Shesh Ghale re-elected as NRNA president

Shesh Ghale has been today elected as the president of Non-Resident Nepalese Association (NRNA) with an overwhelming majority for the second term.
He secured 867 votes – out of the total 1,089 votes – while his contender TB Karki garnered just 226 votes.
Likewise, Bhawan Bhatta has been elected as the vice president securing 538 votes. His contender Kumar Pandey secured 513 votes. Dr Badri KC with 555 votes has been elected as the general secretary and Hitmat Thapa with 264 votes as treasurer of the NRNA for next two-year term.
The reelected president of the NRNA Ghale is constructing a five-star hotel in Kathmandu. Prime Minister Sushil Koirala had laid foundation stone of the 17-storey five-star Sheraton Kathmandu Hotel last October. The hotel is being built with an investment of Rs 8 billion. The hotel, which is expected to come into operation in February 2018, is being built by MIT Group Holdings Nepal, a member of the Ghale Group of Companies, which has diverse businesses in Australia and other countries too.
Ghale has also been appointed Nepal's special envoy for reconstruction in the aftermath of the devastating earthquakes of April 25 that floored down thousands of houses, infrastructures and heritage sites, apartfrom loss of lives.

NRNs failed Nepal in the time of crisis

The Non-Resident Nepalis (NRNs) from 71 countries, who have gathered in Kathmandu for 7th Global Conference, have committed to work for reconstruction.
It is praiseworthy. However, while they are preparing for global conference, Nepal is under India’s ‘unofficial blockade’. The lives of Nepalis have been hit hard by the shortage of essential goods, including petroleum products, and even medicine in some parts of the country. In the current situation of humanitarian crisis, the NRNs have failed their motherland, in their own words.
“We discussed Nepal’s current issues in the meeting of International Coordination Council (ICC),” said Non-Resident Nepalis Association (NRNA) vice president Bhawan Bhatta.
The NRNs, who have resources and network across the globe, apart from their formal institution in 71 countries, have failed to prove that they really care for their motherland. They have been repeatedly claiming that the country can use their expertise and network for the benefit of Nepal, if the government award them citizenship. The new constitution of the country – that has become the key reason for the current unofficial blockade by India – has given NRNs the right to get special citizenship. The NRNs have welcomed the provision, but failed to help the country at this critical juncture.
However, Bhatta said that the NRNs raised the issue of current crisis in the ICC meeting. “Majority of the NRNs feel that they have to internationalise the current crisis,” he said, adding that they had also planned a symbolic programme in all the 71 countries at the same time and on the same date. “But the ICC meeting did not endorse the agenda.”
However, Japan National Coordination Council (NCC) – in Bhatta's leadership – organised a symbolic programme in Tokyo.
After Nepal promulgated new constitution with 90 per cent majority on September 20, India has stopped movement of cargo trucks at its border points, blaming the protests Tarai-Madhesh districts. Nepal is not only landlocked, but also India-locked as the country is surrounded by India in the east, west and south. The behaviour of New Delhi with a small country like Nepal has not only affected lives of Nepalis but also left bordering Indian markets deserted.
Nepal Oil Corporation (NOC) – the state-owned oil monopoly – has been rationing petroleum products to manage the situation. Because of the Indian blockade and shortage of petroleum products, the country is going to lose more than what it lost from the devastating earthquake in April and May. Schools and industries have been shut down, and long queues have been formed at handful of pumps distributing fuel. The blockade has dealt severe blow on the already shattered Nepali economy.
Though NRNA has been involved in various activities under its charity programme, including the plan to rebuild 1,000 houses for earthquake victims within two years, it has to come up to help the country in situation like this.
The NRNA General Assembly and Global Conference that is being held in Kathmandu from October 14 to 17 is going to see around 1,500 delegates from various countries. The conference is also going to elect a new executive committee for a two-year term. But the conference will also have to come up with clear and concrete plans, apart from reconstruction and rebuilding, to help their motherland at this critical time. Because its their turn to help Nepal.

Nepal second largest remittance receiver among LDCs

Nepal is the second largest remittance receiver among the Least Developed Countries (LDCs), according to a latest United Nations report.

