NEPALI SQUAD FOR 2014 WORLD CUP QUALIFYING MATCH AGAINST JORDAN ANNOUNCED

SCHOOL TORCHED IN KALIKOT
Kathmandu, 16 July A school at Phullot, Kalikot with 350 students has been severely damaged in an apparent arson attack, Radio Nepal said.
The school compound was brought down.
Classes have been disrupted.
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LEOPARD KILLED IN KAVRE

Kathmandu, 16 July: Five-year-old Sabina Pradhan was lifted by a leopard at Baluwa VDC in Kavre overnight.
Sabina’s body was recovered Saturday.
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FORMER KING OFFERING PUJA AT TEMPLE MONDAY
Kathmandu, 16July: After a long break, former King Gyanendra is offering puja Monday at the Nageshwor temple at Pepsi Town Planning area in the capital, a published report said Saturday.
The idol of the Nageshwor was installed there from the Tribhuvan International Airport runway.
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NEPAL SQUAD FOR 2014 FIFA WORLD CUP QUALIFTING MATCH

Kathmandu, 16 July: ANFA, ,national football governing body, has announced a 20-member squad for the 2014 FIFA World Cup Asian Zone Qualifying second round against Jordan
Thehome match is being played at Dashrath Ranghasala 28 July and the away match 23 July in Jordan .
Kiran Chemjung, Bikash Malla, Ritesh Thapa, Sagar Thapa, Sandip Rai, Rohit Chand, Birat Maharjan,Rabin Shrestha,Bikash Singh Chetry,Deepak Bhusal, Niranjan Khadka,Bhola Nath Shilwal,Jagjit Shrestha, Anil Ojha,Shiva Shrestha,Jamuna Rai, Anil Gurung, Bharat Khawas, Santosh Sahakhala and Sujal Singh are in the squad.
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BUDGET BOOSTS DEPOSITORS’ CONFIDENCE IN FIs
Kathmandu, 16 July: The annual budget for next fiscal year has addressed the crisis of confidence of the public on financial sector. However, government’s pumping money in the cooperatives has raised serious concerns about further inflating already enormous semi-formal financial sector, Dikshya Singh reports in The Himalayan Times.

The liquidity-starved financial sector is supposed to get breather as the budget has introduced provision for voluntary declaration on deposit exceeding Rs 1 million that the money is not earned by illegal activities such as terrorism and other organised criminal activities.

“Earlier people were wary of depositing in the financial institutions due to unclear motive of source disclosure, as the depositors will not be required to disclose the source of income but with the budget assurance, deposit might grow,” said president of Nepal Finance Companies Association Rajendra Man Shakya.

The measures to be implemented for improving the corporate governance of the financial institutions as mentioned in the budget will definitely help in restoring the depositors’ confidence that is the crux of the problem.

The budget has announced to include deposit insurance to class ‘A’ financial institutions as well and gradually increasing compulsory deposit amount to be insured to Rs 500,000. “The plan of increasing deposit insurance amount will further help in bringing back the trust of the common people,” said president of Nepal Development Bankers’ Association Manoj Goyal.

The government has also waived the registration fees on the merged entities to encourage mergers. However, the bankers seem to be expecting more from the government regarding the incentives for the banks and financial institutions to opt for merger. “There should have been more on merger that could have addressed the issue of employee management,” pointed out Shakya.

As mentioned in the budget the financial cooperatives dealing in large scale deposits will be brought under the central bank’s supervision will also transform the informal financial sectors as the formal one. However, this has raised huge questions regarding the central bank’s capacity to regulate the cooperatives at a time when central bank’s regulatory capacity is under scanner due to lack of manpower.

“The budget has addressed many of the existing troubles of the financial sector and might help in easing liquidity,” said economist Dr Chiranjibi Nepal. “However, the budget should have set up a liquidity management fund to inject liquidity to the cash-strapped financial institutions,” he said, adding that reducing capital gain tax on share transaction will boost the capital market along with the probable introduction of internet based transaction and provision of NRN investment is a welcome move.

Any one purchasing a vehicle of less than Rs 5 million and real estate of less than Rs 10 million does not require declaring sources of income, according to the budget. “The provision of self-declaration of income source and increasing the ceiling for income source disclosure while purchasing assets such as house and vehicles will help in reducing instances of capital flight,” said Prof Dr Bhishamber Pyakurel.

More in the basket

• Micro insurance to be launched in some hilly districts in pilot basis.

• Establishing a separate micro finance fund to provide micro credits to poor and deprived.

• Concession to be provided for investments coming from institutional investors such as Mutual Funds.

• NRNs and foreigners to be allowed to purchase apartments in Nepal to promote housing sector.

• Guide to be prepared for NRNs to let them buy shares.
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GOVT. OBSESSED WITH COOPERATIVES

Kathmandu, 16 July: The government has given high priority to the cooperatives in the fiscal policy for the next fiscal year raising serious concern over their supervision, The Himalayan TImes reports.

