Economist and former Member of the National Planning Commission, and former Chief Economic Adviser to the Ministry of Finance, Dr. Govind Nepal suggests the government set up a time-bound target for implementing the development programs, which he claims will yield results thereby cheering the long disenchanted public. Khabarhub caught up Prof. Nepal on the government’s completion of one year in office to talk about its performance. Excerpts:
How do you assess the government’s one-year term?
After a long saga of political upheavals, the country got a stable government with a two-thirds majority. People’s expectations were high. Meaning, they were riding on high aspirations, and to experience the country’s overall transformation. But that is something unattainable in just a period of one year. Besides, the government had a Herculean task of executing federalism in the country, and it did succeed on that front by bringing out a number of Acts and managing financing for federalism.
It also dispelled the concern that setting up of the federal structure is impossible given the high cost. The country did not encounter a financial crisis in terms of structuring the central, federal and local governments. Around 50 percent of the revenue was collected in just six months that kept the country’s economy going.
The county also inked treaties with neighbors that are likely to render long-term benefits. Thus, its performance over a period is, in fact, satisfactory.
Is there anything the government missed or it could have done better?
Of course, there are ample of lacunas. Capital expenditure is low, the trade deficit is alarming. The balance of payment is unfavorable. The government needs to be more serious about these economic issues.
What measures should be adopted to increase export and reduce imports?
We cannot forget the fact that Nepal is still an agricultural country. Therefore, we need to focus on high-value crops that are only grown in Nepal. Prime Minister Agriculture Modernization Program should be accelerated.
The government also needs to facilitate the farmers and industrialists by dismantling trade barriers. We have regional organizations like SAARC, BBIN, and BIMSTEC. Nepal is a member to several international organizations as well. The government should exercise to utilize these forums for easy flow of Nepalese goods in the international market. Problems incurred during quarantine tests should be eased. Better trade facilitation is important.
Entrepreneurs should be provided with easy loans on a low-interest rate.
We need to enact laws so that technology transfer takes place easily thereby attracting foreign investment. The government seems committed towards this end but it is taking time to enact the laws.
Communists are assumed to be suspicious of multinational companies? Do you think the communist government will act in their favor?
Let’s look at China. It could make an economic leap thanks to foreign investment. This communist government believes in democracy, judiciary, and election. Practically, you do not find much difference between the Nepali Congress and the communist parties of Nepal. Therefore, the fear is unfounded.
Who is to be blamed for the country’s underdevelopment?
If you look at the history of developed nations today, they went through crises. Some were colonized and some faced terrible natural calamities. Nepal did not have to go through such pains.
It has relied on foreign aid for a long time. We prioritized politics rather than development since 2007. People were politicized rather than becoming professionals. We failed to welcome foreign investment and remained suspicious of foreign investment. Our thoughts and acts need to change. Our narrow thoughts of closed economy held us back. We need to benefit from new technology by mobilizing the youths.
We are also victimized by over consumerism in lack of effective government policy. For example, why do we need to import vehicles in such a huge number? Look at the number of motorcycles in Kathmandu. And think of the fuel consumed. If we had a good public transportation system, we would not be spending a huge amount on imports of vehicles.
What could be the way forward?
The government should make a plan for the next four years. The plans should be practical that can be incorporated in the yearly budget.
Development challenges have been identified. Setting up a time-bound target will help in moving ahead. This will yield results thereby cheering the long disenchanted public.
Planning alone is not enough. Implementation mechanism should also be well defined. The government should go hand in hand with other political parties. Confrontation with political parties will drain away its energy.
KATHMANDU: Prime Minister KP Oli on Thursday inaugurated the office of Nepal Shipping Office at Ekantakuna, Kathmandu. The newly-established office will start studying and exploring on developing inland waterways.
A 16-member staff have been approved by the cabinet for the Nepal Shipping Office under the Ministry of Infrastructure and Transport (MoIT).
PM Oli had on February 15 last year announced that he would be setting up an office for the purpose.
BHARATPUR: Prakash Pant, a resident of Bharatpur Metropolis-18, Gunjanagar have made an income of Rs one million in less that three months. He has been successful to make a lucrative income by selling ‘Red Rose’ meant for the Valentine Day.
