The finance minister Dr Baburam Bhattarai today said that he is committed to take action against those who have amassed wealth overnight without any definite income source.
Addressing entrepreneurs at an interaction on Voluntary Disclosure of Income Source (VDIS) organised by the Confederation of Nepalese Industries (CNI) here today, he said that the government would not pardon anyone who does not pay tax or disclose their property.
Lashing out especially at politicians and a section of society for havinng become rich those overnight without any proper income channel, he urged entrepreneures not to worry if they have paid tax and have registered their Personal Account Number (PAN). "All professionals who were not in the tax net formerly will have to voluntarily disclose their income sourse and pay 10 per cent." Dr Bhattarai added.
"The government has brought the VDIS scheme to generate more funds in order to kickstart the stalled development of the country," Inland Revenue Department (IRD) director general Kapil dev Ghimire said adding that to achieve double digit growth, the government needs fund. Under the scheme, one has to disclose one's own property on the price based on July 16 and pay 10 per cent tax.
"The last date for VDIS and payment of tax is February 11. From February 12, the government will start taking action against those not abiding by the rule," he said adding that unlike in 2058 BS, this time the government was serious.
Acting revenue secretary Krishna Hari Baskota answered questions raised by entrepreneurs on ancestral propertyand the VDIS scheme.
Baburam Bhattarai on website
KATHMANDU: Rebel-turned-Finance Minister Dr Baburam Bhattarai has gone online. "He launched his own website www.baburambhattarai.com here on Thursday to communicate with the younger generation inside and outside the country," Dr Bhattarai's personal aide Bishwadeep Pandey said. The finance minister is also on a popular social network facebook, where he answers questions -- political and economical -- put to him by readers.
PSU heads' choice on merit basis
KATHMANDU: The finance ministry is appointing the heads of Nepal Stock Exchange (Nepse), Insurance Board (IB), Citizen Investment Trust (CIT) and Employees Provident Fund (EPF) on the basis of merit. On Friday, the applicants are appearing at the interviews for the coveted posts.
Five short-listed candidates will be interviewed for the post of general manager of Nepse and an equal number of candidates for the posts of IB head and CEO of CIT. For the head of EPF, four candidates will appear. "It is a professional approach, the ministry is doing it on the basis of merit," a candidate said adding that politicisation of government entities would not be good for the country's economy.
Finance secretary Rameshwor Prasad Khanal - during the monthly review meeting today at the ministry - said that the appointment of heads of government's undertakings under all ministries should be on a professional and merit basis, like under the finance ministry.
The finance ministry today reviewed its progress - specially under Priority one (P1) and Priority Two (P2) - of development projects and implementation of the budget for the fiscal year 2008-09. According to the ministry, it reviewed overall progress in development projects and the implementation of programmes mentioned in the budget. The department of different development projects apprised the finance minister of progress in the projects and various problems they face.
Speaking at the review meet, Finance Minister Dr Baburam Bhattarai urged the department heads to prepare monthly progress reports and list the achievements in comparison to the same month the last fiscal year.
He also asked them to work whole-heartedly for the fulfillment of people's dream of prosperity. "To protect the national economy from the global financial crisis and start operation of Hetauda Textiles as soon as possible are some of the priorities," he said adding that farmers should get hassle-free loan-waiver facility according to the budget. "Action against defaulters should also go hand-in-hand," he said.
On the occasion, acting governor of Nepal Rastra Bank (NRB) Krishna Bahadur Manandhar spoke about the action being taken against the defaulters. Revenue secretary Krishna Hari Baskota called for more effective working procedures for good results.
Thursday, January 1, 2009
Wednesday, December 31, 2008
Labour department bifurcated into two
The government has bifurcated the Labour Department into two different units -- Department of Foreign Employment and Labour Department.
The former Labour Department used to look after all issues related to labourers, domestic and migrants. "In order to look after the increasing migrant labour force and its problems, the government has divided the department into two," said Lekh Raj Bhatta, Minister for Labour and Transport Management, while inaugurating the newly-formed Department of Foreign Employment here today.
Due to lack of job opportunities at home in the wake of the decade-long armed conflict, the younger generation Nepalis are forced to go abroad in search of greener pastures. "Their contribution to the economy cannot be ignored," Bhatta said adding that their contribution to the GDP is at 17.4 per cent.
According to the official record, 1,20,4,937 Nepali migrant workers are in various countries all over the world. The remittance sent by them is keeping the economy afloat. "The remittance should be used in productive sectors," Bhatta suggested adding that at present, the remittance sent by them is invested in land and houses. "These are are unproductive sectors," he opined.
