China is providing 300,000 doses of Covid-19 vaccine as grant assistance

 After India, now China has come forward to help Nepal get vaccine against Covid-19 on the request of the government.

Issuing a press note today, the Chinese Embassy in Kathmandu said that China has decided to provide 300,000 doses of Covid-19 vaccine under grant assistance to Nepal. “The Chinese government has decided to provide 300,000 doses of Covid-19 vaccines under grant assistance to Nepal, which will benefit 150,000 Nepalis,” The press note reads, adding that China and Nepal are good neighbours, good friends and good partners. “Facing whatever challenges like the earthquake and the pandemic, the two countries have always supported and helped each other through thick and thin.”

“Despite huge demands for the vaccines both in China domestically and across the world at present, the Chinese government has prioritised Nepal in providing the vaccines, fully demonstrating the great importance it attaches to the China-Nepal friendship," the press note reads, adding that the vaccine to be donated to Nepal is developed by the Sinopharm and has already got conditional marketing approval in China. “After a two-dose inoculation procedure, the vaccine shows 79.34 per cent efficacy against Covid-19, and the seroconversion rate of neutralising antibodies reached 99.52 per cent.”

The safety and effectiveness of the vaccine has surpassed the marketing standards of the World Health Organisation (WHO), and received wide recognition by other countries. “The vaccine has got licenses for marketing or approval for emergency use in 13 countries including Pakistan, the UAE, Egypt, and Hungary.

The embassy is coordinating with Nepali authorities on the registration for emergency use and receipt of the vaccine and would like to deliver the vaccines to the Nepali side at the earliest so as to help Nepal win the battle against the Covid-19 pandemic, according to the press note. “The Chinese side is willing to work together with the Nepali side to build a community of health for all and further strengthen and promote the strategic partnership of cooperation featuring the ever-lasting friendship for development and prosperity between the two countries.”

India has provided 1 million corona vaccine to Nepal as the gift under its 'neighbourhood first' policy.

India gifts 10 ICU ventilators to Nepal Army

 Indian Army has gifted 10 ICU ventilators to the Nepal Army in order to support its efforts to fight against the prevailing Covid-19 pandemic.

Ambassador of India to Nepal Vinay Mohan Kwatra today handed over the ventilators – in a ceremony held at Nepali Army Headquarters – to Chief of Army Staff General Purna Chnadra Thapa, who is also honourary general of Indian Army.

The ventilators are designed for a broad range of applications to include advanced invasive or non-invasive respiratory support, according to a press note issued by the Indian Embassy in Kathmandu. “They can be used in support of secondary care in hospitals with ICU, tertiary multispecialty hospitals and dedicated ICUs,” it reads, adding that they are portable and handy in transportation of patients requiring intensive care due to their compact nature. “The Indian Army has a long record of extending support to the Nepali Army as a first responder for humanitarian assistance and relief.”

The gifting of ventilators is part of this continued humanitarian cooperation between the two Armies, it adds. During the handing over ceremony, envoy Kwatra reaffirmed India’s commitment to provide all necessary help to the people of Nepal in prevailing over the pandemic.