According to him, he made a net profit of 300,000 from rose farming. “I sell at least one thousand to 12 hundred sticks of this flower from my farm”.
There is a demand of 20,000 stick roses in Chitwan on the occasion of Valentine Day, said Pant, who is also the Chairman of the Floriculture Association Nepal, Chitwan Chapter. He usually starts cultivating this flower from the month of April and May, and yields production from November. He has been supplying roses to major cities of Nepal, including Chitwan, Pokhara and Kathmandu.
In the recent days, with the celebration of ‘Valentine Day’ gaining popularity in the country, the demand of ‘Red Rose’ has also gone up. However, Nepal has not been able to produce sufficient flowers to meet the growing demand.
KATHMANDU: The Ministry of Labor, Employment and Social Security is set to scrap the registration of those manpower companies failing to send at least 100 Nepali workers abroad for employment a year.
A meeting of the Law, Justice and Human Rights of the Parliamentary Committee took a decision to this effect last Monday.
Once the provision comes into effect, a total of 411 manpower companies registered at the Department of Foreign Employment will get their licenses scrapped.
According to the record maintained by the (DoFE), these companies have been found sending less than 100 Nepali workers abroad for foreign employment.
Currently, a total of 1,072 manpower companies have been registered at the Department of Foreign Employment.
“Many a manpower company do not send even 100 Nepali workers a year abroad for foreign employment,” Dilip Kumar Chapagain, General Director at the DoFE told Khabarhub, adding, “Many Nepali youths have been duped in the name of foreign employment. We are mulling to amend Foreign Employment Act to end such frauds and other related problems surrounding foreign employment.”
However, Mukunda Khanal, former vice-president of Nepal Foreign Employment Entrepreneurs’ Association, has accused the government of putting restrictions on the manpower agencies by introducing a new provision. “The agencies need to be regulated through an amendment to the Foreign Employment Act but it should not take away entrepreneurs’ right to run the business,” Khanal told Khabarhub.
The ministry has already reached a deal with Nepal Rastra Bank on the deposit and bank guarantee to be furnished by manpower agencies by dividing them into three categories.
According to the agreement, manpower agencies exporting up to 3,000 workers are required to deposit Rs 5 million in government coffers and furnish a bank guarantee of Rs 15 million to start operation.
Similarly, agencies sending 3,000 to 5,000 workers a year are required to park Rs 10 million in state coffers and present a bank guarantee of Rs 30 million to operate their business.
Likewise, those exporting over 5,000 workers annually have to deposit Rs 20 million in state coffers and provide a bank guarantee of Rs 40 million to start operation.
The committee will table the bill at the federal parliament for deliberation. Once it is endorsed by the federal parliament, it will be presented before the President for authentication. Once it is authenticated by the President, it shall come into force.
As many as 30,000 Nepali youths leave Nepal for foreign employment on a monthly basis.
Nepali youths have been working in over 172 different countries across the world.
KATHMANDU: About 200,000 sticks of rose are expected to be sold on the Valentine Day. On this day, there is a high demand of rose flowers that lovers buy to wish for their beloved ones.
According to JB Tamang, program co-ordination of Floriculture Association Nepal (FAN), for the day, Nepal imports rose flowers from India to meet the demands.
On a normal day, there is a demand of 8,000 sticks, which is mostly covered by the domestic market.
On an usual day, Nepal’s floriculture businesses increase its rose import by 20 per cent from India. But for the Valentine’s Day, more than 80 per cent of the market is occupied by roses imported from India, Tamang stated. The cost of rose flowers imported from India ranges from Rs 100 to Rs 300 per stick.
NEW DELHI : Indian government has expressed its interest in constructing the Lower Arun Hydropower Project (400 MWs) as per the Arun 3rd model. Indian Minister for Power, Raj Kumar Singh proposed the project to Barshaman Pun, the minister for Energy, Water Resources and Energy in New Delhi. India is undertaking the construction of 900-MW Arun 3rd project.
