Except for the price hike and spending on developing activities, Nepal Rastra Bank (NRB) has painted a rosy picture of the country's economy.
According to the current macro-economic report published by the central bank and based on the first five months of the current fiscal year, the government has collected revenue according to its target, exports are increasing and the Balance of Payment (BoP) is surplus.
However, the government has totally failed to control the price rise which at 14.1 per cent in mid-December 2008 from 5.7 per cent in the same period the last fiscal year.
"Revenue mobilisation grew by 33.1 per cent to Rs 43.1 billion compared to an increase of 21 per cent in the same period the last fiscal," said the central bank's report.
The revenue growth is attributed to high growth of income tax, VAT revenue, excise, vehicle tax and registration fee as well as high growth in non-tax revenue. But capital expenditure declined by 34.3 per cent to
Rs 4.9 billion in contrast to an increase of 120.3 per cent in the first five months of last fiscal year, said the bank.
In the first five months of 2008-09, the government budget remained at a surplus of Rs 2.2 billion in contrast to a deficit of Rs 9.8 billion in the corresponding period the previous year. An increase in revenue and foreign cash grants accounted for such a budget surplus in the review period.
During the period, the total government spending increased by 2.5 per cent to Rs 48.5 billion compared to an increase of 44.3 per cent in the same period last fiscal year.
Similarly, exports rose by 30.9 per cent during the period in contrast to a decline of 4.4 per cent last year. "Exports to India increased by 15.1 per cent as against a decline by nine per cent in the same period last fiscal year," it said adding that exports to other countries also soared by 64 per cent compared to an increase of 6.9 per cent.
Total imports also went up by 32.6 per cent in comparison to an increase of 8.2 per cent in the same period. Imports from India increased by 17.1 per cent in the review period against a growth of 10.7 per cent in the same period of 2007-08. "Imports from other countries have also surged by 57.2 per cent compared to a growth of 4.5 per cent a year earlier," the data revealed.
The overall balance of payment (BoP) recorded a significant surplus of Rs 22.8 billion compared to a surplus of Rs 31.1 million the last fiscal year.
Remittance soared by 65.8 per cent in the first five months against a growth of 17.6 per cent in the same period last fiscal year. The gross foreign exchange reserve also is in a comfortable situation. "It stood at Rs 235.6 billion by mid-December with an increment of 10.8 per cent compared to the level as at mid-July 2008," the report said.
FM, donors discuss
KATHMANDU: Finance Minister Dr Baburam Bhattarai has briefed the donor community about the current economic situation and promised them of expediting development activities from the next month. "Due to delay in budget presentation by two months, the government has not been able to spend on development activities but it would be expedited from next month," he promised.
Monday, February 2, 2009
Workers' new batch off to South Korea
One of the last batches of Nepali job-seekers from the year 2008's quota left today for a much-sought after destination, South Korea. The 136-member group left under the Employment Permit System (EPS).
After talk that South Korea has reduced the number of Nepali workers due to the global financial crisis, the embassy of the Republic of Korea here recently said that there has been no change in policy at all regarding issuance of employment permits for contracts with foreign workers, including Nepalis.
"The annual quota (from March to February of the following year) set by the Korean government for foreign workers gets exhausted just before the year-end, leaving no room for new contracts in the remaining period, ie January and February," said the embassy.
For the year between 2008 and February 2009, the annual quota of 72,000 exhausted on December 30, 2008, and the Korean government has stopped issuing new employment permits until the begining of March 2009.
"The chances of some 4,000 Nepalis to work in Korea, whose names are already on the job roster, will be revived starting March 2009," the South Korean embassy clarified.
Those who have already received their labour contract from their Korean employers will not be affected by the exhaustion of the quota and thus still proceed to Korea, said an official at the EPS Section under the Department of Foreign Employment (DoFE). The majority of workers is assigned to the manufacturing and agriculture sector while a few are employed in hotels, he said.
After receiving HRD-Korea's final letter with the names of job aspirants, the department had begun sending them to Korea from August 10. Till date, the EPS section at DoFE has received 2,519 certificates of confirmation of visa issuance (CCVI). The name-list that HRD-Korea sent was according to the CCVI list.
Similarly, 2,811 have made labour contracts but 160 CCVI and 67 labour contracts have also been cancelled so far, according to the department. Earlier, job aspirants, who passed the medical tests, underwent a 15-day orientation. As per EPS rules, the first step for employment in South Korea is the Korean Language Test (KLT) and a subsequent stringent medical test.
