R&D Economic Research & Business Development
Date: September 15, 2009
Highlights
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Foreign secretary Nirupama Rao, on her maiden visit after assuming office, will not get to meet Maoist chief Prachanda. Reports from. Nepal said that the Maoist chief left on Sunday on an abruptly-planned four-day trip to Hong Kong, triggering speculation that it was to avoid meeting Ms Rao.
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Nepal and India want to be “more open” in discussions on bilateral issues, according to Nepal’s Foreign Minister Sujata Koirala and India’s Foreign Secretary Nirupama Rao.
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The Constituent Assembly (CA) Business Advisory Committee (BAC) has formed a five-member panel to study about the CA membership of Maoist leaders Matrika Prasad Yadav and Jagat Prasad Yadav. "As both of them quit the party and they are actively working for another party, the Unified CPN (Maoist) has dismissed them from the party´s CA members.
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Nepali Congress assistant general secretary Dr Ram Saran Mahat has hinted that Foreign Minister Sujata Koirala, who leads the NC's team in the government, does not stand a chance of becoming Prime Minister as all attempts to elevate her to the top post will be fiercely resisted.
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Fresh reports coming from Hong Kong finally unveil the secret of Nepal Maoists’ Chairman Pushpa Kamal Dahal alias Prachanda’s sudden dash to the Special Administrative Region of China. The Maoists Party had declared that Prachanda in his short Hong Kong sojourn will attend a cadre training program.
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Dr. Babu Ram Bhattarai, the Maoists’ party vice chairman making a provoking speech in front of hundreds of Maoists’ cadres today in Liwang claimed that the party will re-grab weapons right in the district of Rolpa, if the government takes further repressive measure against the current Maoists party led protest programs.
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Nepal Rastra Bank (NRB) has initiated groundwork to slap penalty against French note printer for its four-month delay in delivery of 500-rupee notes that has triggered a renewed shortage of high denomination notes.
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Development banks want a bigger role in the financial market. “The central bank should ensure our representation in Credit Information Bureau (CIB),” said Development Bankers’ Association president and CEO of Malika Bikas Bank Jhapat Bohara.
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Although Nepal is doing well on primary education enrollment, it is faring badly on poverty reduction and developmental fronts, indicating that the government could seriously fail to uphold people´s rights to decent living as committed under Millennium Development Goals (MDGs). 1
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Total trade deficit of the country reached to a staggering Rs 217.32 billion, 33.6 percent more than last year’s Rs 162.67 billion. A statement issued by the Nepal Rastra Bank (NRB) to portray economic activities of last year showed that this volume of trade deficit accounted for 31.5 percent of the GDP.
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Gold price jumped to record high, touching Rs 25,550 per 10 grams (Rs 29,800 per tola) in the domestic market on Monday. Bullion dealers said the increment has put off buyers on a shopping spree and threatened to hit business during the upcoming festive season.
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A company based in Qatar has fired 529 Nepali migrant workers citing the repercussions of global economic recession. These laid off employees, who went to Qatar via Trikon Manpower in Kathmandu, were working in Pensaltica company.
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In a first of its kind incident, 15 Nepali migrant workers were held by Costan Rican authorities yesterday. The incident has raised the issue of lack of monitoring by the government as some manpower agencies are involved in illegally sending Nepali migrant labourers to various destinations.
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The Department of Commerce today announced that the government is looking to bring in 7000 metric tonnes of sugar into the valley ahead of Dashain. Though the government has announced that the sugar supply in the valley is adequate many people are feeling a sugar supply crunch.
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The Birgunj Customs has fixed the new valuation for 14 brands of light fourwheelers as of Monday. After getting customs clearance, 43 light vehicles have left Birgunj. Picanto, Rio X4 DR, Nissan X-TRAIL (2000 cc), Perodua MYVI (1,300 cc), Perodua MYVI (1,000 cc) are among the vehicles that have started leaving the customs.
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The Nepal Stock Exchange (NEPSE) posted double-digit growth on Monday ending a 20-day-long lackluster showing. The NEPSE index surged 11.1 points to settle at 628.44 points when trading closed. The banking sector was the highest gainer increasing by 18.41 points followed by the others and hydropower sectors which increased by 8.22 points and 8.17 points respectively.
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Although four companies received licenses from the Securities Board of Nepal (SEBON) to operate as stock dealers in 1996, they are not functioning anymore, said officials of the Nepal Stock Exchange (NEPSE).
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Maoist cadres tried to disrupt the convocation ceremony of Purwanchal University, attended by Prime Minister Madhav Nepal at Shahid Stadium in Biratnagar, on Monday. Hundreds of Maoist cadres gheraoed the programme venue, to bar the Prime Minister who is the chancellor of the university, from entering inside.
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The United States will provide Nepal $900,000 in grants to restore one of its major tourist attractions, a rundown complex of old buildings in the neighboring town of Patan, the U.S. embassy said on Monday.
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Three fringe parties in Sindhuli district on Monday have drawn attention of Prime Minister Madhav Kumar Nepal through the chief district officer towards the issue of soaring market prices, health problems, encroachment of the Nepali territories, and statute drafting.
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Two persons -- Surendra Thakur and Ram Babu Thakur -- who were arrested at Motihari by the special police team of Patna on Sunday in connection with fake currency racket, were forwarded to judicial custody here on Monday. The seized 65 fake currency notes of Rs 1,000 denominations were sent for further examination.
