Due to relatively higher growth of government expenditure in the current year, the budget has also posted Rs 6.18 billion deficit in the first seven months. In the same period last year, the budget was at the surplus of Rs 1.82 billion, according to the current macroeconomic situation based on the first seven months of this fiscal year.
However, the revenue mobilisation has increased by 29 per cent to Rs 54.52 billion compared to an increase of 17.9 per cent in the corresponding period last year. The NRB report also states that domestic credit has increased by 12.6 per cent in comparison to a growth of 2.3 per cent last year. A significant rise in domestic credit was on account of a pick up in bank credit to the private sector.
The NRB has injected a net liquidity of Rs 42.16 billion by net purchase of $660.6 million from commercial banks through foreign exchange intervention in the review period. A net liquidity of Rs 37.17 billion had been injected through the net purchase of $510.8 million in the same period last year.
Total exports declined by three per cent that is equal to the decline in the corresponding period last year. "Of the total exports, export to India fell by 5.5 per cent in comparison to a decline of 4.6 per cent in the same period last year," according to the central bank. Exports to other countries, on the other hand, posted a growth of 2.5 per cent in comparison to an increase of 0.7 per cent in the comparable period last year.
However, total imports rose by 11.9 per cent compared to a rise of just 1.6 per cent in the corresponding period last year, states the NRB report. The year-on-year inflation moderated to 6.4 per cent in mid-February 2008 from eight per cent in the same period last year."
Likewise, the appreciation of Nepali currency against the US dollar also dampened the inflationary pressure," it states. Indian currency equivalent to Rs 50.23 billion was purchased through the sale of $790 million in the review period. During the same period last year, a total of Rs 30.49 billion.
Monday, March 31, 2008
Promoters' share trading at Nepse starts
Nepal Stock Exchange (Nepse) started separate trading of promoters' shares through secondary market from today. Alpic Everest Finance Ltd and Machhapuchhre Bank became the first two listed companies today to trade as Alpic Everest traded its 1,28,000 units shares for Rs 12.58 million and Machhapuchhre Bank traded 2,51,410 units of its shares for Rs 125.7 million.
"With this new practice, the capital market will be dynamic and price of the ordinary shares will also be stabilised as the supply of shares will increase," Rewat Bahadur Karki, general manager and CEO of Nepse said, adding that the capital market has been on fire due to less supply of the shares. "The trading of promoters' shares helps expand the market," he added. "It will also help check manipulation."
However, the promoters cannot fix the price of shares arbitrarily. "For the first trading at the floor, the lower limit is fixed," Karki informed. "In case of a company that has positive networth, the price cannot be less than five times of the networth or the current market price, whichever is low." This pricing system is expected to be beneficial for the traders.
A promoter cannot sell shares worth more than two per cent — of the paid up capital — at a time.
"With this new practice, the capital market will be dynamic and price of the ordinary shares will also be stabilised as the supply of shares will increase," Rewat Bahadur Karki, general manager and CEO of Nepse said, adding that the capital market has been on fire due to less supply of the shares. "The trading of promoters' shares helps expand the market," he added. "It will also help check manipulation."
However, the promoters cannot fix the price of shares arbitrarily. "For the first trading at the floor, the lower limit is fixed," Karki informed. "In case of a company that has positive networth, the price cannot be less than five times of the networth or the current market price, whichever is low." This pricing system is expected to be beneficial for the traders.
A promoter cannot sell shares worth more than two per cent — of the paid up capital — at a time.
Sugat Ratna Kansakar reappointment
Sugat Ratna Kansakar has been reappointed for the post of managing director of Nepal Teleco-mm (NT), for the third time. He has been appointed informally for two years. "NT is also going through its internal restructuring," Kansakar said, adding that after the CA poll it will come into effect. "Due to code of conduct, we cannot do anything now."The NT has been aggressively expanding its network, though the service is poor in the recent days. NT's GSM mobile phone has 1.5 million customers.