"Of the total $27 billion remittance received by LDCs in 2011, Nepal stands second to Bangladesh," said the Least Developed Countries Report 2012 'Harnessing Remittance and Diaspora Knowledge to Build Productive Capacities', released here today.

The top three recipients — Bangladesh, Nepal and Sudan — shared 66 per cent of total remittance inflow to LDCs, it said, adding that from 2009 through 2011, Nepal and Haiti received more foreign exchange from remittance than from exports.

"Nepal's remittance equals trade deficit as a share to the gross domestic product (GDP). Likewise, remittance exceeded both Foreign Direct Investment (FDI) and Official Development Assistance (ODA) in 2008-2010 exceeded in nine LDCs; Bangladesh, Haiti, Lesotho, Nepal, Samoa, Senegal, Sudan, Togo and Yemen."

"However, the widening gap between FDI inflow and remittance inflow has to be taken seriously," said senior economist at the UNDP Basudeb Guha-Khasnobis making his presentation.

"Though remittance has helped reduce poverty, it has also been instrumental in widening the rich-poor gap," he said, adding that a good remittance policy will not only help reduce the cost of remittance but also the cost of migration.

"Generally, a Nepali worker has to pay $1,200 to migrate to Qatar," he added. "As a skilled and professional migrant normally does not remit, cost reduction for migration will help low income people have easy access to migration that will increase remittance inflow," he suggested.

The brain drain rate — that is the share of highly skilled nationals living abroad — is considered 'high' as it stood at 20 per cent in 30 LDCs out of 48 LDCs, the report highlighted, estimating that two million university-educated persons from LDCs live and work abroad.

However, brain drain can be reversed, opined central bank governor Dr Yubaraj Khatiwada, releasing the report.

"Apart from thinking of how to attract professionals and skilled people to remit, brain drain could also be reversed to brain gain, if the government can create an encouraging environment for the return of migrants, who have expertise, skills and knowledge that could help their originating countries," he said, adding that the current NRN Act also needs to be revisited to encourage Non-Resident Nepalis to return to Nepal.

"However, LDCs like Nepal must prepare for alternative sources to finance consumption, in case remittance inflow slows down," he added. "Likewise, countries like Nepal should be prepared for price shocks — that has increased the cost of living — financial shocks, and keep gauging increasing vulnerabilities. Remittance is an indicator to gauge rising vulnerabilities of Nepal too."

Likewise, LDCs have failed to build trade capacity despite the World Trade Organisation's (WTO) facilities on exports from these countries, the central bank governor opined, adding that Aid for Trade could also be a tool to help increase capacities of LDCs like Nepal, besides effective mobilisation of resources by proper utilisation.

Senior economist Prof Dr Biswambher Pyakurel sought a diagnosis of the structural problem of the Nepali economy before prescribing any pill for the ailing economy.

Govt to allow only one trade union in industries

There will be only one trade union in industries soon.

The government has decided to conduct elections among the existing trade unions to authenticate the only one trade union in industries that is expected to improve the management and labour relation.

The second meeting of Nepal Business Forum (NBF) held today under the chair of caretaker prime minister Dr Baburam Bhattarai has taken the move for only one authorised trade union to give help create conducive to industrial environment. Currently, there are up to five trade unions in industries.

The private sector has been demanding only one trade union in an industry. According to them, labour disputes exist in all industries including multinationals due to different trade unions with differing political ideologies within one organisation. “Having only one trade union will help solve most of the industrial disputes,” said chief secretary Leela Mani Paudyal.

Trade Union Act and Labour Act have a provision of only one trade union in an industry or business enterprise. The NBF meeting has proposed to hold elections within July 2013, according to the existing laws.

The meeting also decided to build a legal framework to open the capital market for foreign investors. There is a legal provision for Non-Resident Nepalis to invest in the domestic capital market but its progress has been too slow. The legal provision will be developed in coordination with Nepal Rastra Bank and Securities Board of Nepal.

