(Nepalnews Feature)
By Pratibedan Baidya
The call by the seven-party alliance (SPA) to the countrymen not to pay taxes and duties to the royal government and Nepalis working abroad not to send remittances back home is likely to deal a heavy blow to the already flagging economy. And this is sure to have a terrible impact on the banking sector.
After the employees of the state-owned Rastriya Banijya Bank (RBB) and public sector Nepal Bank Ltd. (NBL) went into strike supporting the opposition movement. The government then authorized NB Bank Ltd. and Everest Bank Ltd. to collect revenue on behalf of the government.
Works at Nepal Rastra Bank (NRB), which is the central bank, RBB, NBL and Agriculture Development Bank (ADB) came into a complete halt and works in joint-venture banks has also been partially affected due to the closure. As this is the time for paying the second instalment of annual income tax, the government is facing intense pressure due to the closure of banking transactions. In the absence of banking services and due to the strike of employees, collection of revenue has almost stopped.
While the banking sector of the country has come to a standstill, head of the research department of the NRB, Keshav Acharya, claimed that the banking sector was functioning well. He, however, said the disruption in banking services would have adverse impact in the national economy.
“It will have negative impact on the overall credibility of the banking system as well as in the service delivery to the customers,” maintained Acharya.
The country had received over 65 billion rupees in remittance last year. The figure of remittance in the last six months of the current fiscal year stands at more than 47 billion rupees.
When asked what would be the impact on national economy if Nepalis working abroad stopped sending remittance abiding by the call of seven parties, Acharya said, “If the country does not receive remittance it will be hard for the economy to function.”
“Remittance has been the lifeline of the national economy at a time when the gap between imports and exports is widening and it is only the means to make the exchange rate static. Therefore the stagnation in remittance flow will damage to the national economy.”
A manager at the remittance agency revealed to Nepalnews on condition of anonymity that the flow of remittance has declined by 50 percent in recent days.
He was of the view that the main reason behind the decline in the flow of remittance is mainly because of the prevailing disturbances in the banking system of the country and partly due to the call of the seven political parties.
Parsuram Kunwor, chief lending officer at the NBL said that not only the banking sector but also the whole economy has come to standstill due to the present political situation of the country.
“General people have not been able to deposit or withdraw their money and have not been able to clear their documents. This has had grave impact on every sector, which is very unfortunate for the banking sector and the national economy as such,” he added.
On Tuesday, Nepal Bankers Association (NBA), the umbrella organization of 18 commercial banks, said the banks would not be able to continue operations if the central treasury vault at the reserve bank remains closed.
Sources meanwhile said that representatives of the association met the NRB governor late in the evening on Tuesday to convey the decision.
The source added that the bankers also made it clear that closure of the central treasury vault for 13 days has greatly affected the cash position of the private and joint venture banks.
So far, the private and joint venture banks have turned deaf ear to the call made by four trade unions to join in the general strike, and have been operating through back door.
A recent survey carried out by the Kathmandu Research Centre revealed that the nation is running into net loss of 1.1 billion rupees everyday due to the disruption in services. It also said the multiple effects of closure account for over 3.85 billion rupees each day. In the face of all this, the political parties have been pressuring for closure as a means to push their demands.
Economists have time and again warned that it is hard to recover economic situation of the country even if political situation gets improved and have urged all to prioritise economic agendas. However, there is a general indifferent on the part of the political forces towards this concern.
The agitating political parties adopted the policy of economic blockade against the government and urged people not to pay taxes and other duties to the government could help them achieve their political objectives but their indifference towards the calls against the closure is likely to take a heavy toll on the national economy.
However, economist Dr Raghab Dhoj Pant is of the view that since problem is a political one so political solution is a must to resolve the economic problem. Earlier, Dr. Pant had forecasted that the government could turn bankrupt within three to four months if the problems facing the country were not addressed immediately.
“The country is for the first time witnessing such a situation so it is hard to predict the effect of total closure of financial institutions at the moment,” he added.
As continuation of political consultation with various people, King Gyanendra on Wednesday granted separate audiences to chairman of Rajparisad Standing committee Parsuram Chaudhari and Chairman of Rastriya Prajatantra Party (Thapa) and Home Minister Kamal Thapa.