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Upcoming Bollywood star Neil Nitin Mukesh's plan to make a new film on crime maestro Charles Sobhraj and have the protagonist copy Sobhraj's `mannerisms' has been shot down by Nepal's prison authorities, who said he would never be allowed to meet Sobhraj in prison.
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Widening rift between minister and state minister for home affairs has seriously affected important activities of the ministry including promotion of police officers to the vacant posts of Deputy Inspector General (DIGs).
POLITICS:
Prachanda flies out as Rao reaches Nepal NEW DELHI: Foreign secretary Nirupama Rao, on her maiden visit after assuming office, will not get to meet Maoist chief Prachanda. Reports from Nepal said that the Maoist chief left on Sunday on an abruptly-planned four-day trip to Hong Kong, triggering speculation that it was to avoid meeting Ms Rao. Mr. Prachanda holds the key to the peace process in Nepal. Last month, Maoists increased protests against the Madhav Nepal government and have also restarted the siege of Parliament. Ms Rao’s visit comes in the backdrop of the attack on the Indian priests of the Pashupatinath temple. Two Indian priests were thrashed by Maoists, who want Indians, customary priests in the temple for several decades, replaced by locals. India reacted strongly to the attack saying that it was an attack on Indo-Nepal civilization ties. Ms Rao, who is on a two day visit, on Monday called on president Ram Baran Yadav and held talks with her Nepalese counterpart Gyan Chandra Acharya. She also held
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consultations with foreign minister Sujata Koirala and is expected to call on Prime Minister Madhav Nepal and chief of army staff Chhatra Man Singh Gurung. Ms Rao’s discussions centered on bilateral ties and political developments in Nepal where the peace process has been relegated to the background, with political parties not Seeing Eye to eye on crucial issues. Ms Rao expressed India’s support for Nepal’s peace and stability and in the constitution-building exercise. On her arrival in Kathmandu, Ms Rao underlined that India’s relationship with Nepal was very important. Source: http://economictimes.indiatimes.com
Panel to study Yadav duo's CA membership The Constituent Assembly (CA) Business Advisory Committee (BAC) has formed a five-member panel to study about the CA membership of Maoist leaders Matrika Prasad Yadav and Jagat Prasad Yadav. The committee formed the panel after the Unified CPN (Maoist) wrote to the CA secretariat requesting to scarp Yadav duo´s CA membership as the party had already sacked them for allegedly violating the party´s discipline. "As both of them quit the party and they are actively working for another party, the Unified CPN (Maoist) has dismissed them from the party´s CA members. Hence, the Unified CPN (Maoist) requests the CA secretariat to take action accordingly," the letter sent by the Unified CPN (Maoist) parliamentary party said. The then CPN (Maoist) became Unified CPN (Maoist) after its unification with CPN (Unity Center Masal). Opposing the idea of party unification, Matrika Yadav announced to reorganize dissident cadres of the CPN (Maoist). Jagat Prasad Yadav joined his campaign. Yadav duo represented the Maoist party in the CA under the proportional representative electoral system. "The panel´s main task is to give proper recommendations to the BAC on the matter after talking to the Election Commission, other institutions and individuals concerned," a member of the panel, Eknath Dhakal, told myrepublica.com. Members of the panel are Pushpa Bhusal, Yam Lal Kandel, Brijesh Kumar Gupta, Sarita Giri and Dhakal. Source: www.myrepublica.com Date: 09/15/2009
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Sujata cannot at all become Prime Minister: Dr Mahat Nepali Congress assistant general secretary Dr Ram Saran Mahat has hinted that Foreign Minister Sujata Koirala, who leads the NC's team in the government, does not stand a chance of becoming Prime Minister as all attempts to elevate her to the top post will be fiercely resisted. "Sujata will not at all be allowed to become Prime Minister," Mahat asserted while speaking at a programme in Biratnagar Monday. He claimed that the Maoists were trying to divide the NC by agreeing to back Sujata as next Prime Minister. He also said that making her Prime Minister with the backing of the Maoists tantamounts to supporting 'totalitarianism'. Recently, Maoist leader Barshaman Pun said there is possibility of his party backing Sujata as Prime Minister-- as an alternative to the current UML-led government. NC president Girija Prasad Koirala, who is said to be unhappy with Prime Minister Madhav Kumar Nepal after he refused to appoint Sujata as the Deputy Prime Minister, has been accused of trying to establish his daughter in the party's leadership by sidelining other senior leaders. Source: www.nepalnews.com Date: September 14, 2009
Nepal Maoist chairman greeted by Chinese officials in HK Fresh reports coming from Hong Kong finally unveil the secret of Nepal Maoists’ Chairman Pushpa Kamal Dahal alias Prachanda’s sudden dash to the Special Administrative Region of China. The Former Prime Minister of Nepal had left for Hong Kong for a three day trip on September 13, 2009. The Maoists Party had declared that Prachanda in his short Hong Kong sojourn will attend a cadre training program. Chairman Dahal is accompanied by his consort Sita Dahal, international bureau chief Krishna Bahadur Mahara and his close aide Manoj Thapa. Be that as it may, as per the HK Nepal Online edition, Prachanda was greeted by the local Chinese High Ranking officials at the Hong King Airport itself. “Dahal had a brief interaction with the local Maoists cadres who had arrived at the Hong Kong Airport but he was not in a mood to divulge the secret of his sudden dash even to his party cadres”, the report reveals.
