November 18: Nepal can boost sustainable investment and accelerate productivity with a comprehensive growth strategy that focuses on enabling the private sector and removing constraints to competitiveness by focusing on five priority sectors—tourism, agribusiness, education, health, and information technology, according to a new study by the World Bank and…
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These obstacles can be overcome with a new approach that focuses on strengthening institutions, infrastructure, and connectivity, while removing investment barriers, reads a joint statement issued by the two institutions.</p> <p>Prepared in close consultation with the government and other stakeholders, the report, Creating Markets in Nepal, assesses opportunities and provides recommendations and policy reforms that could enable the growth of a competitive private sector.</p> <p> “Cross-cutting constraints need to be addressed to attract private investment and expertise,” the statement quoted Nena Stoiljkovic, IFC Regional Vice President for Asia, as saying. “Simpler regulations, better infrastructure, stronger institutions, and more developed human capital can open the doors to investment.”</p> <p>In recent years, Nepal has made considerable progress in reducing poverty—from 46 percent in 1996 to 15 percent in 2011—but remains one of Asia’s poorest and slowest-growing economies, the report said.</p> <p>According to the World Bank, over the past 20 years, Nepal’s real GDP growth rate has hovered around 4 percent per year, 2.5 percentage points below the South Asian average. Remittances from Nepalese working abroad play a significant role in the country’s economy, accounting for 26 percent of the GDP in 2017, but can fluctuate greatly because of shifts in global economic conditions.</p> <p> </p> ', 'published' => true, 'created' => '2018-11-18', 'modified' => '2018-11-18', 'keywords' => '', 'description' => '', 'sortorder' => '9220', 'image' => '20181118033448_CPSD 1.jpg', 'article_date' => '2018-11-18 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '20' ) ), (int) 1 => array( 'Article' => array( 'id' => '2743', 'article_category_id' => '144', 'title' => 'For A Snow-ball Effect In Investment', 'sub_title' => '', 'summary' => null, 'content' => '<div> Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies. According to sources, the match-making event was very useful for the Danish companies to find suitable business partners in Nepal. Above everything, the event proved that Danish businessmen are really interested to invest in Nepal. This is a big vote of confidence to Nepal. Let’s hope this event will trigger a snowball effect for foreign investment in Nepal.</div> <div> </div> <div> The situation of foreign direct investment (FDI) in Nepal is not very encouraging. The country has received only Rs 18.9 billion FDI in the first seven months of the current fiscal year i.e. 2013/14 , Rs 19.94 billion in fiscal year 2012/13 and Rs 7.14 billion in the previous fiscal year. Against this backdrop, the initiative for business match-making taken by DANIDA is worth praising. It would be better if the international development agencies of other developed countries that are present in Nepal took their cue from DANIDA and organized similar match-making programmes in the future. Such efforts would be more fruitful than the annual grants they provide to Nepal.</div> <div> </div> <div> </div> <div> Business match-making is a popular international practice today. Match-making events are very useful in gathering the right people (businessmen) at one platform to explore business and investment opportunities through interaction among them. Several summits and conferences related to business and investment are organized in the country annually. Such programmes could be used as a platform for business match-making with a little homework and pre-planning. There are exclusive match-making companies in Europe and other countries which want to attract FDI. These companies organize business match-making events on a regular basis.</div> <div> </div> <div> There is huge prospect for such companies in Nepal. In Nepal, the match-making business could be a good business in itself. However, in the absence of exclusive match-making companies in the country, private sector umbrella organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) should take the lead in business match making. After all, these umbrella organisations have been organizing a number of business summits and conferences every year for the past few years. The need is to use such summits and conferences as match-making events. If we can do this, genuine foreign investors will find genuine local partners to start new businesses or add strength to the existing ones.</div> <div> </div> <div> The FNCCI in association with the government organized Nepal Economic Summit recently. In the Summit, FNCCI called on foreign investors to invest in 29 various projects. However, no foreign investor has come forward to invest in any of those projects so far. If this mega event were organised also as a match-making event, many foreign investors would have come and some of them might have shown interest in these projects. </div> <div> </div> <div> The government, given the sad situation of FDI in the country, should do everything at its disposal to attract FDI. There is no harm if the government goes out of the way to attract foreign investment. For example, if foreign investors demand full tax exemptions for a certain period of time, the government should agree to such demands without any hesitation. This will surely help attract foreign investment. Foreign investment will create employment opportunities in the country. It would more than compensate the loss incurred by the tax exemption as foreign investment would create employment opportunities in the country. </div>', 'published' => true, 'created' => '2014-03-10', 'modified' => '2014-03-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies.', 'sortorder' => '2584', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 2 => array( 'Article' => array( 'id' => '2700', 'article_category_id' => '144', 'title' => 'Let Everybody Be Transparent', 'sub_title' => '', 'summary' => null, 'content' => '<div> As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run. </div> <div> </div> <div> It is a common knowledge in Nepal that most businessmen and industrialists keep three different versions of account books – one for the purpose of tax, another for the purpose of taking loan from banks and the last one is the real one which they keep with themselves to know the exact situation of their companies and businesses. Now banks have started demanding copies of the same audited balance sheets which businessmen and industrialists submit to the tax office. Unlike in the past, auditors too are refraining from preparing and certifying separate income-expenditure details for the same business.</div> <div> </div> <div> But customers (read businessmen), according to bankers, are refraining from providing such information. They are even ready not to take loans when pressed for audited balance sheets. This hesitation from businessmen to make a true financial disclosure is not good; it is blocking transparency in the country’s financial system.</div> <div> </div> <div> Everybody should be transparent. The business community needs to be even more transparent to set an example in society. Therefore, businessmen should stop preparing separate income-expenditure details for the same business. This is an old trick to evade taxes which has worked so far because it has been allowed to work. But if the government authorities are watchful enough, it is not going to work anymore.</div> <div> </div> <div> However, it would be naïve to expect only the business community to be transparent. Our bureaucracy, political parties and politicians should be transparent as well. Because it is ultimately the country’s bureaucracy and political class that are making the country’s business non-transparent. Bureaucrats demand hefty bribes from the business community. Besides bribes, politicians receive hefty sums of money in donation from the business community who, on their part, cannot claim such spending as expenditure in their books. Similar is the case of the extortion money that the business community is forced to pay to different kinds of extortionists. Donations and extortion cannot be shown as expenditure in the books of account. So, businessmen resort to other ways for compensation. Evading tax, though illegal, is one such way.</div> <div> </div> <div> The political parties should start publicly declaring donations as income in their accounts so that the businessmen, on their part, can declare such donations as expenditure in their accounts. The government should provide enough security to the business community so that the latter doesn’t have to yield to extortion threats from mushrooming criminal gangs. </div> <div> </div> <div> The NRB should go ahead with its plan to implement the KYC norms in the country’s banking system at the earliest possible. It seems the implementation of the KYC norms alone can right various wrongs at various places. </div>', 'published' => true, 'created' => '2014-03-03', 'modified' => '2014-03-03', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run.', 'sortorder' => '2544', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 3 => array( 'Article' => array( 'id' => '2656', 'article_category_id' => '144', 'title' => 'Unbundle NEA', 'sub_title' => '', 'summary' => null, 'content' => '<p> Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.<br /> <br /> Only five projects (440 MW Tila I, 420 MW Tila II, 282 MW Manang Marsyangdi, 182 MW Upper Marsyangdi and 400 MW Lower Arun) submitted proposals to the NEA. This number is quite low considering the fact that over two dozen foreign promoters have taken license for construction of hydropower projects in Nepal. Foreign promoters of big hydropower projects like the 900MW Upper Karnali, 900MW Arun III, 600MW Upper Marshyangdi etc did not show interest in NEA’s offer.<br /> <br /> A committee has been formed under the deputy head of the Planning Directorate of NEA to study the proposals. The committee will also hold dialogue with promoters of the projects that have submitted proposals. Among the big projects, GMR Energy Limited, India that is constructing 900 MW Upper Karnali and 600 MW Upper Marsyangdi, Sutlej Hydro Power Corporation, India that is developing 900 MW Arun III and Statkraft International Hydro, Norway that is developing 650 MW Tamakoshi III did not submit proposals.<br /> <br /> NEA’s attempt to procure electricity from export-oriented projects is laudable as it will ease the power supply situation during the winter. However, all the five projects that have responded to NEA’s offer are run-of-theriver projects; their production will drastically decrease during the winter. It means NEA will need other suppliers as well to meet the energy crisis during the winter. Here, the question is why the foreign promoters of big hydropower projects showed no interest in NEA’s offer.<br /> <br /> Do they doubt NEA’s capacity to pay for the electricity purchased? We cannot completely rule out this possibility as NEA’s balance sheet shows that it has been incurring huge annual losses. It is a government-owned company but the government is yet to fully back it. NEA currently earns Rs 8.05 per unit on an average by selling electricity. So, the export-oriented projects which did not submit proposals to sell electricity to NEA might have pondered how NEA was going to pay Rs 10.60 per unit to procure electricity.<br /> <br /> NEA has been responsible for generation, transmission and distribution of electricity in the country for more than last two decades. It was established in 1985 after three independent government bodies, namely: the Electricity Department, Electricity Board and Nepal Electricity Corporation merged. This intervention was suitable at that time because the generation capacity of the country was small and less human resource was employed in these organisations.<br /> <br /> Sadly, as it is often the case, services provided by government monopolies lead to losses due to inefficient management, overstaffing, institutional corruption, and politicization. The financial haemorrhage of NEA in the last three decades of its establishment has compelled everyone to look for alternative ways of reducing these losses. One of the ways of doing that is unbundling infrastructure services vertically, so that the services are provided efficiently and in a competitive manner.<br /> <br /> The government has already come up with a plan for functional unbundling of NEA in three different segments — generation, transmission and distribution. However, it is still a plan which exists on paper only and is strongly opposed by top NEA staff. The government needs to implement this plan.</p>', 'published' => true, 'created' => '2014-02-23', 'modified' => '2014-02-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.', 'sortorder' => '2500', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 4 => array( 'Article' => array( 'id' => '2603', 'article_category_id' => '144', 'title' => 'New Govt, Old Challenges', 'sub_title' => '', 'summary' => null, 'content' => '<div> The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year. The reason behind the UML’s boycott is apparently the PM’s refusal to give the party the home ministry. But the reason behind the UCPN (Maoist) voting against Koirala in the parliament is not clear yet; the party simply ignored its previous public statement to support a Koirala-led government. </div> <div> </div> <div> These two instances are just a symptom of the kind of challenges the new government faces on the political front; they signal how old problems of power game are very much likely to haunt the new government and thus affect the constitution drafting process. The political impact of UML’s boycott is already seen – Koirala has not been able to expand his Cabinet even almost after a week of assuming office. Clearly, drafting the new constitution within the stipulated time is going to be an uphill task for the government led by Koirala who was elected the prime minister more than two months after the CA election. </div> <div> </div> <div> The new constitution is possible only with the consensus and unity among all political parties. Forging such consensus is the biggest challenge that the new government faces. </div> <div> </div> <div> Similarly, it is a validly-drawn conclusion that the new government faces a number of old challenges on the economic front as well. Long hours of load-shedding, a double-digit inflation, low capital expenditure, low foreign investment and high rate of unemployment are some of the chronic problems that the new government has inherited from its predecessor. </div> <div> </div> <div> The problem of power outage has become chronic. It has taken a huge toll on the country’s manufacturing sector. Almost all parties, including PM Koirala’s Nepali Congress, have made commitments in their election manifestos to end the power crisis within the next five years. If this target has to be achieved, then the new government has no time to lose; it must start creating the right environment for foreign investment in hydropower right now.</div> <div> </div> <div> Besides, a number of bills related with the country’s business and economic sector have been pending at the parliament for a long time. Successive governments have failed to get them enacted through the parliament. Special Economic Zone Act, Electricity Act, Bank and Financial Institution Act etc are some of the bills pending at parliament. On the other hand, there are a number of crucial laws which have not been even tabled at the parliament. Some of them include the drafts of Industrial Enterprises Act, Labour Act, Anti-dumping Act, Company Act (amendment), and Foreign Trade Regulation Act, among over a dozen others. Similarly there are some policies such as Foreign Investment and Technology Transfer Policy, Integrated Intellectual Property Policy which need the government’s endorsement. </div> <div> </div> <div> The private sector hopes the new government will act fast to implement these laws and policies at the earliest possible. Another major expectation of the private sector is the issue of peace and constitution should no more overshadow the agenda of economic development. The government should play the role of a facilitator to form common economic agenda of all the political parties. It means even if the parties differ on political issues, they should stand together on the economic issues. Similarly, the government has to do everything at its disposal to foster the environment for entrepreneurship in the country. </div>', 'published' => true, 'created' => '2014-02-18', 'modified' => '2014-02-18', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year.', 'sortorder' => '2447', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 5 => array( 'Article' => array( 'id' => '2557', 'article_category_id' => '144', 'title' => 'Manning MAN With Right Men & Women', 'sub_title' => '', 'summary' => null, 'content' => '<div> Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal. The Association also claims to have a strong membership base of over 2000 individuals and 250 institutions from different disciplines and sectors of the Nepali economy and society. </div> <div> </div> <div> Ideally, almost all MAN members and its top leadership are supposed to be management professionals. However, going by the lists of persons elected in the executive committees of MAN so far, it appears that the Association is by and large dominated by existing and former bureaucrats. The presence of private sector managers in the top leadership of MAN is very low. This is really unfortunate. Going by the very name of the organization, it would be no exaggeration to say that MAN should have been led and moved forward by private sector managers who have proved to be better managers than their public sector counterparts. </div> <div> </div> <div> Similar organizations in other countries are led by the corporate people or private sector managers. Two examples of such organizations with whom MAN has close links are the American Management Association (AMA) and All India Management Association (AIMA). The management teams or office bearers of Both AMA and AIMA are all representatives of the American and Indian corporate sector, respectively. But this is not the case with MAN.</div> <div> </div> <div> Bureaucrats are bureaucrats and they remain so as long as they hold their government positions. We are not questioning their capabilities. But the true talent of many bureaucrats is seen only after they are retired; as long as they are serving, they cannot function to the fullest of their capacity as MAN leaders because of various reasons. For example, they cannot criticize the government or raise issues with the government as strongly as private sector managers can. Also, when it comes to management, the Nepali experience has shown that private sector managers are more efficient than the public sector managers or bureaucrats.</div> <div> </div> <div> Therefore, manning the top management of MAN with the right men and women (read corporate sector managers and leaders) is the first and foremost challenge that MAN faces at present. MAN can never achieve the success or triumph it deserves without addressing this challenge first. In this context, the 33rd AGM of MAN should become a turning point. It should elect as many private sector managers and leaders as possible as its leaders.</div> <div> </div> <div> MAN is an organization with immense potential. It can become as strong as organizations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI). But MAN has not been able to become so because of the weak presence of the corporate sector in its leadership. Therefore, the Nepali corporate sector, on its part, should come forward to hold the reins of MAN and steer it to the right direction.</div>', 'published' => true, 'created' => '2014-02-09', 'modified' => '2014-02-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal.', 'sortorder' => '2401', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 6 => array( 'Article' => array( 'id' => '2546', 'article_category_id' => '144', 'title' => 'Patenting Intellectual Property', 'sub_title' => '', 'summary' => null, 'content' => '<div> It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it. The registration of a patent of a product in any part of the world excludes others from making or selling it elsewhere. Similarly, patenting a process excludes others from using it. In that sense patenting is a very crucial process. </div> <div> </div> <div> But it may be because of the lack of awareness, the trend to patent a product or process is very low in Nepal. This has resulted in serious lapses. For example, as India has registered the patent for tea, Nepali tea goes to the international market as Indian tea. Similarly, as no one registered for the patent of Pashmina shawls in Nepal which is a typically Nepali product, Nepal had to register the trademark of pashmina as Chyangra Pashmina.</div> <div> </div> <div> Patent registration is an indicator of the level of development of any country. The more the number of patents registered in a country, the more developed it is. Going by this logic, it’s no wonder that Nepal still remains an underdeveloped country. Most Nepalis are not aware of the importance of patent rights. They don’t know how crucial it is to register a patent for industrial development. Nepalis perhaps don’t realize the importance of patents in protecting intellectual properties. Therefore, the government or even private sector organizations need to organize awareness programmes on the importance of patent registration.</div> <div> </div> <div> Through the ‘Patent, Design and Trademark Act – 2022 BS’, Nepal began the process of the registration of the ownership of intellectual property some 48 years back. The Department of Industry (DoI) has been registering patents since then. Another act titled ‘The Copyright Act 2002’ has been enacted to prevent the plagiarism of written or audio-visual items which too are intellectual properties. There is a separate body called Nepal Copyright Registrar’s Office for the registration of copyrights.</div> <div> </div> <div> The country perhaps needs to merge the above-mentioned two Acts into one comprehensive Act and create an autonomous body for the registration and monitoring of industrial as well as non-industrial intellectual property rights. This will help protect and promote the intellectual properties.</div> <div> </div> <div> Another major reason why the number of patent registration is low in Nepal is one has to go to the DoI for the registration of patents. This provision should be changed and patent registration should be made possible from each and every districts. Nepal should learn from neighbouring India in this case. In India, there is a separate body for the registration, promotion and protection of intellectual property rights. </div> <div> </div> <div> This body has offices in India’s major cities such as Ahamedabad, Mumbai, Chennai, New Delhi, Kolkata etc where intellectual properties can be registered. Besides this, there are a number of private sector organizations in India that facilitate the registration of the ownership of intellectual properties. Foreigners and foreign companies go to India to buy the patent rights of various products and processes every year. Indian patentees earn a lot of money by selling their patent rights to foreigners. </div> <div> </div> <div> The same practice should be encouraged in Nepal. Nepal’s possibilities for registering patents are especially in the sector of information and technology. Nepali youths engaged in this sector should be motivated to register patents for the products such as software. Later, they can sell such patents and earn a lot of money. </div>', 'published' => true, 'created' => '2014-02-08', 'modified' => '2014-02-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it.', 'sortorder' => '2391', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 7 => array( 'Article' => array( 'id' => '2516', 'article_category_id' => '144', 'title' => 'All Big Companies Should Go Public', 'sub_title' => '', 'summary' => null, 'content' => '<div> Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.</div> <div> </div> <div> There are many advantages for a company going public. The financial benefit in the form of raising capital is the most distinct advantage. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers. </div> <div> </div> <div> Still, MNCs like Dabur Nepal, Surya Nepal, Asian Paints etc are not listed at Nepse. The parent companies of these MNCs are, however, listed at the capital markets of their respective countries. Very few MNCs like Uniliver, Bottler’s Nepal and Taragaon Regency Hotels are listed at the capital market. The MNCs operational in Nepal perhaps don’t need to raise capital from the general public as their principals abroad have deep pockets.</div> <div> </div> <div> Besides MNCs, there are big companies run by the established business houses in the country that are reluctant to go public. These companies have not felt the need to issue IPO as their owners are often the promoters of banks and insurance companies. So, they can get loans from the banks and can also claim insurance comparatively easily.</div> <div> </div> <div> But raising capital is not the only reason why a company should go public. Public companies are expected to be more transparent as they have to abide by the rules and regulations of the regulator of the capital market which is the Securities Board of Nepal (SEBON) in our case. Public companies have to issue periodic financial reports and hold AGMs which means added disclosure for investors. These activities put pressure on public companies to be more transparent. Maintaining transparency enhances the public image of companies. There is no reason why a company should not try to become more transparent.</div> <div> </div> <div> Recently, the government has started preparations to make all telecommunications companies as public companies. This step by the government is welcome. So far, only the state-owned Nepal Telecom is a public company. Other telecom operators such as NCell, United Telecom, STM Telecom, Smart Telecom, Nepal Satellite etc are operating as private companies. The government wants all these existing companies to go public and has indicated that new entrants will be issued license only after they agree to become a public company.</div> <div> </div> <div> A committee formed to study cross holding in telecoms has already forwarded its suggestions to the government. According to the suggestions, the ceiling of cross holding in public companies should be restricted to 15 per cent. Similarly, the committee has suggested that the share of one person or group should not be more than 51 per cent. However, the committee has suggested that the current provision for a foreign investor to hold up to 80 percent of shares in a company should be given continuity. </div> <div> </div> <div> There is a need to revise this provision, if not in the case of the existing companies then in the case of new companies where two or more foreign investors should be allowed to hold up to 80 per cent of shares. Such a policy would make sure that there two or more foreign investors in one company and if one of them wants to make an exit, any of the other companies can buy the shares.</div>', 'published' => true, 'created' => '2014-01-27', 'modified' => '2014-01-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.', 'sortorder' => '2359', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 8 => array( 'Article' => array( 'id' => '2464', 'article_category_id' => '144', 'title' => 'What About Ethics In Politics?', 'sub_title' => '', 'summary' => null, 'content' => '<div> A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.</div> <div> </div> <div> The importance of ethics in business cannot be overemphasized. Ethical behaviour can bring significant benefits to a business by attracting customers to its products, reducing labour turnover and thus increasing productivity and attracting investors and keeping the company’s share prices high, among other ways. </div> <div> </div> <div> But the conference evoked some simple questions: is the Nepali business community one of the segments of society that needs a lesson or two in ethics? Are the Nepali businessmen really unethical and hence need sermons on business ethics the most? What about ethical practices in the bureaucracy and politics? Ethics concern an individual’s moral judgments about right and wrong. If so, are Nepali businessmen most wrongdoers that they are being lectured on ethics while the politicians and bureaucrats are apostles of ethics?