"Manpower agencies should be labelled a respectable profession," the former rebel said and added, "Nepali migrant workers are not getting paid according to standards set by the employer countries due to various reasons. This should be rectified." He added that the government was serious about labour problems -- migrant and back home both -- and the separation of the department showed the government's commitment."The formation of separate departments would make handling the migrant labourers' and domestic labourers' issues easier," said Mohan Krishna Sapkota, director general of the department.
The government received Rs 1,42,680 million remittance - that is 25 per cent of the GNP - in the fiscal year 2007-08, Sapkota said. "In view of the importance of the migrant workforce, the sector new department has been formed according to the Foreign Labour Act 2064," he added.
The former Labour Department used to look after all issues related to labourers, domestic and migrants. "In order to look after the increasing migrant labour force and its problems, the government has divided the department into two," said Lekh Raj Bhatta, Minister for Labour and Transport Management, while inaugurating the newly-formed Department of Foreign Employment here today.
Due to lack of job opportunities at home in the wake of the decade-long armed conflict, the younger generation Nepalis are forced to go abroad in search of greener pastures. "Their contribution to the economy cannot be ignored," Bhatta said adding that their contribution to the GDP is at 17.4 per cent.
According to the official record, 1,20,4,937 Nepali migrant workers are in various countries all over the world. The remittance sent by them is keeping the economy afloat. "The remittance should be used in productive sectors," Bhatta suggested adding that at present, the remittance sent by them is invested in land and houses. "These are are unproductive sectors," he opined.
"Manpower agencies should be labelled a respectable profession," the former rebel said and added, "Nepali migrant workers are not getting paid according to standards set by the employer countries due to various reasons. This should be rectified." He added that the government was serious about labour problems -- migrant and back home both -- and the separation of the department showed the government's commitment."The formation of separate departments would make handling the migrant labourers' and domestic labourers' issues easier," said Mohan Krishna Sapkota, director general of the department.
The government received Rs 1,42,680 million remittance - that is 25 per cent of the GNP - in the fiscal year 2007-08, Sapkota said. "In view of the importance of the migrant workforce, the sector new department has been formed according to the Foreign Labour Act 2064," he added.
Revenue mobilisation up by 35 per cent
The government's constant efforts to meet the revenue target spelled out in the budget are paying off.
According to Nepal Rastra Bank's (NRB) first four months' microeconomic indicators, revenue mobilisation grew by 35.4 per cent to reach Rs 33 billion compared to an increase of only 13.2 per cent in the same period the last fiscal year. Such an impressive revenue mobilisation was ascribed to the high growth of income tax, VAT collection, customs, excise, vehicle tax and registration fee as well as high growth of non-tax revenue.
Reforms in customs, excise administration and imports are the reason behind the increase. Of the total revenue mobilisation, VAT revenue grew by 31.2 per cent to Rs 12 billion in mid-November 2008. It is more than double as it had increased by 13.4 per cent in the same period last fiscal year.
"In the review period, customs revenue rose by 22.7 per cent to reach Rs 7.2 billion compared to an increase of 9.4 per cent in the same period last year," said the central bank's report of first four months of this fiscal year.Excise revenue also increased by 32.4 per cent to reach Rs 4.2 billion compared to an increase of 32.3 per cent in the same period of the previous year.
Income tax revenue increased by 25.9 per cent to reach Rs 3.7 billion in the review period. "The evolution of corporate culture on account of growth in banks and financial institutions has contributed to so much income tax collection," it said.
Non-tax revenue grew by 73.9 per cent to reach Rs 3.4 billion due to increase in dividends paid by some public enterprises including Nepal Telecom.
Dataspeak
KATHMANDU: In the first four months of this fiscal year, the micro-economic indicators look encouraging except that the consumer price index rose to 14.5 per cent.
* Exports soared by 39.9 per cent.
* Exports to India went up by 24.4 per cent.
* Exports to other countries rose by 70.8 per cent.
* Total imports rose by 38.9 per cent.
* Imports from India went up by 22.1 per cent.
* Imports from other countries grew by 65.3 per cent.
* Overall Balance of Payment recorded a surplus of Rs 11.86 billion.
* The current account also posted a surplus of Rs 9.52 billion.
* Workers' remittances soared by 65.9 per cent.
* Gross foreign exchange reserves stood at Rs 231.34 billion.
* On the basis of the US dollar, gross forex reserves declined by 5.3 per cent to $2.94 billion.
