Bangladesh president to visit Nepal

President of Bangladesh Md Abdul Hamid will be paying an official goodwill visit to Nepal from November 12 to 15 at the invitation of President Bidhya Devi Bhandari.
Bangladesh President Hamid will be accorded a ceremonial welcome at the Tribhuvan International Airport (TIA) upon his arrival, according to a press note issued by the Foreign Ministry. “During the visit, President Hamid will meet with President Bhandari, as President Bhandari will host a banquet in honour of her counterpart and his delegation.”
Likewise, vice-president Nanda Bahadur Pun, Prime Minister KP Sharma Oli, chairperson of the National Assembly Ganesh Prasad Timilsina, and Foreign Minister Pradeep Kumar Gyawali will call on President Hamid, the press note reads, adding that senior political leaders of various political parties will also call on the president of Bangladesh. “While in Nepal, Bangladesh President Hamid will also be visiting the Lake City Pokhara and historical, archaeological and cultural sites in Kathmandu valley.”
The two countries, on the occasion, will discuss all issues of mutual interests. However, Bangladeshi media has reported that Bangladesh and Nepal will hold talks on Preferential Trade Agreement (PTA) and Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement during President Hamid’s Nepal visit.
On the sidelines of the 18th Non-Aligned Movement (NAM) Summit in Azerbaijan on October 26, Bangladesh Prime Minister Seikh Hasina had requested Prime Minister KP Sharma Oli to finalise the PTA with Nepal during President Hamid’s upcoming visit to Nepal. “The two prime ministers have reached agreement to make the BBIN agreement functional,” the Bangladeshi media reported, though the Foreign Ministry could not confirm it. 

Nepal, Bangladesh talk hydropower development, trade facilitation

Bangladesh has expressed willingness to invest in 20 hydropower projects in Nepal.
During the fourth meeting of the Nepal-Bangladesh Technical Committee for promotion of trade – held in Kathmandu today – both the countries are also positive on simplifying existing issues related to tariff and non-tariff barriers (NTB). Likewise, Nepal has asked Bangladesh to allow the export of local cardamom, yarn and broom grass (amriso) without facing any hurdles to be sold in Bangladesh. “Likewise, Nepal also put forth providing easy access to Nepali agricultural products including fruits to trade in the Bangladeshi market,” according to an official, who took part in the meeting.
“Apart from the trade issues, Bangladeshi officials also shown keen interest in investing in hydropower projects in Nepal,” according to the official.
The power-hungry Bangladesh has been consistently showing interest to invest in Nepal’s energy projects but Nepal has not been able to provide a project despite rounds of talks. However, both the countries agreed to trade power through India's transmission network, in a recently held secretary-level meeting between energy officials in Dhaka. Four months after the secretary-level meeting between Nepali and Bangladeshi energy officials, who agreed to trade power through India's transmission network, the three countries – Nepal, India and Bangladesh – are also holding talks on using the Indian grid to transfer electricity from Nepal to Bangladesh.
The seventh Joint Steering Committee meeting on Nepal-India Cooperation, which concluded last week has decided to hold a tripartite meeting within three months to move forward.
The two countries – during the meeting that is led by joint secretary at the Navaraj Dhakal and joint secretary at the Bangladeshi Ministry of Commerce Sharifa Khan – also discussed easing the movement of passenger vehicles across the borders, operation of direct bus service from Kathmandu to Dhaka as well as cargo supplies between the two SAARC nations. Bangladesh is also positive on providing easy access to Nepali cargo vehicles in the seaport of Bangladesh for third-country trade.
They also discussed ‘air route’ in order to operate air service to Bangladesh from the eastern part of Nepal, though the bilateral trade talks mainly focused on materialising the five memorandam of understanding (MoU) – including the trading of farm products and food items – signed between the two countries earlier, apart from extensive discuss on ways to reduce Nepal’s trade deficit with Bangladesh.
Moreover, trilateral transit agreement between Nepal, Bangladesh and India, harmonisation of sanitary and phytosanitary measures and technical barriers to trade measures between competent authorities of Nepal and Bangladesh were also on the agenda.