</div> <div> </div> <div> Definitely not. The ethical standards of Nepali business community look higher than those of many other segments of society including the government bureaucracy and political parties. And, in fact, at the root of whatever unethical business practices we have lies in the government and politics. There are many instances where the government has been rewarding unethical practices. For one, this is reflected in the government’s decision to waive taxes of different companies, in awarding licenses to start various businesses. This is reflected also in the actions of the government regulators of different businesses. </div> <div> </div> <div> The situation of ethics in the country’s politics is appalling. So much so that many find ‘ethics in politics’ as contradiction. It is because of the lack of ethics in politics that people do not place much trust on the political parties and politicians. Political parties are far from maintaining transparency in their financial transactions and deals. And that is why most politicians are seen as selfish and corrupt power-players who are not responsible and who defend special interests instead of the common good. That is why Transparency International reports have repeatedly depicted politicians and bureaucrats as the most corrupt. </div> <div> </div> <div> Ethics in politics matters the most in Nepal because it directly affects everything else including ethics in business. Lack of ethics in politics has a much wider impact than lack of ethics in business. Businesses have to sell their products or services on a daily basis. This means their ethics is being tested almost on a daily basis by the buyers as well as the employees. This is because they tend to be more ethical in their actions, behaviours and decisions. On the other hand, the ethics of politicians is challenged everyday but it is tested only through elections. Such elections are not yet regular in Nepali democracy. </div> <div> </div> <div> The delay in the first sitting of the Constituent Assembly (CA) and forming a new government even after two months of CA election could be the latest and simplest example of the lack of ethics in Nepali politics. The episode has exposed the ethical and moral dilemmas and deficiencies of a range of actors in Nepali politics including the President, Chairman of the Council of Ministers, the major political parties which are tipped to form the new government and the parties which have been mandated by the people to sit in opposition.</div> <div> </div> <div> The bottom line is: the political class needs to be reminded of ethics more frequently than any other segment of society. Therefore, conferences on ethics in politics are wanted more urgently than conferences on ethics in business. </div> <div> </div>', 'published' => true, 'created' => '2014-01-20', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.', 'sortorder' => '2305', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 9 => array( 'Article' => array( 'id' => '2448', 'article_category_id' => '144', 'title' => 'Better Late Than Never', 'sub_title' => '', 'summary' => null, 'content' => '<div> The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent. </div> <div> </div> <div> It has been long proved that the Kathmandu Valley denizens are sitting on top of a huge deposit of underground natural gas which is highly combustible and can be utilized as a dependable alternative source of energy. In some areas of Patan, Thapathali and Tripureswor, the gas is being tapped by individual households free of cost.</div> <div> </div> <div> Studies carried out by the DMG with the help of donor agencies such as JICA from the late 1970S to late 1990s indicate the gas reserves can fulfill the domestic energy needs of an estimated 20,000 households in Kathmandu Valley for 30 years. In the past, the DMG had dug 14 gas wells in an area of 26 sq kms including Teku, Tripureswor and Koteswor of Kathmandu, and Imadol and Tikathali of Lalitpur. </div> <div> </div> <div> The DMG even established a model gas plant in Teku in 1983 which stopped operating in the late 1990s. The experiment was to see if gas supply was consistent enough for commercial use. According to sources at DMG, the gas collected in the plant was supplied to various government offices in the immediate vicinity of the model plant. </div> <div> </div> <div> In 2001, the DMG even floated a project titled ‘Kathmandu Gas Project’ in the private sector. But no private company showed any interest in the project. DMG had initiated the project with the help of JICA and UNDP, concluding that a potential gas reserve of about 300 million cu m exists in central and southern Kathmandu as far back as 1978.</div> <div> </div> <div> Reports on past exploration of the Valley’s gas have shown that the gas is biogenic and is mixed with water. This could be the reason why private investors think that the returns from gas excavation might not be very lucrative. That’s why they have not come forward for the excavation process. The DMG hopes that private investors can be roped in once it is established that the gas in the valley is commercially viable. That’s why it has decided to spend Rs 5 million initially in the exploration and excavation of gas at Imadol of Lalitpur. The DMG also hopes that this gas could be sold to housing companies or it can be used to produce thermal electricity of around 2 MW. </div> <div> </div> <div> However, instead of producing thermal energy from this gas, it would be wise to fill it in cylinders and supply it for household use or as fuel to means of transport. The import of petroleum gas from India is one of the major reasons behind our widening trade deficit with the southern neighbour. If the Valley’s gas can be used for cooking, for example, the import of LPG from India can be decreased to some extent. The government should think along this line. If the government’s experiment becomes successful, private investors will certainly come forward for the excavation of the gas.</div>', 'published' => true, 'created' => '2014-01-19', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent.', 'sortorder' => '2294', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 10 => array( 'Article' => array( 'id' => '2417', 'article_category_id' => '144', 'title' => 'All Play, No Work', 'sub_title' => '', 'summary' => null, 'content' => '<div> Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days. </div> <div> </div> <div> After the success of the 2006 April Movement, known as Jana Aandolan II, many of the birthday-cum-holidays of the monarchs of old were scrapped only to be replaced with the likes of Lokatantra Diwas and Ganatantra Diwas. In addition, the newly declared secular state was under immense pressure from various religious and ethnic groups to declare their festivals as public holidays. So, the state declared those days as public holidays as demanded to, perhaps, prove its multicultural and multi-ethnic credentials.</div> <div> </div> <div> But that has not satisfied everyone, though Nepal celebrates an average of one public holiday a week. There are still several ethnic minorities who are demanding that the government declare their festivals, too, as national holidays. Imagine all the days that could now be declared holidays if the country was to acknowledge the myriad minorities that are today asserting their rights and identities, on and off the official calendar. </div> <div> </div> <div> If festivals of all communities are declared as public holidays, most public as well as private offices would be closed for almost the entire year! We certainly don’t want such a situation to emerge. In fact, the Administration Restructuring Commission (ARC) formed in 2009 has already advised the government to reduce the number of public holidays drastically. Established by then Maoist-led government under the chairmanship of the Minister for General Administration, the ARC claimed that the civil service would become more effective if its recommendation was implemented.</div> <div> </div> <div> Presently, Hindus get more festival holidays than other religious groups who don’t mind it because they too get holidays on such days. A non-Hindu would perhaps like to work on the public holidays meant for the Hindus. Similarly, a Hindu would like to work on the festival holidays meant for other religious groups. The government should allow them to do so. For example, if a Buddhist or a Christian or a Muslim wants to work on Shivaratri or Janai Purnima and take a day off on some other important festivals of theirs, they should be allowed to do so. This would be judicious, too.</div> <div> </div> <div> Therefore, the government will do well to fix the number of festival holidays for the entire year and leave it to the employees to decide when they want to take their festival holidays according to their needs, interest and culture. This way, every employee will not want to take a day off on all festivals and offices will be open every day except the weekly day off on Saturday and the national holidays. The number of national holidays, too, should be as minimum as possible.</div> <div> </div> <div> In India, there are only three national holidays. Other holidays are decided by the state governments. Similarly, there are only 11 festival holidays in China. Nepal should learn from such examples in its immediate neighbourhood. Therefore, long festival holidays of Dashain and Tihar should be cut down. Similarly, it’s not appropriate to declare public holidays for all on festivals like Shivaratri, Janaipurnima, Eid, birth anniversary of Guru Nanak, Ubhauli, Udhauli, Gaura Parba, Lhoshar, Maghi etc. Once the number of festival holidays is fixed for the entire year, the government employees and industry workers can take their festival holidays according to their choice.</div>', 'published' => true, 'created' => '2014-01-06', 'modified' => '2014-01-06', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days.', 'sortorder' => '2261', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 11 => array( 'Article' => array( 'id' => '2370', 'article_category_id' => '144', 'title' => 'The Shift In Nepali Agriculture', 'sub_title' => '', 'summary' => null, 'content' => '<div> The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares. Similarly, the Census has revealed that the number of households involved in vegetable farming has nearly doubled to 1.931 million from 977,000 in 2001-02. This means several things simultaneously. </div> <div> </div> <div> First, there is a growing interest of farmers in vegetable farming and cash crops. It is encouraging in terms of both food security and higher purchasing power of farmers. Growing fruits and vegetables is a much more profitable activity than the farming of cereals. The argument that the trend of famers shifting towards vegetables and other cash crops might have negative impacts on the country’s food security doesn’t hold much water. According to the Food and Agriculture Organization of the United Nations, people have food security when they are able to grow enough food or buy enough food to meet their daily needs for an active, healthy life. Vegetables and other cash crops are more lucrative anyway and farmers engaged in such type of farming always have the option of buying rice, wheat or maize by selling vegetables.</div> <div> </div> <div> Second, this trend also helps in boosting food diversification in the country and lowering the imports of vegetables which are high-value crops. Vegetables have tremendous market potential now and in the future as well. This also means there is huge scope for corporate investment in vegetable farming. Only big investments from the corporate sector can ensure large-scale commercialized vegetable farming in the country. </div> <div> </div> <div> Third, this trend needs to be encouraged. The donor community as well as the private sector in Nepal has been concentrating on the production of high-value vegetable crops. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has already implemented the concept of “one village, one product” in several districts. The farming of fruits and vegetables is particularly being promoted through this concept. Nepal’s hilly areas which have access to irrigation are particularly suitable for vegetable farming. According to experts, farmers can grow vegetables for up to five cycles in a year compared to the two cycles of cereal farming. Also, farmers growing vegetables don’t have to worry about market as vegetables sell easily in the market and have in fact become “quick and guaranteed returns”.</div> <div> </div> <div> Another important revelation of the Census is that Nepal’s agriculture has made some progress in terms of farm mechanization. The census shows that a good 22.04 percent farm households use tractors to plough their farmlands while 20.96 percent use threshers to harvest the food grains. This is a good progress as compared to the previous agriculture census of 2001/02. The previous Census showed that the percentage of farm households using tractors and threshers was less than 10 percent of the total holdings. Similarly, around 14.30 percent farm households have reported using pumping sets or motors for irrigation.</div> <div> </div> <div> The progress in farm mechanization is good but it’s not enough. Nevertheless, we should feel happy that farm mechanization has increased without any encouragement from the government. This shows that the Nepali farmers are responsive to change in the market forces. On its part, the government should introduce suitable policies offering tax exemption on the import of agricultural tools and equipment. If possible, it should also provide grants in the case of high-price equipment. Similarly, the government should implement policies to facilitate agro loans. The process of sanctioning agro-loans should be made easy and hassle-free. Agro loans must be made cheaper. At present, a farmer has to pay up to 16 per cent interest on loans to buy tractors whereas a car loan comes at an interest rate of six percent. Such discrepancies should be removed. The government and the central bank should work on this.</div>', 'published' => true, 'created' => '2013-12-31', 'modified' => '2013-12-31', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares.', 'sortorder' => '2212', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 12 => array( 'Article' => array( 'id' => '2327', 'article_category_id' => '144', 'title' => 'Meaning Of Nepse Rise', 'sub_title' => '', 'summary' => null, 'content' => '<div> The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.</div> <div> </div> <div> The victory of pro-free market political parties in the election, decrease of interest rates in the banking system and the directive of Nepal Rastra Bank (NRB) to implement Basel-III in banks and financial institutions are some of the reasons behind the sudden rise in the stock market. Those who are skeptical about the rise are claiming that this is not a natural rise but the result of speculative investment by some ‘players’ of the stock market as the reason. </div> <div> </div> <div> However, there are some macroeconomic factors which suggest that the rise in the stock prices could be natural. For example, the latest manufacturing index shows that the manufacturing sector is growing. Similarly, the growth rate of the country’s trade deficit has decreased significantly in the first four months of the current fiscal year as compared to the same period of the previous fiscal year. All political parties have, in their election manifestos, committed not to organize bandhs and general strikes in the days to come. This could have boosted the morale of the investors.</div> <div> </div> <div> The political parties now need to walk the talk. They should not organize any kinds of bandhs and general strikes. The people voted for a change in the elections held last month. Now the investors are supporting that change by showing their confidence in the stock market. The donor agencies and Nepal’s development partners, too, should not support any kind of bandh or strike under any pretext.</div> <div> </div> <div> This, however, doesn’t mean that the investors don’t need to be watchful. The information disseminated by all media or newspapers about the rise in Nepse index may not be the gospel truth. Similarly, some information could be misunderstood. Therefore, investors – old and new ones alike – should carefully analyse all the information before they decide to sell or buy the shares. </div> <div> </div> <div> In this context, what the investors need to understand about NRB’s directive regarding the implementation of Basel III – said to be one of the main reasons behind the rise in the price of banks’ shares – is that this is not an entirely new development. The central bank had introduced this concept three years back with the purpose of implementing it gradually. The implementation of Basel III doesn’t mean that all banks and financial institutions have to raise their paid-up capital to Rs 5 billion. What Basel III means is the banks need to increase their capital adequacy. It doesn’t mean that all banks must increase their paid-up capital. Similarly, the victory of the supporters of free market economy in the CA elections has certainly boosted the confidence of the general public and investors. This looks like one of the major reasons behind the rise in the Nepse index.</div> <div> </div> <div> However, the political equation of the next government to be formed is not clear yet. The economic policies to be adopted by the new government, too, are not clear, now. Therefore, it will not be wise to simply assume that the Nepse index will, like after the 2008 CA polls, cross the 1175 points this time too. Any investment on such an assumption could be risky; the investors should carefully analyse their risk-taking capacity and invest accordingly.</div> <div> </div> <div> Nevertheless, there is enough liquidity in the banking system at present, causing the interest rate on deposits to come down. So, the amount which would otherwise have gone to the banks in the form of deposits has come to the share market. On the other hand the demand for shares is more than the supply at present. Similarly, one of the fundamental indicators that is used to evaluate the market price of stocks is the Price-Earning (PE) ratio. Although the PE ratio of some listed companies is as high as 75 per cent, the average PE ration of most of the companies is around 20 percent which is natural. Therefore, the socio-economic condition of the country and the fundamental as well as technical indicators of the listed companies reveal that there is still the possibility of making money by investing in shares.</div>', 'published' => true, 'created' => '2013-12-23', 'modified' => '2013-12-23', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.', 'sortorder' => '2173', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 13 => array( 'Article' => array( 'id' => '2281', 'article_category_id' => '144', 'title' => 'Tackling Trade Deficit', 'sub_title' => '', 'summary' => null, 'content' => '<div> Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent. Trade experts are citing increase in the export of woolen carpets, readymade garments, pashmina and handicrafts – some of the country’s major exportable items – and a drastic decrease in the import of gold as the major reasons behind the significant drop in the trade deficit.</div> <div> </div> <div> The decrease in trade deficit is significant because it has taken place in spite of a sharp increase of 14.4 per cent in the import of petroleum products. Nepal’s total export in the first four months of this fiscal year stands at around Rs 29.62 billion whereas the import of petroleum products alone has been worth more than Rs 37.85 billion over this period. However, we can take a sigh of relief as the import of gold has declined by 29.6 per cent and stood at Rs 6.29 billion in the first four months of the current fiscal year as compared to the same period last year. </div> <div> </div> <div> There is no doubt that the best way to tackle the trade deficit problem is increasing our exports. The government acknowledged this fact and set a target of increasing our total annual exports to the tune of Rs 100 billion in the last fiscal year itself. The target could not be reached in the last fiscal year. But there are some early signs that this target could be reached this fiscal year. The export of cardamom, honey, noodles, handmade paper and Pashmina – some of the major exportable items identified by Nepal Trade Integration Strategy 2010 – has gone up in the first four months of this fiscal year.</div> <div> </div> <div> Available trade statistics show that our exports go up when there are no industrial strikes. That is one of the major reasons for the recent increase in exports. Therefore, to make the decrease in trade deficit sustainable, the political parties and the trade unions affiliated to them must commit to make the industrial sector a strike-free zone. </div> <div> </div> <div> Besides encouraging exports, we should also focus on discouraging the imports of items such as gold and petroleum and substituting the import of commodities such as iron and steel. The policy of discouraging the import of gold should be given continuity. Though the demand for gold cannot be controlled by banning imports, there can be ways to meet the demand for gold for investment purpose as shown by India which has allowed the banks to accept ‘gold deposits’ whereby the bank buys gold on the name of the customer in the international market with the money the bank has parked abroad. </div> <div> </div> <div> To lower the import of petroleum, the government should allow the mixing of permissible amount of ethanol in petrol. Many countries are already doing this. Ethanol is produced as a byproduct by the sugar factories.</div> <div> </div> <div> On the other hand, the sugar factories produce electricity by converting thermal energy into electrical energy. This electricity which is produced by the burning of bagasse is more than the factories require. The government should buy the surplus electricity thus produced by the sugar factories. This way, we can add 20 to 25 MW of electricity to the national grid. This step would not only help us tackle the load-shedding problem to some extent but also help us partly substitute the import of diesel which is burnt to produce electricity for industries.</div> <div> </div> <div> Similarly, to substitute the import of iron and steel to some extent, we should start extracting iron from the identified mines and also explore new iron mines. But the irony is that the mines from where the metal used to be extracted traditionally are closed down. This process must be reversed.</div>', 'published' => true, 'created' => '2013-12-17', 'modified' => '2013-12-17', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent.', 'sortorder' => '2124', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 14 => array( 'Article' => array( 'id' => '2238', 'article_category_id' => '144', 'title' => 'Improve Supply Side Constraints', 'sub_title' => '', 'summary' => null, 'content' => '<div> World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round. Issues addressed in the Bali Package have theoretically paved way to boost development goals and trading capacities of the Least Developed Countries. While the agreement is definitely promising for increasing Nepali products that reach international market, it alone is not sufficient to bridge the nation’s existing trade deficit. </div> <div> </div> <div> Presently Nepal has been receiving preferential market for 81 percent of its total exports under the Duty Free Quota Free (DFQF) system from various WTO member nations. Considering the existing trade deficit, it becomes evident that it has not been able to exploit facilities provided to it as a LCD member nation of the WTO. This fact is evident of the necessity for focusing on issues that are hindering its export capabilities rather than solely relying on receiving trade aid from the international community. Primary focus in this regard should be to find and resolve existing supply side constraints that could provide much needed boost to Nepal’s trading capacities. </div> <div> </div> <div> Supply side constraints start right from the production facility. Even though many Nepali products have good demands in the international market, political unrest, labour strikes, transport bottlenecks and unfriendly government policies have deterred production of these products and their delivery to the destination market. The Nepali State should focus on minimizing these deterrents to ensure smooth production and supply of goods. </div> <div> </div> <div> Nepal specializes in exporting agro products. Still it lacks a cold chain facility trading route. Even within the nation, it lacks a coordinated and interlinked cold chain that could facilitate agro trade. Facilitating the private sector for provision of such a chain, would provide boost to exports</div> <div> </div> <div> Another bottleneck in the export of agro-products is the lack of well equipped quarantine checkposts. Added to that is the lack of an agency that is competent and recognized internationally for quality certification. </div> <div> </div> <div> Quality is an essential factor in trading. Consumers always look for quality. Setting up an independent mechanism that could provide international quality certificate to products can ensure that exported products are not returned back citing quality reasons. Such certification system will increase brand image of Nepali products in international market and provide sustainable basis for steady trade growth. </div> <div> </div> <div> Identifying potential market and facilitating linkages between prospective producers and traders need to be ensured. Nepal has immense potentials for producing exportable agro and manufacturing products. People can meet the demands of the market, if there is market. The only prerequisite on the state’s side is to create conducive climate for these products and to identify market opportunities. </div> <div> </div> <div> Lengthy national and international customs regulations have been pointed out as great barriers for smooth trans-border trade. Bali Package pledges to address this issue but that will not sufficient. Nepal should on its own initiate talks for easing off custom regulations with nations that it does business with. It’s high time for Nepal to hold negotiations with its trading nations for streamlining custom regulations.</div>', 'published' => true, 'created' => '2013-12-09', 'modified' => '2013-12-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round.', 'sortorder' => '2081', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = falseinclude - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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These obstacles can be overcome with a new approach that focuses on strengthening institutions, infrastructure, and connectivity, while removing investment barriers, reads a joint statement issued by the two institutions.</p> <p>Prepared in close consultation with the government and other stakeholders, the report, Creating Markets in Nepal, assesses opportunities and provides recommendations and policy reforms that could enable the growth of a competitive private sector.</p> <p> “Cross-cutting constraints need to be addressed to attract private investment and expertise,” the statement quoted Nena Stoiljkovic, IFC Regional Vice President for Asia, as saying. “Simpler regulations, better infrastructure, stronger institutions, and more developed human capital can open the doors to investment.”</p> <p>In recent years, Nepal has made considerable progress in reducing poverty—from 46 percent in 1996 to 15 percent in 2011—but remains one of Asia’s poorest and slowest-growing economies, the report said.</p> <p>According to the World Bank, over the past 20 years, Nepal’s real GDP growth rate has hovered around 4 percent per year, 2.5 percentage points below the South Asian average. Remittances from Nepalese working abroad play a significant role in the country’s economy, accounting for 26 percent of the GDP in 2017, but can fluctuate greatly because of shifts in global economic conditions.</p> <p> </p> ', 'published' => true, 'created' => '2018-11-18', 'modified' => '2018-11-18', 'keywords' => '', 'description' => '', 'sortorder' => '9220', 'image' => '20181118033448_CPSD 1.jpg', 'article_date' => '2018-11-18 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '20' ) ), (int) 1 => array( 'Article' => array( 'id' => '2743', 'article_category_id' => '144', 'title' => 'For A Snow-ball Effect In Investment', 'sub_title' => '', 'summary' => null, 'content' => '<div> Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies. According to sources, the match-making event was very useful for the Danish companies to find suitable business partners in Nepal. Above everything, the event proved that Danish businessmen are really interested to invest in Nepal. This is a big vote of confidence to Nepal. Let’s hope this event will trigger a snowball effect for foreign investment in Nepal.