Sunday, March 30, 2008
Highlight economic agendas, entrepreneurs
For centuries, political parties in Nepal have fought for their 'political agenda' but its high time now that they fight for 'economic' agenda. All the political parties including Nepali Congress (NC), Communist Party of Nepal-United Marxists Leninist (CPN-UML) and Nepal Communist Party (Maoist) in their Constituent Assembly (CA) election manifestos have promised economic growth, and equitable and inclusive development.
Though late, they have come up with economic agenda, observes private sector. The parties manifestos have given a substantial space to the economic agenda but a million dollar question is will that be implemented. Thus, private sector — the backbone of economy — has shown interest in the engagement with parties in ensuring the implementation of economic agenda.
Governments are, around the world, limiting their roles and private sectors are evolving as a major investors in development. Post-1990, Nepal also witnessed this phenomenon.
Around two dozen entrepreneurs from Binod Kumar Chaudhary to Diwakar Golchha, Tek Chandra Pokharel, Niranjan Tibrewala, Laxmi Das Manandhar, Anand Ram Mulmi to Kabindra Nath Thakur are enlisted by the various parties in their PR list to take advantage from the private sector's expertise and professionalism. The engagement will definately be beneficial for both - the political parties and private sector. Its the marriage of convenience.
"Last year, when we had to go to the streets demanding law and order and safety of our business, we, for the first time, thought of being involved in the politics," says Binod Kumar Chaudhary, president of Confederation of Nepalese Industries (CNI), who is enlisted in CPM-UML' proportional representatives (PR) list.
Diwakar Golchha, president of Golchha Organisation, who is enlisted in Nepal Congress's PR list, agrees.
"Since the last two decades, the business fraternity has been a silent spectator of national politics but the time has called for our active participation," he says, adding that their involvement is not for politics but for economic growth of the country. "Until there is economic growth, we can never develop," he adds.
"Private sector, the driver of economic growth of the country, has been neglected for long," says Chaudhary, adding that industrialists and their rights — like any others — can be protected by actively involving in the politics rather than being passive and criticising the politicians.
Today power, water, petroleum products, airlines, from anything to everything, whole supply system has collapsed, he says. "Its not the time to sit back and criticise rather be involved and engaged with the political parties to put the country back on track."
Entrepreneurs have been time and again urging the political parties to project economic agenda parallel to the political agenda. "But the parties were so involved in themselves, they never tried to listen to us and incorporate the economic agenda," Golchha says, adding that economic agenda didnot get any priority.
Social and economic security should be guaranteed in the new constitution, according to Chaudhary. Similarly, Golchha says that the new constitution should basically guarantee the economic model, define roles and responsibilities of private sector and government.
Politics alone cannot drive the country towards development. "Any kind of state-structure needs a sound economy for its development," says Niranjan Tibrewal, another businessmen enlisted in CPN-UML's PR list.
"In the development-oriented countries like ours, political decisions should be directed by economic consideration not the other way round," Chaudhary adds.
Going by the election menifesto, political parties also have focused on equitable, justifiable and liberal socio-economic agenda in their menifesto. However, the economic agenda of the two major political parites — Nepali Congress (NC) and CPN-UML — have not much difference. Even, Maoists have almost economic agenda, though they claim political revolution is necessary before economic revolution.
But Chaudhary sees it otherwise. "Political parties' economic agenda are guided by national and international trend," he says. Golchha, however, differs. "From top, it looks similar, but reading between the lines, there are differences," Golchha says.
Meanwhile, the business fraternity is least bothered with the ideology of the parties they are representing. "We have purely economic agenda," Chaudhary says, adding that "the parties don't need us to carry their flags. For that they have their own cadres."
"If they are prepared to own our agenda and give us platform, we should volunteer and participate in the nation building process," he thinks.
"How to take politics and business concurrently is a major challenge in Nepal. Indulging the people with proven track-record of management can be helpful," Chaudhary says, adding that the parties should have clear concept of management in politics.
"We have opportunities but could not exploit," Tibrewal, says. Its also the moral obligation of professionals to help politicians exploit opportunities for the benefit of country.