After the government sealed an agreement with the Korean government to send the workers under EPS, Nepalis are flying to Korea on an airfare charge of $970 (about Rs 63,000). Prior to this, some manpower agencies used to charge hefty amounts of upto Rs 6 lakhs for each ticket.
After talk that South Korea has reduced the number of Nepali workers due to the global financial crisis, the embassy of the Republic of Korea here recently said that there has been no change in policy at all regarding issuance of employment permits for contracts with foreign workers, including Nepalis.
"The annual quota (from March to February of the following year) set by the Korean government for foreign workers gets exhausted just before the year-end, leaving no room for new contracts in the remaining period, ie January and February," said the embassy.
For the year between 2008 and February 2009, the annual quota of 72,000 exhausted on December 30, 2008, and the Korean government has stopped issuing new employment permits until the begining of March 2009.
"The chances of some 4,000 Nepalis to work in Korea, whose names are already on the job roster, will be revived starting March 2009," the South Korean embassy clarified.
Those who have already received their labour contract from their Korean employers will not be affected by the exhaustion of the quota and thus still proceed to Korea, said an official at the EPS Section under the Department of Foreign Employment (DoFE). The majority of workers is assigned to the manufacturing and agriculture sector while a few are employed in hotels, he said.
After receiving HRD-Korea's final letter with the names of job aspirants, the department had begun sending them to Korea from August 10. Till date, the EPS section at DoFE has received 2,519 certificates of confirmation of visa issuance (CCVI). The name-list that HRD-Korea sent was according to the CCVI list.
Similarly, 2,811 have made labour contracts but 160 CCVI and 67 labour contracts have also been cancelled so far, according to the department. Earlier, job aspirants, who passed the medical tests, underwent a 15-day orientation. As per EPS rules, the first step for employment in South Korea is the Korean Language Test (KLT) and a subsequent stringent medical test.
After the government sealed an agreement with the Korean government to send the workers under EPS, Nepalis are flying to Korea on an airfare charge of $970 (about Rs 63,000). Prior to this, some manpower agencies used to charge hefty amounts of upto Rs 6 lakhs for each ticket.
Govt seeks list of promoter share traders
The government has asked Nepal Stock Exchange (Nepse) to provide it the list of traders of promoters shares in the recent months.
"The move is liekly to shake the already eroding confidence of investors," said an investor. The sole secondary market permitted the trading of promoters shares on the Nepse floor last March.
Earlier, the government asked for a list of investors trading over Rs 5 million annually which had pulled Nepse down.
Meanwhile, Nepse again also lost 2.2 points to drop to 636.31 points. Yesterday, it lost 20.38 points to fall to 638.51 points.
The year on year (y-o-y) Nepse index decreased by 28.4 per cent to 734.85 points during mid-December 2008. This index was 1025.91 a year ago. The Float Index -- calculated on the basis of real transactions -- as of August 24, 2008 at market prices, remained at 69.45 during mid-December 2008, according to Nepal Rastra Bank's report
However, the total number of companies listed with Nepse increased to 145 in mid-December 2008 compared to that of 142 a year ago.
Broker suspended
KATHMANDU: Nepal Investment and Securities Trading Pvt Ltd,a brokering firm, has been temporarily suspended until further notice. According to the Securities Board of Nepal (Sebon), the regulatory authority of the capital market, the promoters of the firm have a stake in another brokering firm Trishul Securities and Investment Ltd also. This, according to the Securities Act 2063, is illegal.
"The move is liekly to shake the already eroding confidence of investors," said an investor. The sole secondary market permitted the trading of promoters shares on the Nepse floor last March.
Earlier, the government asked for a list of investors trading over Rs 5 million annually which had pulled Nepse down.
Meanwhile, Nepse again also lost 2.2 points to drop to 636.31 points. Yesterday, it lost 20.38 points to fall to 638.51 points.
The year on year (y-o-y) Nepse index decreased by 28.4 per cent to 734.85 points during mid-December 2008. This index was 1025.91 a year ago. The Float Index -- calculated on the basis of real transactions -- as of August 24, 2008 at market prices, remained at 69.45 during mid-December 2008, according to Nepal Rastra Bank's report
However, the total number of companies listed with Nepse increased to 145 in mid-December 2008 compared to that of 142 a year ago.