“A proposal has been floated from the Indian side to develop the Lower Arun on the same model adopted by Indian Company while constructing the Arun 3rd. Nepal has put its stance for further discussion after observing the progress on the construction of Arun 3rd,” Minister Pun said.
Minister Pun noted that the government would make proper decision whether or not to award the construction of lower Arun to the Indian side after reviewing the progress in Arun 3rd.
Minister Pun arrived in the Indian capital city, New Delhi, to participate in the International Sustainable Development Conference beginning on Monday.
KATHMANDU: The Finance Committee under the federal parliament has directed the government to recover the due amount of Rs 2.96 billion from the telecommunication service providers (TSP).
The meeting of the committee held at Singha Durbar on Sunday has directed the Ministry for Communication and Information Technology and Ministry of Finance to recover the due amount within a month.
Chairperson of the committee, Krishna Prasad Dahal informed that the committee has cautioned the government to suspend the services of the organizations until they pay the due amount. Total nine service providers need to pay due amount of Rs 2,960,085,000 to the government and Nepal Telecommunication Authority. The committee has asked the government to start the scrapping process of those companies if the service providers failed to pay the amount within the stipulated time.
Likewise, the committee has asked the government to initiate to implement the verdict of the Supreme Court on the Capital Gains Case of Ncell at the earliest. The Ministry of Finance had submitted a report to the committee mentioning that Ncell needs to pay Rs 12.73 billion to the government as the due capital gains.
NUWAKOT: Minister for Energy, Water Resources and Irrigation Barsha Man Pun said Nepal needs to be self-reliant on energy to reduce the current trade loss.
Speaking after laying the foundation stone of the Upper Trishuli 3B at Kispang Rural Municipality in Nuwakot on Sunday, he said the country needs 10,000 MW of electricity to achieve the government’s two-digit economic growths goal.
The Nepal Electricity Authority (NEA) and the Nepal Telecommunications Company Limited are the major investors of the project.
Minister Pun said the country currently needs 10,000 megawatts electricity for internal consumption.
On the occasion, Nepal Electricity Authority (NEA) Executive Director Kulman Ghising maintained that the completion of the project would ensure reliable and regular power supply.
The Nepal Electricity Authority (NEA) and the Nepal Telecommunications Company Limited are the major investors of the project.
While the NEA and Nepal Telecom have a 30 percent share each, the remaining investment is shared by others, including the local governments in Rasuwa and Nuwakot, locals, financial institutions, and Telecom employees. The cost of the project has been put at Rs 7.44 billion.
POKHARA: Enraged with the banks’ unilateral decision of raising the interest rate on loans, the Pokhara Chamber of Commerce and Industry (PCCI) have warned of phase-wise agitation if the banks did not decrease the same.
They have given an ultimatum of mid-February to adjust the soaring interest rate on bank loans.
The PCCI had earlier issued a press statement urging the banks to decrease the loan interest rate.
Chairperson of the PCCI Damu Adhikari warned they would be compelled to go for phase-wise agitation if the banks did not bring down the interest rate on loans. He said the soaring interest bank loans will adversely affect their businesses.
The PCCI had earlier issued a press statement urging the banks to decrease the loan interest rate. They have been demanding that the spread rate be brought down to three percent.
KATHMANDU: The Department of Foreign Employment (DoFE) has blacklisted a total of 67 foreign companies hiring Nepali migrant workers.
The Department took action against them following complaints lodged by migrant workers, according to Dilip Kumar Chapagain, the director general at the DoFE.
Malaysian companies among those blacklisted top the list, taking the total number to 52 while the other companies are from Saudi Arab, Qatar and the United Arab Emirates.
Acting on complaints from Nepali migrants, right organization, and Nepal’s missions, the DoFE decided to this effect accusing the companies of not complying with the contract signed with them. That means the department now will not issue labor permits to these companies.
“Even the diplomatic missions at the destination countries where the companies operate are notified of the action against them,” said Chapagain.
The black listed companies belong to Malaysia, Saudi Arab, Qatar and United Arab Emirates, among others.
A record maintained by the Department shows that over 2,000 workers were in trouble at the destination countries due to negligence on the part of the labor destination countries. The Department has already rescued over 50 migrant distraught workers from abroad.