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Date: May 25, 2010

Highlights

Nepal Rastra Bank (NRB) has clarified that there is no need to change the

exchange rate of Nepali Currency (NC) vis-a vis Indian Currency (IC) with

which NC is pegged.

Nepal is lagging behind with a huge gap in the Millenium Development Goals

(MDGs) targeted at increasing teledensity. At present Nepal's total

teledensity stands at near about 27 per cent while the MDG targets to achieve

55 per cent teledensity in its three years interim plan for the year 2010-11.

The Three Year Interim Plan (2010-11 to 2012-13) aims Nepal to upgrade the

country from its current status of Least Developed Country (LDC) to

Developing country (DC). ―Apart from status upgradation of the country, the

TYIP also aims at creating employment and ensuring high economic growth

by reducing the number of people living under the poverty line,‖ said Dr

Jagdish Chandra Pokhrel, vice-chairman of National Planning Commisson

(NPC) during the inauguration ceremony of Nepal Development Council

(NDC) meeting that is intended to finalise the approach paper for the TYIP

(2010-2013).

The land registration records of the major five Land Reform Offices (LRO)

revealed that the number of land registrations have decreased by 30-40 per

cent on an average, after the central bank‘s decision to put cap on lending of

banks and financial institutions.

Four network marketing companies on Monday filed a writ petition at the

Supreme Court (SC) against the government´s decision Sunday to annul the

Directives on Network Marketing of Commodities with immediate effect.

Following the ban on network-based transactions, the government has said

that people having legitimate financial claims with companies running

networking business could register their case at the district administration

offices.

Ambassador Yogendra Dhakal, during the Sales Mission in Australia —

informed about the rejuvenated state of tourism in Nepal. ―The government

and Nepali tourism entrepreneurs are quite euphoric about the NTY campaign

and looking forward to welcome a large number of tourists from Australia,‖

the ambassador said hoping for the full cooperation and support from the

Australian travel-tour operators in their endeavor to send more Australians to

Nepal in 2010 and especially in NTY-2011.

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The government is preparing to allow Rex All Terrain Vehicles Pvt Ltd --a

Kathmandu-based company-- to import three-wheel motorcycles to be used as

taxis in Kathmandu Valley.

Dragonair has been voted World's Best Regional Airline in the annual World

Airline Survey run by Skytrax, a London-based rese-arch organisation which

runs the annual survey and the World Airline Awards.

The Government‘s dream to utilise migrant workers‘ money towards

development is fading away due to policy dilemma and weak implementation

mechanism. Finance minister Surendra Pandey — in his budget for the fiscal

year 2009-10 — had announced an ambitious Infrastructure Development

Bond (IDB) of Rs 7-billionbond targeting thousands of migrant workers.

Hydropower companies have to float shares for the locals also, according to

the amended the Securities Registration and Issuance Regulation – 2065.

According to the amendment, a company has to float a minimum of 30 per

cent shares of its issued capital, unless otherwise directed by the company‘s

regulatory body. Of the 30 per cent, five per cent has to be separated to the

company‘s staff; 10 per cent to the locals and remaining 15 per cent to the

general public.

The Nepal Stock Exchange (NEPSE) maintained its upward movement for the

second consecutive day. The benchmark index saw a meagre gain of 0.06

point on Monday. The NEPSE index settled at 462.63 points when trading

closed. Except for finance and others, all the sub-indices registered positive

growth with the hydropower sector leading the way. The others sector was the

worst sufferer, shedding 16.45 points on Monday.

While the government is scheduled to table the bill for extension of the

Constituent Assembly (CA) term in parliament on Monday, main opposition

UCPN (Maoist) lawmakers registered a notice of disapproval against it on

Sunday.

In what appears a shift to a softer stand, the UCPN (Maoist) on Monday

decided to support the extension of the Constituent Assembly (CA) tenure by

six months provided the politics of consensus is guaranteed before 28 May.

The decision, the party said, comes at the conclusion of its four-day Central

Committee meeting saying ―only consensus can guarantee constitution and

peace‖.

A majority of UCPN-Maoist central members today echoed the recent

decision of the party politburo that it would allow the extension of the

Constituent Assembly‘s term only after the government fulfilled its two

conditions — dissolution of the incumbent government and consensual

politics.

Rastriya Prajatantra Party (RPP) on Monday urged the three major parties —

UCPN (Maoist), Nepali Congress and CPN-UML — to see to it that the

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Constituent Assembly (CA) term is extended after a concrete schedule to draft

the statute is worked out.

Heads of the missions of 10 western countries have jointly urged Prime

Minister Madhav Kumar Nepal to renew the tenure of the Office of the UN

High Commissioner for Human Rights, Nepal (OHCHR-N), by a minimum

one year and not to curtail the UN body´s mandate.

The government should support the cash-strapped Nepal Electricity Authority

(NEA) to reduce its increasing financial loss, said private hydropower

developers. Currently, the sole power authority is facing an annual loss of

four billion rupees and accumulated loss of Rs. 14 billion.

The government is preparing to introduce a new Act allowing police

authorities the right to intercept phone calls of suspected criminals.