Cable operators not to air Indian news channels in Nepal

The cable service providers decided to stop airing Indian news channels in Nepal with immediate effect from today.
“Viewers will not have access to any Indian news channels, except for the Indian state owned Doordarshan news,” according to the Multi-System Operators (MSO). The vice chairman of Mega Max TV Dhruba Sharma confirmed that the domestic cable operators today took the decision not to air Indian news channels with immediate effect.
Earlier today, the spokesperson of the ruling Nepal Communist Party (NCP) Narayan Kaji Shrestha had slammed the Indian media for their ‘nonsense’ reports on matters related to Nepal and the Nepali government. He also said that the Indian media must stop the baseless propaganda against Nepal government and Prime Minister Oli.
Expressing his disbelief on the extent to which some media channels have gone to defame the current government, he said that the baseless propaganda by the Indian media against the Nepal government and Prime Minister Oli has crossed all limits. “Nepal is always united as far as issues related to the country's sovereignty and territorial integrity are concerned.”
Likewise, Information Technology and Communication Minister, and spokesperson of the government Dr Yuba Raj Khatiwada also – dueing today’s press briefing – condemned a section of the Indian media which ‘engaged in the character assassination of Prime Minister KP Sharma Oli and Chinese ambassador to Nepal Hou Yanqi, recently.’
Khatiwada said that the government may seek political and legal remedies through diplomatic channels against baseless Indian media coverage which has undermined Nepal's sovereignty and dignity. “We urge the entire media including from our neighboring countries not to undermine Nepal's sovereignty and dignity," he added.
A section of Indian media has been broadcasting an imaginative and defamatory reports on the Nepali Prime Minister KP Sharma Oli along with the Chinese envoy.
Indian news channels have been broadcasting misleading news contents – without following even a minimum level of ethics of journalism – related to Nepal in recent days amid the tense relations between the two neighbours after Nepal issued its new political map including the disputed regions of Kalapani, Lipu Lekh and Limpiyadhura.
Back home, people from various walks of life including political parties, media fraternity, civil society and intellectual community have vented their ire on social media – particularly against a recent imaginary and defamatory 16-minute show with an offensive headline run by Zee News linking PM Oli with Chinese ambassador to Nepal Yanqi – for their baseless propaganda against Nepal government and PM Oli.
The Federation of Nepalese Journalists (FNJ), Press Council Nepal and other media organisations have also vented ire against the Indian media reports.
Likewise, Former Foreign Minister Kamal Thapa also slammed such deliberate and sustained campaign of mudslinging against PM Oli reports by a section of Indian media. “We have serious differences with PM Oli on many issues, including his conduct of international relations but the reports by a section of Indian media cannot be acceptable,” he said.
Earlier this week, The Times of India published a disrespectful picture of PM Oli in its editorial. Indo Asian News Service (IANS), India Today, WION, Times Now, Republic TV and Zee Hindustan are other Indian media outlets which ran baseless reports linking PM Oli with the Chinese ambassador to Nepal.