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He told the members of the Nepal Janaadhikar Sarokar Committee- a Maoists party affiliate that he will meet the local leaders only after September 15, 2009. However he did not divulge anything beyond this. “We have no idea why he is in Hong Kong and who has invited him”, reports quote sources at Nepal’s Consulate office in Hong Kong. The Chinese officials escorted the Maoists party chairman to a Hotel, a local vernacular daily reports here in Kathmandu. Only recently the UML party chairman Jhala Nath Khanal had visited Hong Kong. This adds significance to Prachanda’s fresh trip to Hong Kong. Source: www.telegraphnepal.com
Nepal Maoists threaten to re-grab weapons right in Rolpa Dr. Babu Ram Bhattarai, the Maoists’ party vice chairman making a provoking speech in front of hundreds of Maoists’ cadres today in Liwang claimed that the party will re-grab weapons right in the district of Rolpa, if the government takes further repressive measure against the current Maoists party led protest programs. Dr. Bhattarai was addressing a mass meet in Liwang of Rolpa District today September 14, 2009. Bhattarai was of the opinion that to timely draft the constitution and to bring logical end to the peace process, a National Government with Maoists party included was necessary. Source: www.telegraphnepal.com
POLICY: Nepal, India for frank talks on bilateral issues KATHMANDU: Nepal and India want to be “more open” in discussions on bilateral issues, according to Nepal’s Foreign Minister Sujata Koirala and India’s Foreign Secretary Nirupama Rao. “We should be more open and hold frank discussions about our bilateral issues,” Ms. Koirala said adding that Ms. Rao also held similar views. “If our distance increases, others would try to take advantage of it,” she pointed out. An agreement was reached to execute the projects mutually-agreed upon during Prime Minister Madhav Kumar Nepal’s recent visit to India. “This would help establish even better relations between the two countries,” Ms. Koirala said.
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Upon her arrival, Ms. Rao said she would try to “strengthen the long-standing relationship between the two countries.” In recent days, issues such as border disputes and fake Indian currency have been a cause of concern for both nations. Trust deficit While border problems that surfaced in June in Dang district wherein Nepali land was allegedly encroached upon by the Sashastra Seema Bal, has resulted in a trust deficit; India, has been seriously concerned about the circulation of fake Indian currencies and the recent assault on its two priests by Maoists in the Pashupatinath temple premises. Ms. Rao, who is here on a two-day visit, is to visit the temple on Tuesday. She is expected to meet the priests. Sources in the Foreign Ministry here said Ms. Rao’s visit was also aimed at doing the groundwork for the coming visit here by India’s Commerce Minister to finalise the agreement on Treaty of Trade and Agreement of Cooperation to Control Unauthorized Trade, which was initialized during Mr. Nepal’s visit to India. A whole range of issues such as an extradition treaty, fake currency, border problems, operation of direct flights from Kathmandu to six Indian cities, the Naumure Project and others will be discussed in depth when a Home-Secretary-level meeting will be held here in November first week Source: www.hindu.com
BANKING: NRB to penalize French note printer Nepal Rastra Bank (NRB) has initiated groundwork to slap penalty against French note printer for its four-month delay in delivery of 500-rupee notes that has triggered a renewed shortage of high denomination notes. A high ranking NRB official told myrepublica.com that the central bank is exploring various options to take actions against the note printer and added that "some sort of actions will be taken against the note printer." The central bank had placed an order for printing 40 million units of 500-rupee notes to the French company. The company had agreed to deliver the notes in May. "Though the notes have arrived in Kolkata and are on their way to Nepal, we are receiving the consignment after a four months´ delay," the official added. He also hoped that the existing shortage of high denomination notes, mainly Rs 1,000 and Rs 5,000, will end once the new notes come into circulation. The official, however, said that the central bank has enough supplies of notes of all other
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denominations. In addition to the delay in supply of new notes, the official also blamed higher demand of notes for the existing shortage. Higher inflow of remittance, which remained 47 percent higher than a year before, has unexpectedly increased the demand for notes of higher denominations. This is why the growth in the circulation of currency remained 25.5 percent compared to 19.9 percent recorded in the previous years, according to the central bank. The official also added that there have again been unusual withdrawals from banking system in recent months which also fueled shortage of high denomination notes. "We have reports of unnatural withdrawals from financial institutions and we have also traced that high denominations notes are not being freely circulated in the economy. But we are yet to know the exact reasons," he said. He, however, said there might either have been a massive outflow of notes or there is possibility that most of the people have moved their deposits to their homes and bank lockers. Earlier, the country had witnessed a huge shortage of 1000 and 500 denominations notes due to unusual withdrawals from banks after then Finance Minister threatened to take strong actions against those who didn´t comply with Voluntary Disclosure of Income Scheme (VDIS). The official also said that all possible means have been adopted to ease the supplies and added that all rural branches of Nepal Bank Limited and Rastriya Banijya Bank have been instructed to transfer high denomination notes to center immediately. Source: The Himalayan Times Date: 09/15/2009 Development banks want bigger pie slice Development banks want a bigger role in the financial market. “The central bank should ensure our representation in Credit Information Bureau (CIB),” said Development Bankers’ Association president and CEO of Malika Bikas Bank Jhapat Bohara, adding that development banks also want to be part of Central Depository Company, Banking Training Institute and Clearing House. The Central Depository Company being established for modernisation of domestic capital market will have 50 per cent share of Nepse, 10 per cent share of CIB, 15 per cent of CIT and 25 percent of a group of six commercial banks — Standard Chartered Bank, Nabil Bank, Nepal SBI Bank, Bank of Kathmandu, Nepal Investment Bank and NIC Bank — as promoters. Bohara urged the Nepal Bankers Association (NBA) to give development banks also a chance to be part of it. NBA — along with Nepal Rastra Bank (NRB) and other financial institutions — has established Nepal Clearing House Ltd that will commence Automatic Check