Though government has announced to give central bank the rights to supervise and monitor saving and credit co-operatives with the annual transactions exceeding Rs 50 million along with Department of Co-operatives, economists are unconvinced about the central bank’s ability to supervise the crowd of existing co-operatives.

There is a huge doubt among the economist regarding the central bank’s capacity to regulate more than 22,000 savings and credit co-operatives.

“It is difficult for central bank to supervise 200 financial institutions with its limited resources regulating co-operatives will create unprecedented pressure on it,” said Prof Dr Bishamber Pyakurel, who is also Nepal Rastra Bank’s executive committee member. His views were seconded by economists Dr Chiranjibi Nepal and Dr Madan Kumar Dahal.

At present, financial co-operatives are highly blamed for causing the liquidity crisis in the financial sector and deposits worth Rs 10 billion with these vaguely regulated institutions are supposed to be in risk. The budget has given huge importance to the co-operatives and has taken them as the implementing tool for its policies from hydropower projects to agriculture.

The economists have expressed that co-operatives can facilitate the economy provided they work on increasing productivity, however, it is absurd to expect co-operatives to drive the economy when they are doing the work of commercial banks as in Nepal.

“The budget has become distributive promoting consumerism by disbursing huge amount to the cooperative sectors. This has pumped more funds in the disposal of informal sector,” Nepal said.

“To attain desired result the co-operatives have to be production based until that happens whether they are being supervised or not will not matter, the concept will not work,” said Prof Dr Madan Kumar Dahal.

“Co-operatives are good concept to facilitate rural people and organising them into group for collective benefit but this is not the right time to bring it into forefront and make it driving force of the economy,” said Prof Pyakurel.

Moreover, he expressed that by giving more importance to co-operatives the current budget has demeaned the role of private sector.

“The co-operatives in Nepal are relatively disorganised sector sans regulatory body thus giving priority to this sector in the absence of proper infrastructure to supervise them is a risk when relatively well supervised financial institutions are failing,” he said.
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MAOIST VICE-CHAIRMAN BAIDHYA ACCUSESGOVT. FOR VIOLATING PEACE AGREEMENT





Kathmandu, 16 July: UCPN-Maoist vice-chairman Mohan Baidhya ‘Kiran’ Friday blamed the government for violating the peace and other related agreements by reviving cases related to the armed conflict period, The Rising Nepal reports.
The vice-chair of a major ruling party said peace process and army integration could not move ahead until such cases were annulled.
Referring to restoration of cases against CA member Bal Krishna Dhungel and Minister for Information and Communications Agni Prasad Sapkota, he said, "The Home Minister is from our party. We are in the government. We have also talked about the matter with the Prime Minister. However, we have been helpless, and cases related to the war period are being revived."
Kiran made these remarks at a musical CD album ‘Janasuseli’ release programme organized by All Nepal Peasants’ Federation (Revolutionary).
Saying that the political situation of the country was serious and difficult, he underlined the need to take initiatives for respectable integration of Maoist People’s Liberation Army to conclude the peace process and promulgation of a pro-people constitution.
The Maoist vice-chair blamed Nepali Congress and CPN-UML for lacking seriousness in peace and constitution building and added, "Peace process and constitution writing process should move ahead together. Peace process cannot be concluded by talking only about army integration."
Kiran affirmed that his party would not split although there was a very serious discussion on ways to make respectable army integration and write people-centered constitution in his party. "The intra-party struggle will soon develop into unity and transformation. Rest assured that the party will not split."
Clarifying that the half of the period of the lately extended 3-month time of the CA had already elapsed and that the peace and constitution building process was not moving in a desired pace, he said that the people would go for agitation and that his party would give leadership to such a demonstration if the deadlock continued till the expiry of the deadline.
He lauded the musical album and composer Bhakti Prasad Lamichhane saying the album had given an artistic expression to politics.

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BUDGET DISAPPOINTING SAYS PRIVATE SECTOR

Kathmandu, 16 July: Although the budget addressed some of its pressing demands, the private sector is less than enthusiastic over the budget, given its overall orientation.

The new budget is a mixed bag for the sector. While on one hand it tries to address some demands raised by the sector, on the other it tries to annoy them when it says cooperatives will be the medium for employment generation and productivity.

The private sector has taken the move to opt for a mixed economic system instead of a liberal one and more focus on cooperatives instead of the private sector as a major policy deviation. Last year’s budget had tried to be more private sector-friendly with policy measures, tax incentives and infrastructure support.

The business community has taken the budget’s emphasis on the cooperative sector as an attempt to minimise the role of the private sector in production and employment generation. “We are disappointed with the budget as it seeks to make cooperatives the medium of economic growth by minimising the role of the private sector and indiscriminate distribution of grants,” Bhaskar Raj Rajkarnikar, senior vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said.

He said the budget advocates for a mixed economy instead of a liberal one. “An FNCCI meeting will strongly deplore the minimisation of the private sector in the budget,” Rajkarnikar said.

