 billion.
Finance Minister Surendra Pandey in his budget -- for the fiscal year 2009-10 -- presented on July 13 has set a revenue target of Rs 176.5 billion -- over Rs 33 billion than his predesessor former finance minister Dr Baburam Bhattarai, who has set revenue target for the fiscal year 2008-09 at Rs 141.72 billion.
However, the ministry has exceeded the revenue collection as it had collected Rs 143.5 billion by the end of the fiscal year. "In the recent years, revenue collection has been increasing," he said adding that the appointment of a separate secretary to look after revenue has made a sense. Then finance minister Dr Ram Sharan Mahat created a separate revenue secretary to monitor the collection of revenue as the revenue collection has alsways been a headache then.
Though the contribution of Value Added Tax (VAT) in the total revenue is highest, this month also observed a fair growth of excise and customs. "But the VAT is still the highest among the tax heads," revenue secreatry added.
By the end of second month of the fiscal year, the government had collected Rs 22.55 billion revenue -- 54.5 per cent higher than the collection in the same period of last fiscal year that was Rs 14.58 billion.
For the first month of this fiscal year, the collection was Rs 11.74 billion against the target of Rs 9.78 billion.
In an average the ministry has set target of Rs 9 billion for each of first, second and third months but it collected Rs 11 billion in an average. The encouraging collection is contributed to leakage control, higher valuation in customs and tax complaince.
The finance minister has set revenue target of Rs 176.50 billion -- Rs 150.24 billion from tax revenue and Rs 26.25 billion from non-tax revenue -- for this fiscal year, when he had announced his accommodative budget of Rs 285.93 billion.
However, the encouraging collection of revenue has made little sense as Madhav Kumar Nepal-led government has not been able to spend on development activities.

Budget Blues
KATHMANDU: The government will run out of expenses in less than a month if it cannot pass the budget due to opposition United Communist Party of Nepal (Marxist) protests in parliament. "But it will not affect revenue collection," Baskota said adding that the ministry can, however, collect the revenue till the six month that is till January 15. "We can collect revenue till the six months even if the budget doesnot pass," he informed. The parliament must approve this fiscal year's budget by the middle of November or face a likely shutdown of the administration, with the government unable to pay employees. Due to delay in passing the budget, government has been facing problems in development expenditure and the trend has encouraged spending of development budget at the end of fiscal year on the party cadres.

The target and collection
For first month (July-August) -- Rs 9.78 billion (Target) -- Rs 11.74 billion (Collection)
By second month (August-September) -- Rs 19.03 billion (T) -- Rs 22.55 billion (C)
By third month (September-October) -- Rs 28.61 billion (T) -- Rs 34.32 billion (C)

SAARC Trade portal launched

Minister for Commerce and Supplies Rajendra Mahato today launched official SAARC Trade Information portal in the valley.
The portal will be a single point of access for all current SAARC-related business and trade information as it is will have data from all the eight SAARC countries.
It will also be continuously validated by 26 regional and national partners from both the private and public sectors of the region.Secretary General of SAARC Dr Sheel Kant Sharma and trade ministers from SAARC countries were present in the launching ceremony.
The initiators of the portal, SAARC Information Centre (SIC) and German Technical Cooperation (GTZ), pursue the approach that having access to reliable trade information generates additional business because more and better information facilitates faster, more efficient and more cost-effective ways to realise intra-regional trading and business opportunities. As a result, successful business will create more employment and thus contribute the socio-economic development in the SAARC region, said the SIC.
The data displayed in the portal will be reliable to make business decisions. Business — especially Small and Medium-Sized Enterprises (SMEs) — of SAARC region can get much benefit from the information in developing their business and markets, it is hoped.

Wednesday, October 28, 2009

NAC wants to lease one aircraft for international flight

The national flag carrier is seeking to lease one aircraft from January for six weeks as one of its Boeing is going for a regular C check to Israel.
"Nepal Airlines Corporation (NAC) is sending its Boeing for a regular C check," executive chairman Sugat Ratna Kansakar said adding that an aircraft will be leased to maintain the scheduled flights and reliability of the carrier.
The aircraft is required to operate flights from its Kathmandu base for the Kathmandu-New Delhi-Kathmandu sector everyday and Kathmandu-Dubai-Doha-Kathmandu four times a week. "Since it will still be the tourist season, we do not want to disturb the schedule," he added.
However, NAC managing director Captain K B Limbu thinks that it is not economically viable to lease an aircraft for a short term. "It's not necessary to lease aircraft for a short term," he said adding that NAC can fly its passengers on another low-cost airlines for six weeks.
Kansakar explained that if it will not be economically viable, NAC may rethink the leasing idea.
NAC has asked for an aircraft that should not be older than 15 years from the date of manufacture on Aircraft, Crew, Maintenance and Insurance (wet lease) -- ACMI -- basis for six weeks begining January 3 with a total number of 375 guaranteed blocks 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 within November 12, said NAC.
The aircraft should have 150 to 200 seat capacity and delivery and re-delivery of aircraft will be in Doha. "The national flag-carrier will decide whether to lease or not on the basis of ACMI rate per block hour," Kansakar said.
NAC is connected to 10 major cities around the globe and flies to 30 destinations domestically. It has two Boeing 757-200 aircraft -- Karnali and Gandaki -- since the 1980s. It has always been in controversy while leasing aircraft.
However, it has recently decided to buy two aircraft -- a wide body A330-200 with a seat capacity of 279 and a narrow body A320-200 with 150 seat capacity -- from the European manufacturer Airbus soon.
Currently, around two dozen international airlines are flying to Kathmandu and the ailing national carrier has been limited to its few destination due to lack of aircraft and over-politicisation of the management. It is facing troubles on the international and domestic fronts too as its domestic fleet has six Twin Otter Aircraft with 19-seat capacity but only four of these are operational.

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 Rs 100 -- 100 per cent of the face value of per unit share, which according to the Company Act should be 50 per cent as the Asian Life Insurance has not completed three years of operation.
Asian Life Insurance Company floated its 10,80,000-units -- 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 company's issue is against the Company Act and Sebon Regulation too," he argued.
Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, Ghimire said.
According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value.
But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- has asked 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.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.

Banks vie to distribute dividends to shareholders

It seems that the banks are competing to give dividends to their shareholders.
The Board of Directors (BoD) meeting of NIC Bank yesterday decided to recommend 15 per cent bonus shares and 0.79 per cent cash dividend from the profits of the fiscal year 2008-09. However, the decision is subject to approval of Nepal Rastra Bank and NIC's annual general meeting (AGM).
Similarly, the 128th BoD meeting of Siddhartha Bank Ltd (SBL) today also proposed 10 per cent cash dividend.
Bank of Kathmandu's (BoK) 359th board meeting today decided to propose 40 per cent bonus shares and 7.3684 per cent cash dividend to its shareholders from its profit of the last fiscal year. The bank made a net profit of Rs 461.73 million in the fiscal year 2008-09 -- a growth of 27.73 percent compared to the preceding year.
According to BoK, it has been able to increase its deposits by 14.21 per cent and loans and advances by 17.24 per cent respectively compared to a year ago. It has also reduced its Non Performing Loan (NPL) to 1.27 per cent from 1.86 per cent.
The 26th commercial bank -- Kist Bank -- has also proposed 3.5 per cent cash dividends to its share holders that is subject to the approval of the annual general meeting and the central bank's approval.
Nepal Investment Bank Ltd has distributed 20 per cent cash dividends whereas Nabil Bank is distributing 30 per cent cash dividend and 50 per cent bonus shares. Similarly, Standard Chartard Bank Nepal has announced 50 per cent cash dividend and 50 per cent bonus shares. These banks are considered blue chip shares in the domestic market as the secondary market trading is dominated by them.
The commercial banks sub-group today shed 7.6 points to 563.63 points to pull Nepse down -- the fourth consecutive day this week -- today by 5.4 points to close the market at 585.04 points. Standard Chartered Bank Nepal lost Rs 51 per unit share, Himalayan Bank lost Rs 50 per unit, Citizens' Bank International lost Rs 48 per unit, Everest Bank lost Rs 36 per unit and Nabil Bank lost Rs 31 per unit to drag Nepse down.
Out of the total 26 commercial banks in the country, 23 commercial banks are listed under the bank sub-group and play a key role in the secondary market. Out of Nepal bank Ltd has been delisted and Rastriya Banijya Bank is 100 per cent government holding, the third Agriculture Development Bank is planning to float 96,000,00-unit shares to public by the end of this Kartik.