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Truncation and Clearing Systems to be evolved into a nation-wide payments system. It has 60 per cent share of NBA, 15 per cent of SCT, 10 per cent share of NRB and the remaining share is planned to be distributed between development banks and finance compnaies. NBA — with the help of NRB and Rural Microfinace Development Centre (RMDC) and other financial institutions — has also planned National Banking Training Institute (NBTI). The training institute has a support base of $2 million from Asian Development Bank (ADB). “It will be developed as a self-sustainable institute that will be run by a professional CEO,” said Nepal Rastra Bank (NRB) deputy governor Bir Bikram Rayamajhi, inaugurating the one-day seminar on ‘Corporate Good Governance in Banks and Financial Institutions’ organised by Development Bankers Association here yesterday. Giving his presentation on Corporate Good Governance in Banks and FIs, Kumari Bank chief executive officer Radhesh Pant said that lack of good corporate governance will result in collapse of banks and financial institutions. “Good corporate governance will increase depositors’ trust, thus raising premium, Price to Earning (PE) ratio and share price of institutions as a whole,” he said adding that corporate good governance will increase access to finance, spruce up brand image and help mobilise funds Source: The Himalayan Times Date: 09/15/2009
BUSINESS & ECONOMY: Nepal set to miss poverty, hunger reduction targets Although Nepal is doing well on primary education enrollment, it is faring badly on poverty reduction and developmental fronts, indicating that the government could seriously fail to uphold people´s rights to decent living as committed under Millennium Development Goals (MDGs). The country is almost certain to miss on the target of halving extreme poverty and hunger by 2015, says a latest report disseminated by the Millennium Campaign of United Nations Development Program (UNDP). Of the major dismal pictures, the report notes the population of people living below a dollar a day stands well above 21 percent, income gap between different social clusters have widened, agricultural yields have gone down and the rise in food prices have exposed more people to hunger and health risks. "Some 48 percent of children are malnourished and stunted, pushing Nepal as one of the countries with poorest children nourishment records," states the report 9
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The reports further adds that average life expectancy of Nepalis is lowest among all Asian countries, child malnutrition is among the highest and the country serious lags behind in raising the standard of social life of the people. “In general, the country is gradually progressing on all key economic and social indicators. But it is not enough to meet the targets," states the report. The country, however, is doing well on the target of universal primary education, as instance of enrollment at primary level has increased to 90 percent from 64 percent of 1990. "The country is set to achieve this target," states the report, but cautions the government to concentrate on raising the quality of education and also plugging the dropout rate. Nepal has also managed to halve below five child mortality rate (CMR), which is the fourth target of the MDGs. But as the existing child death rate is still high as compared to other countries in the region, the report has suggested the government to give special emphasis to cut infant mortality rate. Compared to mid 1990s, maternal mortality rate (MMR) has presently dropped by half to 281 per 100,000 live births. Drawing the government´s attention to the fact that only 20 percent of total deliveries are attended by the health workers, the report has suggested the government to improve the situation to post better performances on CMR and MMR. Nepal is also progressing on the fronts like sanitation, access to drinking water, environmental conservation and the reduction of malaria and tuberculosis. However, poor tracking and reporting has left the country´s status on fight against HIV/AIDS unknown, even though the government has launched various programs for the rehabilitation of the victims. Likewise, Nepal has also not received enough overseas assistance required to fulfill the MDGs. Source: The Himalayan Times Date: 09/15/2009 Trade deficit augments to Rs 217.32 billion Total trade deficit of the country reached to a staggering Rs 217.32 billion, 33.6 percent more than last year’s Rs 162.67 billion. A statement issued by the Nepal Rastra Bank (NRB) to portray economic activities of last year showed that this volume of trade deficit accounted for 31.5 percent of the GDP. Even though there had been a sound growth of 13.5 percent in exports, a whopping rise of 28.2 percent rise in imports, mainly from India, widened the trade deficit to an alarming level. Nevertheless, the NRB report also revealed the share of India in Nepal's total foreign trade plunging by 58.2 percent from previous year's 64.3 percent.
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During the period, the current account of the balance of payment (BOP) witnessed a huge surplus of Rs 41.4 billion compared to a surplus of Rs 23.7 billion recorded last year. The central bank has ascribed the significant current account surplus last year to the rise of 36.5 percent in net transfers. As a result, the overall BOP posted a significant surplus of Rs 37.7 billion in 2008/09, compared to a lower surplus of Rs 29.7 billion in the preceding year. Similarly, the volume of gross foreign exchange reserves stood at Rs 280 billion, an increment of 31.7 percent compared to last year's figures. The bank has stated that the current level of reserves is adequate for financing merchandise imports of 11.8 months, and merchandise and service imports of 9.7 months. The annual average consumer inflation surged to 13.2 percent, compared to an increase of 7.7 percent recorded a year earlier. The annual average wholesale price index increased by 12.8 percent in 2008/09, as compared to a rise of 9.1 percent in the previous year. Owing primarily to the increase in the salary of civil servants in mid-September last year, the annual average salary and wage rate index rose by 15.3 percent in 2008/09. It had increased by 9.7 percent in the previous year. The highlight of lat year’s economic activities also revealed that the overall budget deficit remained at Rs 26.2 billion, which was 2.7 percent of the GDP, while the domestic financing of the budget deficit through the issuance of securities amounted to Rs 18.4 billion, which accounted for 2.9 percent of GDP. The volume of domestic credit increased by 24.7 percent in 2008/09 compared to a growth of 21.3 percent a year ago. During the period, the flow of remittance in the country swelled to a record 47 percent to Rs 209.7 billion last year. Source: www.nepalnews.com Date: September 14, 2009 Gold jumps to record high Gold price jumped to record high, touching Rs 25,550 per 10 grams (Rs 29,800 per tola) in the domestic market on Monday. Bullion dealers said the increment has put off buyers on a shopping spree and threatened to hit business during the upcoming festive season. The yellow metal became dearer by Rs 215 per 10 grams on Monday, compared to Friday when the market closed last week, and gold dealers attributed this jump to the devaluation of Nepali currency vis-à -vis US dollar.
