KATHMANDU: The Department of Tourism has collected revenue amounting to Rs 30.9 million in four days from the mountain climbing permits. The Department has been issuing the permit for spring since March 23.
Rameshwor Niraula, a section officer at Department’s Mountaineering, said over Rs 30.53 million has been collected from the permit for the Mount Everest alone while the rest is from the peaks.
The Department till Monday had received applications from over 15 expeditions for the climbing permits and requests from nine teams have been already approved. The permits include the Everest (8,848 meters), Lhotse ( 8,516 meters), Annapurna ( 8,091 meters), Kumbhakarna ( 7,710 meters), Mount Pumari (7,161 meters), Thapa Peak ( Dhampus- 6,012 meters) and Chhopbamari. The deadline for seeking the permit will remain in effect until mid-April and the number of climbers will go high in numbers.
In 2018, the total of 107 expedition teams was granted the permits for spring and among them, 34 were for the Everest. Climbing royalty for the Everest, the world’s highest peak, differs according to seasons. According to the Department, a foreigner has to pay US dollar 11,000 in spring while this fees is US dollar 5,500 for autumn.
Nepal has opened 414 mountain peaks for climbing and still over 1,300 are suitable for climbing.
KATHMANDU: The government is preparing to showcase 77 projects at the international investment summit to be held on March 29 and 30 in the capital. Of them, 50 are from the government side and 27 on behalf of the private sector.
Meanwhile, all preparations for the summit have been completed, according to the Investment Board of Nepal. The meeting of the IBN held at the Office of the Prime Minister and Council of Ministers on Tuesday evening also decided to accord high level hospitality to the delegates to the Summit.
More than 600 delegates are expected to attend the Summit from various countries in Kathmandu. Non-resident Nepalis are also taking part in the Summit, according to CEO of the Board Maha Prasad Adhikari. Along with foreign investors, representatives from the World Bank, Asian Development Bank and International Monetary Fund are also taking part in the Summit.
Majority of the guests are expected to arrive in Kathmandu by Thursday. Taking to media persons following the meeting, Finance Minister Dr Yubaraj Khatiwada said a memorandum of understanding will be signed on a dozen of projects during the summit.
KATHMANDU: The eight edition of Nepal International Trade Fair is set be organized at Bhrikutimandap from March 28.
The fair will showcase 225 stalls featuring featuring domestic and imported goods and services such as handicrafts, tourism, information technology, agro products among others.
The fair to be organized by the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and supported by the Ministry of Industry, Commerce and Supplies .
Ninety stalls will be from China. The event is promoted by the Trade and Promotion Center. Some 100 thousand people from home and abroad are expected to visit the fair which will conclude on April 1.
PARIS: At a time when the US-based aircraft manufacturer Boeing is strolling following crisis involving it jetliner 737 MAX, its European rival Airbus has said it has strike a deal with China to sell 300 passenger jets, international media reported.
The agreement to that end was reached during Chinese President Xi Jinping’s visit to France, CNN reported. China is major market for airline manufacturers and Boeing and Airbus face tough competition.
The order covers 290 planes from the A320 family and 10 from the A350 line, the statement said, adding the deal was a sign of strong demand from all areas of China’s rapidly expanding aviation market, including “domestic, low cost, regional and international long haul”.
KATHMANDU: Police have arrested representatives of Share Investors Pressure Group, who had been staging a sit-in at Bhadrakali-based office of Nepal Stock Exchange.
The group staged the sit-in, saying that its demand put forth for improvement of share market was not addressed.
Police arrested 10 group members at a time when they were ready to stage sit-in at the gate of the Stock Exchange Office.
Superintendent of Police, Basudev Khatiwada, said that the group members were arrested as Singha Durbar area is prohibited area for launching demonstration and agitation.
A group member Tilak Koirala said that police brought them under control by using force while they were staging a peaceful sit-in to draw attention of the body concerned, demanding to implement the past agreement signed by Finance Ministry.
The government is bracing up for the third Nepal Investment Summit starting from March 29. It will showcase about sixty projects requiring an investment of around USD 30 billion. However, nothing can be said whether foreign investors will be interested to invest in these projects. Lessons from past events tell us that heavy foreign investment cannot be realized until there is a sound investment climate in the country.
The first investment summit in 1992 did bring some foreign investment so that the country achieved a growth rate of seven percent. The second investment summit held in 2017 was able to bring only USD 180 million out of USD 14 billion committed. The low level of investment corresponds to the low level of credibility of the government and poor investment climate.