Tuesday, October 27, 2009

SAARC trade portal to be launched on Thursday

A regional trade portal is set to be launched on Thursday.
"The internet-based information system that contain decision-support trade and business information from all the eight South Asian Association for Regional Cooperation (SAARC) will help integrate the region," said Horts Amman, programme manager, GTZ, German Technical Cooperation agency that has helped develop the portal.
The easy flow of trade information will help increase intra-regional trade among SAARC nations that is at five per cent. The intra-regional trade among EU is 63 per cent and in ASEAN 38 per cent.
"The portal will become a vehicle to increase intra-regional trade. It’ll help bridge the gap between buyer and seller benefiting the both,” he added.
The idea of SAARC trade portal -- a break from the conventional trade channel in the region -- was floated in 2004. However, it started only last July. It took one-and-a-half year's continuous efforts and euro1.75 million, generously aided by the German Federal Ministry for Economic Cooperation and Development (BMZ), to make a SAARC portal a reality.
The SAARC-TIP was officially approved by 38th SAARC Standing Committee, which was held in Sri Lanka. Initially, it was planned to be established in Sri Lanka but due to some technical reason, it is being established in Kathmandu as the SAARC Secretariat is in the Nepali capital.
"The trade portal will be under the SAARC information Centre," said Shree Dhar Gautam, director, SAARC Secretariat. "It has 27 operational network partners. These institutions will appoint information managers, who will be trained by the International Trade Centre (ITC) that will also be linked to the SAARC trade portal,” he added.
The project operation committee comprises of 25 national public and private sector trade related institutions, including SAARC Chambers of Commerce and Industry and the SAARC Information Centre under the direction of advisory committee.
The Federation of Nepalese Chambers of Commerce (FNCCI), Confederation of Nepalese Industreis (CNI), Trade and Export Promotion Centre (TEPC) and Federation of Small and Cottage Industry of Nepal (FNCSI) are the Nepali network partners.
The SAARC Trade Information Project (SAARC-TIP) is jointly implemented by the SAARC Information Centre (SIC) Nepal and GTZ under the advisory committee that is chaired by the representative of the SAARC presidency and represented by the SAARC secretary general.
The trade information service generates revenue and increase transaction volumes to sustain the operations. "The GTZ will support for the next one-and-a-half years. At present, the work is on revenue-generation models like charging subscription, placing advertisements, customised information certain commission, where two parties can trade via the portal that helps regional traders with diverse trade-related information,” added Gautam.

Nepse flooded, lists 29.3-m-unit shares in a day

The secondary market is flooded with shares as today on a single day it listed 29.3-million-unit of primary shares of three financial institutions -- two commercial banks and one development bank.
Sunrise Bank and Prime Commercial Bank listed their 12.5-million-unit 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) with 697.76-million-unit of shares including primary, bonus, rights and promoters. 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 the rule, shares of listed companies will be traded after a week of listing. Thus, these three financial institutions will see their trading next week.

Nepse dropping
KATHMANDU: Nepse on Tuesday lost 4.89 points to close the day at 590.44 points. The single loser -- Everest Bank -- lost Rs 116 per unit share pulling the banks sub-group down by 8.03 points to 571.23 points. The secondary market saw 93,511-unit 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 the key market propellers -- commercial banks, development banks, finance companies, and hydropower companies -- plunged, pulling Nepse down. Standard Chartered Bank Nepal and Nabil bank -- considered blue chip shares in the domestic market -- lost Rs 60 and Rs 37 per unit on Monday pulling the banks index down by 6.58 points to 579.26 points. The only sub-group that gained was trading sub-group. Bishal Bazar Co Ltd pushed the index of the trading sub-group by 4.8 points to 261.21 points as its 10-unit of shares were traded at Rs 2,860 -- Rs 56 per unit more than the last closing.

Tourism entrepreneurs hail NAC decision to add aircraft

Tourism entrepreneurs have hailed Nepal Airlines Corporation's (NAC) decision to purchase new aircraft.
Hotel Association Nepal (HAN) president Prasiddha Bahadur Pandey, Nepal Association of Travel and Tour Agencies (NATTA) president Ram Kaji Koney, Trekking Agency Association of Nepal (TAAN) first vice-president Bacchu Narayan Shrestha, PATA Nepal Chapter president Pawan Tuladhar, Himalayan Rescue Association (HRA) president Bikram Neupane, Nepal Association of Tour Operators (NATO) vice-president Ashok Pokharel and Tourist Guide Association of Nepal president Vishnu Gyawali today in a press statement hailed NAC's decision to purchase new aircraft A320-200 by next year.
"The national flag carrier's decision before the Nepal Tourism Year 2011 will help the tourism sector," they said.
A meeting of NAC´s executive committee recently decided to buy two aircraft -- a wide body A330-200 with a seat capacity of 279 and a narrow body A320-200 with 150 seat capacity -- from the European manufacturer Airbus. The committee -- headed by NAC chairman Sugat Ratna Kansakar -- has finalised one plane in the A320-200 series and another in the A330-200 series. The estimated cost of the aircraft comes to around $41.289 million and $92.845 million.
NAC had called for tenders on April 7 and after going through the proposals it found the proposal of Airbus more profitable, said NAC officials adding that it is operating two Boeing 757s. Apart from Airbus, Boeing also had submitted a proposal.
The operating cost of the Airbus A330-200 comes to 40 per cent less than the wide-body Boeing 767 and Boeing 777 that the American company had proposed to NAC that is buying aircraft from Airbuses after 1987-88 when it had bought two Boeings -- Karnali and Gandaki
"We will purchase a fleet of six aircraft in five years' time," said an official of the ailing national flag carrier that has fallen in controversy every time it has tried to buy or lease aircraft.
Lately, NAC is losing its customers. Not only are more international airlines flying to Nepal but it also has been repeatedly grounding one of its aircraft due to technical glitches.