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Tej Ratna Shakya, president of Nepal Gold Silver Dealers Association (NEGOSIDA), said the international price of gold on the day had eased by about 50 cents per troy ounce compared to Sunday. "But still the domestic price shot up because Nepali currency weakened against dollar on the day," he stated. However, knowledgeable people stated that Monday´s price hike was a foul play by the association, because Nepali currency actually had gained, and did not lose, as dealers claimed, against the dollar on the day. Foreign exchange records of Nepal Rastra Bank (NRB) too shows that Nepali currency gained 12 paisa against a dollar, compared to Sunday, and dollar was exchanged at Rs 77.85 on Monday. Experts, however, agreed with dealers that Nepali gold consumers are presently bearing the twofold brunt of currency upheavals. For instance, gold price in the international market has soared because dollar has slipped against major rival currencies like Euro and Yen, and owing to this volatility, investors have preferred to switch to gold, thereby causing its price rise. Contrary to this global trend, dollar has gained against Indian currency, with which Nepali rupee is pegged, over the last few days till Sunday. For Tuesday also, the central bank has announced that rupee will weaken by 47 paisa per dollar compared to Monday. “While former raised the international prices of gold, latter is making imports further expensive for Nepal,” said Shakya, who added that the rise in prices has dragged down the sales of gold in the domestic market. According to NEGOSIDA, buyers have taken wait and watch policy since the last ten days when the prices of gold started to go up. "There are lots of enquiries but real purchase has gone down since the prices rose,” said Shakya. Nepal´s bullion market becomes most vibrant during marriage seasons. Festive seasons like Teej, which was recently celebrated, and Dashain and Tihar, which are round the corner, are other major business days for dealers. Given the sound growth in sales, which touched as much as 15 kg a day during Teej festival, dealers had anticipated the business to maintain this momentum. “But because of the price rise, sales has dropped to about 10 kg a day these days,” said Shakya. Under normal circumstances, NEGOSIDA says consumption of gold in Dashain and Tihar increases by at least 25 percent over sales recorded in any regular business days. Source: The Himalayan Times Date: 09/15/2009 Qatari company fires 529 Nepali workers A company based in Qatar has fired 529 Nepali migrant workers citing the repercussions of global economic recession.
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These laid off employees, who went to Qatar via Trikon Manpower in Kathmandu, were working in Pensaltica company. The company also denied the workers of their remuneration of four months. Santosh K.C, one of the returnees, said that the company only provided them with air ticket before being fired. "It (the company) only told us that our salary will be sent via banking channel," he further said. K.C also bemoaned that the economic crisis has made it pretty tough for migrant workers to get job in Qatar. "Even if you get employment, it is not sure whether you will be paid or not," he beamoaned. These "misfortunate" Nepali labourers worked in Qatar for six to twenty four months. Source: www.nepalnews.com Date: September 14, 2009 Nepali migrant workers held in Costa Rica In a first of its kind incident, 15 Nepali migrant workers were held by Costan Rican authorities yesterday. The incident has raised the issue of lack of monitoring by the government as some manpower agencies are involved in illegally sending Nepali migrant labourers to various destinations. Some 54 US-bound migrants from Nepal and Africa were taken into custody after their boat arrived on the Central American country’s coast, reported the newspaper Al Dia. Authorities were treating some of the migrants for dehydration after several days at sea and took into custody three suspected Colombian smugglers who were travelling with them. Initially, officials said all 54 migrants were from Africa. But after interviewing them, they reported 15 were from Nepal and 39 from Africa. One migrant asked a Costa Rican policeman upon arrival, “How close is this country to the United States?� The security ministry of Costa Rica released a statement quoting one migrant as saying he left Nepal for India, where he stayed a month, before heading to South Africa. From there he caught the boat promising to take him to the United States. Costa Rican migration director Mario Zamora said that the seven women and 47 men would be taken to a detention centre in San Jose Source: The Himalayan Times Date: 09/15/2009 Sugar likely to arrive just before Dashain The Department of Commerce today announced that the government is looking to bring in 7000 metric tonnes of sugar into the valley ahead of Dashain.