Manifesto Match
Nepal Congress
· Open market and liberal economic policies
· More investment for eight to 10 per cent growth within next five years
· 5,000 MW electricity generation in five years
· Connecting all 75 district headquarters by road within five years.
Nepal Communist Party (Maoist)
· New transitional economic policy emphasing revolutionary land reform, concessions to FDI, promotion of PPP system and promotion of cooperative movement
· Developing socialism-oriented national industrial capitalism
· Has 10-year, 20-year and 40-year plan of action
· 10,000 MW electricity generation plan within ten years
Communist Party of Nepal (UML)
· Socialism-oriented, welfare-based political-economic direction
· Modernising and commercialing of agriculture sector
· Public, cooperative and private sectors will be developed
· A mixed system of economic policy
Though late, they have come up with economic agenda, observes private sector. The parties manifestos have given a substantial space to the economic agenda but a million dollar question is will that be implemented. Thus, private sector — the backbone of economy — has shown interest in the engagement with parties in ensuring the implementation of economic agenda.
Governments are, around the world, limiting their roles and private sectors are evolving as a major investors in development. Post-1990, Nepal also witnessed this phenomenon.
Around two dozen entrepreneurs from Binod Kumar Chaudhary to Diwakar Golchha, Tek Chandra Pokharel, Niranjan Tibrewala, Laxmi Das Manandhar, Anand Ram Mulmi to Kabindra Nath Thakur are enlisted by the various parties in their PR list to take advantage from the private sector's expertise and professionalism. The engagement will definately be beneficial for both - the political parties and private sector. Its the marriage of convenience.
"Last year, when we had to go to the streets demanding law and order and safety of our business, we, for the first time, thought of being involved in the politics," says Binod Kumar Chaudhary, president of Confederation of Nepalese Industries (CNI), who is enlisted in CPM-UML' proportional representatives (PR) list.
Diwakar Golchha, president of Golchha Organisation, who is enlisted in Nepal Congress's PR list, agrees.
"Since the last two decades, the business fraternity has been a silent spectator of national politics but the time has called for our active participation," he says, adding that their involvement is not for politics but for economic growth of the country. "Until there is economic growth, we can never develop," he adds.
"Private sector, the driver of economic growth of the country, has been neglected for long," says Chaudhary, adding that industrialists and their rights — like any others — can be protected by actively involving in the politics rather than being passive and criticising the politicians.
Today power, water, petroleum products, airlines, from anything to everything, whole supply system has collapsed, he says. "Its not the time to sit back and criticise rather be involved and engaged with the political parties to put the country back on track."
Entrepreneurs have been time and again urging the political parties to project economic agenda parallel to the political agenda. "But the parties were so involved in themselves, they never tried to listen to us and incorporate the economic agenda," Golchha says, adding that economic agenda didnot get any priority.
Social and economic security should be guaranteed in the new constitution, according to Chaudhary. Similarly, Golchha says that the new constitution should basically guarantee the economic model, define roles and responsibilities of private sector and government.
Politics alone cannot drive the country towards development. "Any kind of state-structure needs a sound economy for its development," says Niranjan Tibrewal, another businessmen enlisted in CPN-UML's PR list.
"In the development-oriented countries like ours, political decisions should be directed by economic consideration not the other way round," Chaudhary adds.
Going by the election menifesto, political parties also have focused on equitable, justifiable and liberal socio-economic agenda in their menifesto. However, the economic agenda of the two major political parites — Nepali Congress (NC) and CPN-UML — have not much difference. Even, Maoists have almost economic agenda, though they claim political revolution is necessary before economic revolution.
But Chaudhary sees it otherwise. "Political parties' economic agenda are guided by national and international trend," he says. Golchha, however, differs. "From top, it looks similar, but reading between the lines, there are differences," Golchha says.
Meanwhile, the business fraternity is least bothered with the ideology of the parties they are representing. "We have purely economic agenda," Chaudhary says, adding that "the parties don't need us to carry their flags. For that they have their own cadres."
"If they are prepared to own our agenda and give us platform, we should volunteer and participate in the nation building process," he thinks.