Revised Nepal-India Trade Treaty comes into effect

Minister for Commerce and Supplies Rajendra Mahato and his Indian counterpart Anand Sharma signed a revised bilateral trade treaty in Kathmandu today evening. The treaty comes into effect immediately offering an upgraded seven-year pact with provision for automatic renewal every seven years.
“The new treaty retains all the positive aspects of the old treaty,” Indian Trade and Commerce Minister Sharma said, referring to the earlier 1996 trade treaty.
He said the new treaty will have a seven-year validity instead of the earlier five years and will be extended automatically every seven years, creating a “stable framework for bilateral trade and investment”.
The cumbersome Duty Refund Procedure (DRP) has been scrapped to provide Nepal a direct control on the customs duty revenues on import of manufactured goods from India. Besides the Kolkata Port, Nepal can now also avail of the Vishakhapatnam port while four additional land customs stations will be established to facilitate bilateral trade. Also, for the first time, bilateral trade will be allowed by air through international airports connected by direct flights between Nepal and India (Kathmandu/Delhi, Mumbai, Kolkata and Chennai).
The two ministers also signed an Agreement of Cooperation to Control Unauthorisd Trade that will allow export of goods imported by Nepal from India to the third countries without the necessity of carrying out any manufacturing activity in Nepal. This will enhance exports from Nepal to third countries where it has a better market access as compared to India.
India has also agreed to allow Nepal access to the Banglabandh port through Indian territory, allow items like rice, wheat and sugar to be sent to Nepal at a time they are not allowed to be exported to other countries and will authorize the export about 50,000 tonne of fertilizer.
The trade treaty in 1996 had benefitted Nepal but India imposed quota on some of the products like vegetable ghee and acralic yarn revising the 1996 treaty in 2001 after which Nepal’s exports to India plummeted and the trade deficit widened. The revised treaty is hoped to give lease of life to Nepal’s exports and help bridge the ballooning trade deficit that is over Rs 180 billion at present.

Monday, October 26, 2009

Price hike cools down, 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, the overall year-on-year (y-o-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. In the review period, 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 percent and 12.8 percent, respectively, in mid-September 2008.
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 increase of 14.5 per cent in the 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 during the 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, a moderation 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.

Wholesale price up
KATHMANDU: The y-o-y wholesale price inflation rose to 12.6 per cent against 10.3 per cent a year ago. Agricultural commodities that increased by 29.7 per cent contributed to the increase of wholesale price as it was a 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, price 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 against the increase of 13.3 per cent, -22.1 per cent and 10 per cent last year.

Sunday, October 25, 2009

Merchant bankers miss disclosure deadline

Securities Board of Nepal (Sebon) has assked merchant bankers to submit their annual financial details as they missed the disclosure deadline.
According to the new Merchant Banker Regulation 2008, a merchant bank has to submit its annual financial details within the three months from the end of the fiscal year.
"We have received only one merchant banker's financial details till date," said Dhrub Timilsina, deputy director at the Sebon -- the regulatory authority of the capital market. By the end of the three months -- that was October 17 -- only Elite Capital has submitted its annual financial details. The rest have failed to meet the deadline of disclosure.
There are one-and-a-half dozen merchant bankers in the capital market. They act as issue and sales managers, share registrar, securities underwriter and portfolio manager.
According to the earlier regulation, they were supposed to submit the annual reports within the five months after the end of the fiscal year. "There might be mixed up with the timings," Timilsina added.
"If the reports could not be submitted within the period, the board may, on application of the merchant banker stating valid reason, thereof grant extention of three months," according to the nerw regulation. The Board may impose fine for the failure to submit annual report even in the extended period.
The board has made the disclosure mandatory as the capital market is expanding. The Merchant bankers also have to submit semi-annual report of its merchant banking business to the board within 60 days of the expiry of the semi-annual period.
The board has also asked a broker -- Arun Securities Services -- for an explanation as it failed to submit the annual financial details of the last fiscal year.
According to the Securities Act 2007, the brokers also have to submit their annual financial details within the three months from the end of the fiscal year. Out of 23 brokers, only six have submitted their accounts within the time.
The 15 brokers have submitted the unaudited report while four brokers didnot submitted the report. "But three brokers have asked for time extention," Timilsina said adding that the board could extend the time if they have valid ground.
The board could extend three more months, upon which if the broker will be unable to submit the financial report, it would be fined Rs 5,000 to Rs 25,000, according to the Act.

Soaltee Hotel proposes dividends

Soaltee Hotel has proposed 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 sub-group 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 paid-up 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 paid-up 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.

Training on commodities market ends

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 two-day 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.
Currently, there are around 50 registered brokers who are 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 aims to promote private economic and social development in selected countries in South and East Asia through advisory services, training and continuing educationCommodities and Metal Exchange Nepal (COMEN) that started its operations in 2007, Mercantile Exchange Nepal (MEX) and Nepal Derivative Exchange Ltd that have just started are some of the exchanges. There are four to five commodities exchanges also in the pipeline.
Commodities market is a type of financial market like capital market, money market, derivatives market, foreign exchange market and insurance market but it has wider scope on the domestic front.

Saturday, October 24, 2009

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 one-fourth -- 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.

NT tops in transaction, yet fails to save market

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.

Friday, October 23, 2009

NRNs to lobby for mega projects

The Non-Resident Nepali Association (NRNA) has promised to lobby in its members' respective countries of residence for mega projects for Nepal.
"We have associations in 55 countries around the globe," said NRNA president Dev Man Hirachan. "If we can bring one mega project from each of the 55 countries where there is a National Coordination Council (NCC) lobbying with the governments in those countries, there will be 55 mega projects," he said adding that NRNs could act as bridges between Nepal and the countries of their residence.
"Though NRNs have been investing in small projects since the last six years, the need of the hour is to bring mega investment for the development of Nepal," Hirachan said without elaborating on the type and size of mega projects.
However, he stressed on the creation of a conducive investment environment for new investors to be attracted to Nepal. "We can convince our friends in the country of residence if there is conducive investment environment in Nepal," he opined.
The Nepali government has to enter into an agreement with those countries from where it is planning to attract investment as the issue of dual tax is the key to lure investors. "The investors have to pay tax on their income in Nepal and back home also, making Nepal less investor-friendly for them," said Hirachan. Nepal has to take the initiative for itself to avoid dual taxation to accelerate investment, according to Hirachan, who is residing in Japan for the last three decades and runs IT, travel agencies and gems businesses.
He also repeated the commitment of NRNs to create a $100 million fund. "We will form a task force to decide where to invest the money," he clarified. NRNA is in the process of registration and after the registration, the fund will be created.
"A joint task force of the foreign ministry, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and NRNA will be formed soon," assured Ganesh Kumar, co-ordinator of the Asia-Pacific of NRNA.
NRNA has formed NCC in 55 countries currently and the number is set to increase as Nepalis have reached in most countries of the globe in recent years.
The diaspora can bring in not only money, but also knowledge. "We are thinking of creating a knowledge bank that would help Nepalis learn new skills and technology," he said.
There is a huge demand for IT professionals in Japan and Nepal be a good source country for IT experts from Nepal. Apart from IT, Japanes are interested in investing on Hydro and tourism, he said.