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Though the government has announced that the sugar supply in the valley is adequate many people are feeling a sugar supply crunch. “Salt Trading Corporation (STC) does not give out more than 200 sacks of sugar at one time. Retailers are really suffering because though STC gives sacks of 50 kg each, when they weigh the sacks they turn out to be only 47 kg,” said Retailers’ Association president Pabitra Man Bajracharya. Though the government has fixed the price of sugar at Rs 53 per kg, retailers are selling sugar at Rs 65 per kg. “Though the government says that it has adequate supply of sugar, retailers are not being able to meet the demand of consumers, and are buying from private importers and selling at any price they like,” added Bajracharya. Consumers are also unaware of the price hike hence the Department of Commerce is looking to find ways to set up information media that will provide necessary information to consumers. . “We are looking for ways to counter this price hike as well as provide price information to consumers very soon. As far as the problem of sugar supply is concerned we are bringing in 7000 metric tonnes of sugar by Dashain as a form of market intervention to regulate supply,” said Ganesh Dhakal at the Department of Commerce. DoC is also looking to set up a number of depots within the valley to regulate the price hike, and stabilize supply as well as maintain vigilance against black marketeers. Dhakal also suggested that more markets like Kalimati Fruit and Vegetable Market (KFVM) need to be established all over the country and farmers themselves need to come and sell their produce at the desired rates. Due to the upcoming festive season retailers have been hiking prices as and when they feel and the government has not taken steps to counter this. “Ever since the budget was announced nothing has been administered. Not only are the consumers suffering but retailers are stashing away goods and hoarding them in order to sell during festivals at much higher rates,” said Consumer Rights Protection Forum secretary Ram Chandra Simkhada. If the government keeps its promise, people may not have to suffer this Dashain. Source: The Himalayan Times Date: 09/15/2009
Valuation up for four-wheelers The Birgunj Customs has fixed the new valuation for 14 brands of light four-wheelers as of Monday. After getting customs clearance, 43 light vehicles have left Birgunj. According to Ram Prasad Regmi, information officer at the Birgunj Customs, vehicles imported from third countries started leaving the customs office from Friday. Picanto, Rio X4 DR, Nissan X-TRAIL (2000 cc), Perodua MYVI (1,300 cc), Perodua MYVI (1,000 cc) are among the vehicles that have started leaving the customs. Regmi said a few brands were yet to be re-evaluated. 14
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Citing low valuation, the process of customs clearance for third-country vehicles had stopped from mid-August. Customs authorities had started increasing the valuation price after witnessing a huge difference between the import price, the selling price in the local market and the price of vehicles imported by diplomatic missions. Importers had stopped imports after the government move to increase the valuation price, which would also increase the customs duty for importers. The 14 vehicles that have been given new customs price include four-wheeler brands such as KIA, Toyota, Hyundai, Daihatsu, Nissan and Perodua.
Brand/Model Hyundai Tucson KIA Picanto EXMT KIA Picanto LXMT KIA Shortage KIA Rio X4 DR KIA X5 DR Hilux Double Cab Perodua MYVI SX 1,300 cc Perodua MYVI SX 1,000 cc Perodua VIVA X 1,000 cc Toyota Yaris Toyota Corolla Daihatsu Terias Nissan X-Trail 2000 cc
New customs price US$ 18,251 US$ 5,596 US$ 5, 553 US$ 16,058 US$ 7,350 US$ 7,603 US$ 17,000 US$ 5,300 US$ 5,525 US$ 4,490 1.32 million Yen 1.59 million Yen 1.50 million Yen 1.98 million Yen
Old customsprice US$ 9,136 US$ 4,600 US$ 4,400 US$ 13,900 US$ 6,050 US$ 6,250 US$ 16,020 US$ 4,800 US$ 5,000 US$ 3,990 1.16million Yen 1.51 million Yen 1.49 million Yen 1.84 million Yen
Source: www.ekantipur.com Date: September 15, 2009 MARKET:
NEPSE soars 11 points The Nepal Stock Exchange (NEPSE) posted double-digit growth on Monday ending a 20-day-long lackluster showing. The NEPSE index surged 11.1 points to settle at 628.44 points when trading closed. The sensitive index also witnessed an increase of 3.25 points. The sub-indices on NEPSE showed a mixed reaction. The banking sector was the highest gainer increasing by 18.41 points followed by the others and hydropower sectors which increased by 8.22 points and 8.17 points respectively. Meanwhile, the development bank sector lost the most by shedding 17.31 points followed by the insurance sector which lost 1.1 points. The share market witnessed a
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total turnover of Rs. 65.77 million with 99,298 shares being traded. Shares of 63 companies changed hands on NEPSE. Strong performance by the banking sector helped NEPSE to gain double-digit growth on Monday. Among the 20 commercial banks present on the trading floor, only one bank's stock went down. Among the commercial banks, Standard Chartered Bank posted the biggest growth with its stock rising by 121 points. Similarly, among the 13 development banks whose shares were traded on NEPSE on Monday, Sanima Bikas Bank witnessed the highest increase of 25 points while Business Development Bank dropped 359 points. Among the 23 finance companies on NEPSE, Goodwill Finance was the highest gainer with an increase of 13 points in its share price. Pokhara Finance lost 13 points. The top five winners on NEPSE were NIC Bank with an 8 percent rise in its stock price followed by Nepal Bangladesh Bank, Nepal Credit and Commerce Bank, Kumari Bank and the Bank of Kathmandu. Similarly, the top five losers on Monday were Ace Development Bank which fell 7.61 percent followed by Himalayan General Insurance Company, Global Bank, IME Financial Institution and Reliable Finance. Standard Chartered Bank topped the chart in terms of turnover with Rs. 13.3 million. Source: www.ekantipur.com Date: September 15, 2009 Stock dealers shy of entering share market Wide fluctuations in stock prices due to rumors have been a common phenomenon in Nepal. The presence of stock dealers (wholesale purchasers and sellers of shares who use their leverage to maintain stability in share prices) would have helped control such mood swings, but such companies didn't last very long. They aid in stabilizing the market by selling a high volume of shares when prices are rising unexpectedly and purchasing large quantities of stock when prices are going down. Although four companies received licenses from the Securities Board of Nepal (SEBON) to operate as stock dealers in 1996, they are not functioning anymore, said officials of the Nepal Stock Exchange (NEPSE). Only United Finance Limited (UFL) has been renewing its license. The other three, HISEF Finance got its license cancelled after a year and Citizen Investment Fund (CIF) and Nepal Sri Lanka Merchant and Finance had their licenses annulled after two years. UFL's assistant general manager Deepak Agrawal is himself unaware about its being listed as a dealer on NEPSE. "We haven't got a stock dealer's license and we are not operating as one," he told Post. He, however, said that the company had been purchasing and selling shares on behalf of investors. "We are helping investors outside Kathmandu to purchase and sell shares because they are not well aware of the share market," he added.