Fifth Nepal-India Joint Commission meeting concludes

The fifth meeting of Nepal-India Joint Commission concluded successfully here in Kathmandu today.
Foreign minister Pradeep Kumar Gyawali and his Indian counterpart minister of external affairs Dr Subrahmanyam Jaishankar co-chaired the meeting, leading their respective country.
During the meeting that started with opening remarks by the two foreign ministers, both sides reviewed the entire gamut of bilateral relations with specific focus on the areas of connectivity and economic partnership, trade and transit, power and water resources sectors, culture, and education, according to a press note issued by the Foreign Ministry.
Likewise, the two ministers, on the occasion, emphasised the importance of tourism in socio-economic development and agreed to enhance their cooperation in tourism sector, particularly in the context of Visit Nepal Year 2020. “Nepal on the occasion, requested for additional air entry routes to Nepal but India replied that discussion which are underway between the civil aviation authorities of the two countries will yield positive results,” according to an official at the meting.
The Joint Commission – being held after a long interval of three years – expressed happiness over the momentum generated in the overall aspects of Nepal-India relations following the exchange of high-level visits in the past two years. The visit of Dr Jaishankar, India’s newly appointed external affairs minister, is the first high-level visit from India since the reelection of Narendra Modi earlier this summer.
“The Joint Commission meeting also expressed satisfaction over progress in three new areas – Raxaul-Kathmandu Electrified Rail Line, Inland Waterways and New Partnership in Agriculture – agreed during the visit of Prime Minister Oli to India in April 2018,” the press note reads, adding that matters related to cooperation in international, regional and sub- regional fora were also discussed. “The meeting expressed happiness at the progress made in the bilateral projects like Motihari- Amlekhgunj Petroleum Products Pipeline, four segments of Hulaki Roads, and post-earthquake reconstruction of private housing in Nuwakot and Gorkha districts which have been completed.”
They expressed happiness over progress made in Jayanagar-Janakpur and Jogbani-Biratnagar sections of cross-border railway projects and Integrated Check Post in Biratnagar. The Joint Commission meeting also agreed to expedite the early completion of remaining bilateral projects.
Noting that inundation is a serious problem for people living in border areas, the Joint Commission meeting agreed to take action on the recommendations made by a joint team comprising of officials from both side.
The two ministers, on the occasion, witnessed the signing and exchange of Memorandum of Understanding (MoU) between Food Safety and Standards Authority of India (FSSAI) and Department of Food Technology and Quality Control of Nepal on food safety and standards. They also witnessed handing over of two cheques – for Tarai Roads Project and Post-earthquake Reconstruction Project.
Indian ambassador to Nepal Manjeev Singh Puri handed over a cheque of Rs 2.45 billion as reimbursement for housing reconstruction in Nuwakot and Gorkha districts to chief executive officer of National Reconstruction Authority (NRA) Sushil Gyawali, and another cheque of IRs 80.71 crore – that is a part of India's commitment of IRs 500 crores – for strengthening road infrastructure in the Tarai Region to infrastructure secretary Devendra Regmi, on the occasion.
Meanwhile, Gyawali hosted a dinner in honour of visiting Indian counterpart and his delegation.
Dr Jaishankar arrived in Kathmandu today to take part in the meeting, and is scheduled to depart for New Delhi tomorrow.
Before the meeting, Dr Jaishankar paid a courtesy call on Prime Minister K P Sharma Oli, and discussed on various issues of mutual interests on the occasion. He is also paying a courtesy call to the President Bidya Devi Bhandari tomorrow morning.
The Nepal-India Joint Commission was founded in June 1987. Its meetings are held alternately in Nepal and India. But the last meeting of the Joint Commission was held in New Delhi in October 2016.

Trade deficit hits at Rs 1.21 trillion

On soaring import bills, the trade deficit is going to equalise the annual budget in the current fiscal year as the trade deficit has widened by 17.40 per cent to Rs 1.21/9 trillion – surpassing the revised annual budget of Rs 1.2 trillion for the current fiscal year – in the first 11 months of the current fiscal year compared to the deficit of Rs 1.03 trillion in the same period of the last fiscal year. The trade deficit totalled Rs 1.16 trillion in the last fiscal year 2017-18.
A trade deficit is the difference between a country's export earnings and import expenses. According to the Department of Customs (DoC), Nepal’s foreign trade reached Rs 1.38 trillion – in the 11 months between mid-July and mid-June – which is an increase by 17.50 per cent compared to Rs 1.18 trillion in the same period of previous fiscal year. “The imports have a 93.7 per cent share in the total foreign trade whereas exports have only 6.3 per cent share,” the department data revealed, adding that Nepal imported goods worth Rs 1.29 trillion – some 17.45 per cent more than the imports in the 11 months of last fiscal year when it had imported Rs 1.10 trillion – whereas compared to imports, the ratio of exports is very low. “In the 11 months of the current fiscal year, Nepal’s export earnings swelled to Rs 87.83 billion as it is an increase by 18.18 per cent compared to the same period of the previous fiscal year.”
According to the department, Nepal exported merchandise worth Rs 74.32 billion in the 11 months of the last fiscal year. “The import-export ratio at the moment stands at 1:14.8, which means for every rupee of goods exported, Nepal imports goods worth Rs 14.8.”
The import-export ratio stood at 1:14.9 in the same period of last fiscal year, the department data revealed.
According to the customs statistics, Nepal enjoyed a trade surplus with only 21 countries among its 155 trading partners. However, among the 155 trading partners, the trade deficit is highest with southern and northern neighbours. Nepal faced a trade deficit worth Rs 785 billion with India in the first 11 months as it imported goods worth Rs 841 billion from India and exported only Rs 56.5 billion to the southern neighbour. Likewise, the trade deficit with China stands at Rs 184 billion as it imported goods worth Rs 186 billion from China and exported only Rs 1.96 billion worth goods to the northern neighbour in the 11 months of the current fiscal year.
Petroleum is the largest import of Nepal as usual. The country imported Rs 231.72 billion worth petro products including mineral oils, bitumen and mineral waxes. Likewise, the iron and steel import bill came to Rs 132.30 billion and Nepal paid Rs 109.87 billion on importing machinery and mechanical appliances, the department report revealed, adding that imports of vehicles and parts and electrical equipment stood at Rs 84.42 billion and Rs 81.71 billion, respectively. “Nepal imports cereals worth Rs 47.97 billion.”
Similarly, Nepal's largest exports were animal or vegetable fats and oils and related products worth Rs 10.99 billion. Export earnings from man-made fibres including acrylic yarn totalled Rs 9.03 billion, and revenues from the export of coffee, tea and spices amounted to Rs 7.61 billion. Exports of woolen carpets and flooring materials were worth Rs 7.05 billion whereas Nepal earned Rs 5.43 billion from the export of iron and steel.