Thursday, October 22, 2009

Nepse allows some companies to start trading

Some firms -- United Insurance Company, Raghupati Jute Mills, Nepal Bitumin and Barrel, Nepal Finance and Nepal Electricity Authority (NEA) Bond -- have paid their annual listing renewal fee today.
Nepse has also allowed today the trading of Paschimanchal Development Bank and Salt trading Corporation, which have already paid their renewal fee within the time but Nepse -- by mistake -- halted their trading yesterday.
Though, the secondary market has never seen the trading of bonds, it has also frozen the trading of NEA Bond and Nabil Bank's Bonds due to their failure in paying the annual renewal fee. Similarly, it has halted the trading of Nepal Development Bank and Hotel Yak & Yeti. The former has been suspended after the Nepal Rastra Bank filed a case asking for permission to liquidate it at the Court and the later has been not paying the renewal fee for last three years as it wanted to be delisted.
According to the Nepse, it has halted the trading of 19 companies -- including Paschimanchal Development Bank and Salt trading Corporation that have already paid their fee. The renewal fee has to be paid -- as according to the Share Listing Regulation -- within the three months of the new fiscal year that ended on October 17. "Due to their failure in paying renewal fee, the Nepse has halted their trading yesterday -- the first day of the trading of this week after the holiday," Nepse said.
A company has to pay Rs 50,000 renewal fee, if its paid-up capital is more than Rs 100 million. Similarly, a company has to pay Rs 35,000 fee, if its paid-up capital is between Rs 50 million and Rs 100 million. One has to pay Rs 25,000, if the paid up capital is between Rs 10 million and Rs 50 million whereas a company has to pay Rs 15,000, if its paid-up capital is less than Rs 10 million.
Meanwhile, Nepse today also lost -- though a marginal 0.05 point -- to close trading at 601.16 points. But the float index gained 0.04 point to close at 57.48 point.
Api Finance has started its trading from Thursday at Rs 540 per unit of shares. Its 10 units of shares were traded for Rs 5,400 on the first day at the secondary market.

Hotel Yak & Yeti to be delisted
KATHMANDU: Hotel Yak & Yeti -- that has been wanting to be delisted -- could be delisted soon. As according to the rule, if a company doesnot pay annual renewal fee for three consecutive years, it could be delisted. The hotel has not been paying its renewal fee for three consecutive years. The Nepse board has also discussed on the hotel's request to be delisted but has not taken any decision. Only four hotels are listed in the hotels sub-group under 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. Except for the Soaltee Hotel that has a paid up value of Rs 10 per unit share others have Rs 100 paid up value per unit share. Hotel Yak & Yeti has listed 2,209,208-unit of shares with a face value of rs 100 per unit.

Finance Minister positive, budget will pass

The government will run out of expenses in less than a month unless it can lift opposition United Communist Party of Nepal (Marxist) protests in parliament and pass the budget for the fiscal year 2009-10.
But finance minister Surendra Pandey is hopeful that the UCPNM will help pass the budget. "If they will not assist, their combatents in the UN-monitored camps -- along with civil servants and parliamentarians -- will also suffer," he said addressing media at the Reporters' Club in the Valley today.
The parliament must approve this fiscal year's budget by the middle of November or face a likely shutdown of the administration, with the government unable to pay employees. "We have already stopped the minister's salary," he said.
The UCPNM lawmakers have held up proceedings in the parliament for a couple of months with protests against the president for rejecting the dismissal of the army chief by their government. They have been asking for the correction of the President's move, which literally means the fall of incumbent Prime Minister Madhav Kumar Nepal-led government.
The decision by the President -- who officially commands the military -- led Maoist leader and then Prime Minister Pushpa Kamal Dahal 'Prachanda' to resign. A present coalition government took over in May.
President Dr Ram Baran Yadav had overruled Dahal's attempts to fire the then army chief, saying they were unconstitutional.
If the budget could not be passed, the government has to bring ordinance. "But there is no need to go through ordinance," Pandey said suggesting the UCPNM to go to street "but not to obstruct parliament and let the budget pass."
He claimed that budget and Civil Supremacy is different issue. "Reinstatement of chief of army staff by president and budget is completely a different issue," he tried to convince the former guerrillas. "Budget is an issue of public concern," he added.
Delay in passing the budget has creating problems, he said adding that ministers pay has already been stopped.
Due to delay in passing the budget, government has been facing problems in development expenditure, he said adding that the trend will encourage spending of development budget at the end of fiscal year that should not happen.

What's in Constitution?
KATHMANDU: according to the Interim Constitution of Nepal, Article 96 Votes on Account:
(1) Notwithstanding anything contained in this Part, a portion of the expenditure estimated for the financial year may, when an Appropriation Bill is under consideration, be incurred in advance by an Act.
(2) A Vote on Account Bill shall not be submitted until the estimates of revenues and expenditures have been presented in accordance with the provisions of Article 92 and the sums involved in the Vote on Account shall not exceed one-third of the estimate of expenditure for the financial year.
(3) The expenditure incurred in accordance with the Vote on Account Act shall be included in the Appropriation Bill.

Mega Cities planned
KATHMANDU: Finance Minister Surendra Pandey said that government is planning three mega cities. But he didnot elaborate. He also informed that government is promoting developing activities in seven priority sectors. "The government is bringing policies for maximum land utilisation, increasing self-reliance on agriculture, tourism promotion and using forestry for economic benefit," he detailed. Revenue collection has been satisfactory so far, he said adding that the government is raking more revenue in comparison to last year.

Wednesday, October 21, 2009

World Bank sheds light on power woes

It takes 73 days and needs to fulfill six procedures in Nepal to get electricity connection, according to 'Getting Electricity - A Pilot Study by the Doing Business Project' by World Bank.
However, four procedures to obtain an electricity connection is enough in Iceland that takes only 22 days whereas in Afghanistan it takes 424 days.
Getting Electricity -- the two-and-a-half-year project -- presents findings on the kinds of constraints entrepreneurs around the world face in getting access to electricity and illustrates patterns in connection processes. The study also tracks all the procedures, the time, and the cost required for a business to obtain an electricity connection for a newly constructed building.
However, in Nepal the cost of not having the electricity is higher than the cost of connection as the country reels under long hours of power outage. "The industries here have not been able to utilise their full capacity due to irregular electricity supply," said an industrialist.
World Bank Enterprise Surveys in 89 economies show that firms consider electricity one of the biggest constraints to their business. The constraints stem from inadequacies in several aspects of electricity service-access to electricity, availability of electricity and reliability of supply-as well as from cost.
"Electricity matters for private businesses, along with other infrastructure services such as roads, water and telecommunications. Where the quality and accessibility of infrastructure services are good, they encourage investment, productivity and growth. But where they are poor, companies' productivity and growth suffer," according to the report.
Many businesses lack access to electricity connections and so are prevented from moving into higher-value-added activities that rely on electricity-based technologies. In 2005, according to the International Energy Agency, more than a quarter of the world's population lacked access to electricity. South Asia has the lowest electrification rates.
Businesses also care about the cost of both the electricity connection and the electricity supply-because electricity-related expenditures eat up a significant share of their revenue.
Managers responding to World Bank Enterprise Surveys estimated that on average their spending on electricity amounts to four per cent of their annual sales-while that on all other infrastructure services like fuel, communication services and water combined accounts for 6.4 per cent.
Among the 140 economies surveyed for Getting Electricity, Ukraine ranks in the bottom 10 on the number of procedures required to connect a new customer to electricity. Economies such as Denmark, Germany, Japan and Mauritius make it much easier for businesses to connect to electricity. The pilot study sheds light on the interactions of businesses with distribution utilities. In doing so it covers only a small part of electricity service for the 140 economies surveyed. The survey has detailed the efficiency and cost of the services provided to commercial customers by distribution utilities, the complexity of procedures, and the resources expended by businesses in obtaining a connection.
"In the 10 economies with the fewest procedures, the process of obtaining an electricity connection takes only 56 days on average and in the 10 economies with the most procedures, it is 215 days," the report says.
The study also finds that connection delays increase where opportunities are missed to streamline approvals with other public agencies; where customers face multiple procedures related to the quality and safety of the internal wiring; where utilities do not have the materials needed to connect customers readily available.