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The manager of CIF said it didn't dare handle bulk share trading due to the volatile share market. "The government also has not given us any policy tool to mitigate our risks as market makers," he said. According to him, SEBON has not continued ensuring a certain percentage of shares for institutional investors (dealers/mutual funds) during the initial public offerings. Earlier, SEBON had made a provision requiring that a certain amount of shares be allocated to mutual funds. NEPSE spokesperson Shambhu Pant said that dealers would not get into business ventures until they were given certain risk mitigating incentives. "There is a tradition of setting aside a certain percentage of the shares for dealers in most countries," he said. Another difficulty for potential stock dealers is the directives issued by Nepal Rastra Bank (NRB) which prohibits financial institutions to keep cross-holdings. However, as per the Securities Entrepreneurs (stock brokers, dealers and market makers) Regulation 2007, only public limited companies can operate as dealers. Most public limited companies are financial institutions which account for around 90 percent of the share market. NRB regulations bar financial institutions from operating as dealers as they have to keep shares of other financial institutions. Shares of financial institutions are mostly traded on the market. Stock broker Jagadish Agrawal said that there should be harmonization of regulatory mechanisms between the two regulatory bodies, SEBON and NRB, to attract dealers to the stock market. Source: www.ekantipur.com Date: September 15, 2009
GENERAL: Maoists try to disrupt PM's programme in Biratnagar; over dozen injured in police action Maoist cadres tried to disrupt the convocation ceremony of Purwanchal University, attended by Prime Minister Madhav Nepal at Shahid Stadium in Biratnagar, on Monday. Hundreds of Maoist cadres gheraoed the programme venue, to bar the Prime Minister who is the chancellor of the university, from entering inside. Police fired teargas shells and baton-charged to disperse the protesting crowd. At least 15 Maoist cadres and two policemen were injured in the scuffle, reports from
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Biratnagar said. The convocation ceremony was delayed for some time due to the protests. 877 graduates participated in the convocation. Earlier, speaking to reporters, PM Nepal said he was ready for good relations with all sides including the Maoists, and stressed need for political consensus. He added that the parties should now stop engaging in blame game. The Maoists, who have been boycotting the public functions attended by the Prime Minister and the President, have greeted Nepal with black flags on a number of occasions over the past two weeks. They had even pelted stones at his motorcade on Indra Jatra, Sept 3. Source: www.nepalnews.com Date: September 14, 2009
U.S. to help restoration of ancient Nepal palace KATHMANDU\ (Reuters) - The United States will provide Nepal $900,000 in grants to restore one of its major tourist attractions, a rundown complex of old buildings in the neighboring town of Patan, the U.S. embassy said on Monday. It said the money from U.S. Ambassadors Fund for Cultural Preservation would be used for the restoration of the Patan Royal Palace, one of South Asia's finest and most intact historical urban royal ensembles dating back to 17th and 18th centuries. "The most significant impacts of this restoration project include fostering increased understanding between cultures, the creation of a world-class institution furthering knowledge of Nepalese culture, local training and education, and economic development," the U.S. embassy said in a statement. Washington is a key donor to the Himalayan nation. Tourism is a mainstay of Nepal's impoverished economy and accounts four percent of the gross domestic product. The mountainous nation abolished its 239-year-old monarchy and turned into a republic after the former Maoist rebels emerged as the single largest party in last year's election for a special constituent assembly. The Patan Royal Palace, a popular tourist site in the hill ringed Kathmandu, is one of the three locations to receive the grant from the Fund established to support the preservation of cultural sites, objects and collections around the world. Other two are the Sacred City of Caral in Peru and the Monastery of the Holy Mother of God Peribleptos in Ohrid, Macedonia, it said. Source: http://in.reuters.com
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Small parties draw PM’s attention SINDHULI, September 14 - Three fringe parties in Sindhuli district on Monday have drawn attention of Prime Minister Madhav Kumar Nepal through the chief district officer towards the issue of soaring market prices, health problems, encroachment of the Nepali territories, and statute drafting. Submitting a memorandum to the chief district officer, the parties has asked the PM to control the market prices, take action against the black businessmen and hoarders, declare the mid and far west regions the zone with health emergency, and scrap the ‘lopsided’ 1950 treaty with India. They have also urged the PM to accomplish the drafting of new constitution on time. Source: www.ekantipur.com Date: September 14, 2009 Dealers of fake notes in judicial custody Two persons -- Surendra Thakur and Ram Babu Thakur -- who were arrested at Motihari by the special police team of Patna on Sunday in connection with fake currency racket, were forwarded to judicial custody here on Monday. The seized 65 fake currency notes of Rs 1,000 denominations were sent for further examination. According to Phulwarisharif DSP Dilnawaz Ahmad, the two accused revealed that they have been frequently visiting Birganj in Nepal to bring fake currency notes of different denominations to Bihar. They said that they were getting good commission for pushing fake currency notes in the market in Bihar. During the past four months, they had pushed about four lakh fake currency notes in Patna and its adjoining areas, he said. The DSP said that the arrest of the two was a sequel to FIRs lodged with the Beur police station (case no 92/2009 and 229/2008) following recovery of about Rs 2.75 lakh fake currency notes from Beur areas. In course of investigation it came to light that suppliers of fake currency notes were from Motihari. Thus, a police man in `mufti' was sent to Motihari as a client to strike a deal with dealers of fake currency notes, he said. According to Ahmad, fake currency racket has been thriving on clandestinely in Nepal from where fake currency notes were being smuggled into Bihar through agents. Police seized various ATM cards and other incriminating documents from these two accused, he said. During interrogation the two accused disclosed that ISI was in touch with several hardcore criminals of the state. These criminals are mainly responsible for pushing fake currency notes in the market areas in the state capital. Police are now zeroing in on more criminals involved in this racket, sources said. Source: http://timesofindia.indiatimes.com