Nepalis require visa to enter India via China, Pakistan

Nepali nationals must have visa, if they are entering India from Pakistan, China, Hong Kong and Macau, according to a notice issued by the Nepali Embassy in New Delhi.
Likewise, Nepalis travelling to Gulf countries – including Saudi Arabia, Qatar, Kuwait, Oman, Bahrain and Lebanon – are required to acquire No Objection Certificate (NOC) from the respective Nepali Embassies, it reads, adding that a traveller is required to submit an application to the respective embassy along with relevant documents, including employment permit to get the NOC. “A citizen of Nepal must have a visa for India, if he or she is entering India from China, Macau, Hong Kong and Pakistan.”

Concor to lose monopoly on India-Nepal cargo movement

Container Corporation of India (Concor) is going to lose its monopoly of being the only player to move container trains between India and Nepal after the revision of India-Nepal Rail Service Agreement (RSA).
The recent revision of RSA has allowed the private players to move the containers between India and Nepal that has been monopoly of Concor since last fifteen years.
Kathmandu-New Delhi agreed to allow private container train operators – to carry goods including food, clothes, building material, cement, furniture, wood, crockery and cutlery to Nepal – after the revision of the RSA on June 5 and 6 talks in New Delhi.
In 2004, when the RSA was finalised, Concor was the only container train operator but in 2006-07, Indian Railways opened up the market, allowing other operators to run container trains, and giving Nepal also the option. Many a companies – including those backed by Adani Group, Port of Singapore Authority and Dubai Port World – have shown interest on ferrying to and fro Nepal.
Nepal traders and India’s Association of Container Train Operators (ACTO) both had long sought the opening up of the route for all operators but the RSA revision has been a long due.
The entry of new players will not only introduce competition for Concor but also force it to lower freight charges, making the imports cheaper to Nepal, the traders said, adding that Indian Railways has but earlier resisted moves to open up the route to private Indian container train operators.
The monthly traffic between India and Nepal comprises 13 to 14 container trains each way.