* The current level of reserves is adequate for financing merchandise imports till 9.9 months, and merchandise and service imports till eight months.
* NRB purchased Indian currency (IC) worth 22.53 billion through the sale of $490 million.
* The government budget remained at a surplus of Rs 1.3 billion.
According to Nepal Rastra Bank's (NRB) first four months' microeconomic indicators, revenue mobilisation grew by 35.4 per cent to reach Rs 33 billion compared to an increase of only 13.2 per cent in the same period the last fiscal year. Such an impressive revenue mobilisation was ascribed to the high growth of income tax, VAT collection, customs, excise, vehicle tax and registration fee as well as high growth of non-tax revenue.
Reforms in customs, excise administration and imports are the reason behind the increase. Of the total revenue mobilisation, VAT revenue grew by 31.2 per cent to Rs 12 billion in mid-November 2008. It is more than double as it had increased by 13.4 per cent in the same period last fiscal year.
"In the review period, customs revenue rose by 22.7 per cent to reach Rs 7.2 billion compared to an increase of 9.4 per cent in the same period last year," said the central bank's report of first four months of this fiscal year.Excise revenue also increased by 32.4 per cent to reach Rs 4.2 billion compared to an increase of 32.3 per cent in the same period of the previous year.
Income tax revenue increased by 25.9 per cent to reach Rs 3.7 billion in the review period. "The evolution of corporate culture on account of growth in banks and financial institutions has contributed to so much income tax collection," it said.
Non-tax revenue grew by 73.9 per cent to reach Rs 3.4 billion due to increase in dividends paid by some public enterprises including Nepal Telecom.
Dataspeak
KATHMANDU: In the first four months of this fiscal year, the micro-economic indicators look encouraging except that the consumer price index rose to 14.5 per cent.
* Exports soared by 39.9 per cent.
* Exports to India went up by 24.4 per cent.
* Exports to other countries rose by 70.8 per cent.
* Total imports rose by 38.9 per cent.
* Imports from India went up by 22.1 per cent.
* Imports from other countries grew by 65.3 per cent.
* Overall Balance of Payment recorded a surplus of Rs 11.86 billion.
* The current account also posted a surplus of Rs 9.52 billion.
* Workers' remittances soared by 65.9 per cent.
* Gross foreign exchange reserves stood at Rs 231.34 billion.
* On the basis of the US dollar, gross forex reserves declined by 5.3 per cent to $2.94 billion.
* The current level of reserves is adequate for financing merchandise imports till 9.9 months, and merchandise and service imports till eight months.
* NRB purchased Indian currency (IC) worth 22.53 billion through the sale of $490 million.
* The government budget remained at a surplus of Rs 1.3 billion.
Tuesday, December 30, 2008
The year 2008: Lost opportunity and demised economic revolution
At the start of 2008, except for fuel prices everything looked rosy. But, by the end of the year only fuel prices look rosy.
The year 2008 will go down in the country's history as one that saw experiments in policies and politics, all at the cost of the economy. Increased hours of power outages, insecurity, closure of industries and hotels by militant trade unions and the highs and lows of the stock market are merely some of the barbs that rankled this year.
When it started, the country had a liberal economist finance minister Dr Ram Sharan Mahat, who gilded the economic skyline with a golden brush. And now, when the year has come to an end we have the first Maoist finance minister Dr Baburam Bhattarai who believes that capitalism is the major cause of global economic doom.
Dr Bhattarai, on September 19, presented a deficit and ambitious budget of Rs 136.15 billion with tall claims of ushering in an economic revolution to change the centuries-old proletariat structure of Nepali society. The year 2008 leaves us with a shattered dream of economic revolution that we were promised. Nepal has lost one more year in political jingoism.
However, just after three months of the announcement of the budget and five months of the lapse of the current fiscal year, he is trying to stay afloat just to maintain the revenue target. His own militant trade union along with other ruling political party-affiliated ones are throttling industries, forcing their managments on the backfoot and making it generally difficult for them to even mainatin open-eye mode. The newly-formed industry ministry and its minister are trying even harder to understand the problems plaguing the industries that have seen nil growth in recent times. Frequent bandhs and increased load-shedding is bleeding the industries white.
The government may have eked out the revenue target but it has failed to start even a single development project and has double-failed in that it has not been able to create even a single job opportunity. Unemployment is forcing the country's young generation to fan out abroad in search of greener pastures but despite his claims the rebel-turned mainstream politico finance minister Dr Bhattarai has failed to provide them employment opportunities. He has been appealing to Nepali youths to return home but he has no explanation why they should when there are no employment opportunities.