BANKING:

NRB rules out review on exchange rate

Nepal Rastra Bank (NRB) has clarified that there is no need to change the exchange

rate of Nepali Currency (NC) vis-a vis Indian Currency (IC) with which NC is

pegged.

Issuing a press statement on Monday following media reports about the revision in the

exchange rate, the central monetary authority rule out any such possibility given the

positive functioning of existing foreign exchange rates in maintaining economic

stability in the country.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19038

POLICY:

Nepal lags behind in teledensity target under MDGs

Nepal is lagging behind with a huge gap in the Millenium Development Goals

(MDGs) targeted at increasing teledensity.

At present Nepal's total teledensity stands at near about 27 per cent while the MDG

targets to achieve 55 per cent teledensity in its three years interim plan for the year

2010-11.

Though, Nepal had planned to increase its teledensity to 21 per cent by the end of

2009, it is yet to be achieved. The country's teledensity stands at 18.5 per cent, the

lowest in the South Asia.

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The urban teledensity of India has been rising consistently for last five years.

The urban teledensity was 85 per cent as of March 2009 and the recent reports shows

that India has reached the 100 per cent landmark of urban teledensity. The main

reason behind reaching this landmark is fight of price war between different service

providers, which eventually brought the price to that level, which is in reach of

everyone living in urban areas. India has last week auctioned 3G also.

While in Sri Lanka, the teledensity stands at 21.5, Pakistan saw a teledensity of 60.6

by mid 2009, the smallest of the SAARC nations Maldives saw a teledensity of 25 in

2002 when India had a teledensity of five.

Nepal Telecom is expecting a growth of 8.9 million subscribers in the next three

years; currently they have 5.1 million subscribers.

Ncell on the other hand claims to have more than 1.8 million subscribers in Nepal; the

most recent figures show that the network now covers about 60 per cent of the

population and around 22 per cent of the total geographical area.

Spice Nepal Pvt Ltd was established in 2004 to provide mobile telecommunications

services. On September 17, 2005 the company got its commercial launch at

Kathmandu and Vicinity while, TeliaSonera acquired controlling interest in October

2008.

The company has more than 2.2 million subscriptions with approximately coverage of

62 per cent of population.

The net sale of the company is Rs 6.9 billion and investments of Rs 5.3 billion. The

company is the second largest tax payer in Nepal that is at Rs 3.2 billion. As of March

12, 2010, Spice Nepal operates under the brand Ncell.

Spice Nepal / Ncell is part of TeliaSonera, the fifth largest telecommunication

company in Europe in terms of market value as of January 2010.

TeliaSonera provides telecommunication services in the Nordic and Baltic countries,

the emerging markets of Eurasia, including Russia and Turkey, and in Spain.

The number of Subscriptions in 2009 reached over 147.6 million and had net sales

amounted to $14.3 billion along with around 30,000 employees.

http://www.thehimalayantimes.com/fullTodays.php?headline=Nepal+lags+behind+in

+teledensity+target+under+MDGs&NewsID=245060

BUSINESS & ECONOMY:

TYIP aims at upgrading Nepals status to DC

The Three Year Interim Plan (2010-11 to 2012-13) aims Nepal to upgrade the country

from its current status of Least Developed Country (LDC) to Developing country

(DC).

―Apart from status upgradation of the country, the TYIP also aims at creating

employment and ensuring high economic growth by reducing the number of people

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living under the poverty line,‖ said Dr Jagdish Chandra Pokhrel, vice-chairman of

National Planning Commisson (NPC) during the inauguration ceremony of Nepal

Development Council (NDC) meeting that is intended to finalise the approach paper

for the TYIP (2010-2013).

The draft of approach paper also envisions a society where there will be no legal,

social, cultural, lingual, religious, economic, gender, racial and any other kind of

discrimination. ―The target of the plan is to have a sustainable economic growth for

the overall improvement on the living standard of people, which will also aid

Millennium Development Goals (MDGs),‖ he said adding that the target will be

possible only through the creation of employment opportunities, reduction of

economic inequalities, achieving the regional balance, and elimination of social

exclusion.

Addressing the meeting, the Prime Minister Madhav Kumar Nepal outlined six areas

— that need focus — commercialisation of Agriculture, development of tourism,

hydropower, industries, infrastructure and skill for better job opportunities. ―The plan

will focus on creating more employment opportunities,‖ he said adding that during the

last TYIP (2007-2010) the poverty level has come down to 25.4 per cent, which is

encouraging.

―Though poverty level has come down, rich poor gap has widened,‖ said finance

minister Surendra Pandey. ―Non-economic issues have hurt the economy,‖ he said

addig that the country has a potential of achieving six t oseven per cent growth, hyad

there been no non-economic issues that have hurt the economy.

The Prime Minister also agreed on the non-economic issues like bandh that have hurt

the economy.

The TYIF (2010-2013) — the second in a row — has two major objectives that

include poverty alleviation and establishment of sustainable peace through the

employment centric inclusive and justifiable economic growth.

To achieve the objectives, the plan has also focused on generation of employment

opportunities, development of infrastructures, inclusive and justifiable development,

and good governance. ―The government will emphasise on the internal and foreign

employment creation,‖ the plan reads.