India submits pre-feasibility report of Kathmandu-Raxual railway project

India has submitted the pre-feasibility report of Kathmandu-Raxaul railway project to Nepal.
“The Indian government had submitted the report last week through the Ministry of Foreign Affairs aiming at conducting a further feasibility and detailed project report,” according to the foreign ministry.
“We have received the report and will soon forward it to Office of the Prime Minister and Council of Ministers and the Ministry of Physical Infrastructure and Transport too,” a source at the ministry said, adding that a joint engineering team of Department of Railways (DoRW) and the consultant team of Indian Railways had started conducting the pre-feasibility study of the project on June 8 last year. “The team comprising of members of the technical teams of both the countries has recommended the project to be feasible.”
The joint team had proposed Himal Cement Factory in Chobhar of Kathmandu as a railway station.
Though the government was planning to establish a company to construct the railway, but the process is put on hold because the Indian government has promised to build the railway through its own resources. The Indian Prime Minister had – during his visit to Nepal last May – assured that the entire cost to construct the railway project from Kathmandu to Raxaul would be covered by the Indian government, including establishment of an office, pre-feasibility study, detailed feasibility study (DFS), detailed project report (DPR) and as well as construction.
The works of the feasibility and detailed feasibility study will start by next fiscal year, according to the department that has estimated the railway project to cover a total length of 113-km, of which around 20 per cent will comprise of tunnels and bridges. “The proposed route of the Kathmandu-Raxaul railway will start from Kathmandu and will pass along the Bagmati River all the way to Nijgadh extending through Birgunj to Raxaul.”
Though, a railway track connecting Birgunj to Raxaul already exists, it is yet to be used to transport passengers.

Nepal-India agree to consider waterways as ‘trade route'

Nepal and India today agreed to declare inland waterways as one of the ‘trade routes’ in Nepal-India Trade Treaty revision.
The bilateral trade treaty review meeting between the joint commerce secretaries of Nepal and India – that concluded in Pokhara today – has agreed to identify inland waterways as trade route in the trade treaty revision, joint secretary at the Ministry of Industry, Commerce and Supplies Ravi Shankar Saiju confirmed. Saiju led the Nepali team in the discussion with his Indian counterparts. "Apart from the new addition of waterways, the two sides also discussed about enhancing cross-border air and railway connectivity."
The Indian authorities have also been positive towards the re-export of goods from Nepal to India and vice-versa, he said, adding that they have expressed the commitment to raise this issue with the Indian government and introduce re-export provision. "If this provision is introduced, Nepal can import goods from third countries via agencies of different multinational companies located in India." Importing goods from Indian agencies of global brands will help reduce the transportation cost for Nepali importers, he added.
Likewise, the trade treaty review meeting has also concluded that India will address Nepal’s agenda to drop the zero-tariff facility on Indian agricultural goods and some other primary products. "Indian authorities have sought details from Nepal on the call to levy customs tariff on such products," Saiju added.
The Nepali side has tabled the agenda of dropping the zero-tariff facility on Indian agricultural goods and some other primary products due to increasing import of Indian goods – especially agricultural products that are enjoying zero-tariff facility – widening the trade deficit with India, and also affecting the market for Nepali goods. But the Nepal government opins that the Indian authority should give continuity to the zero-tariff export facility for previously listed Nepali products in Indian market.
Ending the zero-tariff facility for Indian agricultural goods and some other primary products is expected to help reduce the widening trade deficit between the two neighbours.
Nepal and India had agreed to review the trade treaty along with the transit treaty and Railway Service Agreement (RSA) between the two countries last April. The two countries revised the trade treaty last time in October 2016 without any changes to the 2009 treaty.
Likewise, during the meeting Nepal has also proposed India to allow two additional seaports to trade with third countries. "Nepal has proposed the India to allow Mundra port (Gujarat) and Dhamra port (Odisha) for third country trade," Saiju said, adding that the Indian side has responded positively on Nepal's request.
Nepal currently uses two seaports – Visakhapatnam Port (Andrapradesh) and Haldia Port (Kolkata) – to trade with third countries.
Kathmandu will soon propose the draft of the revised trade treaty to New Delhi. "The next meeting will discuss about revising the trade treaty as Nepal will present India about what provisions precisely Nepal wants to amend in the existing trade treaty," he added.