Inflation stands at a high, high of 14.5 per cent despite claims by the central bank that it will crack whip on it and contain within 7.5 per cent. But its spiriling up, up and above, there is no respite to the people.
Of late, the country is getting singed from the heat of the global financial crisis, and migrant workers in Gulf countries as well as Malaysia - the major labour markets for Nepalis - are returning home, and that is certain to hit the remittance that is sent home.
Besides, there is capital flight due to one after another plant shutdown. Colgate-Palmolive is one example where the investors fled the country as they were not feeling safe despite the government's promises of creating an investment-friendly environment.
When the Maoists came to power, a section of society was bristling with excitement that the country would prosper and that there would be greater investment in development works while creating more jobs, but their dreams lie mute in the dust.
In the Tarai, mushrooming militant groups have got industrialists by the short hairs, spreading a donation-terror and making it difficult for them to do business. The law machinery has totally failed to protect industrialists and industrial areas.
The government has failed in all those very aspects that it had claimed that it would bring about change. The people's woes have not been addressed. In public view, it is instead the government itself that is suspected of corruption at the policy level. Instances abound.. Either in the name of declaring an energy crisis for the covert purpose of bringing thermal plants or clamping a ceiling on the purchase of vehicles priced beyond a certain amount just to protecting certain vested interests. You name, you have it. The list goes on...
The capital market -- propelled by the financial institutions -- saw a record high before plunging to the lowest of lows this year. It has no contribution of the real sector even after 15 years of operations. Capital market experts are not slow in pointing out that over and above all the mayhem and mess-up, the Maoist-led government has no 'definite policy' for capital market development.
The ministries of Industry and Transport Management & Labour failed to deliver on any score. The transport entrepreneurs have gone beyond the ministry pale and are forcing the general people to cough up hiked transport fares even after Nepal Oil Corporation, taking a cue from the global scenario, slashed the price of petroleum products four times in a row. Price cuts began on October 25. The slate is still open.
Burn, burn slower, that is the only message that 2008 is leaving us with. All else may be Humpty Dumptyish but it now costs less, on paper, to ride.
Let's ride, if only the transporters will have mercy.
The year 2008 will go down in the country's history as one that saw experiments in policies and politics, all at the cost of the economy. Increased hours of power outages, insecurity, closure of industries and hotels by militant trade unions and the highs and lows of the stock market are merely some of the barbs that rankled this year.
When it started, the country had a liberal economist finance minister Dr Ram Sharan Mahat, who gilded the economic skyline with a golden brush. And now, when the year has come to an end we have the first Maoist finance minister Dr Baburam Bhattarai who believes that capitalism is the major cause of global economic doom.
Dr Bhattarai, on September 19, presented a deficit and ambitious budget of Rs 136.15 billion with tall claims of ushering in an economic revolution to change the centuries-old proletariat structure of Nepali society. The year 2008 leaves us with a shattered dream of economic revolution that we were promised. Nepal has lost one more year in political jingoism.
However, just after three months of the announcement of the budget and five months of the lapse of the current fiscal year, he is trying to stay afloat just to maintain the revenue target. His own militant trade union along with other ruling political party-affiliated ones are throttling industries, forcing their managments on the backfoot and making it generally difficult for them to even mainatin open-eye mode. The newly-formed industry ministry and its minister are trying even harder to understand the problems plaguing the industries that have seen nil growth in recent times. Frequent bandhs and increased load-shedding is bleeding the industries white.
The government may have eked out the revenue target but it has failed to start even a single development project and has double-failed in that it has not been able to create even a single job opportunity. Unemployment is forcing the country's young generation to fan out abroad in search of greener pastures but despite his claims the rebel-turned mainstream politico finance minister Dr Bhattarai has failed to provide them employment opportunities. He has been appealing to Nepali youths to return home but he has no explanation why they should when there are no employment opportunities.
Inflation stands at a high, high of 14.5 per cent despite claims by the central bank that it will crack whip on it and contain within 7.5 per cent. But its spiriling up, up and above, there is no respite to the people.
Of late, the country is getting singed from the heat of the global financial crisis, and migrant workers in Gulf countries as well as Malaysia - the major labour markets for Nepalis - are returning home, and that is certain to hit the remittance that is sent home.
Besides, there is capital flight due to one after another plant shutdown. Colgate-Palmolive is one example where the investors fled the country as they were not feeling safe despite the government's promises of creating an investment-friendly environment.
When the Maoists came to power, a section of society was bristling with excitement that the country would prosper and that there would be greater investment in development works while creating more jobs, but their dreams lie mute in the dust.