"How to take politics and business concurrently is a major challenge in Nepal. Indulging the people with proven track-record of management can be helpful," Chaudhary says, adding that the parties should have clear concept of management in politics.
"We have opportunities but could not exploit," Tibrewal, says. Its also the moral obligation of professionals to help politicians exploit opportunities for the benefit of country.
Manifesto Match
Nepal Congress
· Open market and liberal economic policies
· More investment for eight to 10 per cent growth within next five years
· 5,000 MW electricity generation in five years
· Connecting all 75 district headquarters by road within five years.
Nepal Communist Party (Maoist)
· New transitional economic policy emphasing revolutionary land reform, concessions to FDI, promotion of PPP system and promotion of cooperative movement
· Developing socialism-oriented national industrial capitalism
· Has 10-year, 20-year and 40-year plan of action
· 10,000 MW electricity generation plan within ten years
Communist Party of Nepal (UML)
· Socialism-oriented, welfare-based political-economic direction
· Modernising and commercialing of agriculture sector
· Public, cooperative and private sectors will be developed
· A mixed system of economic policy
NCC observes 55th annual general meeting
Industrial security force is a must for secure business-environment, Surendra Bir Malakar, president of Nepal Chamber of Commerce (NCC) while welcoming the guests during the 55th annual general meeting (AGM) of NCC said here today.
"Private sector is able to contribute to the nation building process, provided the government take care of the entrepreneurs," he added. "For sustainable development, Nepal should exploit the sectors that it has comparative and competitive advantages.
Subash Chandra Nembang, the Speaker of Interim Legislature Parliament has inaugurating the AGM. "The private sector has an important role to play for the successful Constituent Assembly election," he said, praising the unity of private sector.Rameshwor Khanal, finance secretary (revenue) said that the investment condition has improved in the recent days. "The government is planning to modernise customs that would help make positive impact on export," he said, adding that the government is also doing its homework for a suitable labour law.
Similarly, the newly elected president of FNCCI, Kush Kumar Joshi requested the private sector to be united so that the government would be forced to listen them.On the occasion, the Speaker awarded 'Nepal Chamber Excellence Award' to Nepal China Chamber of Commerce. He also awarded Letter of Appreciation to different entrepreneurs for their contribution.
Nembang also awarded Lokmanya Golchha, the second vice-president of NCC and Dwarika Nath Pradhananga for their service to the chamber for 20 years, and Rastra Bhusan Chakubaji and Shivabhagawan Agrawal for their service to chambers for 10 years.
The Prime Minister has also sent a message for a successful AGM of NCC.
Letter of Appreciation
*Cargo — Atlas De cargo, Everest De cargo, Himalayan Travels and Tours Pvt Ltd, Speed Way cargo and Himali International cargo Pvt Ltd
*Carpet exporters — Samling Carpet, Himalayan Arts Carpet and Shangrila Carpet
*Readymade garments — Destination Apparels, Heritage Fashion and Nepal Fashion
*Pashmina —Everest Pashmina Knitting and Weaving Industry
*Handicraft — Dawa Handicraft Pvt Ltd
*Courier — DHL express (Nepal) Pvt Ltd
*Export to India — Kiran Shoes Manufactures
"Private sector is able to contribute to the nation building process, provided the government take care of the entrepreneurs," he added. "For sustainable development, Nepal should exploit the sectors that it has comparative and competitive advantages.
Subash Chandra Nembang, the Speaker of Interim Legislature Parliament has inaugurating the AGM. "The private sector has an important role to play for the successful Constituent Assembly election," he said, praising the unity of private sector.Rameshwor Khanal, finance secretary (revenue) said that the investment condition has improved in the recent days. "The government is planning to modernise customs that would help make positive impact on export," he said, adding that the government is also doing its homework for a suitable labour law.
Similarly, the newly elected president of FNCCI, Kush Kumar Joshi requested the private sector to be united so that the government would be forced to listen them.On the occasion, the Speaker awarded 'Nepal Chamber Excellence Award' to Nepal China Chamber of Commerce. He also awarded Letter of Appreciation to different entrepreneurs for their contribution.