Nepal, India to finalise revised trade treaty

The revised Nepal-India Trade Treaty that would have been signed within the one month of Prime Minister Madhav Kumar Nepal's India visit in August, is finally going to get signed in Kathmandu next week.
Indian commerce and industry minister Anand Sharma is arriving here on Tuesday to ink the revised Treaty. The treaty will get a seven-year shelf life unlike the earlier five year provision. However, it will automatically extend every seven years.
The revised treaty that will be co-signed here on Tuesday by Sharma and minister for commerce and supplies Rajendra Mahato will give the country more time to provide a more stable framework for bilateral trade and investments.
The two ministers will also sign a new agreement upgrading the 1996 agreement to control unauthorised trade from third countries. Both agreements had been initialised during Prime Minister Nepal's five-day visit to New Delhi in August.The trade treaty will also 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. This indicates ending the existing complicated 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.
The new trade treaty will also have India enhance the time limit for temporary import of machinery and equipment into India for repair and maintenance from three to 10 years. Besides, 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. All these items will have duty free access to India without any quantitative restriction.
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 new LCS are Maheshpur/Trutibari (Nawalparasi); Sikta-Bhiswabazar; Laukha-Thadi; and Guleria/Murtia. Bilateral trade by air will be allowed through Kathmandu/Delhi, Mumbai, Kolkata and Chennai airports.
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.
The two sides will also undertake measures to reduce/eliminate non-tariff, para-tariff and other barriers that impede promotion of bilateral trade.New Delhi has agreed to establish a joint mechanism, comprising local authorities, to resolve problems arising in clearance of goods at customs points and the two sides will review and simplify the existing administrative arrangements for operationalisation of fixed quota for acrylic yarn, copper products and zinc oxide.
Sharma will also be attending the South Asia Free Trade Area (SAFTA) agreement meeting of SAARC commerce ministers in Kathmandu. Also in the pipeline is a meeting of commerce secretaries of both countries in Kathmandu as well as of the Joint Committee on Water Resources to expedite the Pancheswor Multipurpose Project.

Nepse suspends dozen companies

Nepal Stock Exchange (Nepse) has suspended the trading of a dozen companies -- including two development banks, three finance companies and one insurance company -- as they failed to pay the annual fee for this fiscal year on time.
It has frozen the trading of Salt Trading Corporation (STC), Arun Vansapati Udhyog (AVU), Nepal Bitumen and Barrel Udhyog (NBBU), Raghupati Jute Mills Ltd (RJM), Shree Bhrikuti Pulp and Paper Ltd (SBPP), Paschimanchal Bikash Bank (PDBL), Bageshowori Development Bank (BBBLN), Royal Merchant Banking and Finance (RMBFI), Nepal Finance and Savings Co Ltd (NFS), Yeti Finance Company Ltd (YFL) and United Insurance Co (Nepal) Ltd (UIC).
On one hand some of the companies -- mostly industries like Raghupati Jute Mills and Arun Vansapati Udhyog -- are on the verge of collapse and have downed their shutters. They have not seen their shares traded for a long time also.
And on the other, the low contribution of the manufacturing sub-group to the total trading has made the secondary market more vulnerable as the whole market is under the concentration risk of banks and financial institutions.
According to the Stock Exchange Regulation 2002 second amendment, Nepse can suspend the trading and listing of companies. "Failure to pay renewal fee will lead to suspension of the trading," according to the provision. The companies should pay the annual fee within the first three month of new fiscal year, that ended on October 17. Once the annual fee is paid, the transaction of suspended companies will resume.
Meanwhile, the book-closure of Everest Bank Ltd (EBL) pulled Nepse down by 8.34 points leading it to close at 601.21 points. The first day of the week saw all major sub-groups perform badly. Nepse is dominated by the banking sub-index and the fall in the prices of commercial banks like Standard Chartered Bank Nepal, Nabil Bank and Everest Bank -- considered blue-chip sdhares in the domestic market -- pulls Nepse down.
The banking sub-group -- a key market propeller -- lost 9.3 points to drop to 586.33 points as the total market capitalisation came down to Rs 423,768.45 million. However, the floated market capitalisation stands at Rs 110,172.31 million today.

ADBL primary issue soon
KATHMANDU: Agriculture Development Bank Ltd (ADBL) is floating the largest-ever primary issue in the history of Nepal's capital market by the end November half. The bank has appointed Ace Development Bank as its issue manager for its mega initial public offering (IPO). ADBL and Ace Development Bank had entered into an agreement on April 21 to issue 96,00,000-unit shares worth Rs 960 million.

Citizens across globe demand to end poverty

A Guinness world record shattered this weekend when over 173 million citizens gathered at over 3,000 events in more than 120 countries, demanding that their governments eradicate extreme poverty and achieve Millennium Development Goals (MDGs).
'Stand Up, Take Action, End Poverty Now!', now in its fourth year, has been certified by Guinness World Records as the largest mobilisation of human beings in recorded history, an increase of about 57 million people over last year.
"The more than 173 million people who mobilised this weekend sent a clear message to world leaders that there is massive, universal, global demand for eradicating poverty and achieving Millennium Development Goals," said Salil Shetty, director of the United Nations Millennium Campaign.
"In particular, we have seen citizens determined to show their governments that they will hold them accountable for keeping their promises to end hunger, improve maternal health and abolish trade-distorting agricultural subsidies. They will not accept excuses for breaking promises to the world's poorest and most vulnerable people, who have already been hardest hit by the global food, economic and climate crises they had no role in causing," he added.
The 3,000 events across every inhabited continent this weekend included like the ones in New York where United Nations Secretary General Ban Ki-Moon led schoolchildren in Standing Up.
Similarly, in Nepal President Dr Ram Baran Yadav read a Stand Up Pledge with members of the Constituent Assembly at an event broadcast live on national television, followed by a concert in a large open-air theatre in the heart of Kathmandu.
"Stand Up has proven to be a growing global mobilisation, as well as an ongoing grass roots movement from remote areas and cities in so many countries, both rich and poor," said Sylvia Borren, Co-chair of the Global Call to Action Against Poverty (GCAP), who attended several 'Stand Up' events across The Netherlands last weekend.
Currently, one billion people around the world face hunger and 500,000 women continue to die annually as a result of pregnancy and childbirth. The vast majority of these deaths is preventable. The mobilisation was organised globally by the United Nations Millennium Campaign, in partnership with a range of organizations including the Global Call to Action Against Poverty (GCAP).
Hundreds of people gathered at the International Labour Organisation (ILO) headquarters in Geneva to Stand Up Against Poverty in a joint action with UNDP and UN agencies, led by ILO Director-General Juan Somavia on October 16.
The UN Millennium Campaign -- established by the UN Secretary General in 2002 -- supports citizens' efforts to hold their governments accountable for the achievement of the MDGs. It was adopted by 189 world leaders from rich and poor countries, as part of the Millennium Declaration which was signed in 2000. These leaders agreed to achieve the Goals by 2015.