China pledges five times more FDI in Nepal than India

China has surpassed India in terms of committing foreign direct investment (FDI) in Nepal in recent years.
According to the latest statistics from the central bank, China has outdone India in terms of committing FDI as well as in terms of projects in Nepal.
The latest data put India on the fourth position in terms of the number of development projects pledged in Nepal and on the second position after China in terms of FDI amount pledged.
Likewise, South Korea ranks second after China, the United States of America third, India fourth and Japan fifth in terms of the number of projects they have pledged to carry out in the country.
According to the statistics of the Nepal Rastra Bank (NRB), China has pledged Rs 6.21 billion for 125 projects in the last fiscal year 2015-16 whereas India has pledged Rs 1.94 billon for 23 projects.
Likewise, the Nepal government has authorised South Korea in 55 projects, the USA for 40, Japan 18, the United Kingdom 11 and other countries 69 projects, taking the number of total projects to 341, according to the central bank report.
The report has also stated that as many as 11, 426 people will get employment directly from the authorised projects.
While the FDI pledges slumped by 77.5 per cent in the last fiscal year, the number of projects decreased by 7.3 per cent, compared to a fiscal year ago in 2014-15.
In the last fiscal year 2015-16, the Department of Industry authorised 341 foreign-funded development projects worth Rs 15.14 billion while it had authorised 368 projects worth Rs 67.42 billion in the fiscal year 2014-15.
Similarly, the foreign investors have repatriated almost Rs 1 billion less to Rs 6.25 billion in bonus in the last fiscal year 2015-16 compared to Rs 7.21 billion a fiscal year ago in 2014-15, the central bank data revealed.
The foreign companies’ profit slumped after their financial transactions were hit by the earthquake and the Indian blockade against Nepal in the last fiscal year.
The NRB approves – on the recommendation of Industry Ministry – the foreign companies repatriate bonus from their profit based on financial details and other liabilities.
In the last fiscal year 2015-16, the foreign companies related to hydro projects repatriated Rs 3.15 billion in bonus to their countries. Foreign companies have invested in the hydro projects including Khimti, Bhotekoshi in Nepal.
Likewise, companies that have invested in the communication sector have taken Rs 1.69 billion as bonus. Foreigners have invested in Nepal’s telecommunication sector including Ncell, UTL, and Smart Telecom.
According to the central bank, the companies which have invested in the industrial sector have also repatriated bonuses worth Rs 1.38 billion so far. Foreign companies including Dabur Nepal, Unilever, Arati Strips, Surya Nepal have invested in Nepal’s industrial sector.
Foreigners are allowed to repatriate the bonus in line with the Company Act and the Foreign Investment and Technology Transfer Act, 1992 with approval from the central bank.

Government working on to reopen Tatopani, Rasuwagadhi customs

The government has started preparation to reopen the customs with the northern neighbour China due to problem on the southern border.
The two customs offices along Nepal-China border – Tatopani and Rasuwagadi – have not been operational since the April 25 earthquake. But the unrest in Tarai for the past one-and-a-half months and fresh 'blockade' enforced by India has forced the government to expedite the process to reopen the two customs offices on China border. "The festive season next month has also forced the government," according to Ministry of Supplies.
The Chinese government is positive about reopening both the customs offices by October 15," secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhyay told a parliamentary committee on commerce today morning. "We had discussion with the Chinese officials yesterday too," he said, adding that the northern neighbour is ready to help Nepalis get enough supplies for festivities. The festivals – Dashain and Tihar – fall in the last week of October and the first half of November this year.
The unrest created by the Tarai-Madhes parties and India's 'blockade' is sure to make the lives of Nepalis hard – also due to hike in rices of essential supplies – during the festivities.
The agitating Tarai-Madhesh parties today disrupted supplies from the southern plains to pile pressure on the government. However, they forgot that the blockade will only widen their distance with Kathmandu and other region, as their protest will create shortage before the festivals.
Likewise, India has also halted more than 1,000 oil tankers and trucks with essential supplies from entering Nepal to express its dissatisfaction with political parties who didn't take Indian recommendations for the constitution.
Though India's Ministry of External Affairs has said that the Indian government has not prescribed any recommendations, the Indian media published New Delhi's 7-point recommendations to Nepal government.
According to customs officials, around 1,500 oil tankers from India used to enter Nepal every day from the Jogbani Customs Office. But there has been no movement for the past three days, creating shortage in Nepal. Long queues have started forming at petrol pumps as people rush to fill tanks of their bikes and cars fearing prolonged shortage.
Meanwhile, Nepal Oil Corporation (NOC) has also requested people to use public vehicles to lessen demand for petroleum products.
Due to the disturbance in southern plains – where there are major customs points – since more than last one and half months, revenue mobilisation has plunged by 35 per cent in Bhadra – the second month of the current fiscal year 2015-16, according to the Department of Customs.