Similarly, in order to achieve decentralised development and keeping the probable

federal governance in mind, government will strategise to construct economic

infrastructures in the way that the probable federal regions‘ can benefit. The strategy

of inclusive and justifiable development will be for the achievement of improved

living standard of marginalised, geographically and economically backward

population which will also aid the establishment of sustainable peace.

The plan also aims at developing physical and social infrastructure, agriculture,

tourism, industry, essential services such as drinking water, energy, electricity, roads,

foods, medicines and education, environment conservation, investment for

elimination of discrimination which will aid the economic development.

The government has estimated Rs 1,023.7 billion for the three year interim plan

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(2010-2013) — the continuation of the present three year interim plan (2007-2010).

The last three year interim plan (2007-2010) was allocated Rs 511 billion. The

national think-tank is holding Nepal Development Council meeting today and

tomorrow to finalise the Approach Paper for the next Three-Year Interim Plan that

has targetted 5.5 per cent growth. The current Three Year Interim Plan had estimated

5.5 per cent growth but the average growth stands at 4.4 per cent.

Last three year interim plan was the second such periodic plan. The first such three-

year interim plan was implemented in 1962 after the demise of democracy and

introduction of the party-less Panchayat system, Nepal has seen a periodic plan since

2013 BS.

TYIP targets

Annual average growth rate of GDP 5.5 per cent

Total Capital Investment Rs 1,023 billion

Public Investment Rs 364 billion

Public Revenue Rs 677 billion

Total Expenditure Rs 1,02 billion

Inflation seven per cent

Maoists boycott

KATHMANDU: The UCPN-Maists has boycotted the Nepal Develiopment Council

(NDC) meeting that is being held today and tomorrow. A press note signed by 18

UCPN-Maoists leaders have called the meeting untimely and asked it to halt till ‗the

right time‘. The Planning Commission has failed to forge consensus for the interim

plan, they blamed. Dr Dilli Raj Khanal, an economist, said that the government has

failed to bring strategy — in consensus — that can transform the country. ―The

opposition party has to be taken into confidence for such long term planning,‖ he said

adding that the government should have taken suggestions from all.

http://www.thehimalayantimes.com/fullTodays.php?headline=TYIP+aims+at+upgrad

ing+Nepals+status+to+DC&NewsID=245062

Land registration down by 40pc

The land registration records of the major five Land Reform Offices (LRO) revealed

that the number of land registrations have decreased by 30-40 per cent on an average,

after the central bank‘s decision to put cap on lending of banks and financial

institutions.

According to Padam Prashad Aryal — officer of Dillibazar land reform office — the

number of land registration has increased in the VDCs with some 16,574 registrations,

whereas it has decreased in Municipal areas with the registration of about only 6,028.

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However, the amount of revenue collected by the land registration of the VDCs is

lesser than in the municipal areas due to only two per cent tax charged on VDCs.

The amount of revenue collected by the Dillibazar LRO is about Rs 210.79 million in

December 2009, but immediately after the NRB directives, the revenue plunged to Rs

80.73 million in January. The total land transaction has been recorded to be 38,920 in

number with the total revenue collected at Rs 1.44 billion in the fiscal year 2008-09,

whereas the transaction decreased to 23,802 numbers within April 30 of the fiscal

year 2009-10.

―Although December-January is the peak season for the land transaction, the trend

shows decrease in the land registration,‖ said, Tukram Koirala - officer at registration

department at Kalanki Land reform Office. ―Last month during the peak hour, a total

amount of revenue collected was at Rs 10 million, but during the same time this year,

it looks difficult to meet the target,‖ Koirala said adding that the revenue could be

much less.

However, land registration in the name of female has increased.

Month Land Registration Revenue (Kalanki)

August (2009) 1,808 Rs 30.80 million

September 2,406 Rs 110.42 million

October 1,869 Rs 40.88 million

November 2,515 Rs 70.29 million

December 3,108 Rs 80.65 million

January (2010) 2,962 Rs 60.46 million

February 2,588 Rs 40.69 million

March 2,027 Rs 30.25 million

April 2,007 Rs 30.05 million

Month Land Registration Revenue (Dillibazar)

August (2009) 2,139 Rs 70.91 million

September 2,919 Rs 100.99 million

October 2,080 Rs 160.29 million

November 2,421 Rs 120.74 million

December 3,582 Rs 210.79 million

January (2010) 3,578 Rs 160.28 million

February 2,578 Rs 100.58 million

March 2,324 Rs70.24 million

April 2,181 Rs 80.73 million

http://www.thehimalayantimes.com/fullNews.php?headline=Land+registration+down

+by+40pc&NewsID=245158

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SC petitioned against ban on network business

Four network marketing companies on Monday filed a writ petition at the Supreme

Court (SC) against the government´s decision Sunday to annul the Directives on

Network Marketing of Commodities with immediate effect.

Herbo International, Crystal Vision, Best World Business Link and Robius jointly

filed the writ petition demanding an interim order against the government decision.