In the Tarai, mushrooming militant groups have got industrialists by the short hairs, spreading a donation-terror and making it difficult for them to do business. The law machinery has totally failed to protect industrialists and industrial areas.
The government has failed in all those very aspects that it had claimed that it would bring about change. The people's woes have not been addressed. In public view, it is instead the government itself that is suspected of corruption at the policy level. Instances abound.. Either in the name of declaring an energy crisis for the covert purpose of bringing thermal plants or clamping a ceiling on the purchase of vehicles priced beyond a certain amount just to protecting certain vested interests. You name, you have it. The list goes on...
The capital market -- propelled by the financial institutions -- saw a record high before plunging to the lowest of lows this year. It has no contribution of the real sector even after 15 years of operations. Capital market experts are not slow in pointing out that over and above all the mayhem and mess-up, the Maoist-led government has no 'definite policy' for capital market development.
The ministries of Industry and Transport Management & Labour failed to deliver on any score. The transport entrepreneurs have gone beyond the ministry pale and are forcing the general people to cough up hiked transport fares even after Nepal Oil Corporation, taking a cue from the global scenario, slashed the price of petroleum products four times in a row. Price cuts began on October 25. The slate is still open.
Burn, burn slower, that is the only message that 2008 is leaving us with. All else may be Humpty Dumptyish but it now costs less, on paper, to ride.
Let's ride, if only the transporters will have mercy.
Monday, December 29, 2008
Land price predicted to slowdown within coming 10 months
The zooming price of land will slow down within coming 10 months but not go kaput, predict experts.
"The whopping rise in land prices will slow down in the coming 10 months," said Ganesh Gurung, a sociologist who has been studying the remittance aspect, at an interaction on 'Global financial crisis and its impact on Nepali migrant workers' organised by the Nepal Association of Foreign Employment Agencies (NAFEA) here today.
Land prices in the valley have been climbing up due to violence in the Tarai and the remittances that Nepali migrant workers send home. "Malaysia and the Gulf countries have started feeling the heat of the global financial crisis," he said adding that big construction companies in the Gulf and garment factories in Malaysia as well as construction, industry and service sectors - supported by foreign direct investment (FDI) - have started laying off unskilled workers, including Nepalis.
"FDI in Malaysia has dropped by 50 per cent and they are laying off unskilled workers like Nepalis," said Dr Chiranjivi Nepal, an economist and former chairman of Securities Board of Nepal."Some of the companies which had sent orders for new workers, are now requesting to delay it," said an entrepreneur voicing serious concern at the state of the labour market in Gulf and Malaysia and remittance that is the lifeline of Nepal's economy.
"The government is behaving as if nothing has happened," accused Dr Nepal adding that even a strong economy like India is also serious about the crisis. It has announced various stimulous packages to mitigate the impact of the global financial crisis.Dr Nepal said that every country except Nepal has devised its own strategy to cope with this global crisis. Remittance supports over 60 per cent of Nepal's import. "If the remittance goes down, it will hit imports making it hard for the government to meet the revenue target," he said.
The government should form a high-level monitoring committee to day-to-day access the remittance flow through the Malaysia-Nepal corridor and Japan-Nepal corridor, suggested Gurung. "As a temporary measure, Nepal can diversify the labour market as the high concentration in the Gulf and Malaysia might have an adverse effect on our economy. Diversifying would cushion the shock," he added.
NAFEA president Tilak Bahdur Ranabhat dwelt on the various problems the manpower agencies are facing and urged the government to help them sort out problems in the remittance business that contributes around 17.4 per cent to the total gross domestic product (GDP). "The delay in appointing a labour attache has also caused various problems for working in those countries," he said.
According to official data, 656 Nepalis leave the country every day for greener pastures in other countries, mainly in the Gulf and to Malaysia.Roughly, Rs 38,90,41,095 flows into Nepal as remittance everyday. Almost 2.5 million Nepalis -- 1.2 million official and 1.3 million unofficial figures -- work in various countries across the globe, according to Ranabhat. "Money sent home by one worker maintains a four-member family here. This makes it a total of 10 million people dependent on remittance," he added.
The 10-year long conflict also played a key role in forcing people to go abroad for jobs. At the begining of the conflict, per household used to receive Rs 15,160 per month remittance but at the end of the conflict it crossed Rs 34,698, according to Gurung's study.
