36th
AGM of FNCCI Concluded
The 36h Annual
General Meeting (AGM) of the Federation of Nepalese Chambers of
Commerce & Industry (FNCCI) was held on 30-31, 2002 in Kathmandu.
The AGM deliberated on various issues and passed resolutions asking
for prompt government actions on them.
The AGM was
inaugurated by the Prime Minister Sher Bahadur Deuba amid a special
function on July 30, 2002.
Addressing
the inaugural session of the AGM Chief Guest Prime Minister Deuba
announced that His Majesty's Government would bring out a new
Industrial Policy and Competition Policy in order to face the
challenges of global competition.
The Prime
Minister also appealed to the private sector to utilise the opportunities
resulting from the growth quadrangle concept put forth with the
cooperation of donor countries to explore future areas of cooperation,
development of infrastructure, trade and investment among the
South Asian countries.
On the occasion
Prime Minister Deuba also observed the exhibition exhibiting goods
produced by women of various districts of Nepal.
Minister for
Industry, Commerce & Supplies Purna Bahadur Khadka said that the
government has adopted the principle of partnership with the FNCCI
and the government has been making necessary preparations to review
the policies related to foreign trade and investment. He further
noted that the consensus from all sectors is being sought before
giving the 20 year industrial perspective plan its final shape.
Delivering
a welcome speech during the inaugural session of AGM, FNCCI President
Ravi Bhakta Shrestha said that it was the need of hour to be cautious
over economic issues rather than being entangled that in political
disputes.
He further
said, he found regrettable is that the His Majesty's Government
of Nepal has failed to give adequate attention to economic diplomacy
at a time when the FNCCI was asking international community for
a duty free access for the country's indigenous products.
President
Shrestha also handed over a cheque for Rs. 5,11,111 to the Prime
Minister on behalf of the FNCCI for the victims of flood and landslides
in various parts of the country.
Proposing
the vote of thanks, First Vice President of FNCCI Binod Bahadur
Shrestha noted that industrialists and businessmen were discharging
their responsibility towards the nation by investing 'in various
industrial and business sector.
Participants
from all over the country participated on the AGM.
Economic
Debate urges Government for National Consensus and Common Vision
for Economic Development
The views
of political parties on Nepal's overall economic policy and future
policies were expressed the programme organised in Kathmandu on
July 31, 2002 by the Federation of Nepalese Chambers of Commerce
& Industry (FNCCI).
Speakers at
the "Economic Debate" on the topic "Long Term Vision: The basis
of economic progress" held on second day of the FNCCI's 36th Annual
General Meeting stressed the need for all out reform in Nepal's
floundering economy.
Political
parties and business community felt that there was a dire need
for a "National Consensus" and "Common Vision" for economic development
that should guide each government's development endeavour.
Participating
in the discussion National Planning Commission Vice Chairman Dr.
Narayan Khadka spoke of the need for reviewing past policy and
for an egalitarian, balanced and longterm programme to bring about
an equilibrium between industry and agriculture. village and town.
In the discussion,
Dr. Prakash Sharan Mahat from Nepali Congress opined that there
was a serious need for confidence amongst the government, private
sector, civil society and other nongovernmental organisations.
Binaya Dhoj
Chand from the Nepali Congress said that a good coordination between
politics and economics was lacking.
Bharat Mohan
Adhikari from CPN-UML lambasted the government for the lack of
accountability, high degree of corruption and ineffective implementation
of high sounding policies.
Dr. Prakash
Chandra Lohani of Rastriya Prajatantra Party said that the thrust
should on food, shelter, clothing, health and transportation sector
to attain accelerated growth.
Khusilal Mandal
of Nepal Sadbhawana Party called for a green revolution and a
white revolution.
Ghanashyam
Sharma Poudel of Janamorcha Nepal drawing the government's attention
on the need to make investment in light industries such as software,
said that the abundant labour of the country should be effectively
utilised to attain higher growth.
Speaking from
the chair Ravi Bhakta Shrestha, President of FNCCI, strongly urged
for the strong implementation of the plans. The government officials
must take-up their responsibilities, sensibly and give due attention
to economic issues, which has largely been sidelined by political
agenda. He also said Nepal has been used as a guinea pig in the
name of economic development.
Rajendra Kumar
Khetan, Second Vice President and Spokesmen of FNCCI and Convenor
of the programme spoke about the aims of the discussion programme
while senior Journalist Ram Krishna Regmi summerised the discussions
as a moderator.