Participation around the globe
In Asia over 100 million people (101,106,845)
In Africa over 37 million people (37,848,412)
In Arabia over 31 million people (31,394,459)
In Europe over 2 million people (2,102,121)
In Latin America over 200,000 people (229,371)
In North America nearly 200,000 people (191,535)
In Oceania over 170,000 people (172,582)

Tuesday, October 20, 2009

Asian Life Insurance to go public from October 27

Asian Life Insurance Company is floating 10,80,000-unit -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit on October 27-30.
"After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million," said the company that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit. One must apply with a passport size photo. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets is the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
However, their contribution is negligible -- around only one per cent in the total trading in the secondary market. The increase in the listed insurance companies in the secondary market might boost their contribution in the days to come.
In the fiscal year 2007-08, there were only 21 insurance companies but in 2008-09 the number increased to 25.
Rastriya Beema Samiti (Insurance Board) -- an autonomous body established to develop, systemise, regularise and regulate the insurance business of Nepal under Insurance Act, 1992 -- has been trying to make the insurance sector more transparent like the banking sexctor.
According to Nepal Rastra Bank, in the fiscal year 2008-09, the total paid-up capital of listed companies stood at Rs 61.1 billion -- an increase of 107.5 per cent in comparison to the fiscal year 2007-08.
This increase was due to the additional listing of securities. In the increased amount, the portion of rights shares was 30.7 per cent, bonus shares 6.3 per cent and ordinary shares 63 per cent. Comparatively, Nepse was flooded by rights shares as these increased by 55 per cent while bonus shares increased by 31 per cent and ordinary shares by 14 per cent.
Nepse listed 37 companies' bonus shares worth Rs 1924.77 million, 50 companies' rights share worth Rs 9307.8 million and 14 companies' ordinary shares worth Rs 19087.5 million in the last fiscal year, according to the central bank.
Meanwhile, Prime Life Insurance is also gearing for its public issue soon.

Sunday, October 18, 2009

Price hike makes potato too hot to handle

Potato has become dearer by 50 per cent in just one year.
Over the past one year, the price of potato has increased by 50 per cent, musuro by 30 per cent, black gram by 21 per cent, rice by three per cent and wheat flour by six per cent. The price of cooking oil has, however, reduced -- by around 15 per cent.
"The prices of staple food items in Nepal have continued to increase steadily," according to the monthly report jointly published by World Food Programme (WFP) -- Food Security Monitoring and Analysis Unit, Ministry of Agriculture and Cooperatives -- Department of Agriculture, Agribusiness Promotion and Marketing Development Directorate, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Consumer Interest Protection Forum.Even now, the price hike has not cooled. It has continued to grow in comparison to a year ago -- at the peak of the international food crisis.
The price of food this Dasain holiday was much higher compared to last Dashain. "The price of chicken was on an average 40 per cent higher than last year. Mutton also was more expensive, and the price of key vegetables such as cauliflower, potato and onion were typically more than 50 per cent higher than last year. Sugar was up by over 45 per cent," said the report.
However, the price of musuro decreased by around 2.5 per cent in September as a result of Nepal's lentils export ban. The export ban reduced demand pressure within Nepal as the bulk of lentils produced is normally exported. However, producers have been complaining that decreased income from lentils sales may force them to reduce future levels of production.
The price of coarse rice is expected to further increase across the region during the coming months due to large scale local and regional crop losses, according to the report. It is anticipated that post harvest prices will remain high and then significantly increase during the first half of 2010.
The government has indicated the need to import 400,000 tonnes of grain to meet the deficit caused by winter drought and late monsoon. However, reduced regional stocks are likely to significantly increase the cost of grain imports. The Indian border states of Bihar and Uttar Pradesh have been declared drought-induced disaster areas by the Indian government, making Nepal more vulnerable.
Late monsoon rain has led to flashfloods and landslides in districts of Western Nepal, causing localised crop damage and blocking parts of Karnali Highway and other trails further hindering food supply to many western hill and mountain districts.
Various mountain and hill markets have insufficient stock as a result of poor winter production and disruptions in commodity movement because of the monsoon. "Markets in Dolakha, Sindhupalchowk, Dailekh and Jajarkot are particularly affected," said the report.
Poor household winter crop production has both increased demand for purchased product and reduced local supply to markets. This has lead to price increases and insufficient supply.

Saturday, October 17, 2009

Investors low confidence makes Nepse hover around 600-point mark

The secondary market is losing steam as it has come down to hover at the 600-point mark in a year. Last October, it was hovering at the 950-point mark.
Low investor confidence and uncertainty are pulling the secondary market index down, though this week it posted a consolation gain of 5.18 points to 609.55 points from last week's closing of 604.37 points.
The commercial banks, others and development banks sub-groups gained to push Nepse up as they posted 6.67 points gain to 595.63 points, 11.75 points gain to 657.94 points and 5.07 points gain to 657.72 points, respectively.
Of the nine sub-groups, two did not see any trading this week and three sub-groups -- hydropower, trading and finance -- lost.
The hydropower sub-group lost 13.74 points to drop to 813.95 points, trading 4.89 points to drop to 256.41 points and finance 6.87 points to drop to 627.27 points, respectively.
This week's top performers were National Hydropower (with Rs 100.21 million), Standard Chartered Bank Nepal (with Rs 52.21 million), Nepal Bangladesh Bank (with Rs 26.82 million), Nepal SBI Bank (with Rs 20.39 million) and Citizens' Bank International (with Rs 15.68 million).
The secondary market began the week in the red as it shed 5.04 points to 599.33 points. On Monday too, the market was in the red zone but from Tuesday and over the last three days it tried to bounce back -- though marginally.
The 78-scrip sensitive index -- considered blue chip shares in the domestic market -- gained 1.14 points to go up to 153.67 from the Sunday morning's opening of 152.53 points. Similarly, the float index -- calculated on the basis of real transactions -- also gained by a mere 0.32 point to reach 58.16 points from Sunday's opening of 57.84 points.
The transaction amount for this week increased by 31.48 per cent to Rs 370.13 million against last week's increase of 12.10 per cent. However, the contribution of Group-A companies decreased to 44.89 per cent from last week's 53.75 per cent.
This week 5,44,305-unit rights shares of Navadurga Finance were listed at Nepse. In terms of transaction amount and number of shares, National Hydro topped the chart. National Hydro's 11,75,000-unit shares changed hands for Rs 100.21 million but in terms of number of trading Pashupati Development Bank topped the chart with 373 tradings.

Ban launches anti-poverty campaign

United Nations Secretary-General Ban Ki-moon launched a global campaign yesterday to get millions of people around the world to Stand Up Against Poverty this weekend.
Now in its fourth year, the Stand Up Against Poverty Campaign established a world record last year with 116 million people taking part in events to support the campaign to meet the UN Millennium Development Goals, which include reducing extreme poverty by half and ensuring universal primary education by 2015.
The Secretary-General told students at the UN International School that by taking a stand and acting, poverty could be ended "in our lifetimes." The campaign began on Friday and will run through Sunday.
The UN Millennium Campaign, which supports efforts to achieve the UN goals, said more than 1,000 events in over 100 countries are planned this weekend to demand government action to combat poverty and meet the goals.