"The directive was prepared by the Department of Commerce (DoC) as per the

Consumers´ Rights Protection Act (CRPA),‖ reads the writ, adding, "The

government´s decision to annul the directive directly affects our business. Thus, a stay

order should be issued by the SC to stop the government from implementing its fresh

decision."

The Prime Minister´s Office, the Ministry of Law and Justice and the Department of

Commerce, among others, have been named as defendants in the writ. DoC had issued

the directives two months ago, allowing the network marketing of commodities.

However, knowledgeable officials said that the directives that these companies cited

for regaining business legality was issued against the spirit of the CRPA.

―Going by clause 55 of the CRPA, under which DoC issued the directives, it can issue

new directives. But such directives should be meant for easing the implementing of

different provisions of the Act itself,‖ said Jyoti Baniya of Consumers Rights

Protection Forum, who was one of the drafters of the CRPA.

―This clause by no means allows the government to authorize new business,‖ he said.

―Should DoC issue directives on Mutual Funds, if it finds a number of companies

operating such business, or land action against them? It should land action, for mutual

fund business can be opened by enacting a separate law. Same applies for network

marketing business as well,‖ said a staffer at MoCS.

Based on the directives issued just about two months, Herbo and three other

companies had acquired licenses to operate network marketing.

These companies had together reported having 140,000 clients when they applied for

license at DoC. This means the companies themselves had admitted they were

operating illegally.

Records submitted at DoC show that Herbo International had mentioned having

81,5170 clients at the time of getting its license. Crystal Vision had 25,500 clients,

Robius had 17,000 clients and Best World had 16,000 clients before they gained

legality.

Apart from them, 16 other companies were also in the pipeline, awaiting licenses

before the government annulled the directives on Sunday.

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Committee to set policy

Ministry of Commerce and Supplies (MoCS) on Monday issued a circular to the

Home Ministry, seeking enforcement of a ban on operation of network marketing

business, which the government imposed on Sunday.

It is also soon writing to the Home Ministry to take action against Unity Life

International on charges of forgery, for operating the restricted business and working

against the Consumers´ Rights Protection Act, said Commerce Secretary Purushottam

Ojha. Sending such a letter is crucial to build cases against the company.

The ministry has also formed a task force to make policy recommendations to the

government to decide the fate of network marketing business in the country.

The committee is led by a joint secretary at MoCS and has members from the Home

Ministry, Ministry of Finance and Ministry of Law, among others. It has been

entrusted with studying domestic and international contexts and practices and

submitting its report to the ministry within a month.

"Based on its recommendations we will take a long-term policy decision on the

business," Ojha stated.

The ministry had formed a similar committee some three years ago as well. The then

MoCS Joint Secretary Tej Raj Shakya-led committee had suggested to the ministry

not to open the business, saying it does not match with competition norms and puts

larger consumer interests at risk.

The team had also cited the poor awareness level of consumers, a high degree of

client maneuvering by agents and weak monitoring and regulatory capacity at the

Department of Commerce for its recommendations against opening the business.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19046

Victims told to complain at DAO

Following the ban on network-based transactions, the government has said that people

having legitimate financial claims with companies running networking business could

register their case at the district administration offices.

A senior official of the Ministry of Commerce and Supplies Purushottam Ojha said

that the government would help victims of networking companies on the basis of

complaints registered at the DAOs.

Four network-based companies, Herbo International, Crystal Vision International,

Best World Business Link and Robious International have deposited Rs. 2.5 million

each at the ministry when they got registered on the basis of a directive on network

marketing issued on Jan. 21.

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"We will manage payment claims with that money," the MoCS official said.

However, the ministry has no policy regarding what to do if the claims should

increase. The ministry has said that necessary measures would be taken as per the

suggestion of an inter-ministerial committee formed on Sunday representing

commerce, law, finance, industry and home affairs ministries.

After the Unity Life International (ULI) fiasco, the government banned all network

companies selling goods on the basis of pyramid-based networks. The ministry has

also written to the Ministry of Home Affairs to take necessary measures to implement

the government's decision to shut down network marketing companies.

Meanwhile, the Department of Commerce (DoC) under the Commerce Ministry on

Monday wrote letters to the four registered companies involved in network marketing

of commodities telling them to stop their businesses immediately.

Herbo International had obtained permission from the DoC on March 22, Crystal

Vision International and Best World Business Link on March 29 and Robious

International on April 16 to form network marketing of commodities.

These companies have been found selling their products in various part of the country

charging anything between Rs. 1,000 to Rs. 99,000 as membership fee or partners as

claimed. And the prices of the products are also over 10 times higher than the market

price.

According to the department, Herbo International, which deals in herbal products, has

over 81,000 members. Crystal Vision International, also involved in network

marketing of herbal products, has over 25,500 members.

Similarly, Best World Business Link, that has been offering various home appliances

such as television, refrigerator, computer and suiting and shirting, has built a network

of over 16,000 customers. And with over 17,000 members in its network, Robious

International was expanding its market with various cosmetic goods and Aloe Vera

products.

"We have asked all the four companies to halt their business following the decision of

the government," said Shankar Prasad Poudel, director at the department. "A working

committee will carry out a study and come up with a report in this regard."