MOU
on HIV/AIDS Signed between FNCCI & UN Theme group
Concerned
with the spread of HIV/AIDS in the country, the Federation of
Nepalese Chambers of Commerce & Industry (FNCCI) and the UN Theme
Group (UNTG) signed a Memorandum of Understanding on HIV/AIDS
in Kathmandu on 20 August 2002.
The MOU was
signed by FNCCI Employers' Council Chairman and Ex-officio Vice
President Suraj Vaidya on behalf of FNCCI President Ravi Bhakta
Shrestha and Chairperson of UN Theme Group of HIV/AIDS Bill Musoke.
As per the
MOU the UNTG on HIV/AIDS will provide FNCCI consultancies to:
Facilitate
the process of creating awareness about HIV/AIDS within FNCCI
(including district chambers) and among FNCCI members; Support
and facilitate the integration of HIV/AIDS as an agenda point
in annual district chamber meetings; Support the development of
a decentralized pilot programme to strengthen the capacity of
members of FNCCI and one selected priority district; Support and
facilitate the development of an HIV/AIDS policy framework for
FNCCI; Facilitate and support HIV/Aids prevention programmes at
the workplace.
Funds for
transport needed to develop and monitor the pilot programme in
the selected priority district will also be provided
Similarly,
FNCCI will provide; A full time qualified FNCCI staff to work
together with the consultant in order to create capacity on HIV/AIDS
issues within FNCCI and ensure sustainability of the initiated
HIV/AIDS activities and an office space for the consultant, including
computer, telephone and other basic office equipment needed in
order to work efficiently.
An executive
board consisting of representatives from FNCCI and the UNTG on
HIV/AIDS will meet once quarterly to discuss the progress of the
programme as well as decide on new programme activities.
FNCCI-CII
Joint Economic Council reconstituted
The FNCCI
has constituted the FNCCI-CII Joint Economic Council (JEC) from
FNCCI side under the Chairmanship of FNCCI President Ravi Bhakta
Shrestha.
Suraj Vaidya,
Diwakar Golchha, Kishore Khanal, Kush Joshi, Kumud Dugar, Joy
Dewan, NICCI Representative and Badri Ojha are the members of
the reconstituted JEC from the FNCCI side. FNCCI
Former President
Padma Jyoti will be the Senior Advisor.
With a view
to preparing joint recommendations for the Nepal-India Intergovernmental
Committee Meeting and charting out future course of actions including
(a) export and investment promotion programmes in selected states
of India, (b) special Nepal session at the World Economic Forum
and CII Partnership Summit in India, (c) Joint Trade Fair/Exhibition
in Nepal and India, (d) Summit on Child Labour in Nepal, and (e)
Corporate Governance, the JEC Meeting was held on 14th August
2002 in New Delhi.
The first
meeting of the JEC was inaugurated in February 1996 in Mumbai
by Sher Bahadur Deuba during his official visit to India as Prime
Minister of Nepal.
Luncheon
hosted by SCCI/FNCCI
SAARC Chamber
of Commerce & Industry (SCCI) and the Federation of Nepalese Chambers
of Commerce & Industry (FNCCI) jointly hosted a luncheon on 22
August in honour of the Foreign Ministers and delegates of SAARC
countries. Who had came to take part in the 23rd ministerial level
meeting of the South Asian Association for Regional Cooperation
(SAARC).
On the occasion
President and Office bearers of SCCI and FNCCI also presented
momentoes to the SAARC Foreign Ministers.
Nepal,
India agree tor concessions on trade, transit
A meeting
of the Nepal-India Inter Governmental Committee meeting concluded
in New Delhi on 17 Aug. 2002.
The Nepalese
delegation at the meeting was led by Secretary at the Ministry
of Industry. Commerce and Supplies Bhanu Prasad Acharya and the
Indian delegation by Indian Commerce Secretary Dipak Chatteraji.
According
to the Royal Nepalese Embassy in New Delhi, discussions were held
on maters of mutual concern related to trade, transit, investment
promotion and prevention of unauthorized trade.
During the
discussions, an understanding was reached on holding another round
of talks within a month to operate train services for the dry
port at Birgunj, and on setting up a quarantine check post at
Jogbani, Sunauli and Banbasa by November 1 to solve the problem
in the export of Nepalese agro-based products created by the quarantine
check-posts.
The Indian
side has given positive assurances on reducing the quarantine
fee in response to a request made by Nepal.
Besides, the
governments of India and Nepal have reached an understanding on
holding discussions in the near future on the promotion and protection
of bilateral investment.