Friday, October 16, 2009

Nepse, brokers make a killing

The brokers are having a field day. Their net commission has doubled and the Nepal Stock Exchange’s (Nepse) has trebled in a year.
In the fiscal 2008-09, the total net commission earning of the brokers was Rs 296.47 million. Compare this to the situation a year ago. It was only Rs 143.45 million. Similarly, the Nepse’s commission has gone up to Rs 72.75 million from Rs 25.22 million, according to the Securities Board of Nepal (Sebon) — the regulatory authority of the capital market.
This has translated to a windfall for the individual brokers too.Nepal Stock House (Broker No 14) has made the maxium killing last fiscal. The earning stands at Rs 25.24 million as net commission.
However, Kumari Securities (Broker no 1) had earned only Rs 14.92 million a year ago.
The increase in the market size has helped the brokers to rake up a tidy sum.
Though the Midas Stock Broking Company (Broker no 21) earned Rs 2.86 million, the figure, by no means, is unimpressive.
As per the rule, brokers are liable to pay 25 per cent commission to the Nepse. Besides, they paid Rs 48.49 million as tax to the government.
Many are now finding the profession a lucrative one. The scenario became rosy only after 2002 when the market gathered momentum. The market capitalization at present stands at over Rs 4 trillion. It was Rs 600 million in 1994.Unfortunately, the number of brokers has not increased, which makes it difficult for the investors.
At present, there are 23 brokers in the secondary market. Of them, half are active in secondary market. Altogether, they have earned Rs 296.47 million as net commission.Back in 1994, there were only 25 brokers. Subsequently it increased to 32.
"The government should allow us to open branches or let our sub-brokers trade," said Nabaraj Pokharel, ex-president, Nepal Stock Brokers’ Association.
Rabindra Bhattarai, share analyst and a lecturer at Shanker Dev Campus, suggested that the brokers’ headcount should be increased.
Nepse, which started trading 15 years ago, failed twice in adding to the existing brokers’ list. Both its attempts came a cropper.

Thursday, October 15, 2009

Fourth NRN Global Conference concludes on high note

The three-day fourth global conference of Non-Resident Nepalis (NRNs) concluded here this evening with a firm commitment. The delegates pledged to form a joint commission, which will have representatives from the government, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and NRN Association within the next three months.
Foreign employment sector holds the key since remittance is the life-line for the nation's economy. “The NRNs can not only bring in capital but can also provide the much-needed skill and knowledge," said Prime Minister Madhav Kumar Nepal during the closing ceremony of the conference.
He urged the NRNs to explore overseas markets for a dual purpose: Help the migrant workers to find suitable employment and demand for Nepali products.
“The NRNs can help us a lot to realise our cherished dream of a prosperous new Nepal. We can learn a lot from their skill sets and exposure to technology,” he added.
The NRN Association issued an 18-point Kathmandu Declaration on the occasion, which pledged to help both the private sector and government. The declaration is committed to further the government’s aim to expand economic diplomacy, which has been an integral part of the foreign policy exercise in recent times.
Nepal assured to look into the NRNs’ plea for dual citizenship. “We look into the issue in all seriousness at the earliest,” he added. However, the government has found a middle ground to alleviate their bureaucratic woes. The Ministry of Foreign Affairs plans to issue People of Nepali Origin (PNO) card to all NRNs by January. The initiative was hailed in the Declaration.
Dr Upendra Mahato, founder and outgoing president, NRNA, called upon his community to extend unstinted support to the nation.
The Declaration, in turn, pleaded with the government to hasten the pace of implementation of the NRN Act and Regulation.
It also plans to support social and economical activities in conflict-hit and rural areas, vocational training schools and One-Village-One Product programme. The NRNA promises to throw its lot to make Nepal Tourism Year 2011 a grand success. The body has taken keen interest in developing physical infrastructure projects like fast track, hydropower by adopting the Public-Private Partnership model. The Declaration has also pledged to create a $100-million Fund within a year of the association's registration.
Also, it will try to sort out the ambiguity over the nomenclature of the NRNA — the only organised body of the diaspora across the globe — that was set up in 2002.
The 2.5-million-strong diaspora today also elected its new team, which will hold office for the next two years. Dev Man Hirachan will be the new NRNA president.
Around 600 participants from across 52 nations attended the biennial meet, which was jointly organized by the NRNA, government and FNCCI.

Sugar, vegetable, fruits push price hike to 10.4 per cent

Price hike doesnot seem to come down. According to the central bank inflation rate of the first month (mid-August) of the fiscal year 2009-10 is still floating above double digit.
However, it has moderated to 10.4 per cent from 13.1 per cent in the same month last year. "Food and beverages, and vegetables and fruits price contributed hugely in the price hike as it increased by 17.8 per cent. But the non-food and services group rose only by 2.1 per cent only," according to the current macroeconomic situation based on the first month's data of 2009-10 published by Nepal Rastra Bank (NRB).
The price rise of food and beverages and non-food and services group, was 13.4 per cent and 12.7 per cent respectively in the same month last fiscal year. the price hike was propelled by sugar and sugar related products as it increased by a whopping 49.6 per cent against 18.2 per cent in the same period last year.
Similarly, the price indices of vegetables and fruits increased by 47.2 per cent -- that is also in sharp contrast to last year's decline of 10.6 per cent.Region-wise, the price index of Kathmandu valley rose by 10.7 per cent followed by 10.4 per cent in Tarai and by 10.1 per cent in Hills. Last year, the respective rates were 13.5 per cent, 13.1 per cent and 12.4 per cent.
"In the review period, the y-o-y core inflation rose to 11.8 per cent from 10.6 per cent a year ago," said the report.However, the salaries and wages have also gone up. "The overall year-on-year (y-o-y) salary and wage rate index rose almost to triple by 22.2 per cent compared to a rise of 8.2 per cent a year ago. "Of the salary and wage rate indices, the salary index increased by 32.8 per cent compared to a rise of 0.1 per cent in the same month last fiscal year," the date reveals.
Exports seem to be looking up as it expanded by three fold to 12.4 per cent compared to a rise of 4.5 per cent in the same period. Of the total exports, export to India went up by 6.6 per cent against a decline by 20.4 per cent in the same period last year. Exports to other countries increased by 18.5 per cent compared to an increase of 55.3 percent in the same period of last year.
Similarly, total imports rose by 16.3 per cent compared to a higher growth of 33.3 per cent as imports from India rose by 14.9 per cent in the review period compared to a growth of 27.6 per cent and imports from other countries increased by 18.4 per cent in comparison to a significant growth of 42.9 per cent in the same period last fiscal year.
The overall Balance of Payment (BoP) recorded a deficit of Rs 1.42 billion in comparison to a deficit of Rs 3.15 billion in the same period last year. However, the current account posted a surplus of Rs 777.1 million against a deficit of Rs 1.90 billion in the same period last year.
Although there was an increase in trade deficit, the increase in net transfers was responsible for the current account surplusm, reasoned the central bank. The country received Rs 16.o6 billion remittance in the first month of this fiscal year.