</div> <div> </div> <div> The situation of foreign direct investment (FDI) in Nepal is not very encouraging. The country has received only Rs 18.9 billion FDI in the first seven months of the current fiscal year i.e. 2013/14 , Rs 19.94 billion in fiscal year 2012/13 and Rs 7.14 billion in the previous fiscal year. Against this backdrop, the initiative for business match-making taken by DANIDA is worth praising. It would be better if the international development agencies of other developed countries that are present in Nepal took their cue from DANIDA and organized similar match-making programmes in the future. Such efforts would be more fruitful than the annual grants they provide to Nepal.</div> <div> </div> <div> </div> <div> Business match-making is a popular international practice today. Match-making events are very useful in gathering the right people (businessmen) at one platform to explore business and investment opportunities through interaction among them. Several summits and conferences related to business and investment are organized in the country annually. Such programmes could be used as a platform for business match-making with a little homework and pre-planning. There are exclusive match-making companies in Europe and other countries which want to attract FDI. These companies organize business match-making events on a regular basis.</div> <div> </div> <div> There is huge prospect for such companies in Nepal. In Nepal, the match-making business could be a good business in itself. However, in the absence of exclusive match-making companies in the country, private sector umbrella organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) should take the lead in business match making. After all, these umbrella organisations have been organizing a number of business summits and conferences every year for the past few years. The need is to use such summits and conferences as match-making events. If we can do this, genuine foreign investors will find genuine local partners to start new businesses or add strength to the existing ones.</div> <div> </div> <div> The FNCCI in association with the government organized Nepal Economic Summit recently. In the Summit, FNCCI called on foreign investors to invest in 29 various projects. However, no foreign investor has come forward to invest in any of those projects so far. If this mega event were organised also as a match-making event, many foreign investors would have come and some of them might have shown interest in these projects. </div> <div> </div> <div> The government, given the sad situation of FDI in the country, should do everything at its disposal to attract FDI. There is no harm if the government goes out of the way to attract foreign investment. For example, if foreign investors demand full tax exemptions for a certain period of time, the government should agree to such demands without any hesitation. This will surely help attract foreign investment. Foreign investment will create employment opportunities in the country. It would more than compensate the loss incurred by the tax exemption as foreign investment would create employment opportunities in the country. </div>', 'published' => true, 'created' => '2014-03-10', 'modified' => '2014-03-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies.', 'sortorder' => '2584', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 2 => array( 'Article' => array( 'id' => '2700', 'article_category_id' => '144', 'title' => 'Let Everybody Be Transparent', 'sub_title' => '', 'summary' => null, 'content' => '<div> As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run. </div> <div> </div> <div> It is a common knowledge in Nepal that most businessmen and industrialists keep three different versions of account books – one for the purpose of tax, another for the purpose of taking loan from banks and the last one is the real one which they keep with themselves to know the exact situation of their companies and businesses. Now banks have started demanding copies of the same audited balance sheets which businessmen and industrialists submit to the tax office. Unlike in the past, auditors too are refraining from preparing and certifying separate income-expenditure details for the same business.</div> <div> </div> <div> But customers (read businessmen), according to bankers, are refraining from providing such information. They are even ready not to take loans when pressed for audited balance sheets. This hesitation from businessmen to make a true financial disclosure is not good; it is blocking transparency in the country’s financial system.</div> <div> </div> <div> Everybody should be transparent. The business community needs to be even more transparent to set an example in society. Therefore, businessmen should stop preparing separate income-expenditure details for the same business. This is an old trick to evade taxes which has worked so far because it has been allowed to work. But if the government authorities are watchful enough, it is not going to work anymore.</div> <div> </div> <div> However, it would be naïve to expect only the business community to be transparent. Our bureaucracy, political parties and politicians should be transparent as well. Because it is ultimately the country’s bureaucracy and political class that are making the country’s business non-transparent. Bureaucrats demand hefty bribes from the business community. Besides bribes, politicians receive hefty sums of money in donation from the business community who, on their part, cannot claim such spending as expenditure in their books. Similar is the case of the extortion money that the business community is forced to pay to different kinds of extortionists. Donations and extortion cannot be shown as expenditure in the books of account. So, businessmen resort to other ways for compensation. Evading tax, though illegal, is one such way.</div> <div> </div> <div> The political parties should start publicly declaring donations as income in their accounts so that the businessmen, on their part, can declare such donations as expenditure in their accounts. The government should provide enough security to the business community so that the latter doesn’t have to yield to extortion threats from mushrooming criminal gangs. </div> <div> </div> <div> The NRB should go ahead with its plan to implement the KYC norms in the country’s banking system at the earliest possible. It seems the implementation of the KYC norms alone can right various wrongs at various places. </div>', 'published' => true, 'created' => '2014-03-03', 'modified' => '2014-03-03', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run.', 'sortorder' => '2544', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 3 => array( 'Article' => array( 'id' => '2656', 'article_category_id' => '144', 'title' => 'Unbundle NEA', 'sub_title' => '', 'summary' => null, 'content' => '<p> Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.<br /> <br /> Only five projects (440 MW Tila I, 420 MW Tila II, 282 MW Manang Marsyangdi, 182 MW Upper Marsyangdi and 400 MW Lower Arun) submitted proposals to the NEA. This number is quite low considering the fact that over two dozen foreign promoters have taken license for construction of hydropower projects in Nepal. Foreign promoters of big hydropower projects like the 900MW Upper Karnali, 900MW Arun III, 600MW Upper Marshyangdi etc did not show interest in NEA’s offer.<br /> <br /> A committee has been formed under the deputy head of the Planning Directorate of NEA to study the proposals. The committee will also hold dialogue with promoters of the projects that have submitted proposals. Among the big projects, GMR Energy Limited, India that is constructing 900 MW Upper Karnali and 600 MW Upper Marsyangdi, Sutlej Hydro Power Corporation, India that is developing 900 MW Arun III and Statkraft International Hydro, Norway that is developing 650 MW Tamakoshi III did not submit proposals.<br /> <br /> NEA’s attempt to procure electricity from export-oriented projects is laudable as it will ease the power supply situation during the winter. However, all the five projects that have responded to NEA’s offer are run-of-theriver projects; their production will drastically decrease during the winter. It means NEA will need other suppliers as well to meet the energy crisis during the winter. Here, the question is why the foreign promoters of big hydropower projects showed no interest in NEA’s offer.<br /> <br /> Do they doubt NEA’s capacity to pay for the electricity purchased? We cannot completely rule out this possibility as NEA’s balance sheet shows that it has been incurring huge annual losses. It is a government-owned company but the government is yet to fully back it. NEA currently earns Rs 8.05 per unit on an average by selling electricity. So, the export-oriented projects which did not submit proposals to sell electricity to NEA might have pondered how NEA was going to pay Rs 10.60 per unit to procure electricity.<br /> <br /> NEA has been responsible for generation, transmission and distribution of electricity in the country for more than last two decades. It was established in 1985 after three independent government bodies, namely: the Electricity Department, Electricity Board and Nepal Electricity Corporation merged. This intervention was suitable at that time because the generation capacity of the country was small and less human resource was employed in these organisations.<br /> <br /> Sadly, as it is often the case, services provided by government monopolies lead to losses due to inefficient management, overstaffing, institutional corruption, and politicization. The financial haemorrhage of NEA in the last three decades of its establishment has compelled everyone to look for alternative ways of reducing these losses. One of the ways of doing that is unbundling infrastructure services vertically, so that the services are provided efficiently and in a competitive manner.<br /> <br /> The government has already come up with a plan for functional unbundling of NEA in three different segments — generation, transmission and distribution. However, it is still a plan which exists on paper only and is strongly opposed by top NEA staff. The government needs to implement this plan.</p>', 'published' => true, 'created' => '2014-02-23', 'modified' => '2014-02-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.', 'sortorder' => '2500', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 4 => array( 'Article' => array( 'id' => '2603', 'article_category_id' => '144', 'title' => 'New Govt, Old Challenges', 'sub_title' => '', 'summary' => null, 'content' => '<div> The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year. The reason behind the UML’s boycott is apparently the PM’s refusal to give the party the home ministry. But the reason behind the UCPN (Maoist) voting against Koirala in the parliament is not clear yet; the party simply ignored its previous public statement to support a Koirala-led government. </div> <div> </div> <div> These two instances are just a symptom of the kind of challenges the new government faces on the political front; they signal how old problems of power game are very much likely to haunt the new government and thus affect the constitution drafting process. The political impact of UML’s boycott is already seen – Koirala has not been able to expand his Cabinet even almost after a week of assuming office. Clearly, drafting the new constitution within the stipulated time is going to be an uphill task for the government led by Koirala who was elected the prime minister more than two months after the CA election. </div> <div> </div> <div> The new constitution is possible only with the consensus and unity among all political parties. Forging such consensus is the biggest challenge that the new government faces. </div> <div> </div> <div> Similarly, it is a validly-drawn conclusion that the new government faces a number of old challenges on the economic front as well. Long hours of load-shedding, a double-digit inflation, low capital expenditure, low foreign investment and high rate of unemployment are some of the chronic problems that the new government has inherited from its predecessor. </div> <div> </div> <div> The problem of power outage has become chronic. It has taken a huge toll on the country’s manufacturing sector. Almost all parties, including PM Koirala’s Nepali Congress, have made commitments in their election manifestos to end the power crisis within the next five years. If this target has to be achieved, then the new government has no time to lose; it must start creating the right environment for foreign investment in hydropower right now.</div> <div> </div> <div> Besides, a number of bills related with the country’s business and economic sector have been pending at the parliament for a long time. Successive governments have failed to get them enacted through the parliament. Special Economic Zone Act, Electricity Act, Bank and Financial Institution Act etc are some of the bills pending at parliament. On the other hand, there are a number of crucial laws which have not been even tabled at the parliament. Some of them include the drafts of Industrial Enterprises Act, Labour Act, Anti-dumping Act, Company Act (amendment), and Foreign Trade Regulation Act, among over a dozen others. Similarly there are some policies such as Foreign Investment and Technology Transfer Policy, Integrated Intellectual Property Policy which need the government’s endorsement. </div> <div> </div> <div> The private sector hopes the new government will act fast to implement these laws and policies at the earliest possible. Another major expectation of the private sector is the issue of peace and constitution should no more overshadow the agenda of economic development. The government should play the role of a facilitator to form common economic agenda of all the political parties. It means even if the parties differ on political issues, they should stand together on the economic issues. Similarly, the government has to do everything at its disposal to foster the environment for entrepreneurship in the country. </div>', 'published' => true, 'created' => '2014-02-18', 'modified' => '2014-02-18', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year.', 'sortorder' => '2447', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 5 => array( 'Article' => array( 'id' => '2557', 'article_category_id' => '144', 'title' => 'Manning MAN With Right Men & Women', 'sub_title' => '', 'summary' => null, 'content' => '<div> Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal. The Association also claims to have a strong membership base of over 2000 individuals and 250 institutions from different disciplines and sectors of the Nepali economy and society. </div> <div> </div> <div> Ideally, almost all MAN members and its top leadership are supposed to be management professionals. However, going by the lists of persons elected in the executive committees of MAN so far, it appears that the Association is by and large dominated by existing and former bureaucrats. The presence of private sector managers in the top leadership of MAN is very low. This is really unfortunate. Going by the very name of the organization, it would be no exaggeration to say that MAN should have been led and moved forward by private sector managers who have proved to be better managers than their public sector counterparts. </div> <div> </div> <div> Similar organizations in other countries are led by the corporate people or private sector managers. Two examples of such organizations with whom MAN has close links are the American Management Association (AMA) and All India Management Association (AIMA). The management teams or office bearers of Both AMA and AIMA are all representatives of the American and Indian corporate sector, respectively. But this is not the case with MAN.</div> <div> </div> <div> Bureaucrats are bureaucrats and they remain so as long as they hold their government positions. We are not questioning their capabilities. But the true talent of many bureaucrats is seen only after they are retired; as long as they are serving, they cannot function to the fullest of their capacity as MAN leaders because of various reasons. For example, they cannot criticize the government or raise issues with the government as strongly as private sector managers can. Also, when it comes to management, the Nepali experience has shown that private sector managers are more efficient than the public sector managers or bureaucrats.</div> <div> </div> <div> Therefore, manning the top management of MAN with the right men and women (read corporate sector managers and leaders) is the first and foremost challenge that MAN faces at present. MAN can never achieve the success or triumph it deserves without addressing this challenge first. In this context, the 33rd AGM of MAN should become a turning point. It should elect as many private sector managers and leaders as possible as its leaders.</div> <div> </div> <div> MAN is an organization with immense potential. It can become as strong as organizations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI). But MAN has not been able to become so because of the weak presence of the corporate sector in its leadership. Therefore, the Nepali corporate sector, on its part, should come forward to hold the reins of MAN and steer it to the right direction.</div>', 'published' => true, 'created' => '2014-02-09', 'modified' => '2014-02-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal.', 'sortorder' => '2401', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 6 => array( 'Article' => array( 'id' => '2546', 'article_category_id' => '144', 'title' => 'Patenting Intellectual Property', 'sub_title' => '', 'summary' => null, 'content' => '<div> It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it. The registration of a patent of a product in any part of the world excludes others from making or selling it elsewhere. Similarly, patenting a process excludes others from using it. In that sense patenting is a very crucial process. </div> <div> </div> <div> But it may be because of the lack of awareness, the trend to patent a product or process is very low in Nepal. This has resulted in serious lapses. For example, as India has registered the patent for tea, Nepali tea goes to the international market as Indian tea. Similarly, as no one registered for the patent of Pashmina shawls in Nepal which is a typically Nepali product, Nepal had to register the trademark of pashmina as Chyangra Pashmina.</div> <div> </div> <div> Patent registration is an indicator of the level of development of any country. The more the number of patents registered in a country, the more developed it is. Going by this logic, it’s no wonder that Nepal still remains an underdeveloped country. Most Nepalis are not aware of the importance of patent rights. They don’t know how crucial it is to register a patent for industrial development. Nepalis perhaps don’t realize the importance of patents in protecting intellectual properties. Therefore, the government or even private sector organizations need to organize awareness programmes on the importance of patent registration.</div> <div> </div> <div> Through the ‘Patent, Design and Trademark Act – 2022 BS’, Nepal began the process of the registration of the ownership of intellectual property some 48 years back. The Department of Industry (DoI) has been registering patents since then. Another act titled ‘The Copyright Act 2002’ has been enacted to prevent the plagiarism of written or audio-visual items which too are intellectual properties. There is a separate body called Nepal Copyright Registrar’s Office for the registration of copyrights.</div> <div> </div> <div> The country perhaps needs to merge the above-mentioned two Acts into one comprehensive Act and create an autonomous body for the registration and monitoring of industrial as well as non-industrial intellectual property rights. This will help protect and promote the intellectual properties.</div> <div> </div> <div> Another major reason why the number of patent registration is low in Nepal is one has to go to the DoI for the registration of patents. This provision should be changed and patent registration should be made possible from each and every districts. Nepal should learn from neighbouring India in this case. In India, there is a separate body for the registration, promotion and protection of intellectual property rights. </div> <div> </div> <div> This body has offices in India’s major cities such as Ahamedabad, Mumbai, Chennai, New Delhi, Kolkata etc where intellectual properties can be registered. Besides this, there are a number of private sector organizations in India that facilitate the registration of the ownership of intellectual properties. Foreigners and foreign companies go to India to buy the patent rights of various products and processes every year. Indian patentees earn a lot of money by selling their patent rights to foreigners. </div> <div> </div> <div> The same practice should be encouraged in Nepal. Nepal’s possibilities for registering patents are especially in the sector of information and technology. Nepali youths engaged in this sector should be motivated to register patents for the products such as software. Later, they can sell such patents and earn a lot of money. </div>', 'published' => true, 'created' => '2014-02-08', 'modified' => '2014-02-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it.', 'sortorder' => '2391', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 7 => array( 'Article' => array( 'id' => '2516', 'article_category_id' => '144', 'title' => 'All Big Companies Should Go Public', 'sub_title' => '', 'summary' => null, 'content' => '<div> Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.</div> <div> </div> <div> There are many advantages for a company going public. The financial benefit in the form of raising capital is the most distinct advantage. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers. </div> <div> </div> <div> Still, MNCs like Dabur Nepal, Surya Nepal, Asian Paints etc are not listed at Nepse. The parent companies of these MNCs are, however, listed at the capital markets of their respective countries. Very few MNCs like Uniliver, Bottler’s Nepal and Taragaon Regency Hotels are listed at the capital market. The MNCs operational in Nepal perhaps don’t need to raise capital from the general public as their principals abroad have deep pockets.</div> <div> </div> <div> Besides MNCs, there are big companies run by the established business houses in the country that are reluctant to go public. These companies have not felt the need to issue IPO as their owners are often the promoters of banks and insurance companies. So, they can get loans from the banks and can also claim insurance comparatively easily.</div> <div> </div> <div> But raising capital is not the only reason why a company should go public. Public companies are expected to be more transparent as they have to abide by the rules and regulations of the regulator of the capital market which is the Securities Board of Nepal (SEBON) in our case. Public companies have to issue periodic financial reports and hold AGMs which means added disclosure for investors. These activities put pressure on public companies to be more transparent. Maintaining transparency enhances the public image of companies. There is no reason why a company should not try to become more transparent.</div> <div> </div> <div> Recently, the government has started preparations to make all telecommunications companies as public companies. This step by the government is welcome. So far, only the state-owned Nepal Telecom is a public company. Other telecom operators such as NCell, United Telecom, STM Telecom, Smart Telecom, Nepal Satellite etc are operating as private companies. The government wants all these existing companies to go public and has indicated that new entrants will be issued license only after they agree to become a public company.</div> <div> </div> <div> A committee formed to study cross holding in telecoms has already forwarded its suggestions to the government. According to the suggestions, the ceiling of cross holding in public companies should be restricted to 15 per cent. Similarly, the committee has suggested that the share of one person or group should not be more than 51 per cent. However, the committee has suggested that the current provision for a foreign investor to hold up to 80 percent of shares in a company should be given continuity. </div> <div> </div> <div> There is a need to revise this provision, if not in the case of the existing companies then in the case of new companies where two or more foreign investors should be allowed to hold up to 80 per cent of shares. Such a policy would make sure that there two or more foreign investors in one company and if one of them wants to make an exit, any of the other companies can buy the shares.</div>', 'published' => true, 'created' => '2014-01-27', 'modified' => '2014-01-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.', 'sortorder' => '2359', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 8 => array( 'Article' => array( 'id' => '2464', 'article_category_id' => '144', 'title' => 'What About Ethics In Politics?', 'sub_title' => '', 'summary' => null, 'content' => '<div> A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.</div> <div> </div> <div> The importance of ethics in business cannot be overemphasized. Ethical behaviour can bring significant benefits to a business by attracting customers to its products, reducing labour turnover and thus increasing productivity and attracting investors and keeping the company’s share prices high, among other ways. </div> <div> </div> <div> But the conference evoked some simple questions: is the Nepali business community one of the segments of society that needs a lesson or two in ethics? Are the Nepali businessmen really unethical and hence need sermons on business ethics the most? What about ethical practices in the bureaucracy and politics? Ethics concern an individual’s moral judgments about right and wrong. If so, are Nepali businessmen most wrongdoers that they are being lectured on ethics while the politicians and bureaucrats are apostles of ethics?</div> <div> </div> <div> Definitely not. The ethical standards of Nepali business community look higher than those of many other segments of society including the government bureaucracy and political parties. And, in fact, at the root of whatever unethical business practices we have lies in the government and politics. There are many instances where the government has been rewarding unethical practices. For one, this is reflected in the government’s decision to waive taxes of different companies, in awarding licenses to start various businesses. This is reflected also in the actions of the government regulators of different businesses. </div> <div> </div> <div> The situation of ethics in the country’s politics is appalling. So much so that many find ‘ethics in politics’ as contradiction. It is because of the lack of ethics in politics that people do not place much trust on the political parties and politicians. Political parties are far from maintaining transparency in their financial transactions and deals. And that is why most politicians are seen as selfish and corrupt power-players who are not responsible and who defend special interests instead of the common good. That is why Transparency International reports have repeatedly depicted politicians and bureaucrats as the most corrupt. </div> <div> </div> <div> Ethics in politics matters the most in Nepal because it directly affects everything else including ethics in business. Lack of ethics in politics has a much wider impact than lack of ethics in business. Businesses have to sell their products or services on a daily basis. This means their ethics is being tested almost on a daily basis by the buyers as well as the employees. This is because they tend to be more ethical in their actions, behaviours and decisions. On the other hand, the ethics of politicians is challenged everyday but it is tested only through elections. Such elections are not yet regular in Nepali democracy. </div> <div> </div> <div> The delay in the first sitting of the Constituent Assembly (CA) and forming a new government even after two months of CA election could be the latest and simplest example of the lack of ethics in Nepali politics. The episode has exposed the ethical and moral dilemmas and deficiencies of a range of actors in Nepali politics including the President, Chairman of the Council of Ministers, the major political parties which are tipped to form the new government and the parties which have been mandated by the people to sit in opposition.