Nembang also awarded Lokmanya Golchha, the second vice-president of NCC and Dwarika Nath Pradhananga for their service to the chamber for 20 years, and Rastra Bhusan Chakubaji and Shivabhagawan Agrawal for their service to chambers for 10 years.
The Prime Minister has also sent a message for a successful AGM of NCC.
Letter of Appreciation
*Cargo — Atlas De cargo, Everest De cargo, Himalayan Travels and Tours Pvt Ltd, Speed Way cargo and Himali International cargo Pvt Ltd
*Carpet exporters — Samling Carpet, Himalayan Arts Carpet and Shangrila Carpet
*Readymade garments — Destination Apparels, Heritage Fashion and Nepal Fashion
*Pashmina —Everest Pashmina Knitting and Weaving Industry
*Handicraft — Dawa Handicraft Pvt Ltd
*Courier — DHL express (Nepal) Pvt Ltd
*Export to India — Kiran Shoes Manufactures
KLT exams end on positive note
The second and last day of Korean Language Test (KLT), one of the key processes of getting job in South Korea under employment permit system (EPS), completed here peacefully on March 30.
"The exam was peaceful," said Keshar Bahadur Baniya, director general at the department of labour and employment promotion.
Out of around 31,000 aspirant jobseekers applied for the KLT, 18,000 appeared in the exam yesterday and the rest appeared today. The exam centres were fixed in the 18 centres in Kathmandu valley only.
It was jointly arranged by EPS section of DoLEP and the Human Resource Department of Korea but conducted by the Tribhuvan University (TU). The applicants appeared for the written as well as listening and reading test for EPS-KLT.
South Korea has emerged as the most preferred destination for Nepali jobseekers because of better earnings and cheaper initial cost to get job under EPS. Nepal and South Korea had signed a memorandum of understanding in July last year. The agreement has set proficiency of the Korean language as a major condition of eligibility for employment in South Korea.
Out of a total 31,900 aspirant jobseekers, who have applied for the Korean Language Test (KLT) — a first step in the process of getting jobs in South Korea under employment permit system (EPS) — 18,000 appeared in the exam in 18 different exam centre in the valley on March 29.
"18,000 job-aspirant appeared in the exam today, while 13,000 will appear tomorrow," said Keshar Bahadur Baniya, director general (DG) at the department of labour and employment promotion (DoLEP).
The exam is jointly arranged by EPS section of DoLEP and the Human Resource Department of Korea but conducted by the Tribhuvan University (TU). The applicants appeared for the written as well as listening and reading test for EPS-KLT.
EPS unit had set up office at the Dhasharath Stadium, Tripureswar to receive forms. The 31,900 candidates had filled up the forms for the test during the five-day long registration from March 15-19. The Korean HRD officials will take the answer sheets — after the exams tomorrow — back to Korea for final marking and the results will be announced later through public media.
Each candidate had deposited Nepali rupees equivalent to $17 (approximately Rs 1,100) for the test.
Under the exam, listening test and reading test carry 100 marks with each test to be concluded in 40 minutes and 50 minutes respectively.
South Korea has emerged as the most preferred destination for Nepali jobseekers because of better earnings and cheaper initial cost to get job under EPS. "It will cost only Rs 65,000," Baniya informed.
Nepal and South Korea had signed a memorandum of understanding (MoU) in July last year. The agreement has set proficiency of the Korean language as a major condition of eligibility for employment in South Korea.
"The exam was peaceful," said Keshar Bahadur Baniya, director general at the department of labour and employment promotion.
Out of around 31,000 aspirant jobseekers applied for the KLT, 18,000 appeared in the exam yesterday and the rest appeared today. The exam centres were fixed in the 18 centres in Kathmandu valley only.
It was jointly arranged by EPS section of DoLEP and the Human Resource Department of Korea but conducted by the Tribhuvan University (TU). The applicants appeared for the written as well as listening and reading test for EPS-KLT.