UP chief minister optimistic of joint tourism, trade promotion

The neighbouring Indian state of Uttar Pradesh (UP) and Nepal can jointly promote tourism and boost trade by upgrading the land route between them.

"The joint promotion of tourism like the Buddhist circuit will help promote tourism between the two countries," said chief minister of Uttar Pradesh Akhilesh Yadav today during a meeting with a delegation of Nepali entrepreneurs and journalists at his office in Lucknow.

Nepali entrepreneurs, led by the vice chair of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bhawani Rana, on the occasion, apprised Yadav of various problems that Nepali entrepreneurs have been facing at the Uttar Pradesh border.

India has been planning to construct an international airport at Kushinagar in Uttar Pradesh, which will also help promote the Buddhist circuit, he added. Sarnath – the place where Buddha preached for the first time after enlightenment – Kushinagar – the place where he breathed his last – in Uttar Pradesh, and Lumbini in Nepal – where he was born – are included in the Buddhist circuit that could help promote tourism jointly.

"The members of parliament from the neighbouring state Uttar Pradesh and adjoining Nepali districts can form a joint committee that could look into the problems with cross border trade, flood management, joint security arrangement apart from joint tourism promotion," mentioned Yadav.

Uttar Pradesh is connected with eight districts of Nepal and is a major land route for imports from India. There are many opportunities of trade and economic promotion between us, he said, adding that the opportunities should be exploited for the larger benefit of both the countries.

Responding to the request of Nepali traders and entrepreneurs, Yadav — who also showed interest to visit Nepal in September — vowed to solve the problems to the best of his ability at the state level and ask for New Delhi's help with other issues.

Representatives of FNCCI district chapters from the seven districts that are connected to Uttar Pradesh briefed Yadav about the problems they have been facing with border customs, transportation and security, while importing and exporting goods from India through Uttar Pradesh.

The 500-km-long Indo-Nepal border along the eight districts of Uttar Pradesh –– Pilibhit, Lakhimpur Kheri, Bahraich, Shravasti, Balrampur, Sidharth Nagar, Maharajganj and Kushinagar –– and eight districts of Nepal –– Kanchanpur, Kailali, Banke, Bardia, Dang, Rupandehi, Kapilvastu, and Nawalparasi –– play a significant role for the promotion of trade and investment as well as socio-economic and cultural ties between the two countries.

Nepali delegates asked Yadav to also upgrade the Gaurifanta customs and Thutebari customs in the Indian side that will help boost trade with Nepal. The first ever team of Nepali entrepreneurs visiting the Indian state to boost trade and promote tourism jointly between the adjoining areas of the two countries, also held meetings today with the Confederation of Indian Industries, and customs officials and discussed various issues.

The Nepali team is also visiting some industries in Uttar Pradesh.

 

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.

'Link China, India by rail via Nepal'

Linking India and China by rail link through Nepal can help all the three countries in the region.

"We can exploit each other's market opportunities, if Nepal can be linked to both its neighbours by a rail link, said former finance minister Dr Prakash Chandra Lohani, while making a presentation on 'Nepal's evolving relations with India and China' at Observer Research Foundation -- a public policy think tank with headquarters in New Delhi -- on Wednesday.