The committee will conduct a study under the coordination of the joint secretary at the

Ministry of Commerce and Supplies. It will have officials from the Ministry of

Industry, Home Affairs, Finance and Law and Justice.

According to the department, if anybody has not received goods even after paying the

money, the government will make a provision to reimburse them from the refundable

deposits made by the companies.

"A public notice will be issued either by the government or the companies asking

people to claim their money if they have not received the goods as promised," said

Poudel.

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Following the ban, Herbo International remained closed on Monday. A watchman at

the Herbo office said that the office had been shut for two days without any notice.

Established in 2005 and with investments by chairman Gokul Shrestha and vice

chairman Pushpa Raj Purush, Herbo International has been network marketing over

12 herbal products across the country and in India, Malaysia and Singapore.

According to the department, Crystal Vision International is

headed by Surendra Kurungbang, Best World Business Link by Roop Kumar Chettri

and Robious International by Santosh Tamang.

http://www.ekantipur.com/2010/05/25/business/victims-told-to-complain-at-

dao/314997/

Nepal ready to welcome Australian guests

Ambassador Yogendra Dhakal, during the Sales Mission in Australia — informed

about the rejuvenated state of tourism in Nepal.

―The government and Nepali tourism entrepreneurs are quite euphoric about the NTY

campaign and looking forward to welcome a large number of tourists from Australia,‖

the ambassador said hoping for the full cooperation and support from the Australian

travel-tour operators in their endeavor to send more Australians to Nepal in 2010 and

especially in NTY-2011.

Nepal Tourism Board (NTB) — in coordination with the Nepali Embassy Canberra,

Australia and Consulate of Nepal in Melbourne, Sydney and Brisbane has organised a

Sales Mission in Australia on May 18-21. The Sales Mission was held in Melbourne

on May 18, Sydney on May 19 and Brisbane on May 21 respectively. The main aim

of the Sales Mission was to promote Nepal Tourism Year 2011 in Australia along

with other added tourism attractions of Nepal, specially natural and cultural

attractions trekking and adventure activities.

The Sales Mission also appraised the Australian travel writers and the entrepreneurs

about the growing situation in Nepal and how Nepal's tourism industry has been

rejuvenated after the launching of Nepal Tourism Year 2011. The launching of Nepal

Tourism Year with the slogan 'Together for Tourism' aims at doubling the existing

arrival figures of tourists in Nepal to one million. The number of total tourist arrivals

from Australia by air to Nepal during January to April 2010 has increased by 10 per

cent compared with the same period last year. The Nepal team also made

presentations on NTY 2011 and interacted with the Nepali community.

http://www.thehimalayantimes.com/fullNews.php?headline=Nepal+ready+to+welco

me+Australian+guests&NewsID=245059

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Dragonair bags award

Dragonair has been voted World's Best Regional Airline in the annual World Airline

Survey run by Skytrax, a London-based rese-arch organisation which runs the annual

survey and the World Airline Awards.

This is the first year this award category has been included in the survey. About 18

million travellers from more than 100 nationalities voted in the survey which was

carried out between July 2009 and April 2010, said a press statement issued by

Dragonair.

Award winners are determined by measuring over 35 different aspects of passenger

satisfaction for product and service standards, covering the experience across both

airport and onboard environments. Dragonair Chief Executive Officer James Tong

received the award on behalf of the carrier at the presentation ceremony held at

Hamburg, Germany on May 20. "We have been voted best airline - China for six

consecutive years as well as Best Regional Airline - Southeast Asia in the past.

Receiving the World's Best Regional Airline Award reflects Dragonair's continuous

commitment to the pursuit of service excellence, by always putting our customers

first," Tong said. "For a Hong Kong-grown airline to be named among the world's

best is a matter of great pride not only for us but for the entire Hong Kong

community.

http://www.ekantipur.com/2010/05/25/business/dragonair-bags-award/314999/

Government fails to launch IDB

The Government‘s dream to utilise migrant workers‘ money towards development is

fading away due to policy dilemma and weak implementation mechanism. Finance

minister Surendra Pandey — in his budget for the fiscal year 2009-10 — had

announced an ambitious Infrastructure Development Bond (IDB) of Rs 7-billion-bond

targeting thousands of migrant workers.

―IDB can‘t be materialised within this fiscal year,‖ said Sthaneshwor Devkota,

executive director of Foreign Employment Promotion Board (FEPB). ―We don‘t have

a proper policy and action plan yet,‖ he added.

The Board had conducted a series of consultations with stakeholders including the

financial institutions and outsourcing agencies to implement it last year, but failed to

come out with a concrete policy and action plan. It received over half-dozen ideas to

visualise the concept but Finance Ministry didn‘t give green signal to move ahead.

Stakeholders have suggested FEPB to design the programme involving public private

partnership with a maximum benefit to be provided to migrant labours, as well as

associate banks and remittance agencies in selling bond.

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―Interest rates for the bond was roughly fixed at seven per cent,‖ Devkota said. The

Board has, however, revised the amount of the bond in November to only Rs 3 billion

for the year 2009-10 targeting to sell to 10-12 per cent of labour force working in

South Korea, Malaysia and Gulf countries — UAE, Saudi Arabia and Qatar.