NBF has decided to include garments in the export potential list. Nepal Trade Integration Strategy has included 19 items in the list. Garment will be included in the list that will allow it to get trade facilitation support under the World Trade Organisation (WTO) policy.

The meeting has decided to draft a directive of Technology Development Fund. Ministry of Finance will provide Rs 10 million for the fund that will be operated under private public partnership.

Similarly, NBF meeting also decided to form a separate mechanism to monitor cooperatives. Currently, Department of Cooperatives and its offices have been doing the job.

In the meeting, Bhattarai said that the country will be guided by economic agenda hereafter. “The government will promote economic nationalism to build a prosperous Nepal,” he said. He also informed that the government will bring the regular budget shortly. Homework for a regular budget is going on, he added.

Caretaker finance minister Pun seeks private sector's help to bring full-fledged budget

Caretaker finance minister Barshaman Pun has sought the private sector's help in convincing other political parties who have been opposing a full-fledged budget by the caretaker government.
"I am ready to bring a budget based on a minimum economic agenda of the private sector," he said, addressing an interaction organised by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today.
But the private sector should help the government convince other political parties — especially Nepali Congress and CPN-UML — for a minimum economic agenda and pave the way for a full-fledged budget, he said, adding that the government is trying hard to sell the idea of a timely budget and its effect on the economy.
The private sector has already prepared a common minimum economic agenda and is ready to share it with the government, if it is serious on economic development of the country, according to FNCCI president Suraj Vaidya. "The umbrella organisation of the private sector has identified six areas as priority sectors."
"We have identified energy, employment generation/entrepreneurship development, infrastructure, commercialisation of agriculture, export promotion, and tourism promotion and expansion as priority areas," the entrepreneurs said, asking the government to implement earlier budget's key policies and programmes like allowing Non Resident Nepalis (NRNs) to purchase flats to give lease of life to the real estate business; bringing a new Industrial Act to support domestic and foreign investment; studing the total hydropower generation capacity, construction of transmission lines at Koshi, Kali Gandaki, Marshyangdi and Kabeli corridor; smooth supply of petroleum products to tackle the energy crisis that has been pulling industrial production down and increasing cost of production making domestic products less competitive; and taking action against cartel to ensure correct prices for consumers.
The country has witnessed an exodus of some 480,990 Nepalis in the first 11 months of the current fiscal year due to lack of employment back home, they said, adding that the government must support entrepreneurship to create employment to stop the massive brain and muscle drain.
"The government should allocate a minimum of 10 per cent of the education budget for technical education, apart from establishing a trade school to create employment, they said, adding that employee-friendly laws, 'one institution one union' and 'No Work No Pay' provisions coupled with Foreign Investment Act, and Special Economic Zones Act could attract investors that would generate employment.
The private sector has also asked the government to organise a meeting of the Investment Forum to attract foreign investment.
They also sought budget for the 'One Village One Product' campaign and encouragement for technology-based commercial agriculture too to promote exports and increase agricultural productivity from the current traditional agriculture.
Similarly, they suggested an increase in the tax bracket for single and married people, VAT thresh hold and large taxpayers limit to Rs 500 million.
The private sector due to a regular tug-of-war between political parties has also sought a fixed date for the budget.