Wednesday, October 14, 2009

Hirachan to lead Nepali diaspora for next term

Dev Man Hirachan (Japan) will lead the Nepali Diaspora for the next two-year term.
He was unanimously elected after the two other possible presidential candidates -- Ram Pratap Thapa (Germany) and Bhim Udas (Lesotho) -- didnot file their candidacy for the top post of Non-Resident Nepalis Association (NRNA).
Hirachan has been living in Japan since the last three decades and is involved in business in both Nepal and Japan.Similarly, Ratan Jha was unanimously elected general secretary. Jha is a businessman in the US. But there are three candidates for the two vice-presidents post. Jiba Lamichhane, Indra Ban and Sagar Nepal are contesting for vice-presidents of the NRNA.
The founder president and Immediate Past President Dr Upendra Mahato led the 2.5 million Nepalis around the world for six years since its inception in 2003. As according to the Statute of the Association, one can become the president for three consecutive terms only. "I am relieved and can take rest for the time being," Mahato said congratulating the new president.
Hirachan has many challenges ahead of him as he is succeeding a dynamic personality, who has worked tirelessly for the institutionalisation of the NRNA.
The global conference -- where around 600 participants from 52 countries took part -- provided guidance and the directives for the operations of the organisation.
"The fourth global conference has been successful in sending a positive message throughout the world," NRNA spokesperson Jugal Bhurtal said adding that there are around 2.5 million NRNs scattered all over the world. Currently 55 countries are in the NRN network and it is expanding fast.
"The Nepali diaspora has been successful in establishing its own identity in and out of the country," the outgoing spokesperson added.
The three-day conference that will conclude 0n Thursday after its general assembly witnessed 10 different sessions where the NRNs, political leaders, intellectuals, experts and bureaucrats took active part and discussed on global economic crisis, economic diplomacy, foreign employment, migrant workers, remittance and its opportunities and threats, role of NRNs in the constitution making process, possibilities of investment and business in Nepal, and their contribution.
During the conference there will be special addresses by representatives of different political parties also. The fourth global conference was jointly organised by the government, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), and NRNA.

Tuesday, October 13, 2009

Fourth global NRN conference starts

The fourth Non-Resident Nepalese (NRN) Global Conference started in Kathmanu today. President Dr Ram Baran Yadav inaugurated the three-day meet with the motto 'Peaceful and Prosperous Nepal - Common Dream of Ours' amid a function at Army Officers' Club, Bhadrakali this morning.
"A peaceful and prosperous Nepal is a dream we all have cherished," Dr Yadav said in his inaugural address. "The Nepalis living at home as well as those staying abroad need to join hands to translate this dream into a reality, he said adding that Nepal was not a poor but a very resourceful country, but it lagged behind in absence of a loktantrik polity. "We can progress if we move ahead adopting democratic norms and values."
"He said the country was now in the process of drafting a new constitution to institutionalise the federal republican system and asked the NRNs to hold consultations with the politicians, civil society leaders, professionals and intellectuals to make sure that it is inclusive in the true sense and it comes in time. Stating that all the Nepalis living in any part of Nepal or any country abroad were first Nepalis, he requested everybody to keep intact the national unity.
"Let's be effortful to give elixir to the nation, not the poison."
Appreciating NRN investment in education, health, infrastructure, and hydropower sectors, Dr Yadav appealed to them to sensitise the issue of environment protection and take stepts to mitigate the impacts of climate change. "You bring your knowledge, skills, capital and good intention; we will invest our time and energy. Let's work together to develop the nation."
Sujata Koirala, deputy prime minister and minister for foreign affairs, in her welcome address said the knowledge and skills aquired by NRNs would assist in Nepal's development. Koirala mentioned that the govenrment had already brought the NRN Act and necessary regulations to address the concerns of the NRNs and informed preparations were under way to issue identity cards to NRNs fromanuary 2010.
"The government will take an appropriate decision in regard to the demand of dual citizenship," she added.
She said the government would push ahead the work of constituting an Advisory Borad to best avail of NRN knowledge, skills and capital. Similalry, a Foreign Employment Promotion Board will be set up for efficient mangement of this sector. She hoped the conference would be instrumental in achieving the goals of economic diplomacy.
Dr Upendra Mahato, President of Non-Resident Nepalis Association (NRNA), appealed to the NRNs to do their best to translate the dream of peaceful and prosperous Nepal into a reality. "We have understood that only Nepalese can build a peaceful and prosperous Nepal. So I request you to assist the upcoming leadership to in its campaign to build a peaceful and prosperous Nepal," he said asking the government to create a favourable environment for the NRNs to bring in their knowledge, skills and capital for the development of the nation.
Kush Kumar Joshi, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), asked the government to swiftly address the concerns of NRNs to attract them to Nepal's development.
About 500 NRNs from 52 countries across the world are attending the event organised jointly by NRNA, Ministry of Foreign Affairs and the FNCCI. It will conclude electing a new leadership of NRNA.

Stand Up !, a global campaign to fight against poverty

After a year in which progress on eradicating global poverty has actually reversed, millions of people will come together across continents, cultures and time zones next week to tell their governments in no uncertain terms what they want them to do: End Poverty Now.
Citizens will gather at events across the globe on October 16-18 as part of 'Stand Up, Take Action, End Poverty Now!' to demand that world leaders achieve Millennium Development Goals (MDGs) -- a set of promises to eradicate extreme poverty and its root causes by 2015.
In a sign of the massive global demand for the achievement of MDGs, last year more than 116 million people participated in 'Stand Up', shattering the Guinness world record for the largest mobilization of human beings in recorded history.
In Nepal, President Dr Ram Baran Yadav will read out a Stand Up Pledge with members of the Constituent Assembly at an event organized by the National Planning Commission and UN in Nepal at the President's official residence, which will be broadcast live on national television. This will be followed by a concert hosted by the Millennium Campaign and Art of Living, where thousands of people are expected to gather in a large open-air theatre in the heart of Kathmandu on October 16 to Stand Up for peace and reduction of poverty in Nepal. The concert will feature folk songs, religious songs set to rock music tunes and performances by some of Nepal's top singers.
"With just six years left until the deadline by which heads of state have pledged to eradicate extreme poverty and its root causes, 'Stand Up' will be a stark reminder that citizens will not accept excuses for governments breaking promises to the world's poorest and most vulnerable citizens," said Salil Shetty, Director of the United Nations Millennium Campaign.
"This year's mobilisation will place particular emphasis on telling world leaders that their track record on women's rights, maternal mortality and hunger is unacceptable. Citizens refuse to accept the fact that 70 per cent of the people living in poverty are women and children and that 500,000 women continue to die annually in the process of giving life. They are demanding urgent action from their leaders."
"Millions of people are standing up against poverty, while politicians are sitting on their hands," said Adelaide Sosseh, Co-Chair of the Global Call to Action Against Poverty (GCAP) based in The Gambia. "The combined effects of the economic, climate and food crises are affecting people of all ages and stations in life, in all countries -- especially women -- but those already living in poverty are the hardest-hit.
Given the amounts found to bail out banks in just a year, we know that the resources are not lacking. It's this lack of political will to tackle poverty that remains the biggest motivation behind Stand Up participation." This year, for the first time, organisers will take advantage of the awesome power and reach of digital technology to make mobilisation and engagement possible online.
The UN Millennium Campaign has partnered with Skype and Ustream, the leading live online video platform that enables anyone to broadcast to a global audience of unlimited size. The unique partnership will bridge technologies in order to connect the world in conversation about the most important issues facing our generation.
On October 12-15, in the lead-up to the mobilisation, former Irish President Mary Robinson and African entertainers Femi Kuti and Angelique Kidjo will be amongst a group of high profile decision makers and cultural celebrities participating in a 30-minute conversation with ordinary citizens around the world to discuss poverty and its root causes.
For the first time ever, the Skype calls will be broadcast live on Facebook, thanks to technology provided by Ustream. Viewers will be encouraged to start their own conversations about poverty and its root causes on these powerful social networking platforms.