As of 2011, Nepal had the highest minimum wage in South Asia (US$83.76 per month), followed by Pakistan (US$82.17 per month), India (US$ 64.07 per month), Sri Lanka (US$51.22 per month), and Bangladesh (US$40.46 per month).
Access to market, transparent and predictable legal environment, security, and quality infrastructure are some of the preconditions to attract foreign investment in any country. Unfortunately, none of these elements in Nepal are in good shape. Despite its location in the middle of giant markets, Nepal is unable to reap benefits either from the huge Indian or the Chinese market.
Exports of Nepalese products to the Indian market is not easy. It is an open secret of how India discourages exports of Nepalese products. Often Nepalese goods are held at the Indian checkpoints along the border disrupting the smooth flow of goods. Neither the prospective foreign investors nor the diplomatic missions stationed in Kathmandu are uninformed of this fact.
Nepal lags far behind compared to its South Asian neighbors in terms of its infrastructure development. For example, while India’s road density is 142 km per 100 square km, Nepal’s road density is only 34 km per 100 square km. Similarly, Nepal’s rank is 117th in world infrastructure quality index compared to the 27th position of Sri Lanka, and the 61st position of India. It is not just the case of roads, other infrastructures such as electricity, water supply, and communication are also not strong enough to attract FDI.
Another obstacle in inviting FDI in the country is the low labor productivity but high minimum wage of Nepalese labors. In the past, we said that investors will come to Nepal thanks to its low labor cost. But currently, the labor cost of Nepal is one of the highest in the region. As of 2011, Nepal had the highest minimum wage in South Asia (US$83.76 per month), followed by Pakistan (US$82.17 per month), India (US$ 64.07 per month), Sri Lanka (US$51.22 per month), and Bangladesh (US$40.46 per month).
According to the Global Wage Report 2018/2019, the average real wage growth for the period of 2008-2017 in Nepal is 4.7 per month that is slightly less than in India (505%) and more than in Sri Lanka (4%), Bangladesh (3.4%), and Pakistan (1.8%).
Forthcoming investment summit is being organized without improving the investment climate. As evidenced by the recent doing business report, the environment for business and investment is deteriorating in the country.
On the other hand, according to the Asian Productivity Organization (APO) databook 2017, the productivity of Nepalese labor is only 21% compared to that of Sri Lankan labor and 46% in contrast to the Indian labor. High minimum wage and low productivity make production in Nepal very costly.
The third major obstacle to invite FDI in Nepal is its fragile security situation. Extortion, frequent strikes, rowdy and militant trade unions are common in Nepalese industrial sector. The recent bombing in the Ncell premises and the government’s decision to ban the ‘Biplab’ led Maoist party has again raised suspicion on the security situation of the country.
Governance-related issues such as rampant corruption, lengthy entry and exit process for companies, lengthy visa process for foreign workers etc. are other hurdles for foreign investment. It is found that a foreign worker needs to put more than 30 signatures in terms of paper works for obtaining work permit and visa. Besides, it takes as much as 3 months to complete the process.
Forthcoming investment summit is being organized without improving the investment climate. As evidenced by the recent doing business report, the environment for business and investment is deteriorating in the country.
It appears that the government selected the projects to be showcased in the summit without thorough homework. For an investor, a genuine reason for investing in Nepal at this time could be to benefit from India’s removal from Generalized System of Preferences (GSP) program by the USA, and from the India-China trade conflict. Yet, the dream of FDI influx in the country is least likely to materialize given the existing investment climate.
Given the stark reality of investment climate, the upcoming investment summit bespeaks of a mere ritual that the government is happy to perform with full fanfare. However, as a responsible citizen, we welcome the investors in Nepal hoping that they may perhaps persuade the government to create an enabling environment for making another such summit a success.
Views expressed in this article are the author’s own and do not necessarily reflect the stance of Khabarhub.
KATHMANDU: The people showed tremendous interests in the Upper Trishuli 3B Hydropower Project as a whopping over 100,000 applications have been dropped demanding to purchase over Rs 660 million worth of shares, said Global IME Capital, the Project’s sales promoter.
The project is being developed under the government’s People’s Hydropower Program which aims to generate 3,500 mega watt of electricity by investing Rs 698.8 billion in 19 hydropower projects. The Upper Trishuli III B in Nuwakot, which is being constructed by the Nepal Electricity Authority, is one of them.