Nepal, Bangladesh agree to make joint investment in Nepal's hydropower

Nepal and Bangladesh – during a meeting held in Dhaka – agreed to jointly invest in the feasible hydropower project in Nepal.
A meeting of the energy secretaries from both the countries today in Dhaka also decided to use the existing setup of Indian transmission lines to trade power in the short run, though they had decided to study the prospect of building dedicated power lines in the long term.
Agreeing to make a joint investment in the projects based on the whitepaper issued after the last meeting, the secretary level meeting between energy officials of both countries today agreed to form a committee to study the prospect of transferring solar power technologies available in Bangladesh to Nepal.
According to energy secretary Dinesh Kumar Ghimire, the meeting has agreed for the joint investment on hydropower, collaboration, and cooperation on alternative energy and electricity export to Bangladesh. The agreement was signed by energy secretary Dinesh Ghimire and his Bangladeshi counterpart Ahmad Kaikaus during the Joint Steering Committee meeting in line with the Memorandum of Under-standing signed by the two countries on ‘Cooperation in the Field of Power Sector’ last August.
Discussions on the use of Indian transmission lines passing through the Siliguri Corridor – popularly known as Chicken’s Neck – emerged in the wake of recent amendments to the cross-border energy trading regulations by India. India has relaxed earlier provisions and given explicit recognition to tripartite arrangements in cross-border electricity trade. “The Transmission Planning Agency of India in consultation with the Transmission Planning Agency of the neighbouring country shall grant access to the Participating Entities to use Cross Border Transmission Link for cross border trade of electricity,” reads India’s Cross Border Trade of Electricity Regulations, 2019.
During past meetings, Nepal and Bangladesh pledged to make their best efforts in devising such trilateral arrangements.
Meanwhile, Bangladesh has formulated a policy to import 9,000 MW electricity from Nepal by 2040 as Bangladesh being one of the fastest growing economies – aided by its manufacturing sector – is an energy-hungry nation which makes it a lucrative market for power produced in Nepal.
The authorities from both countries have also planned to study and invest in 20 major hydropower project proposed in the white paper released by the energy ministry in May 2018. The proposed projects include four storage and other major hydroelectric power plants including Upper Arun, Dudhkoshi, Sunkoshi 2, Sunkoshi 3, West Seti and Phukot Karnali. Out of the 20 projects, the Nepal Electricity Authority (NEA) is currently evaluating the detailed project report (DPR) of the 800 MW Dudhkoshi Hydropower project and the recent project optimisation of Upper Arun, which revised its installed capacity from 725 MW to 1040 MW. The estimated annual cumulative output of the proposed and under-study projects stands at 42713.18 GWhr, nearly 11 times current total annual output.
Nepal’s power generation is expected to surge in the next fiscal year as some 43 projects with installed capacity of 1149 MW are expected to be joined in the national grid. Due to power surplus estimation in future, the government has focused on construction of high capacity substations at cross-border trade points and finalise the modalities for developing the 400 kV Butwal-Gorakhpur Transmission Line to facilitate cross border power trade.

Second Nepal-Bangladesh JSC meeting discuss cross-border energy cooperation

A two-day joint steering committee (JSC) meeting on energy cooperation between Nepal and Bangladesh kicked off in Dhaka from today. The meeting will look into ways of capitalising on plans and provisions of the bilateral understanding on energy trade and investment.
The meeting is discussing ways to enhance energy trade and investment between the two countries, apart from discussing ways to enhance cross-border energy cooperation and promote investment in the hydropower sector of the two nations, according to the Ministry of Energy, Water Resources and Irrigation (MoEWRI).
A seven-member team of the MoEWRI that is participating in the second meeting between the respective authorities of the two countries – which started today after Nepal and Bangladesh inked a memorandum of understanding (MoU) on energy cooperation last August in Kathmandu – is led by secretary Dinesh Kumar Ghimire. Likewise, the Minister for Power, Energy and Mineral Resources of Bangladesh is leading the delegation from Bangladesh. The first meeting was held in Nepal.
The Nepali team will also discuss on electricity trade by building a dedicated transmission line through the Siliguri Corridor in India which separates Nepal and Bangladesh. The meeting will discuss the agenda items contained in the memorandum of understanding on Cooperation in the Field of Power Sector the two countries signed last August. “Apart from transmission connectivity, they will discuss the possibility of trading electricity generated by Sunkoshi basin projects, particularly Sunkoshi 2 and Sunkoshi 3,” according to a source at the Nepal Electricity Authority (NEA).
Nepal and Bangladesh have been planning to enhance energy cooperation, especially after the Power Trade Agreement (PTA) that was signed with India in 2014. Both the countries have already agreed to focus on electricity generation, development of hydroelectricity, cross-border transmission lines, development of efficient human resources in the hydroelectric sector, promotion of government-to-government and private sector investments, grid connectivity, power efficiency and investment in renewable energy.
The main agenda of this meeting will be to discuss a dedicated high voltage double circuit transmission line that will need to be installed to supply Nepal’s electricity through India to Bangladesh. The Bangladeshi government has already committed to buy 500 megawatts (MW) of energy produced by the Upper Karnali hydropower project, which is being developed by India-based GMR. Moreover, Bangladesh has expressed interest to buy 9,000 MW of electricity from Nepal by 2040.
During past meetings, Nepal and Bangladesh have pledged to make their best efforts in devising such trilateral arrangements as a common agenda. According to the agreement in the first meeting, the secretary-level JSC and the joint secretary-level joint working group (JWG) will meet every year to discuss and take forward the issues related to cooperation in the power sector between the two nations.