Budgetary system victimised

The budgetary system has become a victim of financial indiscipline, myopic vision and inconsistency as well as donor driven priorities, according to experts.
"The protracted political transition has further aggravated the challenges," said former economic adviser of the Finance Ministry Keshav Acharya, presenting the public sector perspectives on 'Issues and Challenges of Budget 2012-13', here in the valley.
Nepal is on the eve of presenting its 62nd budget that is going to be above Rs 429 billion, in three months. "Though the country has a long and rich experience in drafting and implementing the budget, it has been failing to deliver its promises to the people mainly due to political intervention," he added.
"The budgetary system, non-budgetary expenditure, public procurement, treasury management, accounting system, management of property, and pension and irregularities, and settling dues are major issues in public expenditure management that need to be addressed in the next budget," Acharya added.
On one hand, the country is passing through a phase of unabated acceleration in the size of current expenditures to as high as three-fourths of the total expenditures, and on the other, capital expenditure — that could not only create employment but also bring vibrancy to the economy — is suffering from the problems of delayed and lethargic implementation and gradual erosion in the government's capacity to spend, he said, adding that capital allocation is often deviating from the basis of cost-benefit and risk return analysis. "Prioritisation still continues to deviate from impact or result orientation."
The government should prioritise four sectors — capital market, apartments, hydro and real sector — and ease their regulatory frameworks to attract investments from Non-Resident Nepalis (NRNs) and make those sectors foreign direct investment friendly, suggested entrepreneur and CA member Rajendra Khetan.
Similarly, the government should concentrate on trade facilitation, infrastructure, procurement, most-favoured nation status and harmonisation rules and tariffs, growth of real sector and establishment of Export House, access to finance in rural areas and establish a commission on natural resources in the fiscal policy, he suggested.
Vice chair of National Planning Commission (NPC) Deependra Bahadur Kshetry, on the occasion, opined that the government faces a challenge to meet unlimited expectations of the people but has limited resources. "But the budget for the next fiscal year will focus on inclusive growth with employment generation," he said, adding that the budget will not be scattered but will concentrate on national priority projects. "Its main thrust will also be able to stop misuse of funds."
Though the budget is a powerful instrument at the disposal of the state with the power and clout to influence the deliveries that are committed in the constitution, laws, perspective and periodic national and sectoral plans, and manifestos of the political parties, it has been failing the people.
Through its allocation and resource mobilisation functions, budget influences consumption, saving and investment decisions at large but the budget has failed also due to open and unregulated border that has fuelled the informal economy that is as big as the formal economy and due to the weakened fiscal policy and monetary policy.

Current liquidity short term phenomenon: Governor

The current liquidity surplus is a short term phenomenon, according to the central bank governor Dr Yubraj Khatiwada.
"The current liquidity is a short term phenomenon whereas there is a long term credit demand," he said, addressing the official inauguration of the youngest commercial bank, Sanima Bank, here in the Valley today.
Currently the banks and financial institutions have added around Rs 85 billion deposits, and are in the comfortable position against last year's tight liquidity situation, though the loanable liquidity is very limited.
The financial sector should move ahead with other sectors, he said, adding that the sector alone cannot sustain the economy in absence of other sectors that are performing poorly currently. "It’s time the banks and financial institutions think of long-term investment instead of short-term investment and profit maximisation."
The financial institutions should increase their capital base to invest in the long-term. Suggesting the banks and financial institutions to invest in productive sectors like agriculture, Khatiwada said that the banks and financial institutions are competing on profit maximisation in the short term, which will not support the economic growth. "Development of real sector is key in the overall economic development that will ultimately benefit the banks and financial institutions too. There may be less profit but small farmers are also bankable and the banks should look to the villages, where there is immense opportunity."
The long term investment in the productive sector, despite less benefit, is sustainable, he suggested.Sanima Bank — the 32nd bank — will also help mobilise domestic and foreign investment in the productive sectors, he said, hoping that Nepal Investment Year 2012-13 will benefit from the bank that is promoted by the Non-Resident Nepalis Association (NRNA) that would help invite foreign investment in the country. "The bank could help make Nepal Investment Year successful."
Indicating that Sanima Bank will be the last commercial bank for the time being, central bank governor also said that the paid up capital is not the measuring rod of a commercial bank. "There are other indicators like good governance."
The bank's chairman and president of the NRNA Jeeba Lamichhane promised to maintain good governance in the institution. "We have maintained good governance in our bank and will maintain it," he said, adding that the bank is providing scholarships to some 16 students of 10+2 level apart from training to 40 youth of its eight branches in the rural areas. "The bank has allocated Rs 5.3 million for such programmes," he added.

'Do not expect dividend soon'
KATHMANDU: Central bank governor Dr Yubraj Khatiwada requested the investors not to expect dividend immediately. "The banks and financial institutions should have patient and increase their capital base instead of immediate profit and dividends," he said, suggesting them to maintain capital adequacy more than the central bank's prescription to cushion the future risks. "The country is passing through the transition and the banks and financial institutions and investors should change their tendency of immediate dividend rather think of long-term strong capital base," he warned.