Temporary ban for Lebanon
KATHMANDU: The government has temporarily banned Lebanon for Nepali migrants workers from Sunday, due to increasing insecurity for workers because of violence in the Middle East. The Department of Labour and Employment Promotion (DoLEP) would lift the ban once the situation returns to normal. A total of 1,530 Nepalis left for Lebanon in the fiscal year 2007-08. According to the DoLEP 823 worker reached Lebanon during first five months of the current fiscal year.
"The whopping rise in land prices will slow down in the coming 10 months," said Ganesh Gurung, a sociologist who has been studying the remittance aspect, at an interaction on 'Global financial crisis and its impact on Nepali migrant workers' organised by the Nepal Association of Foreign Employment Agencies (NAFEA) here today.
Land prices in the valley have been climbing up due to violence in the Tarai and the remittances that Nepali migrant workers send home. "Malaysia and the Gulf countries have started feeling the heat of the global financial crisis," he said adding that big construction companies in the Gulf and garment factories in Malaysia as well as construction, industry and service sectors - supported by foreign direct investment (FDI) - have started laying off unskilled workers, including Nepalis.
"FDI in Malaysia has dropped by 50 per cent and they are laying off unskilled workers like Nepalis," said Dr Chiranjivi Nepal, an economist and former chairman of Securities Board of Nepal."Some of the companies which had sent orders for new workers, are now requesting to delay it," said an entrepreneur voicing serious concern at the state of the labour market in Gulf and Malaysia and remittance that is the lifeline of Nepal's economy.
"The government is behaving as if nothing has happened," accused Dr Nepal adding that even a strong economy like India is also serious about the crisis. It has announced various stimulous packages to mitigate the impact of the global financial crisis.Dr Nepal said that every country except Nepal has devised its own strategy to cope with this global crisis. Remittance supports over 60 per cent of Nepal's import. "If the remittance goes down, it will hit imports making it hard for the government to meet the revenue target," he said.
The government should form a high-level monitoring committee to day-to-day access the remittance flow through the Malaysia-Nepal corridor and Japan-Nepal corridor, suggested Gurung. "As a temporary measure, Nepal can diversify the labour market as the high concentration in the Gulf and Malaysia might have an adverse effect on our economy. Diversifying would cushion the shock," he added.
NAFEA president Tilak Bahdur Ranabhat dwelt on the various problems the manpower agencies are facing and urged the government to help them sort out problems in the remittance business that contributes around 17.4 per cent to the total gross domestic product (GDP). "The delay in appointing a labour attache has also caused various problems for working in those countries," he said.
According to official data, 656 Nepalis leave the country every day for greener pastures in other countries, mainly in the Gulf and to Malaysia.Roughly, Rs 38,90,41,095 flows into Nepal as remittance everyday. Almost 2.5 million Nepalis -- 1.2 million official and 1.3 million unofficial figures -- work in various countries across the globe, according to Ranabhat. "Money sent home by one worker maintains a four-member family here. This makes it a total of 10 million people dependent on remittance," he added.
The 10-year long conflict also played a key role in forcing people to go abroad for jobs. At the begining of the conflict, per household used to receive Rs 15,160 per month remittance but at the end of the conflict it crossed Rs 34,698, according to Gurung's study.
Temporary ban for Lebanon
KATHMANDU: The government has temporarily banned Lebanon for Nepali migrants workers from Sunday, due to increasing insecurity for workers because of violence in the Middle East. The Department of Labour and Employment Promotion (DoLEP) would lift the ban once the situation returns to normal. A total of 1,530 Nepalis left for Lebanon in the fiscal year 2007-08. According to the DoLEP 823 worker reached Lebanon during first five months of the current fiscal year.
Friday, December 26, 2008
Cooking gas price drops, petro prices drop for the fourth time in a row
The state oil monopoly - Nepal Oil Corporation (NOC) - is spreading good cheer.
In a sign of the changing times, it has reduced the price of the cooking gas by Rs 50, making it Rs 1,150 per cylinder, effective from tonight. This is the first time -- in last two months from October 25, when the NOC started downward revision of price -- that the price of ever-scarce cooking gas has been reduced.
Despite being in the red as far as the cost of cooking gas is concerned, the cut is being made to give relief to consumers. However, there has been symbolism galore in price cuts in other petroleum products. If petrol will cost Rs 5 less - to be available Rs 80.50 per litre as per NOC's figure - then diesel and kerosene have gone down to by only one rupee. Both will be available at 59.50 per litre.
The goodies were announced following a board meeting of NOC late this evening.
Incidentally, this is fourth time that the NOC has come up with downward revision to prices, paying heed to global crude prices.