He proposed a trans-Himalayan rail link connecting the two Asian giants through the Himalayan Republic. "Developing the new connectivity via rail link would immensely help all the three nations, especially India and China," he said, adding that the bilateral trade of the two economic giants is increasing rapidly. The notion of regional connectivity and Nepal as the link is a big challenge, he said.

Apart from connectivity, Nepal has vast untapped water resources. With India growing so fast, it requires lots of water for its needs, he said.

Raising issues with India on trade, water resources, and even aspects of security is not being anti-Indian. It is just trying to see things from Nepal's viewpoint and seek a common space that is acceptable to both, he contended. "Development of trust, based on dealings that are seen as being just and fair, is the need of the hour," he said.

Former Ambassadors to Nepal, experts and academics took part in the discussion, which was chaired by M Rasgotra, president of Observer Research Foundation Centre for International Relations and a former foreign secretary.

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.

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 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

Reinventing Nepal as a transit point

Nepal being sandwiched between the two Asian economic powerhouses; Indian and China, is seen as a lame duck geographically and economically. However, the history has it that Nepal has been a gateway for Indo-China trans Himalayan trade since the period of Lichhivi kings.
A new debate on positioning Nepal in its ancient track and make a transit state has gain momentum in the recent times. Nepal as a Transit State: Emerging possibilities, a compilation— an outcome of such a one-day long national seminar organised by the Institute of Foreign Affairs (IFA) in collaboration with Confederation of Nepalese Industries (CNI) — explores the positive and negative aspects of being a transit state.
The book, which has included four papers that were presented in the seminar and the comments on those papers, tries to get a deeper understanding on the socio-environmental and socio-economic costs that Nepal has to bear after being a transit state.
In recent years, China and India are trying to expand trade and business between the two countries. As the giant Asian neighbours have moved to improve their relations, strained for decades, two-way trade between them have also grown by more than sevenfold in the past five years. According to the latest data, exports and imports totalled $15 billion in 2005, up from about $2 billion five years earlier between the two traditional rivals. And there is a potential for much greater trade between them. “It is an opportunity for Nepal, if it can prepare itself for a transit trade route. Could existing road network and policies of the government help us to become a transit state?” The answer is almost clear in the book, without up gradation of roads and more physical infrastructure, it could be a disaster.
“Though trade links between China and India via Nepal corridor are as old as our history, they have been using other routes in recent times. It is high time for both the countries find an alternative route for their growing trade and Nepal could provide an alternative road link, claims the book. The paper presenters; Tara Dahal, Dr Dilli Prasad Bhattarai, Keshav Raj Jha, and Prakash A Raj have elaborated the need of good infrastructure like road links, communication facilities, storage facilities, and business opportunities that Nepal can get and procedural, legal and institutional mechanisms that Nepal needs to look into to be a transit state.
According to Dr Dilli Bhattarai, Nepal should give due attention to develop its northern border and link with China, and then build good trade relations between Nepal-India-China, otherwise we could miss the opportunity. And for that Nepal needs a massive infusion of FDI to build roads and other infrastructures.
Similarly Dipak Gyawali, former minister; Dr Shanker Sharma, vice-chairman of the National Planning Commission, and Atma Ram Muraraka of CNI’s comments on the papers are also thought provocative.
As foreign minister Ramesh Nath Pandey writes in foreword in the book, Nepal’s offer to be a transit point linking the two biggest markets in the world is an attempt to make geography a boon rather than a curse.
The book, which is a worth reading, is edited by Nischal Nath Pandey, executive director of the IFA.

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BOOK REVIEW
Book: Nepal as a Transit State: Emerging possibilities
Publisher: Institute of Foreign Affairs (IFA)
Editor: Nishchal Nath Pandey
Pages: 74