Former FNCCI President Chandi Raj Dhakal echoed Rajkarnikar. “It is an irony that the budget has sought the private sector’s role in waste management and the cooperative’s role in infrastructure development and employment creation,” he said.

The budget seeks employment creation from both the cooperatives and the private sector with focus on energy, roads, irrigation, tourism and the agriculture sectors.

The budget, however, addresses some key issues of the private sector, even risking criticism from international financial institutions and the anti-money laundering body.

One of their major concerns—income source disclosure in real estate and share trading and deposits of more than Rs 1 million in banks and financial institutions—has been replaced by a provision of non-declaration of the income source. As per the new provision, one can declare that money being deposited is not earned illegally from sources such as terrorism, drug and human trafficking and organised crime.

The budget has also expanded the ceiling of the income source disclosure requirement while purchasing vehicles and trading real estate to Rs 5 million and Rs 10 million respectively. Bankers and the business community were seeking a similar provision so that deposits would come to the banking system and liquidity crunch could be addressed. This change will definitely benefit banking, the realty sector and the capital market.

Another important demand addressed by the budget is that the government will make a new arrangement in the Property Tax Act so that individuals, families or companies can make a voluntary disclosure of all the fixed and movable properties including land, ornaments, cash, deposits in BFIs, lending, investment in shares and vehicles. Arrangements will be made to allocate revenue generated from the voluntary disclosure of property to measures to solve energy problems in the country. The government has also promised a security arrangement by declaring industrial estates as zones of peace.

The government will organise an international investment forum in the next fiscal year to attract foreign investment in industries having comparative and competitive advantage. The government has also allocated budget for the installation of separate electricity feeders in Biratnagar, Birgunj, Kathmandu and Butwal-Bhairawa. This was one of the demands of the FNCCI.

Moreover, the budget has made arrangements to exempt from customs duty machinery imported by the private sector to generate solar and other alternative energy.

Finance Minister Bharat Mohan Adhikari said the government will come up with special programmes to attract both domestic and foreign investment for the development of water resources, tourism and infrastructure.

The budget also says that the remaining work for the establishment of a special economic zone in Bhairahwa will be completed within the next fiscal year. In addition to the economic zones started earlier, preliminary work to establish such zones in Biratnagar, Jumla and Panchkhal will be accelerated.

Likewise, the government will complete preparatory work to establish the Industrial Investment Protection Fund. The budget has allocated Rs 100 million to set up a Women Entrepreneur Fund.

The budget also plans to provide special facilities to those exporting agricultural products like tea, coffee, cardamom, herbs and unseasonable vegetables. In order to upgrade the quality of exportable cardamom, a latest facility of drying and packaging will be made available.



• Separate electricity feeders to be installed in major industrial and business hubs like Biratnagar, Birgunj, Kathmandu and Butwal-Bhairawa.

• A new Industrial Enterprises Act to be enacted within the next fiscal year in line with the Special Economic Zone Act, Investment Promotion Board Act and Industrial Policy 2010.

• Establishment of a single point service centre to extend facilities and concessions provided by laws, and services including infrastructure on time and without hassles

• Special programmes to attract both domestic and foreign investment for the development of water resources, tourism and infrastructure
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NSC PROPOSES NAAA DISSOLUTION

Kathmandu, 16 July: Nepal Amateur Athletics Association (NAAA) has come under fire from National Sports Council (NSC) and is on the verge of being dissolved, after an athlete, who had gone to participate in the 19th Asian Athletics Championship held from July 6-10, went missing in Japan, The Kathmandu Post reports.

Surya Maya Rai who had competed in the championship disappeared after her event. In the wake of the incident, NSC member secretary Yuba Raj Lama called a press conference on Friday and announced that he has recommended the NSC board to dissolve NAAA.

Likewise, team leader for the 19th Asian Athletics Championship and chief coach Mohan Ghale has been suspended.

Speaking at the programme member secretary Yuba Raj Lama said, “Incidents of our players disappearing in foreign countries is a disgrace to the country and we have taken this action to stop such happening repeating in the future.”

Member Secretary Lama also declared that he has formed a five-member visa desk committee headed by him to facilitate the visa process for the players and control the disappearing act. “Visa application for players will be done by the visa desk committee,” Lama said, “We will inform the embassies about the new rule.”

The visa process under this new rule, however, is difficulty and a lengthy one. The new rules states, the president and the general secretary of the association the player is associated with will have to vouch the player will return.

Likewise, a formal invitation letter from the organiser and the guarantee of the players parents are some of the new rules.

Similarly, Lama expressed disbelief at how the verdict given by Ministry of Youth and Sports that German Coach Gunter Lange had not been involved in the doping case of athlete Rajendra Bhandari has not been carried out in action. “I would like to assure that the clearance received by Lange will be carried out in action,” Lama said, “This is our endeavour at remedying our relation with Germany.”
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