"We will now make a tentative operating profit of Rs 400 million. As of now, the liabilities stand at Rs 15 billion," said Digamber Jha, managing director, NOC.
The latest round of revision factored in both outstanding and consumers' interest. "We don't want to make good of our past losses at the expense of eroding consumers' confidence," said Purushottam Ojha, secretary, commerce and supplies.
NOC has gone ahead with the correction a week ahead of the schedule -- as per the norm, it receives the price list from the sole supplier Indian Oil Corporation (IOC) on 1st and 15th of every English month and revises price on the list it receives on 1st -- to lift consumers' spirit.
There is good news for Tarai consumers as well. The latest mechanism will not only ease the demand for fuel in the central region, but also makes the prices of fuel cheaper across Tarai.NOC is opposed to drastic price cuts due to two basic reasons. "Of late, the dollar has appreciated against the Nepali currency. Also, the prices have to be on a par with bordering Indian towns, else there will be a skewed demand-supply ratio," said Ojha.
The rate of Air Turbine Oil (ATF) has also gone down by Rs 5 to Rs 90 per litre for domestic and $200 to $1000 per kilolitre for international flights.
The corrections are making no impact on the all-powerful transport entrepreneurs' cartel. They have steadfastly refused to reduce transport fares, flexing their muscles and subsequently pushing the inflation up to 14.5 per cent.
The Ministry of Labour and Transport Management has been reduced to a casual bystander.
The NOC slashed the petro prices on October 25, November 1, December 3 and today (December 26) for thr fourth time in two months.
Price in the Valley
Cooking gas -- Rs 1,150 per cylinder
Petrol -- Rs 80.50 per litre
Diesel/Kerosene -- Rs 59.50
ATF (domestic) -- Rs 85 per litre
ATF (Int'l) -- $1000/kl
In a sign of the changing times, it has reduced the price of the cooking gas by Rs 50, making it Rs 1,150 per cylinder, effective from tonight. This is the first time -- in last two months from October 25, when the NOC started downward revision of price -- that the price of ever-scarce cooking gas has been reduced.
Despite being in the red as far as the cost of cooking gas is concerned, the cut is being made to give relief to consumers. However, there has been symbolism galore in price cuts in other petroleum products. If petrol will cost Rs 5 less - to be available Rs 80.50 per litre as per NOC's figure - then diesel and kerosene have gone down to by only one rupee. Both will be available at 59.50 per litre.
The goodies were announced following a board meeting of NOC late this evening.
Incidentally, this is fourth time that the NOC has come up with downward revision to prices, paying heed to global crude prices.
"We will now make a tentative operating profit of Rs 400 million. As of now, the liabilities stand at Rs 15 billion," said Digamber Jha, managing director, NOC.
The latest round of revision factored in both outstanding and consumers' interest. "We don't want to make good of our past losses at the expense of eroding consumers' confidence," said Purushottam Ojha, secretary, commerce and supplies.
NOC has gone ahead with the correction a week ahead of the schedule -- as per the norm, it receives the price list from the sole supplier Indian Oil Corporation (IOC) on 1st and 15th of every English month and revises price on the list it receives on 1st -- to lift consumers' spirit.
There is good news for Tarai consumers as well. The latest mechanism will not only ease the demand for fuel in the central region, but also makes the prices of fuel cheaper across Tarai.NOC is opposed to drastic price cuts due to two basic reasons. "Of late, the dollar has appreciated against the Nepali currency. Also, the prices have to be on a par with bordering Indian towns, else there will be a skewed demand-supply ratio," said Ojha.
The rate of Air Turbine Oil (ATF) has also gone down by Rs 5 to Rs 90 per litre for domestic and $200 to $1000 per kilolitre for international flights.
The corrections are making no impact on the all-powerful transport entrepreneurs' cartel. They have steadfastly refused to reduce transport fares, flexing their muscles and subsequently pushing the inflation up to 14.5 per cent.
The Ministry of Labour and Transport Management has been reduced to a casual bystander.
The NOC slashed the petro prices on October 25, November 1, December 3 and today (December 26) for thr fourth time in two months.
Price in the Valley
Cooking gas -- Rs 1,150 per cylinder
Petrol -- Rs 80.50 per litre
Diesel/Kerosene -- Rs 59.50
ATF (domestic) -- Rs 85 per litre
ATF (Int'l) -- $1000/kl
Wednesday, December 24, 2008
Nepse goes online for internet trading
Good news, one can trade shares online!