Over 12,00,000 Nepali workers are estimated to be working in Malaysia and Gulf

countries.

Political instability and financial crisis as well as liquidity crunch in banking and

financial institutions loomed at the end of 2009 overshadowing the bond. The Board

has almost given up when Finance Ministry fell deep into the issue of liquidity crunch

last year.

The delay in appointment of labour attaché has also affected the process, he said

adding that labour attaches could have been helpful in exploring the market and

monitor the bond in destination countries. The government appointed labour attaché

in four destination countries Malaysia, UAE, Saudi Arabia and Qatar last year but has

not been able to appoint one to South Korea till date.

Ministry of Labour and Transport Management (MoLTM) decision of appointing

labour attaché

in South Korea, Japan, Hong Kong, Oman, Israel and Kuwait is currently under the

Commission for the Investigation of Abuse of Authority (CIAA).

http://www.thehimalayantimes.com/fullNews.php?headline=Government+fails+to+la

unch+IDB&NewsID=245150

Hydropower firms must float shares for locals

Hydropower companies have to float shares for the locals also, according to the

amended the Securities Registration and Issuance Regulation – 2065.

According to the amendment, a company has to float a minimum of 30 per cent shares

of its issued capital, unless otherwise directed by the company‘s regulatory body. Of

the 30 per cent, five per cent has to be separated to the company‘s staff; 10 per cent to

the locals and remaining 15 per cent to the general public.

However, the locals cannot sell their share till three years.

The new amendment has directed that an individual can not apply for the share as

both the local inhabitant and public. ―If a person applies for the share that is separated

to the locals, he/she cannot apply for the shares separated to the general public.‖ ―To

encourage the real sector in the secondary market, Securities Board of Nepal (Sebon)

has amended the regulation,‖ said

Shurbir Paudel, chairman of the Sebon. ―If we can attract real sector in the secondary

market, it can reflect the real economy,‖ he said adding that the present market is

dominated by the BFIs.

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The companies like hydropower that requires a longer construction periods, can offer

the shares to the public even in its construction phase provided it has obtained licence

for operation. But it has to complete its one year‘s audit and hold annual general

meeting to float the shares. However, the company must have started its construction

and attained basic infrastructures like land, buildings, warehouses etc already bought

or in the process of buying capital equipments.

―It also needs to have already received loans from banks and financial institutions,‖

according to the amendment. The debt of the company has to be limited as per the

regulations and the shares have to be underwritten according to the directive. The

amendment has also made it more stricter for fake applicants.

THT

MARKET:

NEPSE settles at 462.63pt mark

The Nepal Stock Exchange (NEPSE) maintained its upward movement for the second

consecutive day. The benchmark index saw a meagre gain of 0.06 point on Monday.

The NEPSE index settled at 462.63 points when trading closed. Except for finance

and others, all the sub-indices registered positive growth with the hydropower sector

leading the way. The others sector was the worst sufferer, shedding 16.45 points on

Monday.

Of the 22 commercial banks, SBI Bank and Standard Chartered Bank were the highest

gainers, each adding 19 points. Likewise, Himalayan Bank was the highest loser

shedding 35 points. Shares of 19 development banks changed hands on Monday.

Pashupati Development Bank topped the group with its stock going up by 23 points,

while Gurkha Development Bank lost 30 points.

There were 18 finance companies on the trading floor. Butwal Power Company

posted a 27-point gain on Monday to lift the hydropower sector.

http://www.ekantipur.com/2010/05/25/business/nepse-settles-at-462.63pt-

mark/314995/

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POLITICS:

Maoists register disapproval notice

While the government is scheduled to table the bill for extension of the Constituent

Assembly (CA) term in parliament on Monday, main opposition UCPN (Maoist)

lawmakers registered a notice of disapproval against it on Sunday.

The government has to defeat the Maoist notice by a simple majority to take the

proposal to extend the CA deadline -- that expires on May 28 -- ahead. The

government also has to prove majority in favor of the government bill that has

proposed one-year extension of the CA term.

Maoist lawmakers Dev Gurung and Ek Raj Bhandari registered the notice in the

parliament secretariat. They argued that there is no meaning in approving the bill as

the government deliberately registered it in parliament knowing that such a bill would

not be passed.

―The government doesn´t command two-third majority in parliament. It must have the

support of the main opposition but it didn´t even consult the latter, let alone ask for

any feedbacks. Therefore, it is clear that the government intends to make the CA a

failure and thwart the constitution writing process,‖ Bhandari, who is also a lawyer,

told myrepublica.com explaining the rationale behind their move.

He argued that while all the past accords, including the 12-point agreement, the

Comprehensive Peace Accord and interim constitution, have clearly directed the

political parties to run the government on the basis of consensus, the present coalition

has violated the understanding time and again.

The Maoist lawmakers have claimed that the government not only remained

indifferent toward expediting the constitution writing process but has also hindered

the statute drafting process during recent months.

Lawyer-turned lawmaker Agni Kharel of the ruling CPN-UML said the Maoist

party´s disapproval against the bill for CA term extension should be taken as a normal

move in parliamentary practice.