</div> <div> </div> <div> The bottom line is: the political class needs to be reminded of ethics more frequently than any other segment of society. Therefore, conferences on ethics in politics are wanted more urgently than conferences on ethics in business. </div> <div> </div>', 'published' => true, 'created' => '2014-01-20', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.', 'sortorder' => '2305', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 9 => array( 'Article' => array( 'id' => '2448', 'article_category_id' => '144', 'title' => 'Better Late Than Never', 'sub_title' => '', 'summary' => null, 'content' => '<div> The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent. </div> <div> </div> <div> It has been long proved that the Kathmandu Valley denizens are sitting on top of a huge deposit of underground natural gas which is highly combustible and can be utilized as a dependable alternative source of energy. In some areas of Patan, Thapathali and Tripureswor, the gas is being tapped by individual households free of cost.</div> <div> </div> <div> Studies carried out by the DMG with the help of donor agencies such as JICA from the late 1970S to late 1990s indicate the gas reserves can fulfill the domestic energy needs of an estimated 20,000 households in Kathmandu Valley for 30 years. In the past, the DMG had dug 14 gas wells in an area of 26 sq kms including Teku, Tripureswor and Koteswor of Kathmandu, and Imadol and Tikathali of Lalitpur. </div> <div> </div> <div> The DMG even established a model gas plant in Teku in 1983 which stopped operating in the late 1990s. The experiment was to see if gas supply was consistent enough for commercial use. According to sources at DMG, the gas collected in the plant was supplied to various government offices in the immediate vicinity of the model plant. </div> <div> </div> <div> In 2001, the DMG even floated a project titled ‘Kathmandu Gas Project’ in the private sector. But no private company showed any interest in the project. DMG had initiated the project with the help of JICA and UNDP, concluding that a potential gas reserve of about 300 million cu m exists in central and southern Kathmandu as far back as 1978.</div> <div> </div> <div> Reports on past exploration of the Valley’s gas have shown that the gas is biogenic and is mixed with water. This could be the reason why private investors think that the returns from gas excavation might not be very lucrative. That’s why they have not come forward for the excavation process. The DMG hopes that private investors can be roped in once it is established that the gas in the valley is commercially viable. That’s why it has decided to spend Rs 5 million initially in the exploration and excavation of gas at Imadol of Lalitpur. The DMG also hopes that this gas could be sold to housing companies or it can be used to produce thermal electricity of around 2 MW. </div> <div> </div> <div> However, instead of producing thermal energy from this gas, it would be wise to fill it in cylinders and supply it for household use or as fuel to means of transport. The import of petroleum gas from India is one of the major reasons behind our widening trade deficit with the southern neighbour. If the Valley’s gas can be used for cooking, for example, the import of LPG from India can be decreased to some extent. The government should think along this line. If the government’s experiment becomes successful, private investors will certainly come forward for the excavation of the gas.</div>', 'published' => true, 'created' => '2014-01-19', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent.', 'sortorder' => '2294', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 10 => array( 'Article' => array( 'id' => '2417', 'article_category_id' => '144', 'title' => 'All Play, No Work', 'sub_title' => '', 'summary' => null, 'content' => '<div> Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days. </div> <div> </div> <div> After the success of the 2006 April Movement, known as Jana Aandolan II, many of the birthday-cum-holidays of the monarchs of old were scrapped only to be replaced with the likes of Lokatantra Diwas and Ganatantra Diwas. In addition, the newly declared secular state was under immense pressure from various religious and ethnic groups to declare their festivals as public holidays. So, the state declared those days as public holidays as demanded to, perhaps, prove its multicultural and multi-ethnic credentials.</div> <div> </div> <div> But that has not satisfied everyone, though Nepal celebrates an average of one public holiday a week. There are still several ethnic minorities who are demanding that the government declare their festivals, too, as national holidays. Imagine all the days that could now be declared holidays if the country was to acknowledge the myriad minorities that are today asserting their rights and identities, on and off the official calendar. </div> <div> </div> <div> If festivals of all communities are declared as public holidays, most public as well as private offices would be closed for almost the entire year! We certainly don’t want such a situation to emerge. In fact, the Administration Restructuring Commission (ARC) formed in 2009 has already advised the government to reduce the number of public holidays drastically. Established by then Maoist-led government under the chairmanship of the Minister for General Administration, the ARC claimed that the civil service would become more effective if its recommendation was implemented.</div> <div> </div> <div> Presently, Hindus get more festival holidays than other religious groups who don’t mind it because they too get holidays on such days. A non-Hindu would perhaps like to work on the public holidays meant for the Hindus. Similarly, a Hindu would like to work on the festival holidays meant for other religious groups. The government should allow them to do so. For example, if a Buddhist or a Christian or a Muslim wants to work on Shivaratri or Janai Purnima and take a day off on some other important festivals of theirs, they should be allowed to do so. This would be judicious, too.</div> <div> </div> <div> Therefore, the government will do well to fix the number of festival holidays for the entire year and leave it to the employees to decide when they want to take their festival holidays according to their needs, interest and culture. This way, every employee will not want to take a day off on all festivals and offices will be open every day except the weekly day off on Saturday and the national holidays. The number of national holidays, too, should be as minimum as possible.</div> <div> </div> <div> In India, there are only three national holidays. Other holidays are decided by the state governments. Similarly, there are only 11 festival holidays in China. Nepal should learn from such examples in its immediate neighbourhood. Therefore, long festival holidays of Dashain and Tihar should be cut down. Similarly, it’s not appropriate to declare public holidays for all on festivals like Shivaratri, Janaipurnima, Eid, birth anniversary of Guru Nanak, Ubhauli, Udhauli, Gaura Parba, Lhoshar, Maghi etc. Once the number of festival holidays is fixed for the entire year, the government employees and industry workers can take their festival holidays according to their choice.</div>', 'published' => true, 'created' => '2014-01-06', 'modified' => '2014-01-06', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days.', 'sortorder' => '2261', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 11 => array( 'Article' => array( 'id' => '2370', 'article_category_id' => '144', 'title' => 'The Shift In Nepali Agriculture', 'sub_title' => '', 'summary' => null, 'content' => '<div> The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares. Similarly, the Census has revealed that the number of households involved in vegetable farming has nearly doubled to 1.931 million from 977,000 in 2001-02. This means several things simultaneously. </div> <div> </div> <div> First, there is a growing interest of farmers in vegetable farming and cash crops. It is encouraging in terms of both food security and higher purchasing power of farmers. Growing fruits and vegetables is a much more profitable activity than the farming of cereals. The argument that the trend of famers shifting towards vegetables and other cash crops might have negative impacts on the country’s food security doesn’t hold much water. According to the Food and Agriculture Organization of the United Nations, people have food security when they are able to grow enough food or buy enough food to meet their daily needs for an active, healthy life. Vegetables and other cash crops are more lucrative anyway and farmers engaged in such type of farming always have the option of buying rice, wheat or maize by selling vegetables.</div> <div> </div> <div> Second, this trend also helps in boosting food diversification in the country and lowering the imports of vegetables which are high-value crops. Vegetables have tremendous market potential now and in the future as well. This also means there is huge scope for corporate investment in vegetable farming. Only big investments from the corporate sector can ensure large-scale commercialized vegetable farming in the country. </div> <div> </div> <div> Third, this trend needs to be encouraged. The donor community as well as the private sector in Nepal has been concentrating on the production of high-value vegetable crops. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has already implemented the concept of “one village, one product” in several districts. The farming of fruits and vegetables is particularly being promoted through this concept. Nepal’s hilly areas which have access to irrigation are particularly suitable for vegetable farming. According to experts, farmers can grow vegetables for up to five cycles in a year compared to the two cycles of cereal farming. Also, farmers growing vegetables don’t have to worry about market as vegetables sell easily in the market and have in fact become “quick and guaranteed returns”.</div> <div> </div> <div> Another important revelation of the Census is that Nepal’s agriculture has made some progress in terms of farm mechanization. The census shows that a good 22.04 percent farm households use tractors to plough their farmlands while 20.96 percent use threshers to harvest the food grains. This is a good progress as compared to the previous agriculture census of 2001/02. The previous Census showed that the percentage of farm households using tractors and threshers was less than 10 percent of the total holdings. Similarly, around 14.30 percent farm households have reported using pumping sets or motors for irrigation.</div> <div> </div> <div> The progress in farm mechanization is good but it’s not enough. Nevertheless, we should feel happy that farm mechanization has increased without any encouragement from the government. This shows that the Nepali farmers are responsive to change in the market forces. On its part, the government should introduce suitable policies offering tax exemption on the import of agricultural tools and equipment. If possible, it should also provide grants in the case of high-price equipment. Similarly, the government should implement policies to facilitate agro loans. The process of sanctioning agro-loans should be made easy and hassle-free. Agro loans must be made cheaper. At present, a farmer has to pay up to 16 per cent interest on loans to buy tractors whereas a car loan comes at an interest rate of six percent. Such discrepancies should be removed. The government and the central bank should work on this.</div>', 'published' => true, 'created' => '2013-12-31', 'modified' => '2013-12-31', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares.', 'sortorder' => '2212', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 12 => array( 'Article' => array( 'id' => '2327', 'article_category_id' => '144', 'title' => 'Meaning Of Nepse Rise', 'sub_title' => '', 'summary' => null, 'content' => '<div> The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.</div> <div> </div> <div> The victory of pro-free market political parties in the election, decrease of interest rates in the banking system and the directive of Nepal Rastra Bank (NRB) to implement Basel-III in banks and financial institutions are some of the reasons behind the sudden rise in the stock market. Those who are skeptical about the rise are claiming that this is not a natural rise but the result of speculative investment by some ‘players’ of the stock market as the reason. </div> <div> </div> <div> However, there are some macroeconomic factors which suggest that the rise in the stock prices could be natural. For example, the latest manufacturing index shows that the manufacturing sector is growing. Similarly, the growth rate of the country’s trade deficit has decreased significantly in the first four months of the current fiscal year as compared to the same period of the previous fiscal year. All political parties have, in their election manifestos, committed not to organize bandhs and general strikes in the days to come. This could have boosted the morale of the investors.</div> <div> </div> <div> The political parties now need to walk the talk. They should not organize any kinds of bandhs and general strikes. The people voted for a change in the elections held last month. Now the investors are supporting that change by showing their confidence in the stock market. The donor agencies and Nepal’s development partners, too, should not support any kind of bandh or strike under any pretext.</div> <div> </div> <div> This, however, doesn’t mean that the investors don’t need to be watchful. The information disseminated by all media or newspapers about the rise in Nepse index may not be the gospel truth. Similarly, some information could be misunderstood. Therefore, investors – old and new ones alike – should carefully analyse all the information before they decide to sell or buy the shares. </div> <div> </div> <div> In this context, what the investors need to understand about NRB’s directive regarding the implementation of Basel III – said to be one of the main reasons behind the rise in the price of banks’ shares – is that this is not an entirely new development. The central bank had introduced this concept three years back with the purpose of implementing it gradually. The implementation of Basel III doesn’t mean that all banks and financial institutions have to raise their paid-up capital to Rs 5 billion. What Basel III means is the banks need to increase their capital adequacy. It doesn’t mean that all banks must increase their paid-up capital. Similarly, the victory of the supporters of free market economy in the CA elections has certainly boosted the confidence of the general public and investors. This looks like one of the major reasons behind the rise in the Nepse index.</div> <div> </div> <div> However, the political equation of the next government to be formed is not clear yet. The economic policies to be adopted by the new government, too, are not clear, now. Therefore, it will not be wise to simply assume that the Nepse index will, like after the 2008 CA polls, cross the 1175 points this time too. Any investment on such an assumption could be risky; the investors should carefully analyse their risk-taking capacity and invest accordingly.</div> <div> </div> <div> Nevertheless, there is enough liquidity in the banking system at present, causing the interest rate on deposits to come down. So, the amount which would otherwise have gone to the banks in the form of deposits has come to the share market. On the other hand the demand for shares is more than the supply at present. Similarly, one of the fundamental indicators that is used to evaluate the market price of stocks is the Price-Earning (PE) ratio. Although the PE ratio of some listed companies is as high as 75 per cent, the average PE ration of most of the companies is around 20 percent which is natural. Therefore, the socio-economic condition of the country and the fundamental as well as technical indicators of the listed companies reveal that there is still the possibility of making money by investing in shares.</div>', 'published' => true, 'created' => '2013-12-23', 'modified' => '2013-12-23', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.', 'sortorder' => '2173', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 13 => array( 'Article' => array( 'id' => '2281', 'article_category_id' => '144', 'title' => 'Tackling Trade Deficit', 'sub_title' => '', 'summary' => null, 'content' => '<div> Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent. Trade experts are citing increase in the export of woolen carpets, readymade garments, pashmina and handicrafts – some of the country’s major exportable items – and a drastic decrease in the import of gold as the major reasons behind the significant drop in the trade deficit.</div> <div> </div> <div> The decrease in trade deficit is significant because it has taken place in spite of a sharp increase of 14.4 per cent in the import of petroleum products. Nepal’s total export in the first four months of this fiscal year stands at around Rs 29.62 billion whereas the import of petroleum products alone has been worth more than Rs 37.85 billion over this period. However, we can take a sigh of relief as the import of gold has declined by 29.6 per cent and stood at Rs 6.29 billion in the first four months of the current fiscal year as compared to the same period last year. </div> <div> </div> <div> There is no doubt that the best way to tackle the trade deficit problem is increasing our exports. The government acknowledged this fact and set a target of increasing our total annual exports to the tune of Rs 100 billion in the last fiscal year itself. The target could not be reached in the last fiscal year. But there are some early signs that this target could be reached this fiscal year. The export of cardamom, honey, noodles, handmade paper and Pashmina – some of the major exportable items identified by Nepal Trade Integration Strategy 2010 – has gone up in the first four months of this fiscal year.</div> <div> </div> <div> Available trade statistics show that our exports go up when there are no industrial strikes. That is one of the major reasons for the recent increase in exports. Therefore, to make the decrease in trade deficit sustainable, the political parties and the trade unions affiliated to them must commit to make the industrial sector a strike-free zone. </div> <div> </div> <div> Besides encouraging exports, we should also focus on discouraging the imports of items such as gold and petroleum and substituting the import of commodities such as iron and steel. The policy of discouraging the import of gold should be given continuity. Though the demand for gold cannot be controlled by banning imports, there can be ways to meet the demand for gold for investment purpose as shown by India which has allowed the banks to accept ‘gold deposits’ whereby the bank buys gold on the name of the customer in the international market with the money the bank has parked abroad. </div> <div> </div> <div> To lower the import of petroleum, the government should allow the mixing of permissible amount of ethanol in petrol. Many countries are already doing this. Ethanol is produced as a byproduct by the sugar factories.</div> <div> </div> <div> On the other hand, the sugar factories produce electricity by converting thermal energy into electrical energy. This electricity which is produced by the burning of bagasse is more than the factories require. The government should buy the surplus electricity thus produced by the sugar factories. This way, we can add 20 to 25 MW of electricity to the national grid. This step would not only help us tackle the load-shedding problem to some extent but also help us partly substitute the import of diesel which is burnt to produce electricity for industries.</div> <div> </div> <div> Similarly, to substitute the import of iron and steel to some extent, we should start extracting iron from the identified mines and also explore new iron mines. But the irony is that the mines from where the metal used to be extracted traditionally are closed down. This process must be reversed.</div>', 'published' => true, 'created' => '2013-12-17', 'modified' => '2013-12-17', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent.', 'sortorder' => '2124', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 14 => array( 'Article' => array( 'id' => '2238', 'article_category_id' => '144', 'title' => 'Improve Supply Side Constraints', 'sub_title' => '', 'summary' => null, 'content' => '<div> World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round. Issues addressed in the Bali Package have theoretically paved way to boost development goals and trading capacities of the Least Developed Countries. While the agreement is definitely promising for increasing Nepali products that reach international market, it alone is not sufficient to bridge the nation’s existing trade deficit. </div> <div> </div> <div> Presently Nepal has been receiving preferential market for 81 percent of its total exports under the Duty Free Quota Free (DFQF) system from various WTO member nations. Considering the existing trade deficit, it becomes evident that it has not been able to exploit facilities provided to it as a LCD member nation of the WTO. This fact is evident of the necessity for focusing on issues that are hindering its export capabilities rather than solely relying on receiving trade aid from the international community. Primary focus in this regard should be to find and resolve existing supply side constraints that could provide much needed boost to Nepal’s trading capacities. </div> <div> </div> <div> Supply side constraints start right from the production facility. Even though many Nepali products have good demands in the international market, political unrest, labour strikes, transport bottlenecks and unfriendly government policies have deterred production of these products and their delivery to the destination market. The Nepali State should focus on minimizing these deterrents to ensure smooth production and supply of goods. </div> <div> </div> <div> Nepal specializes in exporting agro products. Still it lacks a cold chain facility trading route. Even within the nation, it lacks a coordinated and interlinked cold chain that could facilitate agro trade. Facilitating the private sector for provision of such a chain, would provide boost to exports</div> <div> </div> <div> Another bottleneck in the export of agro-products is the lack of well equipped quarantine checkposts. Added to that is the lack of an agency that is competent and recognized internationally for quality certification. </div> <div> </div> <div> Quality is an essential factor in trading. Consumers always look for quality. Setting up an independent mechanism that could provide international quality certificate to products can ensure that exported products are not returned back citing quality reasons. Such certification system will increase brand image of Nepali products in international market and provide sustainable basis for steady trade growth. </div> <div> </div> <div> Identifying potential market and facilitating linkages between prospective producers and traders need to be ensured. Nepal has immense potentials for producing exportable agro and manufacturing products. People can meet the demands of the market, if there is market. The only prerequisite on the state’s side is to create conducive climate for these products and to identify market opportunities. </div> <div> </div> <div> Lengthy national and international customs regulations have been pointed out as great barriers for smooth trans-border trade. Bali Package pledges to address this issue but that will not sufficient. Nepal should on its own initiate talks for easing off custom regulations with nations that it does business with. It’s high time for Nepal to hold negotiations with its trading nations for streamlining custom regulations.</div>', 'published' => true, 'created' => '2013-12-09', 'modified' => '2013-12-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round.', 'sortorder' => '2081', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 133]Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/subindexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ), (int) 2 => array( 'Article' => array( [maximum depth reached] ) ), (int) 3 => array( 'Article' => array( [maximum depth reached] ) ), (int) 4 => array( 'Article' => array( [maximum depth reached] ) ), (int) 5 => array( 'Article' => array( [maximum depth reached] ) ), (int) 6 => array( 'Article' => array( [maximum depth reached] ) ), (int) 7 => array( 'Article' => array( [maximum depth reached] ) ), (int) 8 => array( 'Article' => array( [maximum depth reached] ) ), (int) 9 => array( 'Article' => array( [maximum depth reached] ) ), (int) 10 => array( 'Article' => array( [maximum depth reached] ) ), (int) 11 => array( 'Article' => array( [maximum depth reached] ) ), (int) 12 => array( 'Article' => array( [maximum depth reached] ) ), (int) 13 => array( 'Article' => array( [maximum depth reached] ) ), (int) 14 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '9442', 'article_category_id' => '144', 'title' => 'Nepal Can Boost Growth by Bolstering Private Sector: World Bank/IFC Study', 'sub_title' => '', 'summary' => 'November 18: Nepal can boost sustainable investment and accelerate productivity with a comprehensive growth strategy that focuses on enabling the private sector and removing constraints to competitiveness by focusing on five priority sectors—tourism, agribusiness, education, health, and information technology, according to a new study by the World Bank and IFC.', 'content' => '<p>November 18: Nepal can boost sustainable investment and accelerate productivity with a comprehensive growth strategy that focuses on enabling the private sector and removing constraints to competitiveness by focusing on five priority sectors—tourism, agribusiness, education, health, and information technology, according to a new study by the World Bank and IFC.</p> <p>The two institutions’ first joint Country Private Sector Diagnostic for Nepal found that institutional challenges and a demanding geography have made it difficult for Nepal to build on its unique advantages. These obstacles can be overcome with a new approach that focuses on strengthening institutions, infrastructure, and connectivity, while removing investment barriers, reads a joint statement issued by the two institutions.</p> <p>Prepared in close consultation with the government and other stakeholders, the report, Creating Markets in Nepal, assesses opportunities and provides recommendations and policy reforms that could enable the growth of a competitive private sector.</p> <p> “Cross-cutting constraints need to be addressed to attract private investment and expertise,” the statement quoted Nena Stoiljkovic, IFC Regional Vice President for Asia, as saying. “Simpler regulations, better infrastructure, stronger institutions, and more developed human capital can open the doors to investment.”</p> <p>In recent years, Nepal has made considerable progress in reducing poverty—from 46 percent in 1996 to 15 percent in 2011—but remains one of Asia’s poorest and slowest-growing economies, the report said.</p> <p>According to the World Bank, over the past 20 years, Nepal’s real GDP growth rate has hovered around 4 percent per year, 2.5 percentage points below the South Asian average. Remittances from Nepalese working abroad play a significant role in the country’s economy, accounting for 26 percent of the GDP in 2017, but can fluctuate greatly because of shifts in global economic conditions.</p> <p> </p> ', 'published' => true, 'created' => '2018-11-18', 'modified' => '2018-11-18', 'keywords' => '', 'description' => '', 'sortorder' => '9220', 'image' => '20181118033448_CPSD 1.jpg', 'article_date' => '2018-11-18 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '20' ) ), (int) 1 => array( 'Article' => array( 'id' => '2743', 'article_category_id' => '144', 'title' => 'For A Snow-ball Effect In Investment', 'sub_title' => '', 'summary' => null, 'content' => '<div> Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies. According to sources, the match-making event was very useful for the Danish companies to find suitable business partners in Nepal. Above everything, the event proved that Danish businessmen are really interested to invest in Nepal. This is a big vote of confidence to Nepal. Let’s hope this event will trigger a snowball effect for foreign investment in Nepal.