Nepal, Bangladesh share energy cooperation at multilateral level: Minister

Nepal and Bangladesh share bilateral and multilateral level cooperation in the field of energy, according to energy minister.
Addressing Nepal-Bangladesh Business Forum organised by the Bangladeshi Embassy here today, energy minister Barshaman Pun termed the Memorandum of Understanding (MoU)  signed between Nepal and Bangladesh for energy cooperation on August 10 last year as a very important milestone for both countries. He also argued that Nepal’s willingness to seek further collaboration on the Grid Interconnection among the member countries of BIMSTEC through another MoU has demonstrated Nepal’s commitment in achieving common goal of sub-regional and regional electricity integration. "The energy cooperation and bilateral engagements were being intensified between Nepal and Bangladesh lately."
"We too have forged energy cooperation at sub-regional and regional level understating that sub regional and regional energy connectivity is necessary for balancing energy supply and demand in the region," he said.
Bilateral relations between Nepal and Bangladesh have been further bolstered since the two countries established diplomatic relations in 1972, Pun said, stating that the cooperation between these two countries had spread across political, tourism and education sectors.
Bangladeshi envoy to Nepal Mashfee Binte Shams, on the occasion, spoke on he need for exchange of expertise, education and skills between the two countries as both countries were making a headway for economic development.

Kathmandu-Dhaka direct bus service on cards

Nepal and Bangladesh today agreed to finalise Dhaka-Kathmandu direct bus service agreement as soon as possible and seal a deal on modalities for Carriage of Transit Cargo for trade facilitation by December, apart from finding possibilities of payment in local currencies for bilateral trade simplification.
On the second and the final day of the fourth secretary level talks that started here in Kathmandu yesterday between the two South Asian countries, both the countries signed the decisions of the bilateral trade talks, according to which Dhaka has principally agreed to provide duty free access to around 100 primary commodities and agriculture products like fruits and vegetables, according to joint secretary of the Ministry of Commerce and Supplies Naindra Prasad Upadhaya, who is also the coordinator of the technical committee of the trade talks.
The Carriage of Transit Cargo agreement will help Nepal access Chittgong and Mongla Port, he said, adding that Dhaka has also committed to improve infrastructure like road and railway at the border for the smooth transit connectivity to the Port that is a key hurdle in boosting bilateral trade.
Apart from working day and hour haromonisation on border, the technical committee will soon finalise standard of certification for quality measurement, quarantine and health hazards that will help issue uniform certification for their exports, according to the agreement.
Both the countries also agreed to ask their central banks to prepare necessary ground for the payment in the local currency that will smoothen the export.
The countries will organise single country trade fair to boost the exports between the two countries, decided the meeting.
"We have also decided to promote tourism jointly through combined tourism package," Upadhaya added. "The guests asked Nepal to import medicines from Bangladesh."
"Bangladesh has also reciprocated Nepal's move of providing visa on arrival facility to Nepalis," he said, adding that the fifth secretary level meeting will be held in Dhaka in February 2013.
Meanwhile, the Bangladeshi delegation called on caretaker Prime Minister Dr Baburam Bhattarai at the latter's office in Singha Durbar today afternoon. The eight-member team led by commerce secretary of Bangladesh Mohamed Ghulam Hussain appriased the premier of the progress on bilateral trade talks.
The guests familiarised the premier about numerous possibilities of joint projects between Nepal and Bangladesh in hydropower and tourism.
Ambassador of Nepal for Bangladesh Dr Neem Chandra Bhaumik was also present in the meeting.

Bangladesh provides visa on arrival facility to Nepalis, gives duty free access to some 100 primary commodities including fruits, vegetables

Bangladesh today informed that it is providing 'visa on arrival' facility to Nepalis, apart from duty free access to around 100 primary commodities that are mainly agriculture products like fruits and vegetables.
During the fourth secretarial level talks today between Nepal and Bangladesh in Kathmandu, Dhaka informed that it has already circulated its immigration the new policy to provide visa on arrival to Nepalis.
In South Asia, Nepalis do not need a visa to visit India due to historical and cultural ties between the two South Asian nations. However, other South Asian countries might also follow suit, as the free movement of people in the region is key for South Asia's integration to promote intra-regional trade and tourism. Bangladesh will be the second country to provide visa on arrival to Nepalis besides Singapore.
"Dhaka has also provided Nepal duty free access to around 100 primary commodities too," according to joint secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhaya.
Nepal has sought duty free access to agriculture products — like tomato and lentils without any duty as lentil has been the biggest exports to Bangladesh — but exporters have been facing difficulties despite huge demand because of high duty.
Both sides also discussed on trade facilitation, customs and immediate implementation of quarantine facility on the border to expedite bilateral trade, he said, adding that the talks are heading towards a positive direction.
"We discussed on early implementation of quarantine, cold storage and store house on border points, apart from full-fledged operation of Kakarbhitta-Panitanki-Phulbari-Banglabandh corridor to allow Nepali trucks up to the Banglabandh port," said Upadhaya, who is leading the technical committee that will finalise the transit issue.
Nepal has also been facing hurdles in promoting trade and tourism with Bangladesh — the third largest export destination of Nepal after India and the US — due to lack of proper connectivity between the two South Asian nations.
"The visiting delegation has also agreed to provide additional rail corridor to Nepal through Rohanpur-Singhabad broadgauge line to boost bilateral trade and transit but Nepal needs to enter into an agreement with India to take its benefit," he added.
Despite the tremendous potential for expansion and diversification, the volume of bilateral trade has not seen much improvement lately. Nepal exported goods worth Rs 3.47 billion in the last fiscal year, whereas imports from Bangladesh were worth Rs 1.10 billion.
Nepal mainly exports lentils, oil cakes, cardamom, wheat, vegetable seeds, and noodles to Bangladesh, and imports industrial raw materials, chemicals, fabrics and textile materials, jute products, and electric and electronic items.
A 15-member Nepali team led by commerce secretary Lalmani Joshi and eight-member Bangladesh team led by commerce secretary Md Ghulam Hussain will hold talks tomorrow as well.