There could be an increment in the number of the applications dropped as some banks and financial institutions authorized to collect the applications are yet to submit the details, said Paras Mani Dhakal, the bank’s chief executive officer.
The number of the total applications dropped is by around 18 folds than called for, and in case of the amounts collected from the IPO, it is by around two folds, he said. The Project’s issued capital is over Rs 2.4 billion.
Prime Minister KP Sharma Oli had applied for 10,000 unit of shares. Likewise, Minister for Energy, Water Resources and Irrigation Barsha Man Pun had applied for 1,000 unit of shares.
Main investment partners of the Project are Nepal Electricity Authority and Nepal Telecom, while Trishuli Hydropower Company is the promoter.
Construction of this 37 megawatts project has started with the completion target of the Falgun 17, 2078 BS, said the company’s managing director Mohan Prasad Gautam.
KATHMANDU: The government of Nepal is set to present a total of 66 projects ranging from Rs 640 million to Rs 350 billion for investment during the Nepal Investment Summit 2019 to be held in Kathmandu from March 29-30.
The government has recognized eight energy-based big projects for achieving prosperity. Energy, physical infrastructure, agriculture, information technology, industry, health and education and tourism are the areas of the special focus for investment.
Nalgadh Hydropower Project; AR-6; Sunkoshi II and III; Tamor Water Reservoir Project; West Seti; Lower Arun; and SR-6 have been listed as projects for joint-venture.
According to the Nepal Investment Board, the list of projects worth Rs 3.1 trillion was finalized this Sunday. The Board owns up the responsibility of coordinating the summit. The Board will inform the summit about latest progress about the 456-megawatt Upper Tamakoshi Hydroelectricity Project.
This time, investors will be provided a complete package about projects, instead of sharing information only on theoretical aspects as the government is determined to make it a promising one. This summit will be different from the past one, Board CEO Maha Prasad Adhikari said.
Prime Minister KP Oli has been invited for the inauguration of the summit. Similarly, ministers of different ministries and industrialists would brief about Nepal’s recent situation and investment environment.
The Federal Parliament has passed the Public-Private Partnership and Investment Bill with an objective of creating easy and smooth environment to foreign investors. Similarly, the Federal Parliament has already passed Bill to amend and integrate laws related to foreign investment and technology transfer, Bill designed to amend Special Economic Zone Act-2073.
Projects like East-West Electric Rail, Kathmandu-Pokhara Railway, Kathmandu Metro Rail and Gautam Buddha International Maternity Hospital would be presented as ‘showcase’ in the summit.
Similarly, projects–Trishuli Galchhi, Upper Chameliya, Myagdi Khola are also the attractive projects. Service would be provided to investors through single point at the Investment Board with an objective of providing easy service to them.
A total of 173 billion in foreign investment has been brought in within seven months of the current fiscal year.
KATHMANDU: Nepal and Japan signed a memorandum of cooperation (MOC) on a basic framework for hiring “specified skilled workers” on Monday.
Joint Secretary at the Minister for Labor, Employment and Social Security Ram Prasad Ghimire and Japanese Ambassador to Nepal Masamichi Saigo signed the MOC at a program in the capital.
With the agreement, the process of hiring Nepali workers will begin from April 1.
The Japan government will open Japanese Information Center in the capital like the EPS Korean Section established by by Korean government in Nepal.
The ministry has expected that this job will comparatively be more impartial and lucrative as the Nepali workers will enjoy pay perks and other benefits on a par with the Japanese citizens.
Manpower agencies will not be involved in the process. Nepali workers will be supplied to Japan through the government mechanism.
Japan has prioritized four sectors in the first phase – health, industry, caregiver and agriculture sector.
KATHMANDU: Prime Minister KP Sharma Oli has said the government will bring the fiscal budget of the year 2019/20 in line with the federal set-up.
Speaking at a parliament meeting in New Baneshwar on Monday, Prime Minister Oli said the government is preparing to bring the upcoming fiscal budget to address the needs of the three tiers of governments – federal, provincial and local.
He further said that the government is also working on a long-term vision, aimed at transforming the country into a developed nation by 2043.
“The government is preparing to introduce a 25th -Year-Plan starting 2076 BS to 2100 BS for the development and prosperity of country,” said Prime Minister Oli.