The Indian
side has given the Nepalese side assurance to remove the special
additional duty levied on vegetable ghee, acrylic yarn, copper
wire, etc exported from Nepal.
Indian side
also agreed to remove the luxury tax imposed by the West Bangal
government on Nepalese goods.
The Indian
side has also agreed to increase the annual export quota of copper
products from Nepal from 7,500 metric tons to 10,000 metric tons
and to make provision not to charge excise duty on refuelling
of aircrafts of the Royal Nepal Airlines Corporation at the Airports
in India.
India
revokes Special Additional Duty
The government
of India on August 28, 2002 removed the Special Additional Duty
(SAD) of 4 percent that was imposed on some Nepali products during
the Indian budget announcement for the current fiscal year that
ends on March 31st, 2003.
"The Indian
government has sent a notification to this effect. SAD has been
removed from all three items, including vegetable ghee, copper
winding wires and acrylic yarn, with immediate effect," confirmed
Nagma M Mallick, First Secretary Commerce, Embassy of India, Kathmandu.
The removal
of SAD closely follows the heels of the recently concluded secretarial-level
Nepal-India Inter-Governmental Committee meeting at New Delhi
that concluded to resolve the existing barriers to trade between
the two countries.
The Nepali
delegates had urged the Indian government to remove SAD, including
anti-dumping duties and local duties, among others.
Nepal,
Bangladesh agree to enhance bilateral trade
Bangladesh
has agreed to provide warehouse facilities for Nepalese cargo
at mangla port, besides providing a 50 percent rebate for goods
on transit. It has also agreed to extend the 'free time' to clear
the cargo from the port.
The Commerce
Secretary level talks between Nepal Bangladesh that concluded
on August 27 in Kathmandu reached an agreement on this. The 2
day meet also agreed to come up with the necessary infrastructure
to develop a land port at Banglabandh by December. Bangladesh
will also consider Nepal's demand that it open up its market for
Nepalese agricultural products.
The meet ended
with an agreement to expedite trade between the two countries,
with particular emphasis on opening new areas of trade. Nepal's
export to Bangladesh consists of lentils, while Nepal imports
jute products, machinery and fertilizer.
Despite the
geographic proximity, both the nations have not been able to exploit
the trade potential to the maximum. Trade between the two countries
is only about Rs. 800 million. Lack of physical infrastructure,
banking and warehouse facilities at the Bangladeshi border point
of Banglabandh has been hindering trade between the two countries.
The talks
also accorded priority to promoting relations between the private
sectors of the two countries.
A press release
issued simultaneously by the Ministry said the meet agreed to
finalise the agreement on transportation between the two countries
in the near future. Bangladesh has also agreed to construct a
bridge over the Rupsa River within two years to expedite trade.
During the
meet, both countries agreed to hold trade fairs to promote trade.
Air services from Bhadrapur, Biratnagar of Nepal to Shahidpur
of Bangladesh will be initiated.
Nepal, on
its part, has agreed to study the proposal of Bangladesh to carry
out trade on the basis of Accounts/Counter Trade, the press release
said.
Nepal,
Bangladesh, Bhutan and India to set up FTA
The South
Asia Business Forum (SABF) agreed an August 13, 2002 to double
trade in three years from the present of $ 2.5 billion and work
towards establishing a Free Trade zone among Nepal, Bangladesh,
Bhutan and India.
The Forum,
which concluded its first two-day Annual meeting in New Delhi,
noted that the Indian government has offered unilateral concessions
but the need is to move towards a more wholesome arrangement leading
to a Free Trade Area (FTA).
The SABF,
set up by the apex Chambers of Bangladesh, Bhutan, India and Nepal
in association with the Assian Development Bank (ADB), brought
together senior policy makers and business leaders from the four
countries to chart out a strategy for enhancing private sector
co-operation in the region.
The Forum
agreed to lobby at the political level for harmonization of custom
procedures and documentation in the South Asia Sub-Regional Co-operation
(SASEC) and for uniform banking and insurance practices to take
care of exporters requirements.
Foreign
importers can open liaison offices
His Majesty
Government has decided to allow foreign companies importing Nepali
goods and services to open liaison offices in Kathmandu. The move
is aimed at promoting export of Nepali goods and services to other
countries.
Foreign companies
importing Nepali goods and services worth $500,000 will be eligible
to open liaison offices in Nepal.
Necessary
arrangements have been made at the department of commerce for
foreign companies to open liaison offices in Kathmandu according
to the Ministry of Industry, Commerce and Supplies.