Earlier, the King granted audience to former Prime Minister and leader of Rastriya Prajatantra Party (RPP) Lokendra Bahadur Chand, former Prime Minister Marich Man Singh Shrestha RPP chairman Pashupati SJB Rana and leader of Nepal Sadbhawana Party and Minister for General Administration on Tuesday.
Likewise, the King granted audience to former Prime Ministers Krishna Prasad Bhattarai and Surya Bahadur Thapa on Monday. The King had given separate audiences to cabinet vice chairmen and the ambassadors of India, United States and China on Sunday.
King Gyanendra has called upon all political parties to join in a dialogue to bear the responsibility of activating the multiparty democratic polity and contribute towards the same in his message on the occasion of Nepali New year on Friday.
International communities have been pressurizing the King to initiate dialogue with the seven political parties to resolve the present problems of the country. But it is still not clear whether the monarch will call the seven agitating political parties for talks or not. nepalnews.com pb Apr 20 06
The Higher Secondary Education Board (HSEB) has postponed the exams of grades 11 and 12 due to the current political situation of the country.
Wednesday’s meeting of the HSEB decided to postpone the exams slated for 30th April and 12th May citing difficult circumstances in the country.
The exams would now be held at a later date to be announced by the HSEB.
The decision will affect 320,000 students of grade 11 and 12. nepalnews.com pb Apr 20 06
Participants at an international seminar have expressed serious concern over human rights situation in Nepal and stressed the need to hold a meaningful dialogue between the seven-party alliance, the government and the Maoists.
Speaking at an international seminar held in Geneva on Wednesday, representatives of the Nepali society called on the international community to consider immediate measures if the democratic movement continues to face repression and violence, according to reports.
While some participants also suggested that the government be urged to ratify the Rome Statute of the International Criminal Court at the earliest, others suggested that the situation in Nepal be put on the agenda of the UN Security Council.
The government, which was also invited by the Swiss Federal Department of Foreign Affairs, turned down the invitation. “This has been regretted by the Swiss government,” The Himalayan Times daily quoted Marcel von Arx, adviser at the Swiss Agency for Development and Cooperation (SDC) as saying.
He also made it clear that the conclusion of the seminar was not the official Swiss position.
A majority of the participants insisted that a national dialogue should take into account the possibility of the restoration of the House of Representatives (HoR), formation of a constituent assembly as well as the conduct of national elections.
The seminar also emphasised that negotiations on the implementation of human rights commitments could bring the parties to conflict together. nepalnews.com pb Apr 20 06
The Office of the High Commissioner for Human Rights (OHCHR) in Nepal said it has received early reports of shootings of demonstrators by security forces in Chandragadhi, Jhapa District.
An OHCHR team based in Biratnagar is investigating the incident in Chandragadhi, a statement issued here by OHCHR, said.
“OHCHR-Nepal is deeply concerned at these latest reports of grossly excessive use of force by security forces against demonstrators,” the statement quoted Kieran Dwyer, spokesperson of the OHCHR as saying.
The statement reiterated its call to the government to ensure that members of the security forces do not use indiscriminate deadly force against demonstrators. nepalnews.com pb Apr 20 06
Normal life has been affected in Kathmandu on Thursday due to the 18-hour long day-time curfew imposed by the government to thwart the major showdown of the seven political parties.
Issuing separate notices, local administrations of Kathmandu, Lalitpur and Bhaktpur clamped down an 18-hour long curfew from 2.00 a.m. Thursday morning to 8.00 p.m in the evening.
Security forces could shoot violators or police could arrest them and jail them up to one month,” the notices said.
The streets of Kathmandu valley remained deserted due to the curfew. Only a few security forces vehicle could be seen plying the streets.
Unlike previous curfews, the government did not issue curfew passes to necessary services.
The distribution of newspaper was also affected as the government did not issue curfew passes to media houses.
Some journalists of media houses were compelled to stay in the office for the transmission of news.
The daylong curfew has adversely affected the National Vitamin A capsule and deworming tablets distribution campaign.
The programme that started on Wednesday and was scheduled to continue on Thursday as well.
Earlier, issuing a press statement, the agitating political parties said the parties would cooperate with local health volunteers in administering Vitamin A capsules and de-worming medicines to children as this is a humanitarian issue despite the general strike called by them.
However, leaders of political parties have said that they will defy the curfew order and take to the streets demanding complete democracy.