Nepal's trade with Bangladesh
Year -- Export -- Import
2005-06 -- Rs 234.32 million -- Rs 104.64 million
2006-07 -- Rs 521.49 million -- Rs 286.47 million
2007-08 -- Rs 4664.36 million -- Rs 491.21  million
2008-09 -- Rs 4710.40 million -- Rs 418.01  million
2009-10 -- Rs 3373.71 million -- Rs 764.83 million
(Source: Trade and Export Promotion Centre)

Nepal ranks 45 in Open Budget Survey

Nepal ranks at 45th position in Open Budget Survey (OBI) among 94 countries‚ surveyed in 2010.
“Nepal’s ranking is slightly higher than the average score of 42 but lower than several other South Asian countries in the survey including Bangladesh (48)‚ India (67) and Sri Lanka (67)‚” said Taranath Dahal‚ chairperson of the Freedom Forum that was the local partner of the survey. In the South Asian region‚ Afghanistan is at 21st and Pakistan at 38th positions.
“Nepal’s score indicates that the government provides the public with some information on the budget and financial activities‚” he said‚ adding that it makes challenging for citizens to hold the government accountable for its management of the public’s money.
The government provides with some‚ albeit incomplete‚ information to the public in its budget documents‚ according to him‚ who surveyed with a structured 92 questions from the Open Budget Survey 2010. “The result also indicates the country’s relative transparency in the whole budget preparation and information dissemination process‚” Dahal said.
The International Budget Partnership’s Open Budget Survey assesses the availability in each country assessed of eight key budget documents‚ as well as the comprehensiveness of the data contained in these documents. Grades for the comprehensiveness and accessibility of the information provided in each document are calculated from the average scores received on a subset of questions from the OBS.
“Nepal falls in the C-category‚” he said‚ adding that the country could have scored more had the budget come on time last year. The country scored nil in three indicators — pre-budget statement‚ enacted budget‚ and citizens budget — out of the eight indicators.
“Overall‚ Nepal’s ranking is not bad‚” said Bodh Raj Niraoula‚ chief of the Budget Department at the Finance Ministry.
Beyond improving the availability and comprehensiveness of key budget documents‚ there are other ways in which Nepal’s budget process can be made more open‚ said the report. “These include ensuring the existence of a strong legislature and supreme audit institutions that provide effective budget oversight‚ and providing greater opportunities for public engagement in the budget process.”
The Survey has recommended Nepal to publish the Enacted Budget‚ produce and publish a Citizens Budget and Pre-Budget Statement‚ improve the comprehensiveness of the Executive’s Budget Proposal‚ provide opportunities for the public to testify at legislative hearings on the budget‚ empower SAIs to publish comprehensive Audit Reports‚ including reports on extra‚ and budgetary funds.

Methodology

KATHMANDU: An average score between 0-20 is considered scant information and graded as E; 21-41‚ minimal information‚ graded as D; 41-60‚ some‚ graded as C; 61-80‚ significant‚ graded as B and 81-100‚ extensive‚ graded as A‚ under which South Africa‚ New Zealand‚ United Kingdom‚ France‚ Norway‚ Sweden and United States fall.

Nepal asks Bangladesh to let it use Mongla, Chittagong Port

Prime Minister Madhav Kumar Nepal requested Bangladesh Prime Minister Sheikh Hasina to allow Nepal use Mongla and Chittagong Ports during the meeting with Bangladeshi Prime Minister at Bangladesh House in SAARC village, Thimpu.

The Bangladeshi Prime Minister said that she had already talked to Indian Prime Minister Dr Manmohan Singh on the issue during her India visit in January this year. She said that Nepal — with huge potential of producing hydro-power — could benefit from exporting electricity to Bangladesh.

During the meeting,the issue of regional connectivity featured prominently in the discussion. The two prime ministers also discussed various issues of bilateral interests, including expansion of trade and business between the two countries. Bangladeshi Foreign Minister Dr Dipu Moni was also present during the meeting.

Meanwhile, the scheduled meeting of the commerce secretaries of Bangladesh and Nepal in Dhaka next week — to facilitate bilateral trade and establish connectivity between the two countries under a proposed transit deal — is postponed.

The meeting was supposed to focus on further integration in sub-regional perspectives and mutual recognition of each other’s testing and standardisation certificates, according to experts. The commerce secretaries of the two countries are expected to devise a strategy for the implementation of relevant clauses of the joint communiqué, signed by the premiers of India and Bangladesh at New Delhi in January.

A joint communiqué, co-signed by Indian Prime Minister Dr Manmohan Singh and his Bangladeshi counterpart Sheikh Hasina has assured of giving

Nepal and Bhutan access to Mongla and Chittagong ports. The prime ministers — in the joint communiqué — also agreed that Rohanpur-Singabad broad gauge railway link would be available for transit to Nepal.