</div> <div> </div> <div> The situation of foreign direct investment (FDI) in Nepal is not very encouraging. The country has received only Rs 18.9 billion FDI in the first seven months of the current fiscal year i.e. 2013/14 , Rs 19.94 billion in fiscal year 2012/13 and Rs 7.14 billion in the previous fiscal year. Against this backdrop, the initiative for business match-making taken by DANIDA is worth praising. It would be better if the international development agencies of other developed countries that are present in Nepal took their cue from DANIDA and organized similar match-making programmes in the future. Such efforts would be more fruitful than the annual grants they provide to Nepal.</div> <div> </div> <div> </div> <div> Business match-making is a popular international practice today. Match-making events are very useful in gathering the right people (businessmen) at one platform to explore business and investment opportunities through interaction among them. Several summits and conferences related to business and investment are organized in the country annually. Such programmes could be used as a platform for business match-making with a little homework and pre-planning. There are exclusive match-making companies in Europe and other countries which want to attract FDI. These companies organize business match-making events on a regular basis.</div> <div> </div> <div> There is huge prospect for such companies in Nepal. In Nepal, the match-making business could be a good business in itself. However, in the absence of exclusive match-making companies in the country, private sector umbrella organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) should take the lead in business match making. After all, these umbrella organisations have been organizing a number of business summits and conferences every year for the past few years. The need is to use such summits and conferences as match-making events. If we can do this, genuine foreign investors will find genuine local partners to start new businesses or add strength to the existing ones.</div> <div> </div> <div> The FNCCI in association with the government organized Nepal Economic Summit recently. In the Summit, FNCCI called on foreign investors to invest in 29 various projects. However, no foreign investor has come forward to invest in any of those projects so far. If this mega event were organised also as a match-making event, many foreign investors would have come and some of them might have shown interest in these projects. </div> <div> </div> <div> The government, given the sad situation of FDI in the country, should do everything at its disposal to attract FDI. There is no harm if the government goes out of the way to attract foreign investment. For example, if foreign investors demand full tax exemptions for a certain period of time, the government should agree to such demands without any hesitation. This will surely help attract foreign investment. Foreign investment will create employment opportunities in the country. It would more than compensate the loss incurred by the tax exemption as foreign investment would create employment opportunities in the country. </div>', 'published' => true, 'created' => '2014-03-10', 'modified' => '2014-03-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies.', 'sortorder' => '2584', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 2 => array( 'Article' => array( 'id' => '2700', 'article_category_id' => '144', 'title' => 'Let Everybody Be Transparent', 'sub_title' => '', 'summary' => null, 'content' => '<div> As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run. </div> <div> </div> <div> It is a common knowledge in Nepal that most businessmen and industrialists keep three different versions of account books – one for the purpose of tax, another for the purpose of taking loan from banks and the last one is the real one which they keep with themselves to know the exact situation of their companies and businesses. Now banks have started demanding copies of the same audited balance sheets which businessmen and industrialists submit to the tax office. Unlike in the past, auditors too are refraining from preparing and certifying separate income-expenditure details for the same business.</div> <div> </div> <div> But customers (read businessmen), according to bankers, are refraining from providing such information. They are even ready not to take loans when pressed for audited balance sheets. This hesitation from businessmen to make a true financial disclosure is not good; it is blocking transparency in the country’s financial system.</div> <div> </div> <div> Everybody should be transparent. The business community needs to be even more transparent to set an example in society. Therefore, businessmen should stop preparing separate income-expenditure details for the same business. This is an old trick to evade taxes which has worked so far because it has been allowed to work. But if the government authorities are watchful enough, it is not going to work anymore.</div> <div> </div> <div> However, it would be naïve to expect only the business community to be transparent. Our bureaucracy, political parties and politicians should be transparent as well. Because it is ultimately the country’s bureaucracy and political class that are making the country’s business non-transparent. Bureaucrats demand hefty bribes from the business community. Besides bribes, politicians receive hefty sums of money in donation from the business community who, on their part, cannot claim such spending as expenditure in their books. Similar is the case of the extortion money that the business community is forced to pay to different kinds of extortionists. Donations and extortion cannot be shown as expenditure in the books of account. So, businessmen resort to other ways for compensation. Evading tax, though illegal, is one such way.</div> <div> </div> <div> The political parties should start publicly declaring donations as income in their accounts so that the businessmen, on their part, can declare such donations as expenditure in their accounts. The government should provide enough security to the business community so that the latter doesn’t have to yield to extortion threats from mushrooming criminal gangs. </div> <div> </div> <div> The NRB should go ahead with its plan to implement the KYC norms in the country’s banking system at the earliest possible. It seems the implementation of the KYC norms alone can right various wrongs at various places. </div>', 'published' => true, 'created' => '2014-03-03', 'modified' => '2014-03-03', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run.', 'sortorder' => '2544', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 3 => array( 'Article' => array( 'id' => '2656', 'article_category_id' => '144', 'title' => 'Unbundle NEA', 'sub_title' => '', 'summary' => null, 'content' => '<p> Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.<br /> <br /> Only five projects (440 MW Tila I, 420 MW Tila II, 282 MW Manang Marsyangdi, 182 MW Upper Marsyangdi and 400 MW Lower Arun) submitted proposals to the NEA. This number is quite low considering the fact that over two dozen foreign promoters have taken license for construction of hydropower projects in Nepal. Foreign promoters of big hydropower projects like the 900MW Upper Karnali, 900MW Arun III, 600MW Upper Marshyangdi etc did not show interest in NEA’s offer.<br /> <br /> A committee has been formed under the deputy head of the Planning Directorate of NEA to study the proposals. The committee will also hold dialogue with promoters of the projects that have submitted proposals. Among the big projects, GMR Energy Limited, India that is constructing 900 MW Upper Karnali and 600 MW Upper Marsyangdi, Sutlej Hydro Power Corporation, India that is developing 900 MW Arun III and Statkraft International Hydro, Norway that is developing 650 MW Tamakoshi III did not submit proposals.<br /> <br /> NEA’s attempt to procure electricity from export-oriented projects is laudable as it will ease the power supply situation during the winter. However, all the five projects that have responded to NEA’s offer are run-of-theriver projects; their production will drastically decrease during the winter. It means NEA will need other suppliers as well to meet the energy crisis during the winter. Here, the question is why the foreign promoters of big hydropower projects showed no interest in NEA’s offer.<br /> <br /> Do they doubt NEA’s capacity to pay for the electricity purchased? We cannot completely rule out this possibility as NEA’s balance sheet shows that it has been incurring huge annual losses. It is a government-owned company but the government is yet to fully back it. NEA currently earns Rs 8.05 per unit on an average by selling electricity. So, the export-oriented projects which did not submit proposals to sell electricity to NEA might have pondered how NEA was going to pay Rs 10.60 per unit to procure electricity.<br /> <br /> NEA has been responsible for generation, transmission and distribution of electricity in the country for more than last two decades. It was established in 1985 after three independent government bodies, namely: the Electricity Department, Electricity Board and Nepal Electricity Corporation merged. This intervention was suitable at that time because the generation capacity of the country was small and less human resource was employed in these organisations.<br /> <br /> Sadly, as it is often the case, services provided by government monopolies lead to losses due to inefficient management, overstaffing, institutional corruption, and politicization. The financial haemorrhage of NEA in the last three decades of its establishment has compelled everyone to look for alternative ways of reducing these losses. One of the ways of doing that is unbundling infrastructure services vertically, so that the services are provided efficiently and in a competitive manner.<br /> <br /> The government has already come up with a plan for functional unbundling of NEA in three different segments — generation, transmission and distribution. However, it is still a plan which exists on paper only and is strongly opposed by top NEA staff. The government needs to implement this plan.</p>', 'published' => true, 'created' => '2014-02-23', 'modified' => '2014-02-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.', 'sortorder' => '2500', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 4 => array( 'Article' => array( 'id' => '2603', 'article_category_id' => '144', 'title' => 'New Govt, Old Challenges', 'sub_title' => '', 'summary' => null, 'content' => '<div> The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year. The reason behind the UML’s boycott is apparently the PM’s refusal to give the party the home ministry. But the reason behind the UCPN (Maoist) voting against Koirala in the parliament is not clear yet; the party simply ignored its previous public statement to support a Koirala-led government. </div> <div> </div> <div> These two instances are just a symptom of the kind of challenges the new government faces on the political front; they signal how old problems of power game are very much likely to haunt the new government and thus affect the constitution drafting process. The political impact of UML’s boycott is already seen – Koirala has not been able to expand his Cabinet even almost after a week of assuming office. Clearly, drafting the new constitution within the stipulated time is going to be an uphill task for the government led by Koirala who was elected the prime minister more than two months after the CA election. </div> <div> </div> <div> The new constitution is possible only with the consensus and unity among all political parties. Forging such consensus is the biggest challenge that the new government faces. </div> <div> </div> <div> Similarly, it is a validly-drawn conclusion that the new government faces a number of old challenges on the economic front as well. Long hours of load-shedding, a double-digit inflation, low capital expenditure, low foreign investment and high rate of unemployment are some of the chronic problems that the new government has inherited from its predecessor. </div> <div> </div> <div> The problem of power outage has become chronic. It has taken a huge toll on the country’s manufacturing sector. Almost all parties, including PM Koirala’s Nepali Congress, have made commitments in their election manifestos to end the power crisis within the next five years. If this target has to be achieved, then the new government has no time to lose; it must start creating the right environment for foreign investment in hydropower right now.</div> <div> </div> <div> Besides, a number of bills related with the country’s business and economic sector have been pending at the parliament for a long time. Successive governments have failed to get them enacted through the parliament. Special Economic Zone Act, Electricity Act, Bank and Financial Institution Act etc are some of the bills pending at parliament. On the other hand, there are a number of crucial laws which have not been even tabled at the parliament. Some of them include the drafts of Industrial Enterprises Act, Labour Act, Anti-dumping Act, Company Act (amendment), and Foreign Trade Regulation Act, among over a dozen others. Similarly there are some policies such as Foreign Investment and Technology Transfer Policy, Integrated Intellectual Property Policy which need the government’s endorsement. </div> <div> </div> <div> The private sector hopes the new government will act fast to implement these laws and policies at the earliest possible. Another major expectation of the private sector is the issue of peace and constitution should no more overshadow the agenda of economic development. The government should play the role of a facilitator to form common economic agenda of all the political parties. It means even if the parties differ on political issues, they should stand together on the economic issues. Similarly, the government has to do everything at its disposal to foster the environment for entrepreneurship in the country. </div>', 'published' => true, 'created' => '2014-02-18', 'modified' => '2014-02-18', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year.', 'sortorder' => '2447', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 5 => array( 'Article' => array( 'id' => '2557', 'article_category_id' => '144', 'title' => 'Manning MAN With Right Men & Women', 'sub_title' => '', 'summary' => null, 'content' => '<div> Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal. The Association also claims to have a strong membership base of over 2000 individuals and 250 institutions from different disciplines and sectors of the Nepali economy and society. </div> <div> </div> <div> Ideally, almost all MAN members and its top leadership are supposed to be management professionals. However, going by the lists of persons elected in the executive committees of MAN so far, it appears that the Association is by and large dominated by existing and former bureaucrats. The presence of private sector managers in the top leadership of MAN is very low. This is really unfortunate. Going by the very name of the organization, it would be no exaggeration to say that MAN should have been led and moved forward by private sector managers who have proved to be better managers than their public sector counterparts. </div> <div> </div> <div> Similar organizations in other countries are led by the corporate people or private sector managers. Two examples of such organizations with whom MAN has close links are the American Management Association (AMA) and All India Management Association (AIMA). The management teams or office bearers of Both AMA and AIMA are all representatives of the American and Indian corporate sector, respectively. But this is not the case with MAN.</div> <div> </div> <div> Bureaucrats are bureaucrats and they remain so as long as they hold their government positions. We are not questioning their capabilities. But the true talent of many bureaucrats is seen only after they are retired; as long as they are serving, they cannot function to the fullest of their capacity as MAN leaders because of various reasons. For example, they cannot criticize the government or raise issues with the government as strongly as private sector managers can. Also, when it comes to management, the Nepali experience has shown that private sector managers are more efficient than the public sector managers or bureaucrats.</div> <div> </div> <div> Therefore, manning the top management of MAN with the right men and women (read corporate sector managers and leaders) is the first and foremost challenge that MAN faces at present. MAN can never achieve the success or triumph it deserves without addressing this challenge first. In this context, the 33rd AGM of MAN should become a turning point. It should elect as many private sector managers and leaders as possible as its leaders.</div> <div> </div> <div> MAN is an organization with immense potential. It can become as strong as organizations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI). But MAN has not been able to become so because of the weak presence of the corporate sector in its leadership. Therefore, the Nepali corporate sector, on its part, should come forward to hold the reins of MAN and steer it to the right direction.</div>', 'published' => true, 'created' => '2014-02-09', 'modified' => '2014-02-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal.', 'sortorder' => '2401', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 6 => array( 'Article' => array( 'id' => '2546', 'article_category_id' => '144', 'title' => 'Patenting Intellectual Property', 'sub_title' => '', 'summary' => null, 'content' => '<div> It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it. The registration of a patent of a product in any part of the world excludes others from making or selling it elsewhere. Similarly, patenting a process excludes others from using it. In that sense patenting is a very crucial process. </div> <div> </div> <div> But it may be because of the lack of awareness, the trend to patent a product or process is very low in Nepal. This has resulted in serious lapses. For example, as India has registered the patent for tea, Nepali tea goes to the international market as Indian tea. Similarly, as no one registered for the patent of Pashmina shawls in Nepal which is a typically Nepali product, Nepal had to register the trademark of pashmina as Chyangra Pashmina.</div> <div> </div> <div> Patent registration is an indicator of the level of development of any country. The more the number of patents registered in a country, the more developed it is. Going by this logic, it’s no wonder that Nepal still remains an underdeveloped country. Most Nepalis are not aware of the importance of patent rights. They don’t know how crucial it is to register a patent for industrial development. Nepalis perhaps don’t realize the importance of patents in protecting intellectual properties. Therefore, the government or even private sector organizations need to organize awareness programmes on the importance of patent registration.</div> <div> </div> <div> Through the ‘Patent, Design and Trademark Act – 2022 BS’, Nepal began the process of the registration of the ownership of intellectual property some 48 years back. The Department of Industry (DoI) has been registering patents since then. Another act titled ‘The Copyright Act 2002’ has been enacted to prevent the plagiarism of written or audio-visual items which too are intellectual properties. There is a separate body called Nepal Copyright Registrar’s Office for the registration of copyrights.</div> <div> </div> <div> The country perhaps needs to merge the above-mentioned two Acts into one comprehensive Act and create an autonomous body for the registration and monitoring of industrial as well as non-industrial intellectual property rights. This will help protect and promote the intellectual properties.</div> <div> </div> <div> Another major reason why the number of patent registration is low in Nepal is one has to go to the DoI for the registration of patents. This provision should be changed and patent registration should be made possible from each and every districts. Nepal should learn from neighbouring India in this case. In India, there is a separate body for the registration, promotion and protection of intellectual property rights. </div> <div> </div> <div> This body has offices in India’s major cities such as Ahamedabad, Mumbai, Chennai, New Delhi, Kolkata etc where intellectual properties can be registered. Besides this, there are a number of private sector organizations in India that facilitate the registration of the ownership of intellectual properties. Foreigners and foreign companies go to India to buy the patent rights of various products and processes every year. Indian patentees earn a lot of money by selling their patent rights to foreigners. </div> <div> </div> <div> The same practice should be encouraged in Nepal. Nepal’s possibilities for registering patents are especially in the sector of information and technology. Nepali youths engaged in this sector should be motivated to register patents for the products such as software. Later, they can sell such patents and earn a lot of money. </div>', 'published' => true, 'created' => '2014-02-08', 'modified' => '2014-02-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it.', 'sortorder' => '2391', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 7 => array( 'Article' => array( 'id' => '2516', 'article_category_id' => '144', 'title' => 'All Big Companies Should Go Public', 'sub_title' => '', 'summary' => null, 'content' => '<div> Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.</div> <div> </div> <div> There are many advantages for a company going public. The financial benefit in the form of raising capital is the most distinct advantage. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers. </div> <div> </div> <div> Still, MNCs like Dabur Nepal, Surya Nepal, Asian Paints etc are not listed at Nepse. The parent companies of these MNCs are, however, listed at the capital markets of their respective countries. Very few MNCs like Uniliver, Bottler’s Nepal and Taragaon Regency Hotels are listed at the capital market. The MNCs operational in Nepal perhaps don’t need to raise capital from the general public as their principals abroad have deep pockets.</div> <div> </div> <div> Besides MNCs, there are big companies run by the established business houses in the country that are reluctant to go public. These companies have not felt the need to issue IPO as their owners are often the promoters of banks and insurance companies. So, they can get loans from the banks and can also claim insurance comparatively easily.</div> <div> </div> <div> But raising capital is not the only reason why a company should go public. Public companies are expected to be more transparent as they have to abide by the rules and regulations of the regulator of the capital market which is the Securities Board of Nepal (SEBON) in our case. Public companies have to issue periodic financial reports and hold AGMs which means added disclosure for investors. These activities put pressure on public companies to be more transparent. Maintaining transparency enhances the public image of companies. There is no reason why a company should not try to become more transparent.</div> <div> </div> <div> Recently, the government has started preparations to make all telecommunications companies as public companies. This step by the government is welcome. So far, only the state-owned Nepal Telecom is a public company. Other telecom operators such as NCell, United Telecom, STM Telecom, Smart Telecom, Nepal Satellite etc are operating as private companies. The government wants all these existing companies to go public and has indicated that new entrants will be issued license only after they agree to become a public company.</div> <div> </div> <div> A committee formed to study cross holding in telecoms has already forwarded its suggestions to the government. According to the suggestions, the ceiling of cross holding in public companies should be restricted to 15 per cent. Similarly, the committee has suggested that the share of one person or group should not be more than 51 per cent. However, the committee has suggested that the current provision for a foreign investor to hold up to 80 percent of shares in a company should be given continuity. </div> <div> </div> <div> There is a need to revise this provision, if not in the case of the existing companies then in the case of new companies where two or more foreign investors should be allowed to hold up to 80 per cent of shares. Such a policy would make sure that there two or more foreign investors in one company and if one of them wants to make an exit, any of the other companies can buy the shares.</div>', 'published' => true, 'created' => '2014-01-27', 'modified' => '2014-01-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.', 'sortorder' => '2359', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 8 => array( 'Article' => array( 'id' => '2464', 'article_category_id' => '144', 'title' => 'What About Ethics In Politics?', 'sub_title' => '', 'summary' => null, 'content' => '<div> A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.</div> <div> </div> <div> The importance of ethics in business cannot be overemphasized. Ethical behaviour can bring significant benefits to a business by attracting customers to its products, reducing labour turnover and thus increasing productivity and attracting investors and keeping the company’s share prices high, among other ways. </div> <div> </div> <div> But the conference evoked some simple questions: is the Nepali business community one of the segments of society that needs a lesson or two in ethics? Are the Nepali businessmen really unethical and hence need sermons on business ethics the most? What about ethical practices in the bureaucracy and politics? Ethics concern an individual’s moral judgments about right and wrong. If so, are Nepali businessmen most wrongdoers that they are being lectured on ethics while the politicians and bureaucrats are apostles of ethics?</div> <div> </div> <div> Definitely not. The ethical standards of Nepali business community look higher than those of many other segments of society including the government bureaucracy and political parties. And, in fact, at the root of whatever unethical business practices we have lies in the government and politics. There are many instances where the government has been rewarding unethical practices. For one, this is reflected in the government’s decision to waive taxes of different companies, in awarding licenses to start various businesses. This is reflected also in the actions of the government regulators of different businesses. </div> <div> </div> <div> The situation of ethics in the country’s politics is appalling. So much so that many find ‘ethics in politics’ as contradiction. It is because of the lack of ethics in politics that people do not place much trust on the political parties and politicians. Political parties are far from maintaining transparency in their financial transactions and deals. And that is why most politicians are seen as selfish and corrupt power-players who are not responsible and who defend special interests instead of the common good. That is why Transparency International reports have repeatedly depicted politicians and bureaucrats as the most corrupt. </div> <div> </div> <div> Ethics in politics matters the most in Nepal because it directly affects everything else including ethics in business. Lack of ethics in politics has a much wider impact than lack of ethics in business. Businesses have to sell their products or services on a daily basis. This means their ethics is being tested almost on a daily basis by the buyers as well as the employees. This is because they tend to be more ethical in their actions, behaviours and decisions. On the other hand, the ethics of politicians is challenged everyday but it is tested only through elections. Such elections are not yet regular in Nepali democracy. </div> <div> </div> <div> The delay in the first sitting of the Constituent Assembly (CA) and forming a new government even after two months of CA election could be the latest and simplest example of the lack of ethics in Nepali politics. The episode has exposed the ethical and moral dilemmas and deficiencies of a range of actors in Nepali politics including the President, Chairman of the Council of Ministers, the major political parties which are tipped to form the new government and the parties which have been mandated by the people to sit in opposition.