Bandhs cost Rs 1.79 billion everyday, fuels inflation

The country loses Rs 1.79 billion from a day's bandh, according to a study ‘The Economic Cost of General Strikes in Nepal’ by the head of Research Department at the central bank Dr Min Bahadur Shrestha and Shashi Kant Chaudhary.

Between January 2008 and August 2013, the bandh also cost 2.15 percentage points off the annual gross domestic product (GDP) growth rate, apart from pushing the price – especially food products – and disturbing the tourist arrivals, the study reported, revealing that the monthly inflation rates were above nine per cent, whenever two-day general strike was reported the previous month. Further, three or more days of general strikes led to inflation rate crossing 10 per cent except in 10th and 11th months of 2009-10.

"The country had to bear an accumulated output loss of Rs 27 billion per year at current prices, which is around 1.5 per cent of the country’s annual GDP," it added. "There were a total of 4,451 general strikes in 75 districts between 2008 and 2013. Solukhumbu recorded the highest number of bandhs at 207 days in the five-and-a-half-year period. But bandh hit the Kathmandu district hard with daily gross output loss at Rs 148.44 million, followed by Morang at Rs 87.80 million and Jhapa at Rs 69.67 million in 2012-13."

Minister Shrestha inaugurates eastern regional fair

Minister for Culture, Tourism and Civil Aviation Ram Kumar Shrestha asked the local tourism entrepreneurs to come forward to integrate themselves in the mainstream tourism.

Addressing the inaugural ceremony of the 3^rd Eastern Regional Tourism Fair-2014 at Damak in Jhapa today, he said that it was a great time to promote tourism regionally to strengthen the national economy.

Acting chief executive of Nepal Tourism Board (NTB) Subash Nirola, on the occasion, stressed that it was necessary to work together among the stakeholders of tourism across the country for the promotion of tourism in regional level. Emphasising on the marketing of tourism product for economic benefit, he said that linking tourism product with market and establishing business to business network is the great challenges at present.

The three-day fair is being organised with the key objective to identify Nepal as a tourist destination, to promote domestic tourism, promote and encourage cross-regional tourism between the eastern region and the other development regions.

It has also aimed at promoting domestic tourism, identifying tourist destinations as well as various tourism heritages around the country and also promoting home stay, exchange of information about various national and regional institutions associated with tourism, spreading awareness to uplift the living standards of rural areas and initiation of poverty alleviation.

Some 47 travel trade industries, tourism institutions and associations from different parts of the country are participating in the fair.

TeliaSonera raises dividend, sees flat results in 2014

TeliaSonera met its outlook for stable organic sales and a small improvement in the EBITDA margin in 2013 and offered shareholders a 5.3 per cent increase in dividend. The dividend of SEK 3.00 per share is equal to 87 per cent of EPS for the year. Organic sales, excluding forex and changes in scope, were down 0.2 per cent in 2013 and in the fourth quarter of the year, while the adjusted EBITDA margin reached 35 per cent over the full year, versus 34.5 in 2012. 

In Q4, reported sales were still down by 2.1 per cent to SEK 26.50 billion, and EBITDA declined by three per cent to SEK 8.728 billion. The operator said it saw weakness especially in the enterprise market and this will be a key area of focus to improve its competitive position going forward. Net profit plunged by 68.2 per cent to SEK 2.19 billion in the fourth quarter, after SEK 2.5 billion in earlier disclosed charges to write down assets in Denmark, Lithuania and Kazakhstan. 

Free cash flow totaled SEK 16.31 billion over the full year, down by 31.3 per cent from 2012 due to lower dividends from the stake in Megafon. For 2014, TeliaSonera forecast stable organic sales and an unchanged adjusted EBITDA margin, while capex is expected to reduce slightly to around 15 per cent of sales, versus 16.1 per cent last year.

Government asked to ban import of inferior quality medicine

Pharma entrepreneurs and experts today asked the government and the regulatory agencies to put a stop to free flow of substandard drugs into the country.

Urging the government for stricter monitoring, they also called for a regulatory framework to supervise the rampant imports of inferior medicine that pose great risk to lives of the people.

Addressing the 23^rd anniversary of Deurali-Janta Pharmaceuticals, former director general of Department of Drug Administration (DDA) that looks after the pharmaceutical industry Bhupendra Thapa asked the government to check the free flow of substandard medicines.

With an effective mechanism, the government should keep vigil on imports of drugs, he said, adding that the government should bring foreign drugs imports under the regulatory framework by imposing a small amount of VAT on them. "The drugs do not attract customs duty and VAT, tht has encouraged a massive inflow of inferior quality drugs into the country."

The 47 pharmaceutical companies operating in the country claim to hold 45 per cent of the domestic pharmaceutical market worth Rs 18 billion annually. They also claim to be manufacturing quality products that are cheaper than imports.

"The government should scan the foreign companies exporting medicines to Nepal," Deurali-Janta chief executive officer Hari Bhakta Sharma advised, adding that the government should also conduct a relative test. "The government has to support the private sector in developing innovative products to promote exports, otherwise, the country could not able to generate employment for 280,000 people, who come into market every year."

Deurali-Janta – that was established with an investment of over Rs 900 million 23 years ago – manufactures 210 types of general medicines including drugs for heart problems, nerves, diabetes and skin diseases.

However, the company has been running at only 55 per cent of its capacity that has curtailed its plan to manufacture more innovative products.

Finance Minister Shankar Prasad Koirala, on the occasion, said that the proposed  Industrial Enterprise Act would address many issues related to regulation of businesses including pharmaceuticles industry. "The proposed Act will help resolve the issues and concerns of the private sector and secure their investment."

Stressing the need of prioritising production for making the country self-reliant, he said, accepting that there are problems in the industrial sector. "The Technology Development Fund, which was brought to encourage the industrialists, would be used in consultation with the private sector."

The government is planning to reopen Nepal Drugs, Koirala informed.

The Nepal Drugs has been closed since it was found to have failed to meet Good Manufacturing Practice (GMP) standards set by the United Nation’s World Health Organisation (WHO).

But the government has proposed to resume operations of Nepal Drugs, he said, adding that the proposal is in the cabinet. "The modality for operating the ailing company has, however, not been fixed yet."

FNCCI invites Mahathir to visit Nepal

The visiting Feneration of Nepalese Chambers of Commerce and Industry (FNCCI) team – led by federation president Suraj Vaidya – to Malaysia has formally invited former prime minister of Malaysia Dr Mahathir bin Mohamad to take part in Nepal-Economic Summit-2014 as a keynote speaker.

Mahathir expressed his commitment to take part in the summit provided his health condition, according to Vaidya.

Malaysia had taken a giant leap in economic and infrastructure development during the Mahathir's 22-year-long premiership.

The FNCCI has requested him to take part in the first week of March. The Nepali team, on the occasion, also discussed on bilateral trade and economic issues also.