"Investors can file purchase or sale orders for shares from home or office online beginning January 13," said Rewat Bahadur Karki, chief executive officer and general manager of Nepal Stock Exchange (Nepse), the government undertaking.
"Though, it's the basic stage of internet trading, Nepse has come of age and adopted a technological revolution in the trading system in the domestic market," Karki said adding that seven brokers have applied for going online. Nepse has permitted these seven brokers to go online through the Basic Internet Based Trading System (BIBTS).
The brokers have to have their own website now so that they can, after agreement with their institutional or personal clients, receive sale or purchase orders on their own websites.
"Nepse will provide the BIBTS software free of cost," said Karki. "But they have to develop their own websites."
However, the process will be completed only after the Central Depository System (CDS) comes into effect. "It's a part of CDS," said Sanjay Amatya of Market Securities and Exchange Pvt Ltd (Broker No 5) that has applied for the internet trading. His firm is developing its own website for internet trading.
Securities Board of Nepal (Sebon) has sent the draft of CDS to the finance ministry a long ago. But the ministry has to prepare Trustee Act before clearing it.
Nepse started trading through Automated Computerised Trading System (Automation) from August 24, 2007. After Automation, Nepse started trading through Wide Area Network (WAN), an extended facility for brokers, who want to trade from their own offices. Almost all the brokers trade from their offices now as they donot need to go to the trading floor at the Nepse.
After WAN connectivity, Nepse took another giant leap by making available to investors real time information. Online trading is the latest and the most revolutionary step of Nepse in the history of Nepali capital market that is only one-and-a-half decade old.
Asian Development Bank (ADB) under the CFG project has supported the whole process of the Nepali stock market automation.
To-be-online brokers
1. Market Securities and Exchange Pvt Ltd (broker no 5)
2. Khandelwal Stock Brokering Company (broker no 17)
3. Nepal Investment and Securities Pvt Ltd (broker no 19)
4. Sweta Securities Pvt Ltd (broker no 25)
5. Shreekrishna Securities Ltd (broker no 28)
6. Trishul Securities and Investment Ltd (broker no 29)
7. Prime Securities Pvt Ltd (broker no 16)
New Sebon chief
Surbir Poudel, newly appointed chairman of the Securities Board of Nepal (Sebon) - the capital market regulator - took charge from Wednesday.
"Investors can file purchase or sale orders for shares from home or office online beginning January 13," said Rewat Bahadur Karki, chief executive officer and general manager of Nepal Stock Exchange (Nepse), the government undertaking.
"Though, it's the basic stage of internet trading, Nepse has come of age and adopted a technological revolution in the trading system in the domestic market," Karki said adding that seven brokers have applied for going online. Nepse has permitted these seven brokers to go online through the Basic Internet Based Trading System (BIBTS).
The brokers have to have their own website now so that they can, after agreement with their institutional or personal clients, receive sale or purchase orders on their own websites.
"Nepse will provide the BIBTS software free of cost," said Karki. "But they have to develop their own websites."
However, the process will be completed only after the Central Depository System (CDS) comes into effect. "It's a part of CDS," said Sanjay Amatya of Market Securities and Exchange Pvt Ltd (Broker No 5) that has applied for the internet trading. His firm is developing its own website for internet trading.
Securities Board of Nepal (Sebon) has sent the draft of CDS to the finance ministry a long ago. But the ministry has to prepare Trustee Act before clearing it.
Nepse started trading through Automated Computerised Trading System (Automation) from August 24, 2007. After Automation, Nepse started trading through Wide Area Network (WAN), an extended facility for brokers, who want to trade from their own offices. Almost all the brokers trade from their offices now as they donot need to go to the trading floor at the Nepse.
After WAN connectivity, Nepse took another giant leap by making available to investors real time information. Online trading is the latest and the most revolutionary step of Nepse in the history of Nepali capital market that is only one-and-a-half decade old.
Asian Development Bank (ADB) under the CFG project has supported the whole process of the Nepali stock market automation.
To-be-online brokers
1. Market Securities and Exchange Pvt Ltd (broker no 5)
2. Khandelwal Stock Brokering Company (broker no 17)
3. Nepal Investment and Securities Pvt Ltd (broker no 19)
4. Sweta Securities Pvt Ltd (broker no 25)
5. Shreekrishna Securities Ltd (broker no 28)
6. Trishul Securities and Investment Ltd (broker no 29)
7. Prime Securities Pvt Ltd (broker no 16)
New Sebon chief
Surbir Poudel, newly appointed chairman of the Securities Board of Nepal (Sebon) - the capital market regulator - took charge from Wednesday.
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