</div> <div> </div> <div> The bottom line is: the political class needs to be reminded of ethics more frequently than any other segment of society. Therefore, conferences on ethics in politics are wanted more urgently than conferences on ethics in business. </div> <div> </div>', 'published' => true, 'created' => '2014-01-20', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.', 'sortorder' => '2305', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 9 => array( 'Article' => array( 'id' => '2448', 'article_category_id' => '144', 'title' => 'Better Late Than Never', 'sub_title' => '', 'summary' => null, 'content' => '<div> The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent. </div> <div> </div> <div> It has been long proved that the Kathmandu Valley denizens are sitting on top of a huge deposit of underground natural gas which is highly combustible and can be utilized as a dependable alternative source of energy. In some areas of Patan, Thapathali and Tripureswor, the gas is being tapped by individual households free of cost.</div> <div> </div> <div> Studies carried out by the DMG with the help of donor agencies such as JICA from the late 1970S to late 1990s indicate the gas reserves can fulfill the domestic energy needs of an estimated 20,000 households in Kathmandu Valley for 30 years. In the past, the DMG had dug 14 gas wells in an area of 26 sq kms including Teku, Tripureswor and Koteswor of Kathmandu, and Imadol and Tikathali of Lalitpur. </div> <div> </div> <div> The DMG even established a model gas plant in Teku in 1983 which stopped operating in the late 1990s. The experiment was to see if gas supply was consistent enough for commercial use. According to sources at DMG, the gas collected in the plant was supplied to various government offices in the immediate vicinity of the model plant. </div> <div> </div> <div> In 2001, the DMG even floated a project titled ‘Kathmandu Gas Project’ in the private sector. But no private company showed any interest in the project. DMG had initiated the project with the help of JICA and UNDP, concluding that a potential gas reserve of about 300 million cu m exists in central and southern Kathmandu as far back as 1978.</div> <div> </div> <div> Reports on past exploration of the Valley’s gas have shown that the gas is biogenic and is mixed with water. This could be the reason why private investors think that the returns from gas excavation might not be very lucrative. That’s why they have not come forward for the excavation process. The DMG hopes that private investors can be roped in once it is established that the gas in the valley is commercially viable. That’s why it has decided to spend Rs 5 million initially in the exploration and excavation of gas at Imadol of Lalitpur. The DMG also hopes that this gas could be sold to housing companies or it can be used to produce thermal electricity of around 2 MW. </div> <div> </div> <div> However, instead of producing thermal energy from this gas, it would be wise to fill it in cylinders and supply it for household use or as fuel to means of transport. The import of petroleum gas from India is one of the major reasons behind our widening trade deficit with the southern neighbour. If the Valley’s gas can be used for cooking, for example, the import of LPG from India can be decreased to some extent. The government should think along this line. If the government’s experiment becomes successful, private investors will certainly come forward for the excavation of the gas.</div>', 'published' => true, 'created' => '2014-01-19', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent.', 'sortorder' => '2294', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 10 => array( 'Article' => array( 'id' => '2417', 'article_category_id' => '144', 'title' => 'All Play, No Work', 'sub_title' => '', 'summary' => null, 'content' => '<div> Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days. </div> <div> </div> <div> After the success of the 2006 April Movement, known as Jana Aandolan II, many of the birthday-cum-holidays of the monarchs of old were scrapped only to be replaced with the likes of Lokatantra Diwas and Ganatantra Diwas. In addition, the newly declared secular state was under immense pressure from various religious and ethnic groups to declare their festivals as public holidays. So, the state declared those days as public holidays as demanded to, perhaps, prove its multicultural and multi-ethnic credentials.</div> <div> </div> <div> But that has not satisfied everyone, though Nepal celebrates an average of one public holiday a week. There are still several ethnic minorities who are demanding that the government declare their festivals, too, as national holidays. Imagine all the days that could now be declared holidays if the country was to acknowledge the myriad minorities that are today asserting their rights and identities, on and off the official calendar. </div> <div> </div> <div> If festivals of all communities are declared as public holidays, most public as well as private offices would be closed for almost the entire year! We certainly don’t want such a situation to emerge. In fact, the Administration Restructuring Commission (ARC) formed in 2009 has already advised the government to reduce the number of public holidays drastically. Established by then Maoist-led government under the chairmanship of the Minister for General Administration, the ARC claimed that the civil service would become more effective if its recommendation was implemented.</div> <div> </div> <div> Presently, Hindus get more festival holidays than other religious groups who don’t mind it because they too get holidays on such days. A non-Hindu would perhaps like to work on the public holidays meant for the Hindus. Similarly, a Hindu would like to work on the festival holidays meant for other religious groups. The government should allow them to do so. For example, if a Buddhist or a Christian or a Muslim wants to work on Shivaratri or Janai Purnima and take a day off on some other important festivals of theirs, they should be allowed to do so. This would be judicious, too.</div> <div> </div> <div> Therefore, the government will do well to fix the number of festival holidays for the entire year and leave it to the employees to decide when they want to take their festival holidays according to their needs, interest and culture. This way, every employee will not want to take a day off on all festivals and offices will be open every day except the weekly day off on Saturday and the national holidays. The number of national holidays, too, should be as minimum as possible.</div> <div> </div> <div> In India, there are only three national holidays. Other holidays are decided by the state governments. Similarly, there are only 11 festival holidays in China. Nepal should learn from such examples in its immediate neighbourhood. Therefore, long festival holidays of Dashain and Tihar should be cut down. Similarly, it’s not appropriate to declare public holidays for all on festivals like Shivaratri, Janaipurnima, Eid, birth anniversary of Guru Nanak, Ubhauli, Udhauli, Gaura Parba, Lhoshar, Maghi etc. Once the number of festival holidays is fixed for the entire year, the government employees and industry workers can take their festival holidays according to their choice.</div>', 'published' => true, 'created' => '2014-01-06', 'modified' => '2014-01-06', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days.', 'sortorder' => '2261', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 11 => array( 'Article' => array( 'id' => '2370', 'article_category_id' => '144', 'title' => 'The Shift In Nepali Agriculture', 'sub_title' => '', 'summary' => null, 'content' => '<div> The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares. Similarly, the Census has revealed that the number of households involved in vegetable farming has nearly doubled to 1.931 million from 977,000 in 2001-02. This means several things simultaneously. </div> <div> </div> <div> First, there is a growing interest of farmers in vegetable farming and cash crops. It is encouraging in terms of both food security and higher purchasing power of farmers. Growing fruits and vegetables is a much more profitable activity than the farming of cereals. The argument that the trend of famers shifting towards vegetables and other cash crops might have negative impacts on the country’s food security doesn’t hold much water. According to the Food and Agriculture Organization of the United Nations, people have food security when they are able to grow enough food or buy enough food to meet their daily needs for an active, healthy life. Vegetables and other cash crops are more lucrative anyway and farmers engaged in such type of farming always have the option of buying rice, wheat or maize by selling vegetables.</div> <div> </div> <div> Second, this trend also helps in boosting food diversification in the country and lowering the imports of vegetables which are high-value crops. Vegetables have tremendous market potential now and in the future as well. This also means there is huge scope for corporate investment in vegetable farming. Only big investments from the corporate sector can ensure large-scale commercialized vegetable farming in the country. </div> <div> </div> <div> Third, this trend needs to be encouraged. The donor community as well as the private sector in Nepal has been concentrating on the production of high-value vegetable crops. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has already implemented the concept of “one village, one product” in several districts. The farming of fruits and vegetables is particularly being promoted through this concept. Nepal’s hilly areas which have access to irrigation are particularly suitable for vegetable farming. According to experts, farmers can grow vegetables for up to five cycles in a year compared to the two cycles of cereal farming. Also, farmers growing vegetables don’t have to worry about market as vegetables sell easily in the market and have in fact become “quick and guaranteed returns”.</div> <div> </div> <div> Another important revelation of the Census is that Nepal’s agriculture has made some progress in terms of farm mechanization. The census shows that a good 22.04 percent farm households use tractors to plough their farmlands while 20.96 percent use threshers to harvest the food grains. This is a good progress as compared to the previous agriculture census of 2001/02. The previous Census showed that the percentage of farm households using tractors and threshers was less than 10 percent of the total holdings. Similarly, around 14.30 percent farm households have reported using pumping sets or motors for irrigation.</div> <div> </div> <div> The progress in farm mechanization is good but it’s not enough. Nevertheless, we should feel happy that farm mechanization has increased without any encouragement from the government. This shows that the Nepali farmers are responsive to change in the market forces. On its part, the government should introduce suitable policies offering tax exemption on the import of agricultural tools and equipment. If possible, it should also provide grants in the case of high-price equipment. Similarly, the government should implement policies to facilitate agro loans. The process of sanctioning agro-loans should be made easy and hassle-free. Agro loans must be made cheaper. At present, a farmer has to pay up to 16 per cent interest on loans to buy tractors whereas a car loan comes at an interest rate of six percent. Such discrepancies should be removed. The government and the central bank should work on this.</div>', 'published' => true, 'created' => '2013-12-31', 'modified' => '2013-12-31', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares.', 'sortorder' => '2212', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 12 => array( 'Article' => array( 'id' => '2327', 'article_category_id' => '144', 'title' => 'Meaning Of Nepse Rise', 'sub_title' => '', 'summary' => null, 'content' => '<div> The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.</div> <div> </div> <div> The victory of pro-free market political parties in the election, decrease of interest rates in the banking system and the directive of Nepal Rastra Bank (NRB) to implement Basel-III in banks and financial institutions are some of the reasons behind the sudden rise in the stock market. Those who are skeptical about the rise are claiming that this is not a natural rise but the result of speculative investment by some ‘players’ of the stock market as the reason. </div> <div> </div> <div> However, there are some macroeconomic factors which suggest that the rise in the stock prices could be natural. For example, the latest manufacturing index shows that the manufacturing sector is growing. Similarly, the growth rate of the country’s trade deficit has decreased significantly in the first four months of the current fiscal year as compared to the same period of the previous fiscal year. All political parties have, in their election manifestos, committed not to organize bandhs and general strikes in the days to come. This could have boosted the morale of the investors.</div> <div> </div> <div> The political parties now need to walk the talk. They should not organize any kinds of bandhs and general strikes. The people voted for a change in the elections held last month. Now the investors are supporting that change by showing their confidence in the stock market. The donor agencies and Nepal’s development partners, too, should not support any kind of bandh or strike under any pretext.</div> <div> </div> <div> This, however, doesn’t mean that the investors don’t need to be watchful. The information disseminated by all media or newspapers about the rise in Nepse index may not be the gospel truth. Similarly, some information could be misunderstood. Therefore, investors – old and new ones alike – should carefully analyse all the information before they decide to sell or buy the shares. </div> <div> </div> <div> In this context, what the investors need to understand about NRB’s directive regarding the implementation of Basel III – said to be one of the main reasons behind the rise in the price of banks’ shares – is that this is not an entirely new development. The central bank had introduced this concept three years back with the purpose of implementing it gradually. The implementation of Basel III doesn’t mean that all banks and financial institutions have to raise their paid-up capital to Rs 5 billion. What Basel III means is the banks need to increase their capital adequacy. It doesn’t mean that all banks must increase their paid-up capital. Similarly, the victory of the supporters of free market economy in the CA elections has certainly boosted the confidence of the general public and investors. This looks like one of the major reasons behind the rise in the Nepse index.</div> <div> </div> <div> However, the political equation of the next government to be formed is not clear yet. The economic policies to be adopted by the new government, too, are not clear, now. Therefore, it will not be wise to simply assume that the Nepse index will, like after the 2008 CA polls, cross the 1175 points this time too. Any investment on such an assumption could be risky; the investors should carefully analyse their risk-taking capacity and invest accordingly.</div> <div> </div> <div> Nevertheless, there is enough liquidity in the banking system at present, causing the interest rate on deposits to come down. So, the amount which would otherwise have gone to the banks in the form of deposits has come to the share market. On the other hand the demand for shares is more than the supply at present. Similarly, one of the fundamental indicators that is used to evaluate the market price of stocks is the Price-Earning (PE) ratio. Although the PE ratio of some listed companies is as high as 75 per cent, the average PE ration of most of the companies is around 20 percent which is natural. Therefore, the socio-economic condition of the country and the fundamental as well as technical indicators of the listed companies reveal that there is still the possibility of making money by investing in shares.</div>', 'published' => true, 'created' => '2013-12-23', 'modified' => '2013-12-23', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.', 'sortorder' => '2173', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 13 => array( 'Article' => array( 'id' => '2281', 'article_category_id' => '144', 'title' => 'Tackling Trade Deficit', 'sub_title' => '', 'summary' => null, 'content' => '<div> Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent. Trade experts are citing increase in the export of woolen carpets, readymade garments, pashmina and handicrafts – some of the country’s major exportable items – and a drastic decrease in the import of gold as the major reasons behind the significant drop in the trade deficit.</div> <div> </div> <div> The decrease in trade deficit is significant because it has taken place in spite of a sharp increase of 14.4 per cent in the import of petroleum products. Nepal’s total export in the first four months of this fiscal year stands at around Rs 29.62 billion whereas the import of petroleum products alone has been worth more than Rs 37.85 billion over this period. However, we can take a sigh of relief as the import of gold has declined by 29.6 per cent and stood at Rs 6.29 billion in the first four months of the current fiscal year as compared to the same period last year. </div> <div> </div> <div> There is no doubt that the best way to tackle the trade deficit problem is increasing our exports. The government acknowledged this fact and set a target of increasing our total annual exports to the tune of Rs 100 billion in the last fiscal year itself. The target could not be reached in the last fiscal year. But there are some early signs that this target could be reached this fiscal year. The export of cardamom, honey, noodles, handmade paper and Pashmina – some of the major exportable items identified by Nepal Trade Integration Strategy 2010 – has gone up in the first four months of this fiscal year.</div> <div> </div> <div> Available trade statistics show that our exports go up when there are no industrial strikes. That is one of the major reasons for the recent increase in exports. Therefore, to make the decrease in trade deficit sustainable, the political parties and the trade unions affiliated to them must commit to make the industrial sector a strike-free zone. </div> <div> </div> <div> Besides encouraging exports, we should also focus on discouraging the imports of items such as gold and petroleum and substituting the import of commodities such as iron and steel. The policy of discouraging the import of gold should be given continuity. Though the demand for gold cannot be controlled by banning imports, there can be ways to meet the demand for gold for investment purpose as shown by India which has allowed the banks to accept ‘gold deposits’ whereby the bank buys gold on the name of the customer in the international market with the money the bank has parked abroad. </div> <div> </div> <div> To lower the import of petroleum, the government should allow the mixing of permissible amount of ethanol in petrol. Many countries are already doing this. Ethanol is produced as a byproduct by the sugar factories.</div> <div> </div> <div> On the other hand, the sugar factories produce electricity by converting thermal energy into electrical energy. This electricity which is produced by the burning of bagasse is more than the factories require. The government should buy the surplus electricity thus produced by the sugar factories. This way, we can add 20 to 25 MW of electricity to the national grid. This step would not only help us tackle the load-shedding problem to some extent but also help us partly substitute the import of diesel which is burnt to produce electricity for industries.</div> <div> </div> <div> Similarly, to substitute the import of iron and steel to some extent, we should start extracting iron from the identified mines and also explore new iron mines. But the irony is that the mines from where the metal used to be extracted traditionally are closed down. This process must be reversed.</div>', 'published' => true, 'created' => '2013-12-17', 'modified' => '2013-12-17', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent.', 'sortorder' => '2124', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 14 => array( 'Article' => array( 'id' => '2238', 'article_category_id' => '144', 'title' => 'Improve Supply Side Constraints', 'sub_title' => '', 'summary' => null, 'content' => '<div> World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round. Issues addressed in the Bali Package have theoretically paved way to boost development goals and trading capacities of the Least Developed Countries. While the agreement is definitely promising for increasing Nepali products that reach international market, it alone is not sufficient to bridge the nation’s existing trade deficit. </div> <div> </div> <div> Presently Nepal has been receiving preferential market for 81 percent of its total exports under the Duty Free Quota Free (DFQF) system from various WTO member nations. Considering the existing trade deficit, it becomes evident that it has not been able to exploit facilities provided to it as a LCD member nation of the WTO. This fact is evident of the necessity for focusing on issues that are hindering its export capabilities rather than solely relying on receiving trade aid from the international community. Primary focus in this regard should be to find and resolve existing supply side constraints that could provide much needed boost to Nepal’s trading capacities. </div> <div> </div> <div> Supply side constraints start right from the production facility. Even though many Nepali products have good demands in the international market, political unrest, labour strikes, transport bottlenecks and unfriendly government policies have deterred production of these products and their delivery to the destination market. The Nepali State should focus on minimizing these deterrents to ensure smooth production and supply of goods. </div> <div> </div> <div> Nepal specializes in exporting agro products. Still it lacks a cold chain facility trading route. Even within the nation, it lacks a coordinated and interlinked cold chain that could facilitate agro trade. Facilitating the private sector for provision of such a chain, would provide boost to exports</div> <div> </div> <div> Another bottleneck in the export of agro-products is the lack of well equipped quarantine checkposts. Added to that is the lack of an agency that is competent and recognized internationally for quality certification. </div> <div> </div> <div> Quality is an essential factor in trading. Consumers always look for quality. Setting up an independent mechanism that could provide international quality certificate to products can ensure that exported products are not returned back citing quality reasons. Such certification system will increase brand image of Nepali products in international market and provide sustainable basis for steady trade growth. </div> <div> </div> <div> Identifying potential market and facilitating linkages between prospective producers and traders need to be ensured. Nepal has immense potentials for producing exportable agro and manufacturing products. People can meet the demands of the market, if there is market. The only prerequisite on the state’s side is to create conducive climate for these products and to identify market opportunities. </div> <div> </div> <div> Lengthy national and international customs regulations have been pointed out as great barriers for smooth trans-border trade. Bali Package pledges to address this issue but that will not sufficient. Nepal should on its own initiate talks for easing off custom regulations with nations that it does business with. It’s high time for Nepal to hold negotiations with its trading nations for streamlining custom regulations.</div>', 'published' => true, 'created' => '2013-12-09', 'modified' => '2013-12-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round.', 'sortorder' => '2081', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = false $xml = falseinclude - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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These obstacles can be overcome with a new approach that focuses on strengthening institutions, infrastructure, and connectivity, while removing investment barriers, reads a joint statement issued by the two institutions.</p> <p>Prepared in close consultation with the government and other stakeholders, the report, Creating Markets in Nepal, assesses opportunities and provides recommendations and policy reforms that could enable the growth of a competitive private sector.</p> <p> “Cross-cutting constraints need to be addressed to attract private investment and expertise,” the statement quoted Nena Stoiljkovic, IFC Regional Vice President for Asia, as saying. “Simpler regulations, better infrastructure, stronger institutions, and more developed human capital can open the doors to investment.”</p> <p>In recent years, Nepal has made considerable progress in reducing poverty—from 46 percent in 1996 to 15 percent in 2011—but remains one of Asia’s poorest and slowest-growing economies, the report said.</p> <p>According to the World Bank, over the past 20 years, Nepal’s real GDP growth rate has hovered around 4 percent per year, 2.5 percentage points below the South Asian average. Remittances from Nepalese working abroad play a significant role in the country’s economy, accounting for 26 percent of the GDP in 2017, but can fluctuate greatly because of shifts in global economic conditions.</p> <p> </p> ', 'published' => true, 'created' => '2018-11-18', 'modified' => '2018-11-18', 'keywords' => '', 'description' => '', 'sortorder' => '9220', 'image' => '20181118033448_CPSD 1.jpg', 'article_date' => '2018-11-18 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => true, 'in_scroller' => false, 'user_id' => '20' ) ), (int) 1 => array( 'Article' => array( 'id' => '2743', 'article_category_id' => '144', 'title' => 'For A Snow-ball Effect In Investment', 'sub_title' => '', 'summary' => null, 'content' => '<div> Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies. According to sources, the match-making event was very useful for the Danish companies to find suitable business partners in Nepal. Above everything, the event proved that Danish businessmen are really interested to invest in Nepal. This is a big vote of confidence to Nepal. Let’s hope this event will trigger a snowball effect for foreign investment in Nepal.</div> <div> </div> <div> The situation of foreign direct investment (FDI) in Nepal is not very encouraging. The country has received only Rs 18.9 billion FDI in the first seven months of the current fiscal year i.e. 2013/14 , Rs 19.94 billion in fiscal year 2012/13 and Rs 7.14 billion in the previous fiscal year. Against this backdrop, the initiative for business match-making taken by DANIDA is worth praising. It would be better if the international development agencies of other developed countries that are present in Nepal took their cue from DANIDA and organized similar match-making programmes in the future. Such efforts would be more fruitful than the annual grants they provide to Nepal.</div> <div> </div> <div> </div> <div> Business match-making is a popular international practice today. Match-making events are very useful in gathering the right people (businessmen) at one platform to explore business and investment opportunities through interaction among them. Several summits and conferences related to business and investment are organized in the country annually. Such programmes could be used as a platform for business match-making with a little homework and pre-planning. There are exclusive match-making companies in Europe and other countries which want to attract FDI. These companies organize business match-making events on a regular basis.</div> <div> </div> <div> There is huge prospect for such companies in Nepal. In Nepal, the match-making business could be a good business in itself. However, in the absence of exclusive match-making companies in the country, private sector umbrella organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) should take the lead in business match making. After all, these umbrella organisations have been organizing a number of business summits and conferences every year for the past few years. The need is to use such summits and conferences as match-making events. If we can do this, genuine foreign investors will find genuine local partners to start new businesses or add strength to the existing ones.