South Korea has emerged as the most preferred destination for Nepali jobseekers because of better earnings and cheaper initial cost to get job under EPS. Nepal and South Korea had signed a memorandum of understanding in July last year. The agreement has set proficiency of the Korean language as a major condition of eligibility for employment in South Korea.
Out of a total 31,900 aspirant jobseekers, who have applied for the Korean Language Test (KLT) — a first step in the process of getting jobs in South Korea under employment permit system (EPS) — 18,000 appeared in the exam in 18 different exam centre in the valley on March 29.
"18,000 job-aspirant appeared in the exam today, while 13,000 will appear tomorrow," said Keshar Bahadur Baniya, director general (DG) at the department of labour and employment promotion (DoLEP).
The exam is jointly arranged by EPS section of DoLEP and the Human Resource Department of Korea but conducted by the Tribhuvan University (TU). The applicants appeared for the written as well as listening and reading test for EPS-KLT.
EPS unit had set up office at the Dhasharath Stadium, Tripureswar to receive forms. The 31,900 candidates had filled up the forms for the test during the five-day long registration from March 15-19. The Korean HRD officials will take the answer sheets — after the exams tomorrow — back to Korea for final marking and the results will be announced later through public media.
Each candidate had deposited Nepali rupees equivalent to $17 (approximately Rs 1,100) for the test.
Under the exam, listening test and reading test carry 100 marks with each test to be concluded in 40 minutes and 50 minutes respectively.
South Korea has emerged as the most preferred destination for Nepali jobseekers because of better earnings and cheaper initial cost to get job under EPS. "It will cost only Rs 65,000," Baniya informed.
Nepal and South Korea had signed a memorandum of understanding (MoU) in July last year. The agreement has set proficiency of the Korean language as a major condition of eligibility for employment in South Korea.
Saturday, March 29, 2008
Macau is the richest
Surging gambling revenue and investments in luxury hotels and the entertainment industry has made the former Portuguese enclave of Macau Asia's richest territory, a media report stated today.
Macau has overtaken other locations such as Singapore, Brunei and Japan to take the top spot after gross domestic product (GDP) per capita surged by 27 per cent to $36,357 last year, according to Macau government figures.
The results from the statistics and census service show that in US dollar terms, Macau, with a population of 531,000, is the world's 20th richest economy, the South China Morning Post reported.
This puts the territory, which like Hong Kong is a special administrative region of China, ahead of Italy and just behind Germany and France.
The rise in per-capita GDP was buoyed by a 47 per cent increase to $10.34 billion in gambling revenue last year. Investment bank Morgan Stanley has forecast gaming revenue will grow by 23 per cent this year and rise by about 20 per cent per year in 2009 and 2010.
But while the improved growth figures may be good news for the territory's wealthy few, it comes with a down side. The average Macau resident saw median monthly employment earnings rise by only 7.5 per cent last year to about $1,020.
By comparison, inflation climbed by an annualised 9.5 per cent in February, a 12-year high. Rent and medical expenses are rising at a faster rate, by 15.6 per cent for rent and 24.2 per cent for basic medical consultations.
Macau has overtaken other locations such as Singapore, Brunei and Japan to take the top spot after gross domestic product (GDP) per capita surged by 27 per cent to $36,357 last year, according to Macau government figures.
The results from the statistics and census service show that in US dollar terms, Macau, with a population of 531,000, is the world's 20th richest economy, the South China Morning Post reported.
This puts the territory, which like Hong Kong is a special administrative region of China, ahead of Italy and just behind Germany and France.
The rise in per-capita GDP was buoyed by a 47 per cent increase to $10.34 billion in gambling revenue last year. Investment bank Morgan Stanley has forecast gaming revenue will grow by 23 per cent this year and rise by about 20 per cent per year in 2009 and 2010.
But while the improved growth figures may be good news for the territory's wealthy few, it comes with a down side. The average Macau resident saw median monthly employment earnings rise by only 7.5 per cent last year to about $1,020.
By comparison, inflation climbed by an annualised 9.5 per cent in February, a 12-year high. Rent and medical expenses are rising at a faster rate, by 15.6 per cent for rent and 24.2 per cent for basic medical consultations.
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