"But, it doesn´t mean that they have to stick to the same point. They can withdraw or

support the government bill at a later stage. The political parties can resolve it by

reaching an agreement," he said.

With the latest Maoist move, the government has faced immense pressure also due to

time constraints.

"If the government fails to take the bill ahead at the parliamentary meeting on

Monday, we will have insufficient time to follow due process and pass the bill by

May 28. In that case, we will have to suspend some of the procedures," Tek Prasad

Dhungana, legal advisor of parliament, told myrepublica.com.

Lawmaker Sarita Giri of Nepal Sadbhavana Party (Anandidevi) also registered a

separate disapproval notice against the government bill.

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Meanwhile, lawmakers from other 14 political parties chanted slogans in front of the

rostrum at the parliamentary meeting on Sunday demanding CA term extension.

Before chanting slogans, CP Mainali of CPN (ML) and Dr Prakash Chandra Lohani

of Rastriya Janashakti Party explained why the CA term extension has become the

need of the hour.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19005

Dahal changes tack on CA term

In what appears a shift to a softer stand, the UCPN (Maoist) on Monday decided to

support the extension of the Constituent Assembly (CA) tenure by six months

provided the politics of consensus is guaranteed before 28 May. The decision, the

party said, comes at the conclusion of its four-day Central Committee meeting saying

―only consensus can guarantee constitution and peace‖.

In their latest stance, the Maoists seem a bit more flexible as compared to their earlier

politburo decision — no support for CA term extension unless there is an agreement

on constitution amendment to ensure ―consensual system‖ and dissolution of the

incumbent government.

After the CC meeting, UCPN (Maoist) Chairman Pushpa Kamal Dahal said that a

guarantee to amend the constitution to ensure politics of consensus would suffice

since it was now impossible to amend the constitution in the remaining four days. He

added that the central concern of the CC meet was to find ways to save the CA. ―The

ruling parties should make a concrete commitment to the politics of consensus and

unity government. Verbal or half-hearted commitment is not sufficient,‖ the Maoist

supremo said.

During the press meet, Dahal repeatedly said his party would not agree to extending

the CA if the politics of consensus was not ensured because ―any extension without

the guarantee of consensus would not yield the new constitution and such an

extension would be meaningless.‖

Asked what could be a guarantee of consensus, the opposition leader reiterated that it

was up to the ruling parties‘ to make the environment conducive for a national unity

government through the resignation of the prime minister.

―If the ruling parties do not forge national consensus, it means they want to dissolve

the CA. However, we will do our bit to save the CA by forging national consensus till

the last minute,‖ Dahal said. He added that the CA is in ―coma‖ for the last three

months and it needs to be brought back to life. On a more optimistic note, he said that

there was possibility of consensus among parties in the remaining four days. ―There

have been talks and discussions among the political parties. We have four days which

is a long enough period in politics. Even four minute would suffice if the parties want

consensus,‖ Dahal said.

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Asked what would happen after May 28 if the CA is not extended, Dahal asked

journalists not to pose this question. ―We will reach out to people with the agenda of

national unity government and constitution.‖

The Maoist CC meet also slammed recent remarks by Prime Minister Madhav Kumar

Nepal that he had never favoured the concept of a constitution through the CA.

http://www.ekantipur.com/the-kathmandu-post/2010/05/24/top-story/dahal-changes-

tack-on-ca-term/208624/

Majority for Maoist take on CA

A majority of UCPN-Maoist central members today echoed the recent decision of the

party politburo that it would allow the extension of the Constituent Assembly‘s term

only after the government fulfilled its two conditions — dissolution of the incumbent

government and consensual politics.

The CC members said that extending the CA‘s term without addressing their demands

would only let others have their way and added that unless the political parties arrived

at consensus, the statute was less likely to be promulgated.

Party spokesman Dinanath Sharma said the CC members have finished airing their

views and that party Chairman Pushpa Kamal Dahal ‗Prachanda‘ would answer all the

queries tomorrow.

He claimed that the recent remark of Prime Minister Madhav Kumar Nepal that he

was never in CA‘s favour has revealed his true face.

http://www.thehimalayantimes.com/fullTodays.php?headline=Majority+for+Maoist+t

ake+on+CA&NewsID=245041

RPP stance

Rastriya Prajatantra Party (RPP) on Monday urged the three major parties — UCPN

(Maoist), Nepali Congress and CPN-UML — to see to it that the Constituent

Assembly (CA) term is extended after a concrete schedule to draft the statute is

worked out. ―We can avoid a crisis by extending the CA tenure only with a concrete

schedule. Extending CA term without consensus is meaningless,‖ RPP General

Secretary Parshu Ram Khapung said in a statement.

http://www.ekantipur.com/the-kathmandu-post/2010/05/24/nation/rpp-stance/208636/

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GENERAL:

Envoys write to PM to extend OHCHR term

Heads of the missions of 10 western countries have jointly urged Prime Minister

Madhav Kumar Nepal to renew the tenure of the Office of the UN High

Commissioner for Human Rights, Nepal (OHCHR-N), by a minimum one year and

not to curtail the UN body´s mandate.