</div> <div> </div> <div> The FNCCI in association with the government organized Nepal Economic Summit recently. In the Summit, FNCCI called on foreign investors to invest in 29 various projects. However, no foreign investor has come forward to invest in any of those projects so far. If this mega event were organised also as a match-making event, many foreign investors would have come and some of them might have shown interest in these projects. </div> <div> </div> <div> The government, given the sad situation of FDI in the country, should do everything at its disposal to attract FDI. There is no harm if the government goes out of the way to attract foreign investment. For example, if foreign investors demand full tax exemptions for a certain period of time, the government should agree to such demands without any hesitation. This will surely help attract foreign investment. Foreign investment will create employment opportunities in the country. It would more than compensate the loss incurred by the tax exemption as foreign investment would create employment opportunities in the country. </div>', 'published' => true, 'created' => '2014-03-10', 'modified' => '2014-03-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Representatives of a dozen Danish companies visited Nepal last week seeking investment opportunities and business partners in the country. The Danish International Development Agency (DANIDA) even organised a business match-making event in Kathmandu which was attended by 50 Nepali companies.', 'sortorder' => '2584', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 2 => array( 'Article' => array( 'id' => '2700', 'article_category_id' => '144', 'title' => 'Let Everybody Be Transparent', 'sub_title' => '', 'summary' => null, 'content' => '<div> As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run. </div> <div> </div> <div> It is a common knowledge in Nepal that most businessmen and industrialists keep three different versions of account books – one for the purpose of tax, another for the purpose of taking loan from banks and the last one is the real one which they keep with themselves to know the exact situation of their companies and businesses. Now banks have started demanding copies of the same audited balance sheets which businessmen and industrialists submit to the tax office. Unlike in the past, auditors too are refraining from preparing and certifying separate income-expenditure details for the same business.</div> <div> </div> <div> But customers (read businessmen), according to bankers, are refraining from providing such information. They are even ready not to take loans when pressed for audited balance sheets. This hesitation from businessmen to make a true financial disclosure is not good; it is blocking transparency in the country’s financial system.</div> <div> </div> <div> Everybody should be transparent. The business community needs to be even more transparent to set an example in society. Therefore, businessmen should stop preparing separate income-expenditure details for the same business. This is an old trick to evade taxes which has worked so far because it has been allowed to work. But if the government authorities are watchful enough, it is not going to work anymore.</div> <div> </div> <div> However, it would be naïve to expect only the business community to be transparent. Our bureaucracy, political parties and politicians should be transparent as well. Because it is ultimately the country’s bureaucracy and political class that are making the country’s business non-transparent. Bureaucrats demand hefty bribes from the business community. Besides bribes, politicians receive hefty sums of money in donation from the business community who, on their part, cannot claim such spending as expenditure in their books. Similar is the case of the extortion money that the business community is forced to pay to different kinds of extortionists. Donations and extortion cannot be shown as expenditure in the books of account. So, businessmen resort to other ways for compensation. Evading tax, though illegal, is one such way.</div> <div> </div> <div> The political parties should start publicly declaring donations as income in their accounts so that the businessmen, on their part, can declare such donations as expenditure in their accounts. The government should provide enough security to the business community so that the latter doesn’t have to yield to extortion threats from mushrooming criminal gangs. </div> <div> </div> <div> The NRB should go ahead with its plan to implement the KYC norms in the country’s banking system at the earliest possible. It seems the implementation of the KYC norms alone can right various wrongs at various places. </div>', 'published' => true, 'created' => '2014-03-03', 'modified' => '2014-03-03', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'As customers (mostly businessmen and industrialists) are refraining from making their true financial disclosures, banks are finding it hard to increase lending. Pressed by Nepal Rastra Bank’s directive to implement the Know Your Customer (KYC) norms, the banks have started demanding full financial details of the customers, including copies of tax clearance certificates. According to bankers, this hesitation by customers to make their real financial disclosures available could hit the banking industry hard in the long run.', 'sortorder' => '2544', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 3 => array( 'Article' => array( 'id' => '2656', 'article_category_id' => '144', 'title' => 'Unbundle NEA', 'sub_title' => '', 'summary' => null, 'content' => '<p> Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.<br /> <br /> Only five projects (440 MW Tila I, 420 MW Tila II, 282 MW Manang Marsyangdi, 182 MW Upper Marsyangdi and 400 MW Lower Arun) submitted proposals to the NEA. This number is quite low considering the fact that over two dozen foreign promoters have taken license for construction of hydropower projects in Nepal. Foreign promoters of big hydropower projects like the 900MW Upper Karnali, 900MW Arun III, 600MW Upper Marshyangdi etc did not show interest in NEA’s offer.<br /> <br /> A committee has been formed under the deputy head of the Planning Directorate of NEA to study the proposals. The committee will also hold dialogue with promoters of the projects that have submitted proposals. Among the big projects, GMR Energy Limited, India that is constructing 900 MW Upper Karnali and 600 MW Upper Marsyangdi, Sutlej Hydro Power Corporation, India that is developing 900 MW Arun III and Statkraft International Hydro, Norway that is developing 650 MW Tamakoshi III did not submit proposals.<br /> <br /> NEA’s attempt to procure electricity from export-oriented projects is laudable as it will ease the power supply situation during the winter. However, all the five projects that have responded to NEA’s offer are run-of-theriver projects; their production will drastically decrease during the winter. It means NEA will need other suppliers as well to meet the energy crisis during the winter. Here, the question is why the foreign promoters of big hydropower projects showed no interest in NEA’s offer.<br /> <br /> Do they doubt NEA’s capacity to pay for the electricity purchased? We cannot completely rule out this possibility as NEA’s balance sheet shows that it has been incurring huge annual losses. It is a government-owned company but the government is yet to fully back it. NEA currently earns Rs 8.05 per unit on an average by selling electricity. So, the export-oriented projects which did not submit proposals to sell electricity to NEA might have pondered how NEA was going to pay Rs 10.60 per unit to procure electricity.<br /> <br /> NEA has been responsible for generation, transmission and distribution of electricity in the country for more than last two decades. It was established in 1985 after three independent government bodies, namely: the Electricity Department, Electricity Board and Nepal Electricity Corporation merged. This intervention was suitable at that time because the generation capacity of the country was small and less human resource was employed in these organisations.<br /> <br /> Sadly, as it is often the case, services provided by government monopolies lead to losses due to inefficient management, overstaffing, institutional corruption, and politicization. The financial haemorrhage of NEA in the last three decades of its establishment has compelled everyone to look for alternative ways of reducing these losses. One of the ways of doing that is unbundling infrastructure services vertically, so that the services are provided efficiently and in a competitive manner.<br /> <br /> The government has already come up with a plan for functional unbundling of NEA in three different segments — generation, transmission and distribution. However, it is still a plan which exists on paper only and is strongly opposed by top NEA staff. The government needs to implement this plan.</p>', 'published' => true, 'created' => '2014-02-23', 'modified' => '2014-02-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal Electricity Authority (NEA) wants to buy electricity from export-oriented projects during the five dry months (December to April). The move is aimed at easing the power outage during winter. The NEA has even made a reasonable offer of up to Rs 10.6 per unit of electricity to procure power from the export-oriented projects. However, when the NEA recently called for proposals from the export-oriented projects to sell electricity during the dry season, it received a lukewarm response.', 'sortorder' => '2500', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 4 => array( 'Article' => array( 'id' => '2603', 'article_category_id' => '144', 'title' => 'New Govt, Old Challenges', 'sub_title' => '', 'summary' => null, 'content' => '<div> The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year. The reason behind the UML’s boycott is apparently the PM’s refusal to give the party the home ministry. But the reason behind the UCPN (Maoist) voting against Koirala in the parliament is not clear yet; the party simply ignored its previous public statement to support a Koirala-led government. </div> <div> </div> <div> These two instances are just a symptom of the kind of challenges the new government faces on the political front; they signal how old problems of power game are very much likely to haunt the new government and thus affect the constitution drafting process. The political impact of UML’s boycott is already seen – Koirala has not been able to expand his Cabinet even almost after a week of assuming office. Clearly, drafting the new constitution within the stipulated time is going to be an uphill task for the government led by Koirala who was elected the prime minister more than two months after the CA election. </div> <div> </div> <div> The new constitution is possible only with the consensus and unity among all political parties. Forging such consensus is the biggest challenge that the new government faces. </div> <div> </div> <div> Similarly, it is a validly-drawn conclusion that the new government faces a number of old challenges on the economic front as well. Long hours of load-shedding, a double-digit inflation, low capital expenditure, low foreign investment and high rate of unemployment are some of the chronic problems that the new government has inherited from its predecessor. </div> <div> </div> <div> The problem of power outage has become chronic. It has taken a huge toll on the country’s manufacturing sector. Almost all parties, including PM Koirala’s Nepali Congress, have made commitments in their election manifestos to end the power crisis within the next five years. If this target has to be achieved, then the new government has no time to lose; it must start creating the right environment for foreign investment in hydropower right now.</div> <div> </div> <div> Besides, a number of bills related with the country’s business and economic sector have been pending at the parliament for a long time. Successive governments have failed to get them enacted through the parliament. Special Economic Zone Act, Electricity Act, Bank and Financial Institution Act etc are some of the bills pending at parliament. On the other hand, there are a number of crucial laws which have not been even tabled at the parliament. Some of them include the drafts of Industrial Enterprises Act, Labour Act, Anti-dumping Act, Company Act (amendment), and Foreign Trade Regulation Act, among over a dozen others. Similarly there are some policies such as Foreign Investment and Technology Transfer Policy, Integrated Intellectual Property Policy which need the government’s endorsement. </div> <div> </div> <div> The private sector hopes the new government will act fast to implement these laws and policies at the earliest possible. Another major expectation of the private sector is the issue of peace and constitution should no more overshadow the agenda of economic development. The government should play the role of a facilitator to form common economic agenda of all the political parties. It means even if the parties differ on political issues, they should stand together on the economic issues. Similarly, the government has to do everything at its disposal to foster the environment for entrepreneurship in the country. </div>', 'published' => true, 'created' => '2014-02-18', 'modified' => '2014-02-18', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The way the CPN-UML, the second largest party in the Constituent Assembly (CA), boycotted newly elected Prime Minister Sushil Koirala’s swearing-in ceremony on Feb 10 and the UCPN (Maoist), the third largest party in the CA, voted against him in parliament a day before despite an earlier public statement to support him, shows that the new government faces a bumpy road ahead in achieving its main objective of promulgating the new constitution within a year.', 'sortorder' => '2447', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 5 => array( 'Article' => array( 'id' => '2557', 'article_category_id' => '144', 'title' => 'Manning MAN With Right Men & Women', 'sub_title' => '', 'summary' => null, 'content' => '<div> Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal. The Association also claims to have a strong membership base of over 2000 individuals and 250 institutions from different disciplines and sectors of the Nepali economy and society. </div> <div> </div> <div> Ideally, almost all MAN members and its top leadership are supposed to be management professionals. However, going by the lists of persons elected in the executive committees of MAN so far, it appears that the Association is by and large dominated by existing and former bureaucrats. The presence of private sector managers in the top leadership of MAN is very low. This is really unfortunate. Going by the very name of the organization, it would be no exaggeration to say that MAN should have been led and moved forward by private sector managers who have proved to be better managers than their public sector counterparts. </div> <div> </div> <div> Similar organizations in other countries are led by the corporate people or private sector managers. Two examples of such organizations with whom MAN has close links are the American Management Association (AMA) and All India Management Association (AIMA). The management teams or office bearers of Both AMA and AIMA are all representatives of the American and Indian corporate sector, respectively. But this is not the case with MAN.</div> <div> </div> <div> Bureaucrats are bureaucrats and they remain so as long as they hold their government positions. We are not questioning their capabilities. But the true talent of many bureaucrats is seen only after they are retired; as long as they are serving, they cannot function to the fullest of their capacity as MAN leaders because of various reasons. For example, they cannot criticize the government or raise issues with the government as strongly as private sector managers can. Also, when it comes to management, the Nepali experience has shown that private sector managers are more efficient than the public sector managers or bureaucrats.</div> <div> </div> <div> Therefore, manning the top management of MAN with the right men and women (read corporate sector managers and leaders) is the first and foremost challenge that MAN faces at present. MAN can never achieve the success or triumph it deserves without addressing this challenge first. In this context, the 33rd AGM of MAN should become a turning point. It should elect as many private sector managers and leaders as possible as its leaders.</div> <div> </div> <div> MAN is an organization with immense potential. It can become as strong as organizations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI). But MAN has not been able to become so because of the weak presence of the corporate sector in its leadership. Therefore, the Nepali corporate sector, on its part, should come forward to hold the reins of MAN and steer it to the right direction.</div>', 'published' => true, 'created' => '2014-02-09', 'modified' => '2014-02-10', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Management Association of Nepal (MAN) is holding its 33rd National Management Convention and Annual General Meeting (AGM) today. The AGM will elect a new executive committee of the Association. The executive committee, in turn, will elect the new office bearers for the next two years. Established some 35 years ago, MAN claims to be the apex body of management professionals in Nepal.', 'sortorder' => '2401', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 6 => array( 'Article' => array( 'id' => '2546', 'article_category_id' => '144', 'title' => 'Patenting Intellectual Property', 'sub_title' => '', 'summary' => null, 'content' => '<div> It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it. The registration of a patent of a product in any part of the world excludes others from making or selling it elsewhere. Similarly, patenting a process excludes others from using it. In that sense patenting is a very crucial process. </div> <div> </div> <div> But it may be because of the lack of awareness, the trend to patent a product or process is very low in Nepal. This has resulted in serious lapses. For example, as India has registered the patent for tea, Nepali tea goes to the international market as Indian tea. Similarly, as no one registered for the patent of Pashmina shawls in Nepal which is a typically Nepali product, Nepal had to register the trademark of pashmina as Chyangra Pashmina.</div> <div> </div> <div> Patent registration is an indicator of the level of development of any country. The more the number of patents registered in a country, the more developed it is. Going by this logic, it’s no wonder that Nepal still remains an underdeveloped country. Most Nepalis are not aware of the importance of patent rights. They don’t know how crucial it is to register a patent for industrial development. Nepalis perhaps don’t realize the importance of patents in protecting intellectual properties. Therefore, the government or even private sector organizations need to organize awareness programmes on the importance of patent registration.</div> <div> </div> <div> Through the ‘Patent, Design and Trademark Act – 2022 BS’, Nepal began the process of the registration of the ownership of intellectual property some 48 years back. The Department of Industry (DoI) has been registering patents since then. Another act titled ‘The Copyright Act 2002’ has been enacted to prevent the plagiarism of written or audio-visual items which too are intellectual properties. There is a separate body called Nepal Copyright Registrar’s Office for the registration of copyrights.</div> <div> </div> <div> The country perhaps needs to merge the above-mentioned two Acts into one comprehensive Act and create an autonomous body for the registration and monitoring of industrial as well as non-industrial intellectual property rights. This will help protect and promote the intellectual properties.</div> <div> </div> <div> Another major reason why the number of patent registration is low in Nepal is one has to go to the DoI for the registration of patents. This provision should be changed and patent registration should be made possible from each and every districts. Nepal should learn from neighbouring India in this case. In India, there is a separate body for the registration, promotion and protection of intellectual property rights. </div> <div> </div> <div> This body has offices in India’s major cities such as Ahamedabad, Mumbai, Chennai, New Delhi, Kolkata etc where intellectual properties can be registered. Besides this, there are a number of private sector organizations in India that facilitate the registration of the ownership of intellectual properties. Foreigners and foreign companies go to India to buy the patent rights of various products and processes every year. Indian patentees earn a lot of money by selling their patent rights to foreigners. </div> <div> </div> <div> The same practice should be encouraged in Nepal. Nepal’s possibilities for registering patents are especially in the sector of information and technology. Nepali youths engaged in this sector should be motivated to register patents for the products such as software. Later, they can sell such patents and earn a lot of money. </div>', 'published' => true, 'created' => '2014-02-08', 'modified' => '2014-02-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'It is really sad that not even a single patent was registered in Nepal in the last fiscal year. Even sadder is the fact that only 72 patents and 92 designs have been registered in Nepal since the country enacted the ‘Patent, Design and Trademark Act – 2022 BS’ some 48 years ago. A patent is the sole right given to the inventor of an invention to make, use or sell it.', 'sortorder' => '2391', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 7 => array( 'Article' => array( 'id' => '2516', 'article_category_id' => '144', 'title' => 'All Big Companies Should Go Public', 'sub_title' => '', 'summary' => null, 'content' => '<div> Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.</div> <div> </div> <div> There are many advantages for a company going public. The financial benefit in the form of raising capital is the most distinct advantage. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Another advantage is an increased public awareness of the company because IPOs often generate publicity by making their products known to a new group of potential customers. </div> <div> </div> <div> Still, MNCs like Dabur Nepal, Surya Nepal, Asian Paints etc are not listed at Nepse. The parent companies of these MNCs are, however, listed at the capital markets of their respective countries. Very few MNCs like Uniliver, Bottler’s Nepal and Taragaon Regency Hotels are listed at the capital market. The MNCs operational in Nepal perhaps don’t need to raise capital from the general public as their principals abroad have deep pockets.</div> <div> </div> <div> Besides MNCs, there are big companies run by the established business houses in the country that are reluctant to go public. These companies have not felt the need to issue IPO as their owners are often the promoters of banks and insurance companies. So, they can get loans from the banks and can also claim insurance comparatively easily.</div> <div> </div> <div> But raising capital is not the only reason why a company should go public. Public companies are expected to be more transparent as they have to abide by the rules and regulations of the regulator of the capital market which is the Securities Board of Nepal (SEBON) in our case. Public companies have to issue periodic financial reports and hold AGMs which means added disclosure for investors. These activities put pressure on public companies to be more transparent. Maintaining transparency enhances the public image of companies. There is no reason why a company should not try to become more transparent.</div> <div> </div> <div> Recently, the government has started preparations to make all telecommunications companies as public companies. This step by the government is welcome. So far, only the state-owned Nepal Telecom is a public company. Other telecom operators such as NCell, United Telecom, STM Telecom, Smart Telecom, Nepal Satellite etc are operating as private companies. The government wants all these existing companies to go public and has indicated that new entrants will be issued license only after they agree to become a public company.</div> <div> </div> <div> A committee formed to study cross holding in telecoms has already forwarded its suggestions to the government. According to the suggestions, the ceiling of cross holding in public companies should be restricted to 15 per cent. Similarly, the committee has suggested that the share of one person or group should not be more than 51 per cent. However, the committee has suggested that the current provision for a foreign investor to hold up to 80 percent of shares in a company should be given continuity. </div> <div> </div> <div> There is a need to revise this provision, if not in the case of the existing companies then in the case of new companies where two or more foreign investors should be allowed to hold up to 80 per cent of shares. Such a policy would make sure that there two or more foreign investors in one company and if one of them wants to make an exit, any of the other companies can buy the shares.</div>', 'published' => true, 'created' => '2014-01-27', 'modified' => '2014-01-27', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Almost all big private firms including the multinational companies in Nepal have so far decided against going public. Though they are eligible for public listing, they are not listed at Nepal Stock Exchange (Nepse). Of the total 235 companies listed at Nepse, more than 85 per cent are banks and insurance companies as it is mandatory for them to issue Initial Public Offering (IPO) within two years of their establishment.', 'sortorder' => '2359', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 8 => array( 'Article' => array( 'id' => '2464', 'article_category_id' => '144', 'title' => 'What About Ethics In Politics?', 'sub_title' => '', 'summary' => null, 'content' => '<div> A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.</div> <div> </div> <div> The importance of ethics in business cannot be overemphasized. Ethical behaviour can bring significant benefits to a business by attracting customers to its products, reducing labour turnover and thus increasing productivity and attracting investors and keeping the company’s share prices high, among other ways. </div> <div> </div> <div> But the conference evoked some simple questions: is the Nepali business community one of the segments of society that needs a lesson or two in ethics? Are the Nepali businessmen really unethical and hence need sermons on business ethics the most? What about ethical practices in the bureaucracy and politics? Ethics concern an individual’s moral judgments about right and wrong. If so, are Nepali businessmen most wrongdoers that they are being lectured on ethics while the politicians and bureaucrats are apostles of ethics?</div> <div> </div> <div> Definitely not. The ethical standards of Nepali business community look higher than those of many other segments of society including the government bureaucracy and political parties. And, in fact, at the root of whatever unethical business practices we have lies in the government and politics. There are many instances where the government has been rewarding unethical practices. For one, this is reflected in the government’s decision to waive taxes of different companies, in awarding licenses to start various businesses. This is reflected also in the actions of the government regulators of different businesses. </div> <div> </div> <div> The situation of ethics in the country’s politics is appalling. So much so that many find ‘ethics in politics’ as contradiction. It is because of the lack of ethics in politics that people do not place much trust on the political parties and politicians. Political parties are far from maintaining transparency in their financial transactions and deals. And that is why most politicians are seen as selfish and corrupt power-players who are not responsible and who defend special interests instead of the common good. That is why Transparency International reports have repeatedly depicted politicians and bureaucrats as the most corrupt. </div> <div> </div> <div> Ethics in politics matters the most in Nepal because it directly affects everything else including ethics in business. Lack of ethics in politics has a much wider impact than lack of ethics in business. Businesses have to sell their products or services on a daily basis. This means their ethics is being tested almost on a daily basis by the buyers as well as the employees. This is because they tend to be more ethical in their actions, behaviours and decisions. On the other hand, the ethics of politicians is challenged everyday but it is tested only through elections. Such elections are not yet regular in Nepali democracy. </div> <div> </div> <div> The delay in the first sitting of the Constituent Assembly (CA) and forming a new government even after two months of CA election could be the latest and simplest example of the lack of ethics in Nepali politics. The episode has exposed the ethical and moral dilemmas and deficiencies of a range of actors in Nepali politics including the President, Chairman of the Council of Ministers, the major political parties which are tipped to form the new government and the parties which have been mandated by the people to sit in opposition.