“The upcoming secretary level meeting between Dhaka and Kathmandu will pave the way for implementation of commitments made by Prime Minister Sheikh Hasina during

her recent visit to New Delhi to boost the sub-regional integration on both trade and connectivity fronts,” the Bangladesh Ministry of Commerce said.

Besides, a Memorandum of Understanding (MoU) between the two countries on mutual recognition of standardisation is likely to be inked at the meeting. The trade talks to be held between the countries will also focus on problems relating to loading and unloading of goods at zero point of the border.

At present, Nepali trucks cannot enter Bangladesh and they need to load/unload at zero point of the border. Most of the traded goods of Nepal

are carried via Banglabandha land port.

Similarly, due to absence of such agreement, Nepali trucks cannot reach the warehouses of the land port and they need to wait on no man’s land for Bangladeshi trucks to come for re-loading, which increases the cost of business.

The volume of bilateral trade between the two countries is very low, less than $60 million a year. Bangladesh exported goods worth $6.70 million to Nepal in 2008-2009, its imports figured $53 million. Major exports from Bangladesh to Nepal include pharmaceuticals, woven garments, plastic goods, furnace oil, zippers, duck down, dry cell battery, ceramic table ware and handicrafts. Pulses, lentils, rice and wheat make up Bangladesh’s import basket from Nepal.

Nepal’s merchandise exports during the first eight months of the current fiscal year declined by eight per cent to Rs 40.41 billion against a growth of 16.2 per cent in the corresponding period of last fiscal year.

On a monthly basis, the merchandise exports, however grew by 8.9 per cent in February-March as against a decline of 0.8 per cent in the corresponding month of the previous year.

Nepal-Bangladesh trade talk on May 2-5

Nepal and Bangladesh will hold a commerce secretary level meeting from May 2-4 in Dhaka.

"We have no special agenda apart from transit and trade issues," said Surya Silwal, joint secretary at the ministry of Commerce and Supplies (MoCS). "It's Bangladesh's turn to bring agenda this time."

The secretary level meeting will focus on further integration in sub-regional perspective and mutual recognition of each other's testing and standardisation certificates, according to reports in Bangladeshi newspapers. "Officials in the Ministry of Commerce (MoC) said the commerce secretaries of the two countries are expected to devise strategies for the implementation of the relevant clauses of joint communiqué, co-signed by the premiers of India and Bangladesh in New Delhi recently," they reported.

Dhaka had expressed its desire to give Nepal and Bhutan access to Mongla and Chittagong ports. However, it is more likely that the commerce secretary level meeting between Dhaka and New Delhi will be held before a similar meeting between Dhaka and Kathmandu.

Experts said that there are a number of issues in the proposed draft of the Nepal -Bangladesh transit deal. Bangladesh is moving to open a new land route to Nepal and offer it the use of its Mongla port for export of goods to a third country.

Dhaka has sent the draft of a deal to Kathmandu to activate a 1976 transit treaty that would allow landlocked Nepal the use of Mongla port in the Bay of Bengal. Nepal has so far been exporting its goods through Indian ports.

The volume of Bangladesh-Nepal bilateral trade is negligible. Bangladesh's exports to Nepal were worth only $8.1 million against imports amounting to $69 million in fiscal 2008-09. To increase the trade between the two South Asian countries smooth transit facilities have been a major concern.

"Our major concern is to increase volumn of trade between the two countries," Silwal said adding that transit abd trade are linked together.

SAFE to organise third conference

South Asian Federation of Exchanges (SAFE) is holding the third edition of its flagship conference 'South Asian Capital Markets Conference-2010' in Mauritius on April 22-25.

The conference is being jointly organised by SAFE with the support of the Global Board of Trade (GBOT) Mauritius, MCX-SX-India's new stock exchange, the Stock Exchange of Mauritius Ltd and with Knowledge Partners; Financial Technologies Knowledge Management Co (FTKMC).

The SAFE conference is being held in the perspective of growing international recognition of South Asia and adjoining countries as a region of rapid growth and development. The rapid growth of economy and finance in India, the potential of consistent development in Pakistan, the economic dividend that Sri Lanka is likely to experience in the wake of its recent victory against the separatists, the inclusive growth approach of Bangladesh, and the emerging prospects for developments in economies like Nepal, Maldives and Bhutan; make the South Asian region a great prospect and promise for international investing community.

The South Asian region attracted nearly $20 billion in portfolio flows into stock markets, making it one of the most favoured destinations in the emerging markets, according to the data. With global and domestic policy working towards greater harmony and stability in the region, South Asia is expected to have an accelerated growth of financial markets and also engage a larger per cent of the population in the financial market activity.

The conference is being designed with the theme 'Expanding Asset Classes: South Asia'. It is expected to be attended by a galaxy of CEOs and heads of various corporates, banks, and financial institutions in South Asia and other regions, with technical sessions engaging in cutting-edge discussions on critical aspects of deepening of the South Asian Financial Markets.