The ambassadors, who have been raising concern over OHCHR´s term extension on a

number of occasions, joined hands to send a letter to the prime minister on May 12

after they came to learn government move to shrink the UN rights body´s scope and

close its regional offices.

"This time we wrote to express our strong support for the continued need of the

present mandate of the OHCHR, including, for instance, access to official documents

and detention centers, and to encourage the government to extend the mandate for a

meaningful duration -- at least one year," said a diplomatic source.

Established in 2005, the UN rights body´s term is expiring after 16 days. But the

government and the OHCHR are yet to agree on the scope of the mandate before the

term is extended. Government sources said the mandate is likely to be renewed by one

year.

Officials involved in negotiations with OHCHR said the government wants to restrict

current unhindered movement of the UN rights body and deny access to documents.

"But the OHCHR is seeking unrestricted and unnoticed access and visits to any places

it wants in regard to human rights issues," said a senior official involved in

negotiations with the OHCHR.

The government wants to shrink the scope of mandate arguing that the time and

context when OHCHR came to Nepal has changed.

But those who advocate for continuation of the present mandate of OHCHR-N say

that there is still much to do on protection and promotion of human rights in Nepal

and the National Human Rights Commission is not in a position to take up that

responsibility in the absence of OHCHR-N.

"OHCHR´s work complements the National Human Rights Commission´s work as a

national institution but the ultimate goal is for NHRC to be able to effectively protect

and promote human rights on its own," said the diplomatic source.

http://myrepublica.com/portal/index.php?action=news_details&news_id=19047

Keep NEA afloat call gets louder

The government should support the cash-strapped Nepal Electricity Authority (NEA)

to reduce its increasing financial loss, said private hydropower developers.

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Currently, the sole power authority is facing an annual loss of four billion rupees and

accumulated loss of Rs. 14 billion.

Presenting a paper on ―Nepal‘s hydropower (1911-2010) under scanner and a way

forward‖ at a function here on Monday, Gyanendra Lal Pradhan, executive director of

Hydro Solutions, said the NEA should be made financially stable to attract local and

foreign hydropower developers to invest in Nepal‘s hydropower projects.

Though the government has claimed that the present power crisis will be reduced in

next couple of years once the construction of projects like Chameliya (30 MW),

Kulekhani III (14 MW), Upper Tamakoshi (456 MW), Trishuli B (63 MW) and

Rahughat (27 MW) is over, these projects are unlikely to be completed on time.

Pradhan said participation of the private sector in hydro development is

unsatisfactory.

http://www.ekantipur.com/the-kathmandu-post/2010/05/24/nation/keep-nea-afloat-

call-gets-louder/208640/

Police to get phone tapping rights soon

The government is preparing to introduce a new Act allowing police authorities the

right to intercept phone calls of suspected criminals.

A Bill on Control and Punishment of Organized Crimes 2067 BS approved by the

Cabinet last week envisages right to investigating officials to collect vital information

pertaining to organized crimes through phone tapping. Home Ministry is set to

forward the Bill to the House for approval.

The government move comes in the wake of increasing organized crimes including

kidnappings with the use phones in various parts of the country.

According to the Bill, investigating officials will require written application to a

seven-member body led by the chief of Peace and Security Division at Home Ministry

to get permission for phone tapping, justifying reasons for it. Such permission will be

time-bound.

The seven-member body comprises joint secretaries from Ministry of Defense and

Ministry of Information and Communications and a representative each from Nepal

Police, Armed Police Force, National Investigation Department and Nepal Army.

This is the first time the government is planning to grant the police the right to

intercept phone calls.

If the Act comes into operation, it is expected to enhance efficiency of police in

dealing with organized crimes. The evidences collected through phone tapping will

also be recognized by the courts.

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The Bill recognizes 12 different crimes including kidnapping, hostage taking,

extortion, prostitution and pornography, fraudulent activities including use of fake

documents in foreign employment, use of arms and explosives for money and power

as organized crimes.

Forgery and illegal transaction in banks and financial institutions, money laundering,

counterfeit currency dealings, illegal transaction of foreign currency, smuggling of

goods of archeological importance have also been categorized as organized crimes.

The Bill proposes to provide unwarranted authority to the police including the right to

arrest without warrant, body search, seizure and house raid as and when necessary or

take preemptive measures to thwart any organized crimes.

Amidst complaints that provisions of punishment for such crimes under the existing

laws are barely enough to curb them, the Bill proposes three to 10-year jail term and

fine equivalent to amount claimed by the victims or both. The fine will be up to Rs

200,000 to Rs 500,000 in case the claimed amount is not specified.

The Bill proposes to seize both fixed and movable assets earned through the acts of

organized crimes and allows authorities to seize house, land, vehicle, other means or

equipment that are used by the perpetrators.

Likewise, there will be no statute of limitation of the cases filed under this Act and all

cases will be considered government cases.

Among other things, the new Bill has provisions to recognize digital records such as

those captured by camera, video and recorder as court evidences, keep the accused

persons in police custody for up to three months and ensures measures to protect

witnesses.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19051