</div> <div> </div> <div> The bottom line is: the political class needs to be reminded of ethics more frequently than any other segment of society. Therefore, conferences on ethics in politics are wanted more urgently than conferences on ethics in business. </div> <div> </div>', 'published' => true, 'created' => '2014-01-20', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'A conference titled “Business Ethics for Prosperous Nepal” has just concluded in the capital. The main idea behind the conference was to teach the importance of ethics in business to the Nepali business community. Organised by the World Forum for Ethics in Business, the conference which examined ethical practices that are sustainable and ensure profitability for businesses was well attended and was successful.', 'sortorder' => '2305', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 9 => array( 'Article' => array( 'id' => '2448', 'article_category_id' => '144', 'title' => 'Better Late Than Never', 'sub_title' => '', 'summary' => null, 'content' => '<div> The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent. </div> <div> </div> <div> It has been long proved that the Kathmandu Valley denizens are sitting on top of a huge deposit of underground natural gas which is highly combustible and can be utilized as a dependable alternative source of energy. In some areas of Patan, Thapathali and Tripureswor, the gas is being tapped by individual households free of cost.</div> <div> </div> <div> Studies carried out by the DMG with the help of donor agencies such as JICA from the late 1970S to late 1990s indicate the gas reserves can fulfill the domestic energy needs of an estimated 20,000 households in Kathmandu Valley for 30 years. In the past, the DMG had dug 14 gas wells in an area of 26 sq kms including Teku, Tripureswor and Koteswor of Kathmandu, and Imadol and Tikathali of Lalitpur. </div> <div> </div> <div> The DMG even established a model gas plant in Teku in 1983 which stopped operating in the late 1990s. The experiment was to see if gas supply was consistent enough for commercial use. According to sources at DMG, the gas collected in the plant was supplied to various government offices in the immediate vicinity of the model plant. </div> <div> </div> <div> In 2001, the DMG even floated a project titled ‘Kathmandu Gas Project’ in the private sector. But no private company showed any interest in the project. DMG had initiated the project with the help of JICA and UNDP, concluding that a potential gas reserve of about 300 million cu m exists in central and southern Kathmandu as far back as 1978.</div> <div> </div> <div> Reports on past exploration of the Valley’s gas have shown that the gas is biogenic and is mixed with water. This could be the reason why private investors think that the returns from gas excavation might not be very lucrative. That’s why they have not come forward for the excavation process. The DMG hopes that private investors can be roped in once it is established that the gas in the valley is commercially viable. That’s why it has decided to spend Rs 5 million initially in the exploration and excavation of gas at Imadol of Lalitpur. The DMG also hopes that this gas could be sold to housing companies or it can be used to produce thermal electricity of around 2 MW. </div> <div> </div> <div> However, instead of producing thermal energy from this gas, it would be wise to fill it in cylinders and supply it for household use or as fuel to means of transport. The import of petroleum gas from India is one of the major reasons behind our widening trade deficit with the southern neighbour. If the Valley’s gas can be used for cooking, for example, the import of LPG from India can be decreased to some extent. The government should think along this line. If the government’s experiment becomes successful, private investors will certainly come forward for the excavation of the gas.</div>', 'published' => true, 'created' => '2014-01-19', 'modified' => '2014-01-20', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The government has prepared to start exploring natural gas (Methane) trapped below the surface of the Kathmandu Valley and excavate it for commercial use. The Department of Mines and Geology (DMG) has said that it will start gas exploration in Imadol of Lalitpur by mid-March. The Department has even sanctioned a budget of Rs 5 million for the project. Though late, this effort by the government is worth praising. It has revived hopes that the exploitation of this wealth below our feet could help address the energy crisis in the Kathmandu valley to some extent.', 'sortorder' => '2294', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 10 => array( 'Article' => array( 'id' => '2417', 'article_category_id' => '144', 'title' => 'All Play, No Work', 'sub_title' => '', 'summary' => null, 'content' => '<div> Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days. </div> <div> </div> <div> After the success of the 2006 April Movement, known as Jana Aandolan II, many of the birthday-cum-holidays of the monarchs of old were scrapped only to be replaced with the likes of Lokatantra Diwas and Ganatantra Diwas. In addition, the newly declared secular state was under immense pressure from various religious and ethnic groups to declare their festivals as public holidays. So, the state declared those days as public holidays as demanded to, perhaps, prove its multicultural and multi-ethnic credentials.</div> <div> </div> <div> But that has not satisfied everyone, though Nepal celebrates an average of one public holiday a week. There are still several ethnic minorities who are demanding that the government declare their festivals, too, as national holidays. Imagine all the days that could now be declared holidays if the country was to acknowledge the myriad minorities that are today asserting their rights and identities, on and off the official calendar. </div> <div> </div> <div> If festivals of all communities are declared as public holidays, most public as well as private offices would be closed for almost the entire year! We certainly don’t want such a situation to emerge. In fact, the Administration Restructuring Commission (ARC) formed in 2009 has already advised the government to reduce the number of public holidays drastically. Established by then Maoist-led government under the chairmanship of the Minister for General Administration, the ARC claimed that the civil service would become more effective if its recommendation was implemented.</div> <div> </div> <div> Presently, Hindus get more festival holidays than other religious groups who don’t mind it because they too get holidays on such days. A non-Hindu would perhaps like to work on the public holidays meant for the Hindus. Similarly, a Hindu would like to work on the festival holidays meant for other religious groups. The government should allow them to do so. For example, if a Buddhist or a Christian or a Muslim wants to work on Shivaratri or Janai Purnima and take a day off on some other important festivals of theirs, they should be allowed to do so. This would be judicious, too.</div> <div> </div> <div> Therefore, the government will do well to fix the number of festival holidays for the entire year and leave it to the employees to decide when they want to take their festival holidays according to their needs, interest and culture. This way, every employee will not want to take a day off on all festivals and offices will be open every day except the weekly day off on Saturday and the national holidays. The number of national holidays, too, should be as minimum as possible.</div> <div> </div> <div> In India, there are only three national holidays. Other holidays are decided by the state governments. Similarly, there are only 11 festival holidays in China. Nepal should learn from such examples in its immediate neighbourhood. Therefore, long festival holidays of Dashain and Tihar should be cut down. Similarly, it’s not appropriate to declare public holidays for all on festivals like Shivaratri, Janaipurnima, Eid, birth anniversary of Guru Nanak, Ubhauli, Udhauli, Gaura Parba, Lhoshar, Maghi etc. Once the number of festival holidays is fixed for the entire year, the government employees and industry workers can take their festival holidays according to their choice.</div>', 'published' => true, 'created' => '2014-01-06', 'modified' => '2014-01-06', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Nepal has too many festival holidays. This is reflected well in the country’s calendar which shows that there are a total of 52 public holidays including festival holidays, besides as many weekly holidays on Saturdays. Too many holidays have cost the national productivity dearly as almost all government and private offices are closed on these days. In the current Nepali month of Paush (mid-December to mid-January) alone, for example, there are three days off because festivals of different communities have fallen on those days.', 'sortorder' => '2261', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 11 => array( 'Article' => array( 'id' => '2370', 'article_category_id' => '144', 'title' => 'The Shift In Nepali Agriculture', 'sub_title' => '', 'summary' => null, 'content' => '<div> The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares. Similarly, the Census has revealed that the number of households involved in vegetable farming has nearly doubled to 1.931 million from 977,000 in 2001-02. This means several things simultaneously. </div> <div> </div> <div> First, there is a growing interest of farmers in vegetable farming and cash crops. It is encouraging in terms of both food security and higher purchasing power of farmers. Growing fruits and vegetables is a much more profitable activity than the farming of cereals. The argument that the trend of famers shifting towards vegetables and other cash crops might have negative impacts on the country’s food security doesn’t hold much water. According to the Food and Agriculture Organization of the United Nations, people have food security when they are able to grow enough food or buy enough food to meet their daily needs for an active, healthy life. Vegetables and other cash crops are more lucrative anyway and farmers engaged in such type of farming always have the option of buying rice, wheat or maize by selling vegetables.</div> <div> </div> <div> Second, this trend also helps in boosting food diversification in the country and lowering the imports of vegetables which are high-value crops. Vegetables have tremendous market potential now and in the future as well. This also means there is huge scope for corporate investment in vegetable farming. Only big investments from the corporate sector can ensure large-scale commercialized vegetable farming in the country. </div> <div> </div> <div> Third, this trend needs to be encouraged. The donor community as well as the private sector in Nepal has been concentrating on the production of high-value vegetable crops. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has already implemented the concept of “one village, one product” in several districts. The farming of fruits and vegetables is particularly being promoted through this concept. Nepal’s hilly areas which have access to irrigation are particularly suitable for vegetable farming. According to experts, farmers can grow vegetables for up to five cycles in a year compared to the two cycles of cereal farming. Also, farmers growing vegetables don’t have to worry about market as vegetables sell easily in the market and have in fact become “quick and guaranteed returns”.</div> <div> </div> <div> Another important revelation of the Census is that Nepal’s agriculture has made some progress in terms of farm mechanization. The census shows that a good 22.04 percent farm households use tractors to plough their farmlands while 20.96 percent use threshers to harvest the food grains. This is a good progress as compared to the previous agriculture census of 2001/02. The previous Census showed that the percentage of farm households using tractors and threshers was less than 10 percent of the total holdings. Similarly, around 14.30 percent farm households have reported using pumping sets or motors for irrigation.</div> <div> </div> <div> The progress in farm mechanization is good but it’s not enough. Nevertheless, we should feel happy that farm mechanization has increased without any encouragement from the government. This shows that the Nepali farmers are responsive to change in the market forces. On its part, the government should introduce suitable policies offering tax exemption on the import of agricultural tools and equipment. If possible, it should also provide grants in the case of high-price equipment. Similarly, the government should implement policies to facilitate agro loans. The process of sanctioning agro-loans should be made easy and hassle-free. Agro loans must be made cheaper. At present, a farmer has to pay up to 16 per cent interest on loans to buy tractors whereas a car loan comes at an interest rate of six percent. Such discrepancies should be removed. The government and the central bank should work on this.</div>', 'published' => true, 'created' => '2013-12-31', 'modified' => '2013-12-31', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The National Agriculture Census 2011/12 has shown that Nepal’s agriculture sector has changed course over the last decade with the farmers shifting from growing cereals to planting cash and vegetables crops. According to the Census released last week, the land area dedicated to cereal cultivation has decreased by nine percent while the area under vegetable farming has increased by a whopping 41 per cent to 84,000 hectares.', 'sortorder' => '2212', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 12 => array( 'Article' => array( 'id' => '2327', 'article_category_id' => '144', 'title' => 'Meaning Of Nepse Rise', 'sub_title' => '', 'summary' => null, 'content' => '<div> The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.</div> <div> </div> <div> The victory of pro-free market political parties in the election, decrease of interest rates in the banking system and the directive of Nepal Rastra Bank (NRB) to implement Basel-III in banks and financial institutions are some of the reasons behind the sudden rise in the stock market. Those who are skeptical about the rise are claiming that this is not a natural rise but the result of speculative investment by some ‘players’ of the stock market as the reason. </div> <div> </div> <div> However, there are some macroeconomic factors which suggest that the rise in the stock prices could be natural. For example, the latest manufacturing index shows that the manufacturing sector is growing. Similarly, the growth rate of the country’s trade deficit has decreased significantly in the first four months of the current fiscal year as compared to the same period of the previous fiscal year. All political parties have, in their election manifestos, committed not to organize bandhs and general strikes in the days to come. This could have boosted the morale of the investors.</div> <div> </div> <div> The political parties now need to walk the talk. They should not organize any kinds of bandhs and general strikes. The people voted for a change in the elections held last month. Now the investors are supporting that change by showing their confidence in the stock market. The donor agencies and Nepal’s development partners, too, should not support any kind of bandh or strike under any pretext.</div> <div> </div> <div> This, however, doesn’t mean that the investors don’t need to be watchful. The information disseminated by all media or newspapers about the rise in Nepse index may not be the gospel truth. Similarly, some information could be misunderstood. Therefore, investors – old and new ones alike – should carefully analyse all the information before they decide to sell or buy the shares. </div> <div> </div> <div> In this context, what the investors need to understand about NRB’s directive regarding the implementation of Basel III – said to be one of the main reasons behind the rise in the price of banks’ shares – is that this is not an entirely new development. The central bank had introduced this concept three years back with the purpose of implementing it gradually. The implementation of Basel III doesn’t mean that all banks and financial institutions have to raise their paid-up capital to Rs 5 billion. What Basel III means is the banks need to increase their capital adequacy. It doesn’t mean that all banks must increase their paid-up capital. Similarly, the victory of the supporters of free market economy in the CA elections has certainly boosted the confidence of the general public and investors. This looks like one of the major reasons behind the rise in the Nepse index.</div> <div> </div> <div> However, the political equation of the next government to be formed is not clear yet. The economic policies to be adopted by the new government, too, are not clear, now. Therefore, it will not be wise to simply assume that the Nepse index will, like after the 2008 CA polls, cross the 1175 points this time too. Any investment on such an assumption could be risky; the investors should carefully analyse their risk-taking capacity and invest accordingly.</div> <div> </div> <div> Nevertheless, there is enough liquidity in the banking system at present, causing the interest rate on deposits to come down. So, the amount which would otherwise have gone to the banks in the form of deposits has come to the share market. On the other hand the demand for shares is more than the supply at present. Similarly, one of the fundamental indicators that is used to evaluate the market price of stocks is the Price-Earning (PE) ratio. Although the PE ratio of some listed companies is as high as 75 per cent, the average PE ration of most of the companies is around 20 percent which is natural. Therefore, the socio-economic condition of the country and the fundamental as well as technical indicators of the listed companies reveal that there is still the possibility of making money by investing in shares.</div>', 'published' => true, 'created' => '2013-12-23', 'modified' => '2013-12-23', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'The rise in Nepal Stock Exchange (Nepse) index that began soon after the results of the second Constituent Assembly (CA) elections continues. Nepse index which had closed at 600 points on November 14 before the Nov 19 CA polls has now risen to above 800 points. Thus, after the Nepse index rose by around 30 percent within a month, share investors, analysts and the media have put forward some reasons behind the continuous bullish trend.', 'sortorder' => '2173', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 13 => array( 'Article' => array( 'id' => '2281', 'article_category_id' => '144', 'title' => 'Tackling Trade Deficit', 'sub_title' => '', 'summary' => null, 'content' => '<div> Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent. Trade experts are citing increase in the export of woolen carpets, readymade garments, pashmina and handicrafts – some of the country’s major exportable items – and a drastic decrease in the import of gold as the major reasons behind the significant drop in the trade deficit.</div> <div> </div> <div> The decrease in trade deficit is significant because it has taken place in spite of a sharp increase of 14.4 per cent in the import of petroleum products. Nepal’s total export in the first four months of this fiscal year stands at around Rs 29.62 billion whereas the import of petroleum products alone has been worth more than Rs 37.85 billion over this period. However, we can take a sigh of relief as the import of gold has declined by 29.6 per cent and stood at Rs 6.29 billion in the first four months of the current fiscal year as compared to the same period last year. </div> <div> </div> <div> There is no doubt that the best way to tackle the trade deficit problem is increasing our exports. The government acknowledged this fact and set a target of increasing our total annual exports to the tune of Rs 100 billion in the last fiscal year itself. The target could not be reached in the last fiscal year. But there are some early signs that this target could be reached this fiscal year. The export of cardamom, honey, noodles, handmade paper and Pashmina – some of the major exportable items identified by Nepal Trade Integration Strategy 2010 – has gone up in the first four months of this fiscal year.</div> <div> </div> <div> Available trade statistics show that our exports go up when there are no industrial strikes. That is one of the major reasons for the recent increase in exports. Therefore, to make the decrease in trade deficit sustainable, the political parties and the trade unions affiliated to them must commit to make the industrial sector a strike-free zone. </div> <div> </div> <div> Besides encouraging exports, we should also focus on discouraging the imports of items such as gold and petroleum and substituting the import of commodities such as iron and steel. The policy of discouraging the import of gold should be given continuity. Though the demand for gold cannot be controlled by banning imports, there can be ways to meet the demand for gold for investment purpose as shown by India which has allowed the banks to accept ‘gold deposits’ whereby the bank buys gold on the name of the customer in the international market with the money the bank has parked abroad. </div> <div> </div> <div> To lower the import of petroleum, the government should allow the mixing of permissible amount of ethanol in petrol. Many countries are already doing this. Ethanol is produced as a byproduct by the sugar factories.</div> <div> </div> <div> On the other hand, the sugar factories produce electricity by converting thermal energy into electrical energy. This electricity which is produced by the burning of bagasse is more than the factories require. The government should buy the surplus electricity thus produced by the sugar factories. This way, we can add 20 to 25 MW of electricity to the national grid. This step would not only help us tackle the load-shedding problem to some extent but also help us partly substitute the import of diesel which is burnt to produce electricity for industries.</div> <div> </div> <div> Similarly, to substitute the import of iron and steel to some extent, we should start extracting iron from the identified mines and also explore new iron mines. But the irony is that the mines from where the metal used to be extracted traditionally are closed down. This process must be reversed.</div>', 'published' => true, 'created' => '2013-12-17', 'modified' => '2013-12-17', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'Last week brought some good news for the Nepali economy. The growth rate of the country’s trade deficit, as witnessed in the first four months of the current fiscal year, has decreased significantly by 29.4 per cent as compared to the same period of the last fiscal year. In the first four months of the last fiscal year, trade deficit had shot up by 35.7 per cent; this year it has increased by only 6.3 per cent.', 'sortorder' => '2124', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 14 => array( 'Article' => array( 'id' => '2238', 'article_category_id' => '144', 'title' => 'Improve Supply Side Constraints', 'sub_title' => '', 'summary' => null, 'content' => '<div> World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round. Issues addressed in the Bali Package have theoretically paved way to boost development goals and trading capacities of the Least Developed Countries. While the agreement is definitely promising for increasing Nepali products that reach international market, it alone is not sufficient to bridge the nation’s existing trade deficit. </div> <div> </div> <div> Presently Nepal has been receiving preferential market for 81 percent of its total exports under the Duty Free Quota Free (DFQF) system from various WTO member nations. Considering the existing trade deficit, it becomes evident that it has not been able to exploit facilities provided to it as a LCD member nation of the WTO. This fact is evident of the necessity for focusing on issues that are hindering its export capabilities rather than solely relying on receiving trade aid from the international community. Primary focus in this regard should be to find and resolve existing supply side constraints that could provide much needed boost to Nepal’s trading capacities. </div> <div> </div> <div> Supply side constraints start right from the production facility. Even though many Nepali products have good demands in the international market, political unrest, labour strikes, transport bottlenecks and unfriendly government policies have deterred production of these products and their delivery to the destination market. The Nepali State should focus on minimizing these deterrents to ensure smooth production and supply of goods. </div> <div> </div> <div> Nepal specializes in exporting agro products. Still it lacks a cold chain facility trading route. Even within the nation, it lacks a coordinated and interlinked cold chain that could facilitate agro trade. Facilitating the private sector for provision of such a chain, would provide boost to exports</div> <div> </div> <div> Another bottleneck in the export of agro-products is the lack of well equipped quarantine checkposts. Added to that is the lack of an agency that is competent and recognized internationally for quality certification. </div> <div> </div> <div> Quality is an essential factor in trading. Consumers always look for quality. Setting up an independent mechanism that could provide international quality certificate to products can ensure that exported products are not returned back citing quality reasons. Such certification system will increase brand image of Nepali products in international market and provide sustainable basis for steady trade growth. </div> <div> </div> <div> Identifying potential market and facilitating linkages between prospective producers and traders need to be ensured. Nepal has immense potentials for producing exportable agro and manufacturing products. People can meet the demands of the market, if there is market. The only prerequisite on the state’s side is to create conducive climate for these products and to identify market opportunities. </div> <div> </div> <div> Lengthy national and international customs regulations have been pointed out as great barriers for smooth trans-border trade. Bali Package pledges to address this issue but that will not sufficient. Nepal should on its own initiate talks for easing off custom regulations with nations that it does business with. It’s high time for Nepal to hold negotiations with its trading nations for streamlining custom regulations.</div>', 'published' => true, 'created' => '2013-12-09', 'modified' => '2013-12-09', 'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal', 'description' => 'World Trade Organization’s Bali Ministerial Conference concluded on 7 December with the issuance of the Bali Package- an agreement on issues that are considered to be stepping stone for completing the goals of Doha Round.', 'sortorder' => '2081', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = false $xml = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
| Currency | Unit |
Buy | Sell |
| U.S. Dollar | 1 | 121.23 | 121.83 |
| European Euro | 1 | 131.65 | 132.31 |
| UK Pound Sterling | 1 | 142.47 | 143.18 |
| Swiss Franc | 1 | 124.29 | 124.90 |
| Australian Dollar | 1 | 71.69 | 72.05 |
| Canadian Dollar | 1 | 83.90 | 84.32 |
| Japanese Yen | 10 | 10.94 | 11.00 |
| Chinese Yuan | 1 | 17.17 | 17.26 |
| Saudi Arabian Riyal | 1 | 32.27 | 32.43 |
| UAE Dirham | 1 | 33.01 | 33.17 |
| Malaysian Ringgit | 1 | 27.36 | 27.50 |
| South Korean Won | 100 | 9.77 | 9.82 |
Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)
| Fine Gold | 1 tola | 77000.00 |
| Tejabi Gold | 1 tola | 76700.00 |
| Silver | 1 tola | 720.00 |
Update : 2020-03-25
Source: Federation of Nepal Gold and Silver Dealers' Association
| Petrol | 1 Liter | 106.00 |
| Diesel | 1 Liter | 95.00 |
| Kerosene | 1 Liter | 95.00 |
| LP Gas | 1 Cylinder | 1375.00 |
Update : 2020-03-25