Locals ready to invest on Ktm-Hetauda tunnel

The locals in Makwanpur have agreed to invest on the dream project that is going to be the first tunnel road in the country.
"We are ready to invest Rs 10,000 as shares," they said, during the mass meeting at Markhu of Makwanpur.
"It is an example of how private sector can be development partner by investing on infrastructure," said immediate past president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and coordinator of the Users’ Community Group Kush Kumar Joshi.
The proposed fast track road with 3.5-km long tunnel will cost Rs 20 billion," he said, adding that the 50-km long road will connect the Valley with the Southern plane of Hetauda.Currently, Hetauda is linked with Kathmand by two highways — one 227 km and the other 133 km. "But the proposed tunnel fast track will have only 50 km and takes only an hour," Joshi added.
The community group has also formed Nepal Purbadhar Bikash Company (NPBC) with 86 local and 76 entrepreneurs as its promoters. "We have applied to the government for the licence," said one of the promoters of NPBC and Federation of Contractors' Association of Nepal (FCAN) president.
The VDCs in Makawanpur and Kathmandu are investing for a proposed 50-km Kathmandu-Hetauda fast track road that will not only reduce driving length between the two cities to one hour by consuming less fuel but also help reduce population concentration in Kathmandu Valley.
Though, Hetauda-Kathmandu aerial distance is only 37 km, the present road – Tribhuwan Highway – that links the two cities is 133-km. Currently, travellers have to spend more than eight hours to reach Hetauda from Kathmandu, and pay high fares burning the petroleum products that have threatened the country's total financial stability.
"We are also inviting Non-Resident Nepalese (NRNs) to invest on the dream project," Joshi said, adding that the project will be completed in four years and in next five years the investment will be returned.
The project will be operated in BOOT model and the local bodies will be the share holders.
"By the side of the proposed fast track many satellite cities can also be developed that will reduce the population concentration in the overcrowded Valley,” Joshi said, adding that a preliminary study showed that a tunnel – of a length of three-and-a-half kilometers – has to be constructed in a section of the proposed fast track at Gadhi Chour-Chisapani.
The idea of the constructing fast track road has been floated since Girija Prasad Koirala became the Prime Minister post 1990 movement but could not be materialised. "But this time, the locals are committed to construct the dream highway, Lamichhane — who also hails from Chitlang — said, adding that the locals whose land will be used for road and labourers will get share in the company.

Can NRNA be Nepal’s development partner?