The SAFE -- also called South Asian Dow Jones -- is an initiative towards regional and global integration of the regional capital markets. It's a non-profit association fashioned under the umbrella of SAARC to endorse the growth of securities market in the region. The existence of SAFE is truly a milestone towards an integrated and amalgamated South Asian securities market with a common objective of development and affluence of the capital markets' stakeholders in and outside the region.

SAFE has in April reviewed list of South Dow Jones SAFE 100 Index that is developed by Dow Jones for South Asian Federation of Exchanges -- a SAARC recognised forum of 23 stock exchanges and other capital markets institutions from eight South Asian countries and the UAE.

Dow Jones SAFE 100 Index has revised the South Asian index delisting nine Indian companies and eight Pakistani companies. Bajaj Holdings Ltd, HCL Technologies Ltd, Hindalco Industries Ltd, Jaiprakash Associates Ltd, Mahindra & Mahindra Ltd, Siemens India Ltd, Suzlon Energy Ltd, Tata Motors Ltd and Unitech Ltd are the Indian companies dropped from the index.

Pakistani companies delisted are Adamjee Insurance Co Ltd, Askari Bank Ltd, Bank of Punjab, DG Khan Cement Co Ltd, Faysal Bank Ltd, Indus Motor Co Ltd, Nishat Mills Ltd and Pak Suzuki Motor Co Ltd.

These 17 companies have been replaced by an equal number of companies --- six from Bangladesh, nine from India and two from Pakistan --- in the Dow Jones SAFE 100 Index.

According to SAFE, Dow Jones SAFE 100 Index represents the collective movement, direction and trend of regional stock markets and would enable global investors to use the same as a benchmark for the performance of their investments in the region. The index would also promote the region as an important asset class in the investment portfolio of the regional and international fund managers.

In Europe, there is Federation of European Securities Exchanges (FESE) that represents 42 Securities Exchanges (in equities, bonds, and derivatives) through 23 Full Members from all EU Member States and Iceland, Norway and Switzerland as well as 7 Corresponding Members from European emerging markets.

FESE is one of the founding members of the European Capital Markets Institute (ECMI) and is a member of the European Corporate Governance Institute (ECGI). Through its members' activities on a global scale, FESE enjoys links with the regulatory community and industry from around the world and works closely with the European Association of Central Counterparty Clearing Houses (EACH) and European Central Securities Depositries Association (ECSDA) in particular in the context of the Code of Conduct on Clearing and Settlement.

In Africa there is African Securities Exchanges Association (ASEA) that is a non-profit company limited by guarantee that was found in Kenya in November of 1993, according to Chapter 486 of the Laws of Kenya, with the aim of establishing systematic mutual cooperation and exchange of information among its members.

The association started with Nairobi Stock Exchange as the first member in 1993, followed by Mauritius, Uganda and Dar-es-Salam Stock Exchanges in the 90's. The association is currently represented by 20 exchanges in 27 African countries.

Nepal, Bangladesh trade talks by March end

The commerce secretaries of Bangladesh and Nepal will hold a two-day meeting in Dhaka on March 30 to facilitate bilateral trade and establish connectivity between the two countries under a proposed transit deal.
The meeting will focus on further integration in sub-regional perspectives and mutual recognition of each other's testing and standardisation certificates, according to experts.
Officials at Bangladesh's Ministry of Commerce (MoC) said the commerce secretaries of the two countries are expected to devise a strategy for the implementation of relevant clauses of the joint communiqué, signed by the premiers of India and Bangladesh at New Delhi in January.
A joint communiqué, co-signed by Indian Prime Minister Dr Manmohan Singh and his Bangladeshi counterpart Sheikh Hasina has assured of giving Nepal and Bhutan access to Mongla and Chittagong ports.

The prime ministers -- in the joint communiqué -- also agreed that Rohanpur-Singabad broad gauge railway link would be available for transit to Nepal.
"The upcoming secretary level meeting between Dhaka and Kathmandu will pave the way for implementation of commitments made by Prime Minister Sheikh Hasina during her recent visit to New Delhi to boost the sub-regional integration on both trade and connectivity fronts," the Bangladesh Ministry of Commerce said.

Besides, a Memorandum of Understanding (MoU) between the two countries on mutual recognition of standardisation is likely to be inked at the meeting. The trade talks to be held between the countries will also focus on problems relating to loading and unloading of goods at zero point of the border.
At present, Nepali trucks cannot enter Bangladesh and they need to load/unload at zero point of the border. Most of the traded goods of Nepal are carried via Banglabandha land port.
Similarly, due to absence of such agreement, Nepali trucks cannot reach the warehouses of the land port and they need to wait on no man's land for Bangladeshi trucks to come for re-loading, which increases the cost of business.
The volume of bilateral trade between the two countries is very low, less than $60 million a year. Bangladesh exported goods worth $6.70 million to Nepal in 2008-2009, its imports figured $53 million. Major exports from Bangladesh to Nepal include pharmaceuticals, woven garments, plastic goods, furnace oil, zippers, duck down, dry cell battery, ceramic table ware and handicrafts. Pulses, lentils, rice and wheat make up Bangladesh's import basket from Nepal.