Broker suspended
KATHMANDU: Nepal Investment and Securities Trading Pvt Ltd,a brokering firm, has been temporarily suspended until further notice. According to the Securities Board of Nepal (Sebon), the regulatory authority of the capital market, the promoters of the firm have a stake in another brokering firm Trishul Securities and Investment Ltd also. This, according to the Securities Act 2063, is illegal.
Sunday, February 1, 2009
Outbound worker torrent slows, falls from 656 per day to 400 per day
The tide of Nepali migrant workers leaving for various destinations abroad has ebbed after the government stopped issuing work permits for Malaysia and other countries also reduced the number of Nepali unskilled migrant workers. According to the Department of Foreign Employment (DoEF), in the month of Poush, the number of Nepali foreign job-seekers dropped to 12,313. It was was 18,685 in Mangsir and 20,543 a month earlier in Kartik.
Till couple of months ago, 656 Nepalis used to leave for foreign jobs but now only 400 Nepalis -- that is 256 less per day -- leave for the foreign job.
Taking cue from the global economic meltdown, the Gulf countries -- major markets for Nepali migrant workers -- have reduced the workforce strength especially unskilled hands and those working in manufacturing and service sectors.
Labour expert Dr Chiranjivi Nepal said the government should tackle this issue diplomatically. "Nepali diplomatic agnecies in those countries have failed totally," he alleged. Dr Nepal also suggested that they could use the laid-off workforce for reconstruction. "The capital expenditure has been very less this year compared to last year," he said adding that if the government has positive intentions it should start mega projects and employ Nepali youths.
Instead, the government is scouring for new destinations like Oman and Libya to mitigate the crisis. "What can be more risky?" Dr Nepal said. Libya and Oman both have 30 per cent and 15 per cent unemployment. Besides, there is no Nepali mission in either country.
Japan is another lucrative market to where the government has started the process for sending trainee workers. "But this also is for a limited number of semi-skilled and trainee workers, not unskilled ones," said Dr Nepal.
The drop in number of migrant workers will hit remittance which in turn will put more pressure on government exchequer. The impact of the drop in number of outbound workers will be on next year's remittance as the first half of this fiscal year has already passed. Remittance is a lifeline for the Nepali economy.
"In the long run, it might have an impact," opined Atish Shrestha, country manager of Western Union, one of the major remittance companies. "Remittance from the US and the European countries has seen nominal drop," he said adding that till December, the transaction size was around $1100 per month but in January it came down to $800.
Top 10 destination
KATHMANDU: Malaysia tops the list of top 10 destinations in proportion to the number of Nepali migrant workers, according to official figures. Qatar comes second followed by Saudi Arabia and the United Arab Emirates (UAE) and Quwait.
Malaysia -- 4,26,778
Qatar -- 3,50,453
Saudi Arabia -- 2,31,444
United Arab Emirates -- 1,48,249
Quwait -- 13,420
Bahrain -- 11,220
South Korea -- 6,378
Hong Kong -- 4,213
Oman -- 3,525
Israel -- 2,650
More Qatar visas
DOHA: The government of Qatar has approved 1,12,000 working visas for Nepali workers for 2009. According to Dr Surya Nath Mishra, Nepali ambassador to Qatar, 1,64,000 more visas are in than pipeline. "If so many Nepali workers come here, they would be the largest foreign community here," Dr Mishra said after meeting Qatari Labour Minister Dr Sultan Bin Hasan. He said his meeting with Dr Hasan's on Tuesday was fruitful and cordial. "The Qatari government has clarified that the global meltdown would not affect either the country or Nepali workers working here," the Nepali envoy said. -- RSS
Nepalis' plight
DOHA: Poor implementation of the government's decision to stop Nepali domestic workers from working in Qatar has led to dire consequences. Nepali women continue to enter this country and some of them meet an unimagined fate. Earlier, the plight of Nepali domestic workers was an unheard of matter in Qatar, with only numerous of cases of exploitation and deceiving reported in Saudi Arabia. More women, after finding themselves at the receiving end of exploitation and cheating, are taking refuge at Nepali embassy here. In recent times, the number of their arrival in Doha is on the rise with the Nepali Embassy rescuing eight, including two on Friday alone, in the last one month. The duo -- Asha Bhujel and Anita Nepali -- were lured by Nepali agents on the pretext of good jobs and landed here via Mumbai. Meanwhile, 10 Nepali workers were killed in separate incidents in Qatar in January, according to the embassy. . Most of them died in road accidents, it said. The embassy added that incidences of Nepali workers dying in accidents in this Gulf country are on the rise. – RSS
Till couple of months ago, 656 Nepalis used to leave for foreign jobs but now only 400 Nepalis -- that is 256 less per day -- leave for the foreign job.