CPN-UML leader Subash Nemwang said that all people will come to the street protesting the unconstitutional order of the unconstitutional government defying the curfew order to make the ongoing movement a success.
The government imposed day-time curfew during a planned major showdown of the seven political parties on January 20 and during the general strike and major showdown of the political parties from April 8 to 11. nepalnews.com pb Apr 20 06
The Nepal Tourism Board (NTB) has said that it has arranged shuttle bus service for tourists and other passengers arriving at and departing from Tribhuvan International Airport on Thursday during the day-time curfew imposed by the government to thwart the major showdown of political parties.
A press statement issued by the NTB said the shuttle bus will operate from 6 a.m. till the last international flight.
The shuttle bus will operate in three different routes as follows.
Route 1
Airport -RNAC -Newroad -Hotel Annapurna -Thamel Chowk -Kathmandu Guesthouse-Lainchour Chowk- Hotel Shanker -Hotel Ambassador -Airport
Route 2
Airport -Hotel Radisson -Hotel Shangrila -Narayan Gopal Chowk -Maharajganj Chowk -Hyatt Regency -Chabahil Chowk -Hotel Dwarika- Airport
Route 3
Airport- Tinkune Chowk -Hotel Everest- Maitighar Chowk- Hotel Himalaya – Jawalakhel – Hotel Soaltee – Hotel – Grand – Airport
NTB has asked concerned persons to contact its Media Center at 4225709 or Tourist Police at 4247041, if they need further information.
Issuing separate notices, local administrations of Kathmandu, Lalitpur and Bhaktpur clamped down an 18-hour long curfew from 2.00 a.m. on Thursday morning to 8.00 p.m. in the evening. nepalnews.com pb Apr 20 06
Pro-democracy activists have started to defy curfew orders on Thursday in the capital and started organizing demonstrations from early morning.
According to FM reports, pro-democracy activists carried out demonstrations in Bhaktapur and some inner parts of Kathmandu and Lalitpur districts.
The political parties vowed to defy the curfew order and expressed commitment to take out to the streets demanding restoration of democracy.
However, there was no report of violence till 11:00 a.m.
Issuing separate notices, local administrations of Kathmandu, Lalitpur and Bhaktpur imposed an 18-hour long curfew from 2.00 a.m. to 8.00 p.m. on Thursday to thwart the demonstration of seven political parties as they were planning to organize a major demonstration in the Ring Road.
“Security forces could shoot violators or police could arrest them and jail them up to one month,” the notices said.
Pro-democracy activists defied similar curfew orders in the capital from April 8 to 11, during the general strike called by the seven political parties. nepalnews.com pb Apr 20 06
Tens of thousands of people have defied the curfew orders on Thursday in the capital and organized demonstrations against the government.
According to reports, thousands of people took our rally in Kalanki. Likewise thousands of demonstrators also took out to the streets outside the Ring Road area.
Security personnel have barred nearly five thousand pro-democracy activists that reached Thankot from Dhading.
Police arrested Keshav Badal from the demonstration on Chabhil. Thousands of people also took to the streets in Bhaktapur.
According to our Nepalnews correspondent on scene, over seven thousand people defied curfew order in Bansbari area and reached the Ring Road chanting anti-government slogans. Police fired teargas to disperse the protestors.
Likewise, demonstrations were held in Shantinagar, Min-Bhawan, Gongabu, Kapal, Naikap and other areas of the capital.
According to leaders of seven political parties, more people are coming to the streets to defy the curfew order imposed by the government.
However, there was no report of violence till 1:00 p.m.
Issuing separate notices, local administrations of Kathmandu, Lalitpur and Bhaktpur imposed an 18-hour long curfew from 2.00 a.m. to 8.00 p.m. on Thursday to thwart the demonstration of seven political parties.
“Security forces could shoot violators or police could arrest them and jail them up to one month,” the notices said.
Pro-democracy activists defied similar curfew orders in the capital from April 8 to 11, during the general strike called by the seven political parties. nepalnews.com pb Apr 20 06
Over four dozen protestors were injured when police fired rubber bullets at protestors defying curfew orders imposed by the government in Kalanki.
According to latest report, over 20 thousand protestors defied the curfew order and took to the streets demanding restoration of complete democracy bringing an end to the royal rule.
More details to follow. nepalnews.com pb Apr 20 06