Non-Resident Nepalese Association (NRNA) fifth Global Conference concluded with a commitment to support Nepal Investment Year 2012-13, the government’s ambitious campaign to attract investment in the country.
Every two years, the Non-Resident Nepalis (NRNs) meet in Kathmandu for global conference that concludes with a declaration. Going through the declarations from the first global conference to the fifth, they seem redundant as they are all promises, which have forced the people to believe that they are not better than our politicians.
After eight years of waiting, some section of the society has already started thinking that the NRNs are a pampered lot. Going by the association’s last eight years’ performance, they have been repeating almost the same promises 'ritually' every two years.
This year’s global conference also ended with a 17-point declaration that vows to increase investment in energy, infrastructure, skill trainings and technology sectors — the most debated issues since last eight years.
The government and private sector both wanted NRNs skills, experiences and technology, if not capital, transferred to the country. But in the last eight years, apart from some individual investments, there seems no visible and transparent investment from them let alone skill, technology and experience transfer.
Lately, the migrant Nepali workers in Gulf and Malaysia have become yet another debate among the NRNs. Though, it is not a new debate in the association that claims they have three million members around the globe as a Nepali – who spends over 180 days outside the country is a NRN – the million dollar question is are the migrant Nepali workers in Gulf and Malaysia NRNs?
Are those faces in the global conferences and in the NRNA executive committee represent these Nepali blue colour job holders, who are working in 50 degree Celsius in the Middle East desert to send back home their earnings so that their kids can get education and elderly parents have a roof on their head? Can the NRNs take credit for the remittance that has been the lifeline for the country in the last one decade?
The government's failure in creating employment at home has forced unemployed youths to the Arabian Desert and Malaysian jungles as blue-colour job holders but they have become pawn in the power struggle of the association.
Most of the faces, who claim themselves NRNs are the first generation NRNs and represent white colour job holders, who are surviving every day on pay check to pay check basis, except for a few exceptions. They also have their own struggle in foreign land. The association should be bold and not keep the people confused. It should accept the reality that they have only a couple of members, who can really invest in Nepal.
The Nepali Diaspora since its second global conference in Kathmandu has been promising of setting up a fund to invest in Nepal, but has not yet been able to do so. Either they now walk their talk or redefine themselves. It’s never too late to accept the reality. The dilemma shows that the NRNs are themselves a confused lot.
Are they a charity organisation or development partners of Nepal? It’s time they start introspection as they are going to hold the sixth global conference in 2013 that makes the association a decade old.
Some of the NRNs have also tied the dual citizenship issue with investment, which is yet another blunder. There is no relationship between citizenship and investment. Nepal is in need of Foreign Direct Investment (FDI) for its economic development and there can be no better opportunity for the NRNs to take advantage.
Doing Business 2012 report published by the World Bank and IFC last week has also revealed that doing business in Nepal is much easier than in other South Asian countries but the NRNs are claiming that the investment climate in Nepal is not suitable for them to invest.
One can invest in Nepal without dual citizenship too. Their own leaders Upendra Mahato and Jiba Lamichhane are some of the examples that without dual citizenship also one can invest, if one is 'seriously' willing to and has the capacity to become a partner of motherland’s development.
During the last global conference, the NRNs agreed on Identity Card, which according to the Ministry of Foreign Affairs has been distributed to less than 1,000 NRNs. If ministry has to be believed, the NRNs are not interested in taking the Identity Card, which they themselves agreed two years ago.
The NRNA came into existence committed to streamline their energy and resources for the transformation of Nepali society. From the nationality point of view both Nepali nationals and foreign nationals of Nepali origin are regarded as NRNs to mobilise knowledge, skills, capital and other resources in their disposal in the socio-economic development of Nepal in cooperation with government and society of Nepal. It has also aimed at promoting Nepali culture and tourism abroad, apart from facilitating the foreign investment in Nepal.
Hope the sixth NRNA global conference in Kathmandu in October 2013 will either redefine the association as a development partner of Nepal and translate its slogan of the fifth conference, ‘Our Network Our Identity: Prosperous Nepal’, or accept itself as a philanthropic organisation.
It has the sole right to redefine itself and it has to, before others do.

Fifth NRN globalconference ends with 17-point decalration

Non-Resident Nepalese Association (NRNA) fifth Global Conference concluded here today with a commitment to support Nepal Investment Year 2012-13.
The Nepali Diaspora has approved the 17-point declaration that vows to increase Non-Resident Nepalese (NRN) investment in energy, infrastructure, skill trainings and technology sectors — the most critisised and debated issues since last eight years.
NRNA will help Federation of Nepalese Chambers of Commerce and Industry (FNCCI) attract investment in primary sectors like energy, tourism, infrastructure projects and agriculture, the declaration promised, adding that they will start a 100 mega watt (MW) hydropower soon.
The NRNs have been since last eight years promising of investment but there has been no visible investment from them yet.
The NRNA has, however, asked the government to create legal ground for Open University to produce skill manpower in the country. International Council for Open and Distance Education and some internationally universities have promised to provide technical support to the drive, they said, adding that Open University could be operated from the investment of the government, NRNA and other development partners.
As always, the NRN conference promised to help tourism sector in promoting Nepal abroad and attracting investments. Likewise, they have also promised to promote Nepali goods in foreign countries in collaboration with respective export agencies.
The NRNA has become more a charity orgnisation than partner for country’s — in their own word motherland’s development.
They have vouched to support Gorkha movement through moral and financial support to their drive to build ‘Gurkha Memorial’ in Salmedada of Syanja district. Ex-Gurkha army organisation is building the memorial in 300 ropani land in the memory of 60,000 Nepalis died during World War I and II.
The association has urged the government to revise foreign employment laws and policies to make job migration to foreign countries safer. NRNA will provide concrete inputs for revision of laws and policies, it said.
Meanwhile, the conference has unanimously elected Jiva Lamichhane as new president because outgoing president Dev Man Hirachan withdrew his candidacy from the post. The NRNA jamboree has kicked off in the capital on Wednesday with the slogan ‘Our Network Our Identity: Prosperous Nepal’.
NRNA has decided to hold sixth global conference in Kathmandu in October 2013.