Taking cue from the global economic meltdown, the Gulf countries -- major markets for Nepali migrant workers -- have reduced the workforce strength especially unskilled hands and those working in manufacturing and service sectors.
Labour expert Dr Chiranjivi Nepal said the government should tackle this issue diplomatically. "Nepali diplomatic agnecies in those countries have failed totally," he alleged. Dr Nepal also suggested that they could use the laid-off workforce for reconstruction. "The capital expenditure has been very less this year compared to last year," he said adding that if the government has positive intentions it should start mega projects and employ Nepali youths.
Instead, the government is scouring for new destinations like Oman and Libya to mitigate the crisis. "What can be more risky?" Dr Nepal said. Libya and Oman both have 30 per cent and 15 per cent unemployment. Besides, there is no Nepali mission in either country.
Japan is another lucrative market to where the government has started the process for sending trainee workers. "But this also is for a limited number of semi-skilled and trainee workers, not unskilled ones," said Dr Nepal.
The drop in number of migrant workers will hit remittance which in turn will put more pressure on government exchequer. The impact of the drop in number of outbound workers will be on next year's remittance as the first half of this fiscal year has already passed. Remittance is a lifeline for the Nepali economy.
"In the long run, it might have an impact," opined Atish Shrestha, country manager of Western Union, one of the major remittance companies. "Remittance from the US and the European countries has seen nominal drop," he said adding that till December, the transaction size was around $1100 per month but in January it came down to $800.
Top 10 destination
KATHMANDU: Malaysia tops the list of top 10 destinations in proportion to the number of Nepali migrant workers, according to official figures. Qatar comes second followed by Saudi Arabia and the United Arab Emirates (UAE) and Quwait.
Malaysia -- 4,26,778
Qatar -- 3,50,453
Saudi Arabia -- 2,31,444
United Arab Emirates -- 1,48,249
Quwait -- 13,420
Bahrain -- 11,220
South Korea -- 6,378
Hong Kong -- 4,213
Oman -- 3,525
Israel -- 2,650
More Qatar visas
DOHA: The government of Qatar has approved 1,12,000 working visas for Nepali workers for 2009. According to Dr Surya Nath Mishra, Nepali ambassador to Qatar, 1,64,000 more visas are in than pipeline. "If so many Nepali workers come here, they would be the largest foreign community here," Dr Mishra said after meeting Qatari Labour Minister Dr Sultan Bin Hasan. He said his meeting with Dr Hasan's on Tuesday was fruitful and cordial. "The Qatari government has clarified that the global meltdown would not affect either the country or Nepali workers working here," the Nepali envoy said. -- RSS
Nepalis' plight
DOHA: Poor implementation of the government's decision to stop Nepali domestic workers from working in Qatar has led to dire consequences. Nepali women continue to enter this country and some of them meet an unimagined fate. Earlier, the plight of Nepali domestic workers was an unheard of matter in Qatar, with only numerous of cases of exploitation and deceiving reported in Saudi Arabia. More women, after finding themselves at the receiving end of exploitation and cheating, are taking refuge at Nepali embassy here. In recent times, the number of their arrival in Doha is on the rise with the Nepali Embassy rescuing eight, including two on Friday alone, in the last one month. The duo -- Asha Bhujel and Anita Nepali -- were lured by Nepali agents on the pretext of good jobs and landed here via Mumbai. Meanwhile, 10 Nepali workers were killed in separate incidents in Qatar in January, according to the embassy. . Most of them died in road accidents, it said. The embassy added that incidences of Nepali workers dying in accidents in this Gulf country are on the rise. – RSS
Top World Bank official arrives
Dr Ngozi Okonjo-Iweala, managing director of the World Bank Group, arrived Kathmandu today for a three-day official visit to Nepal. During her stay, she will visit World Bank assisted projects in western Nepal and meet with senior officials of the government, including Prime Minister Pushpa Kamal Dahal 'Prachanda' and Finance Minister Dr Baburam Bhattarai.She is the highest ranking World Bank official who is visitng Nepal after Maoist-led government came to power.