2010 begins with surge in tourists’ arrival

Nepal continued to enjoy the sustained positive growth in the international visitor arrivals that has started since June 2009 in the first month of this year too.
According to the Immigration Office, Tribhuvan International Airport (TIA), visitor arrivals in January, compared with the same month last year, have increased by 18.8 per cent to 26,071.
Almost all the sector has shown positive growth in the first month of 2010. India, which constitutes the major market, has recorded positive growth of 9.9 per cent. In the SAARC region, arrivals from Bangladesh, Pakistan and Sri Lanka have registered positive growth by 43.3 per cent, 37.3 per cent and 9.9 per cent respectively.
In aggregate the South Asian segment has registered a positive growth of 15.6 per cent.Arrivals from Asia -- other than South Asia -- have also recorded positive growth in aggregate but countrywise the region has shown mixed performance. Visitor arrivals from Japan, Malaysia and South Korea have registered a positive growth by 19.5 per cent, 57.2 per cent and 87.2 per cent respectively.
However, China, Thailand and Singapore have registered negative growth of 18.3 per cent, 25.1 per cent and 3.2 per cent respectively. In aggregate the Asian segment has registered a positive growth of 15.4 per cent, the Nepal Tourism Board (NTB) saidAn overall positive growth of 34.9 per cent has been observed from the European markets with arrivals from major generating markets such as the UK, France, Germany, Italy, the Netherlands, Spain, and Switzerland up by 12.6 per cent, 17 per cent, 25.8 per cent, 40.9 per cent, 92.2 per cent, 62.4 per cent and 5.8 per cent respectively. Tourist arrivals from Australia, Canada and USA have also registered robust growth of 17.5 per cent, 69.2 per cent and 10.2 per cent respectively.“The figures reflect confidence among visitors and tour operators to Nepal,” said the NTB.
Last year India showed mixed performance in visitor arrivals to Nepal however the start of the year has begun with positive note. The sustained positive growth will undoubtedly be effective in turning Nepal Tourism Year 2011 a grand success.A total of 31,672 foreign tourists departed from TIA in January 2010. The number of Nepalis arrivals stood at 57,894 while 65,383 Nepalese departed from TIA in January 2010.

Nepal-B'desh trade talks fruitful

Bangladesh has urged Nepal to fix the destination for cargo trade. During a joint secretary level meeting with Nepal, Bangladeshi officials discussed the transportation modality at length with their Nepali counterparts. "Bangladesh is convinced that a destination should be fixed for the cargo trade," said Surya Silwal, joint secretary at the Ministry of Commerce and Supply -- who led the Nepali delegation to Bangladesh -- after returning from Dhaka today.
This joint secretary level meeting was a revision meeting of the last commerce secretary level meeting. "We discussed three major issues: revision of the last commerce secretary level meeting between the two countries, facilitating the next talks that will be held in October first week and revising the wish list for exports," he added.
Officials from both countries discussed establishing a preferential bilateral trading arrangement and simplifying movement of goods in respective markets. The Bangladeshi private sector also took active part in the bilateral talks.
Dhaka has restricted Nepali exports with a heavy tariff barrier. It has imposed higher customs duty on some agricultural products that are Nepal's main export items. Kathmandu has been requesting Dhaka to provide duty-free entry facility to some 140 Nepali commodities. "We repeated our request for duty free access and Bangladesh responded positively," Silwal said adding that Nepal's suggestion was to start with a couple of items.
Nepali traders describe the Bangladeshi high duty structure as the barrier in expediting the bilateral trade. However, Silwal said that both countries want to expedite trade "but there are political barriers."
Apart from the tariff, transportation is another major hurdle in bilateral trade. Nepal has proposed tripartite talks for smooth transportation link between the two South Asian countries as both Nepali and Bangladeshi traders or tourists have to cross India while using land routes.Additional secretary of the Commerce Ministry of Bangladesh Mustafa Mohiuddin headed the 12-member Bangladeshi delegation while Silwal led the four-member Nepali team.
During the bilateral trade talks yesterday, both sides also agreed to mobilise tour operators and travel agencies of Bangladesh and Nepal to take initiatives to give a boost to the tourism sector of the two countries.
Around three per cent Bangladeshi tourists used to visit Nepal, but the flow of Bangladeshi tourists to Nepal has seen a whopping fall in recent months. "During 2065 BS (mid-April 2008 to mid-April 2009), the Nepali embassy in Dhaka issued 1,547 visas," said Ramesh Prasad Khanal, minister counsellor and deputy chief of mission at the Nepali embassy, Dhaka."
This year, from mid-April 2009 till date only around 500 visas were issued," he added.
The Bangladeshi tourists visiting by land routes need double entry visa as they have to cross the Indian border twice to enter Nepal. India started issuing a single entry visa that has reduced the number of Bangladeshi tourists coming to Nepal by land.