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Nepal shoots down Bollywood's Sobhraj plan Kathmandu: Upcoming Bollywood star Neil Nitin Mukesh's plan to make a new film on crime maestro Charles Sobhraj and have the protagonist copy Sobhraj's `mannerisms' has been shot down by Nepal's prison authorities, who said he would never be allowed to meet Sobhraj in prison. "Nepal's home ministry has laid down regulations that a prisoner can be visited only by his relatives, lawyers and human rights organisations, like the Red Cross, National Human Rights Commission and Office of the UN High Commissioner for Human Rights," said Yam Kumari Khatiwada, chief of Nepal's prison management department that runs the jails in the Himalayan republic. Since his arrival in Kathmandu in 2003, Sobhraj has been spending his days in Kathmandu's Central Prison under maximum security after two courts found him guilty of the murder of an American tourist nearly three decades ago and handed him down a 20-year life term. Reports in the Indian media last week said Mukesh was planning to fly down to Kathmandu and meet Sobhraj in order to give authenticity to the character in his proposed film. Tentatively called `Charles', it would be made under the banner of Percept Picture Company Ltd. "We are in the process of contacting authorities in Nepal and India for the necessary permissions to meet Sobhraj," Mukesh was quoted as saying, adding, "The meeting looks probable because the Nepalese court has allowed vistors to meet Sobhraj in the past." "This is the first time that I have heard of such a thing," Khatiwada told in an exclusive interview. "No one is allowed to take photographs or make recordings inside our prisons. Even meetings are ruled out when the visitors have such intentions (as making films). Only a few select rights organisations are allowed to hold vetted programme inside the prisons." The official said she would alert the prisoner of the Central Jail, Shankar Prasad Arryal, about Mukesh's intention and instruct him not to allow such a visit. In the past, when Sobhraj was pursued by the media following his revelation that he was going to marry a teenager one-third his age, the prison authorities had clamped down on visitors for Sobhraj. Several times, he was kept in isolation, not allowed to meet anyone except his lawyers. Khatiwada also said she was amazed by the Indian actor's announcing plans of meeting Sobhraj before the media without having taken any actual steps and without contacting the appropriate authorities in Nepal.
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In addition to ruffling officials, Mukesh seems to have also left out something very important from his calculations. The man he wants to meet himself may not be willing to grant an audience. Sobhraj's lawyers have been fighting earlier bids by Bollywood to make films based on his life. They threatened to sue director Prawaal Raman, who too had announced a Sobhraj film, "Charles and I", with Sanjay Dutt in the lead. After that, Raman was reported as saying that his film was pure fiction and had nothing to do with Sobhraj. "How can they make a film on a person who is alive without his permission?" Sobhraj had told three years ago when Raman announced his new project. "I am going to sue them if they try to do so without my permission." Source: www.samaylive.com
Rawal-Ansari rift hits home tasks Promotion of SSP to DIG in limbo Widening rift between minister and state minister for home affairs has seriously affected important activities of the ministry including promotion of police officers to the vacant posts of Deputy Inspector General (DIGs). The conflict between Home Minister Bhim Rawal and State Minister Mohammad Rijwan Ansari has led to a delay in decision making on key issues. According to a source at the ministry, the two are at loggerheads over the recent transfer of Chief District Officers (CDOs). Dispute over defining the jurisdictions of the two ministers, promotion of senior police officers, distribution of financial assistance and lack of coordination on key issues are some reasons behind the widening gap between the two. “We are compelled to defer the process of promotion of police officers to the post of DIG as our ministers expressed contradictory interests and the lists of names they have proposed for promotion do not match,” the source said. He added that there is no preparation for the promotion. Currently, nine posts of DIG are vacant. The government is mulling over creating three more posts. Though the exercise for the promotion was initiated immediately after the formation of the government, the process has not moved forward so far. “Yes, we have slight misunderstanding on some issues. But we are trying to resolve the matters soon through mutual understanding,” Ansari said. He refused to divulge details about the issues on which they have differences. Sources claimed the two have prepared two different lists for promotion to DIGs. However,
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Ansari said the process promotion of police officers to DIG was delayed due to various other political reasons. Ansari complained that he has not been given any right on financial matters. "Ansari became furious after Rawal rejected his recommendations for financial assistance," the source said. According to the source, Ansari was not also given any clue before transferring the CDOs. The ministry had transferred 15 CDOs including a joint secretary of the ministry a week ago. “Minister Rawal is moving ahead on his own while Ansari is tired of convincing him on key issues,� another high ranking official at the ministry said. Rawal was not available for comments. Source: www.myrepublica.com Date: 09/15/2009
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