Dr Okonjo-Iweala, a Nigerian national, returned to the World Bank Group in November 2007 from her previous job as Minister of Foreign Affairs of Nigeria from June to August 2006 and as Minister of Finance and Economy of Nigeria from July 2003 to June 2006, according to a press release. During this time she was head of Nigeria's much acclaimed Presidential Economic team responsible for implementing a comprehensive, home-grown economic reform programme that stabilised the macro-economy and tripled the growth rate to an average six per cent per annum over three years. Her achievements as Finance Minister garnered international recognition for improving Nigeria's financial stability and fostering greater fiscal transparency to combat corruption.
Nepse plunges
As expected Nepse plunged by 20.38 points to 638.51 points on Sunday from the last week's closing of 658.83 points.
The secondary market will see heavy selling this week, pulling Nepse further down as Bank of Asia Nepal and Citizens Bank International -- two commercial banks -- are floating their Initial Public Offerings (IPOs) of Rs 300 million each from next Sunday.
The sole secondary market on the very first day of this week proved that the investors are still not feeling confident. The share market was on a roll last week with the Nepse index closing 49.38 points higher to go to 658.83 points. The previous week's closure was at 609.46 points.
Though the market showed signs of growth last week after a long time, investors did not feel confidence of its continuty and it was proven by today's transactions."These are only occasional spurts, and the overall market sentiment is very much bearish as there are no encouraging signs from any quarter," said an investor.
The secondary market will see heavy selling this week, pulling Nepse further down as Bank of Asia Nepal and Citizens Bank International -- two commercial banks -- are floating their Initial Public Offerings (IPOs) of Rs 300 million each from next Sunday.
The sole secondary market on the very first day of this week proved that the investors are still not feeling confident. The share market was on a roll last week with the Nepse index closing 49.38 points higher to go to 658.83 points. The previous week's closure was at 609.46 points.
Though the market showed signs of growth last week after a long time, investors did not feel confidence of its continuty and it was proven by today's transactions."These are only occasional spurts, and the overall market sentiment is very much bearish as there are no encouraging signs from any quarter," said an investor.
Gold hits another high, traded at Rs 27,100 tola
The weak Nepali rupee and volatile international market pushed gold today to yet another high of Rs 27,100 per tola (11.664 gram). Silver also followed the precious yellow metal, posting Rs 375 per tola.
However, in the international market, gold was at $927.85 per ounce today. "Although it is not as high as last October -- when gold was at $1000 per ounce in the international markets -- due to the weak Nepali rupee, it was traded at Rs 23,235 per 10 gram in the domestic market today," said Nepal Gold and Silver Dealers' Association (NEGOSIDA) president Tej Ratna Shakya.
When the international price of gold was $1000 last October, Nepali rupee was at Rs 62 per dollar. However, at present the rupee is above Rs 78 per dollar, pushing the gold price up, even if its only $927 per ounce.
"The transaction of gold was almost nil today in the domestic market," Shakya said adding that the US recession and its impact on Wall Street has made people search for a safe haven in gold. "Since the precious yellow metal is a safe deposit against recession the price in the international market is expected to go higher, pushing the domestic market to another high," Shakya added.
In a week, gold gained over Rs 1400 per 10 gram in the domestic market.
However, in the international market, gold was at $927.85 per ounce today. "Although it is not as high as last October -- when gold was at $1000 per ounce in the international markets -- due to the weak Nepali rupee, it was traded at Rs 23,235 per 10 gram in the domestic market today," said Nepal Gold and Silver Dealers' Association (NEGOSIDA) president Tej Ratna Shakya.
When the international price of gold was $1000 last October, Nepali rupee was at Rs 62 per dollar. However, at present the rupee is above Rs 78 per dollar, pushing the gold price up, even if its only $927 per ounce.
"The transaction of gold was almost nil today in the domestic market," Shakya said adding that the US recession and its impact on Wall Street has made people search for a safe haven in gold. "Since the precious yellow metal is a safe deposit against recession the price in the international market is expected to go higher, pushing the domestic market to another high," Shakya added.
In a week, gold gained over Rs 1400 per 10 gram in the domestic market.
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