Nokia's ovi mail to come in Nepali

You don't know English but want to have an e-mail account. No need to worry, Nokia has launched its Ovi mail that will give Nepali users the opportunity to create their e-mail accounts in Nepali language -- Devnagari script.
"From within one year to one-and-a-half years Nepalis can create Ovi mail usernames in their own language," said Prem Chand, general manager at Nokia Emerging Asia, during the launch in Dhaka of Nokia's own mail service -- Ovi Mail -- that will have 50 languages.
Unlike most other email services, an Ovi mail account can be created and used directly in a Nokia device without ever having to use PC, laptop or fixed landline. "Since the launch of the beta service in December 2008 around 90 per cent of the email accounts have been created on a Nokia phone," Chand said adding that to bring the Internet -- the easiest and most popular means of communication -- closer in emerging markets, Nokia has launched its new technology.Chand also launched Ovi mail compatible entry category devices -- Nokia 2323 classic and Nokia 2330 classic -- that will be available in Kathmandu from June. "However, the Nokia 2730 classic will be available during the third quarter of this year," he added."All these phones come internet ready and work with Ovi Mail, giving first-time email users the opportunity to set up and start using an e-mail account (http://us.mc562.mail.yahoo.com/mc/compose?to=username@ovi.com) directly on their mobile phones," said Paula Laine, vice-president, entry category marketing.With a choice of black and dark blue, the Nokia 2323 classic will retail for approximately $60 while Nokia 2330 Classic will be available in black or deep red and will retail for about $50 at all Nokia stores."In 2002, Nokia unveiled a strategy to lower the cost of owning and operating a mobile phone and bring the benefits of mobile telephony to people in emerging markets -- Nepal, Bangladesh, Sri Lanka, the Maldives and Bhutan. "The aim of introducing these devices and services is to bring the power of the Internet to the people of this region at affordable rates," Laine said adding that the mobile device and Internet are a powerful combination in connecting people and the service. "These products are not only affordable but also relevant and easy to use," she added.
"The power of the Internet is undeniable, and we have seen mobile technologies catalyse the growth of the informal sector across the world empowering local entrepreneurs and having an immediate and lasting impact on people's lives," Chand said.
According to him, services like Ovi Mail combined with mobile phones bring powerful solutions that can be a gateway to knowledge and entertainment that people can access without the need for a PC.
According to consumer research, nearly half of the emerging market customers wanted Internet connection over a mobile phone than a PC. Ovi Mail has the potential to be the first digital identity for many people in emerging markets like Bangladesh, Sri Lanka and Nepal where Internet and PC penetration rates are the lowest in Asia.

Nepal slips to 121st from 96th as business destination

Nepal slipped 25 places down to rank 121st on the list of the world's best countries for business, compiled by the Forbes. Nepal lost ground in areas like property rights, innovation, technology, red tapism and personal freedom.
Nepal has moved down from its previous 96th position in Forbes' annual list, which ranks 127 nations on the basis of business climate in a country for entrepreneurs, investors and workers. Denmark topped the chart -- for the consecutive second year -- followed by the US that saw an improvement from last year's fourth position.
"This is not a tally of economies with high gross domestic product (GDP) growth, or low unemployment. The goal is to quantify for entrepreneurs and investors the often-qualified information about dynamic economies and what they would consider desirable conditions for business," said the Forbes.
In the South Asian region, all other countries except Bangladesh slipped from their last year's position. India has slipped 11 places to rank 75th while Sri Lanka slipped to 83rd postion from last year's 67th. Pakistan slipped to 101st spot from last year's 83rd. However, Bangladesh moved up four places to 106th position from last year's 110th.
All the South Asian countires posted a negative performance in personal freedom and increased red tapism. But amazingly, Nepal has done better in protection of investors' interests in comparison to other South Asian countries, where they have dismal performance, according to Forbes.
Canada and Singapore moved up four places each to number three and four respectively. Other countries in the top 10 this year include New Zealand, the UK, Sweden, Australia, Hong Kong and Norway. New Zealand, Australia and Norway joined the top 10 list this year while Finland, Ireland and Switzerland were dislodged from this league.
Big movers included New Zealand (no 5, seven places up), followed by Jordan (no 33, 28 places up), Australia (no 8, five places up), the UAE (no 46, 28 places up) and Malaysia (no 25, 13 places up).
According to the report, Nepal has considerable scope for exploiting its potential in hydropower and tourism, areas of recent foreign investment interest. "Prospects for foreign trade or investment in other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, civil strife and its susceptibility to natural disaster," said Forbes that gives more points to personal freedom.
Amid financial turmoil this year, Forbes added stock market performance to reflect the extent of disrepair in countries' banking systems as well as investor confidence in a recovery. Intellectual property rights, the promotion of free trade and low inflation, combined with low taxes on income and investment, give a snapshot of the conditions for business in each.
Sliding down the most this year was Ireland (no 14, 12 places down), which even saw plans for a Guinness mega-brewery shelved by parent Diageo as exports slowed. Uruguay (no 66, 22 places down), Armenia (no 94, 31 places down), Paraguay (no 99, 29 places down) and Latvia (no 45, 13 places down) rounded out this year's losers.


Nepal's score-card
Trade Freedom - 113
Monetary Freedom - 43
Property Rights - 92 (down)
Innovation - 120 (down)
Technology - 123 (down)
Red Tapism - 79 (down)
Investor Protection - 48
Corruption - 96
Personal Freedom - 94 (down)
Tax Burden - 71
Market Performance - Not Available