PM vows to generate jobs, plans to increase per capita income to atleast $3,000

Prime Minister Dr Baburam Bhattarai claimed that his government is working with an aim to generate huge job opportunity to increase Nepal's per capita income to atleast $3,000.
"The government is planning to invest 45 per cent of the total gross domestic product (GDP) to create 400,000 to 500,000 jobs every year in the country," he said, inaugurating the fifth Non-Nepalese Residents Association (NRNA) global conference here in the Valley today.
Dr Bhattarai also sought the NRNs help in bringing investments to Nepal as the country is observing the year 2012 as Nepal Investment Year. "The government is willing to utilise NRNs global network for the development of Nepal as they have experience, skill and capital, which the country needs," he said, adding that the government has formed Nepal Investment Year 2012 national steering committee that will also include NRNs.
Socio-economic disparity is the mother of all conflicts, he said, adding, "thus our priority is economic revolution after the conclusion of peace process and constitution drafting."Deferring to the public perception that there is no domestic market, the fifth Prime Minister after the country is declared Republic said, Nepal with its 26.6 million population is a huge market compared to other markets. "If we add our southern and northern market too, it will be the 37 per cent of the total global market," he said, urging the NRNs to take advantage of it by investing in hydropower, tourism, infrastructure, and commercial agriculture in Nepal. "NRNs should invest in Nepal themselves and also help bring foreign Direct Investment (FDI) as they are also the ambassadors of Nepal.
"He also committed to create investment-friendly environment. "Government is committed to provide legal and administrative teeth for the NRNs to invest in the country," vowed the Prime Minister, who represents the UCPN-Maoist that has a militant trade union, which time and again, creates industrial unrest.
"The government has already passed Investment Board Act to facilitate the huge investment above Rs 25 billion through single window," informed Finance Minister Barsha Man Pun, chairing the session, 'Mobilising NRN Collective Investment for Development of Nepal'.
Appealing the NRNs to invest in Nepal, he informed that the government will not ask for the source of income, if the investors invest in five priority sectors including huge infrastructure like tunnel highway.
Pun, a former UCPN-Maoist People's Army vice commander, also asked the NRNs to invest in sick public enterprises like Hetauda Textile. "The government is ready to discuss the forms of partnership, if the NRNs are willing to run the sick public enterprises," he said, adding that mere promises from the government and NRNs — both — will take the country to nowhere. He suggest the NRNs to translate their earlier promises into reality and the government will also evaluate its weaknesses.
"It’s high time, we walk the talk," agreed the patron of NRNA Bhim Udas, presenting his paper in the session. He also shared some investment modalities with the NRNs.Since its establishment in 2003, the NRNA has been promising of huge investment but except some projects worth around Rs 450 million in the last eight years, they have no visible and transparent investment in the country.
Every two year, they meet in Kathmandu ritually and hold discussions on how to contribute towards the mother land — in their own words — but except for some individual NRNs, the association's involvement in development of the country is negligible.

FNCCI asks NRNs to invest in Nepal

Fifth NRN global conference on October 12-13, 2011

Non-Resident Nepalese (NRNs) have been asked to invest in the country as there are huge opportunities and the country is also observing the year 2012 as the Nepal Investment Year.
“Nepal Investment Year has envisioned to create investment climate in the country,” Federation of Nepalese Chambers of Commerce and Industry president Suraj Vaidya said during a press meet organized by the Non-Resident Nepalese Association (NRNA) and FNCCI to officially announce the fifth NRN global conference that is scheduled here in the valley on October 12-13.
Vaidya seeking the NRNs help to make Nepal Investment Year 2012 a huge success, said that the generation of job opportunity in the country will stop the outflow of youth. “The NRN conference should decide on how to increase investment in Nepal as there is huge opportunity in the country despite various challenges,” the president of private sector added.
The NRNs have been talking of investment and skill transfer since the establishment of the association but there has been neither significant investment nor skill transfer in the last eight years apart from a jamboree that meet in the capital once a two year.
During every election, candidates promise of huge investment and basket fund but they are more focused on duel citizenship, which the lawmakers today morning — during the meeting with the NRN representatives — politely rejected.
“Prime Minister Dr Baburam Bhattarai is inaugurating the conference on October 12,” informed NRNA president Dev Man Hirachan. The association that has its network in 57 countries is going to discuss on dual citizenship, investment opportunities, establishment of open university and social contribution to their motherland, he said, adding that the conference also review its past performances apart from electing a new team for the next two year term. The NRNA establihed in 2003 will get the third president after Upendra Mahato and Dev Man Hirachan.
The NRNA International Coordination Council (ICC) will also elect the new committee for the two-year term. Incumbent president Dev Man Hirachan and vice-president Jeeba Lamichhane are vying for the post. There are 57 national coordination council globally.
Meanwhile, the NRNA is going to observe tomorrow as NRN Day with various programmes. Every year, NRNs observe October 11 as NRN Day.

Look outward policy can save real estate sector

Nepalis Direct Investment (NDI) and Foreign Direct Investment (FDI) can resurrect the domestic real estate business, according to a real estate entrepreneur.
"For those Non-resident Nepalis (NRNs), who want to create asset back home, the government can help them by making favourable policy,” said Om Rajbhandari, managing director of Comfort Housing.
“In the first phase, we need to attract the investment from the Nepalis living abroad,” he said, terming the NRNs Direct Investment as NDI -- the word coined by himself.
"From their hard earned money, the NRNs can create asset back home,” he said, adding that the Nepal Land and Housing Development Association (NLHDA) can organise Housing Exhibition for those NRNs abroad, who want to buy home back in Nepal.
He opined that Nepal can also attract Foreign Direct Investment (FDI) by giving expats ownership of apartments. "In each apartment project, 20 per cent to 30 per cent of the total units could be allowed for the expats,” he said, adding that those expats, who are more than 50 years of age can get retirement visa and own an apartment in Nepal.
Meanwhile, the increasing trend of constructing unmanaged residential buildings in the fertile land has forced the government to revise the National Building Code to manage and facilitate modern amenities to address increasingly unmanaged urbanisation and housings.
The decade long insurgency has forced the people to migrate to the urban areas for security reasons speeding up the urbanisation without proper planning and infrastructure.
Among government, private builders and individuals, culturally, the individuals are more inclined to construction of houses as traditionally house gives a sence of security in the society. But the individual construction has been more unmanaged and unplanned.
"The private developers can create a small city or satellite city with all the necessary infrastructures that could lead to planned development,” said Rajbhandari, one of the private developers. "The planned city will serve as the focal point of the multiple dimensions, providing a variety of attractions that promote public enjoyment and appreciation of the area, acting as the anchor of the nation and promoting decentralisation concept too.
"With mass employment opportunities, Multi Dimension Cities (MDCs) will surely be beneficial for people and generate huge revenue for the government too.
The government has also planned 10 new modern cities for business and residential purpose in the vicinity of Mid-hills Highway and North-South corridors. The budget for the current fiscal year has promised infrastructural mapping after the identification of the location and completion of their feasibility studies.
Though, the government has also been involved in the 'People’s Housing Programme' -- that is given continuity in this fiscal year's budget too -- that is extended to Chepang, Raute and Kusunda community’s settlement areas, the private builders are the key players in the sector.

Approach Paper
KATHMANDU: The finance ministry has formed an internal committee to prepare approach paper to loosen the real sector and allow expats to buy apartment. The committee is expetected to submit the approach paper on Monday, according to finance secretary Rameshwor Khanal. In a major policy shift, the government is planning to let the expats buy human-erected apartments.