THARUS PROTEST DRESS CODE

THARUS CLOSE DOWN DISTRICTS WHERE THEY ARE DOMINANT

Kathmadu, 1 Sept.: Tharus Thursday down districts where they are dominant.
The community that calls itself indigenous to Nepal closed down areas for two consecutive days protesting a supreme court explanation of a government decree calling a combination of daura, suruwal and topi as the national dress.
Tharus are dominant in the far-West.
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THREE KILLED IN MOTORCYCLE ACCIDENT

Kathmandu, 1 Sept.: Three persons were killed instantly when two motorcycles collided in Nawalparasi overnight.
Two were seriously injured at Mukundapur in the district.
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SHORTGE OF EXPERTS TO ANALYSE CENSUS DETAILS
Kathmandu, 1 Sept.: As the country is eagerly awaiting for results of Census 2011, Central Bureau of Statistics (CBS) is reeling from lack of technology and qualified human resource successfully conclude the data analysing phase, Binod Ghmere/Niranjan Sharma write in The Kathmandu Post.
Though the national statistical agency of the government was first to bring computers in Nepal in 1968, it hasn’t upgraded its technology. It is also suffering from lack of experts.
CBS is preparing to invite the private sector, most likely an international consultancy, to process the collected data ignoring risks of the manipulation and leakage of the findings.
According to CBS population unit chief Rudra Suwal, the unit has only 10 core members, a number too low while conducting the national census. More than 50 questions were asked this time which has made data analysis process of Census 2011 complicated than the earlier census. “Though the issues of confidentiality and security are of utmost concerns, we have to call for a bidding in view of lack of expertise to convert this huge data of hard copies into electronic form,” said the officer.
Under the Public Procurement Act-2007, an international bidding is a must while carrying out any work worth more than Rs 30 million. A whopping budget of Rs 250 million has been allocated for the data analysing phase. Given this situation, it is most likely that an international consultancy will grab the opportunity to analyse data.
CBS wants a Nepali consultancy to take up this task to ensure no misuse of the data by foreign agencies. “We can closely inspect the local consultancy. But it is not possible to monitor an international agency,” said Suwal, adding that some of Nepali agencies are willing to handle the data analysing phase. “But the government has to authorised in such a situation.”
He also said data capturing as well as organising and extracting useful information from the raw data is sensitive and crucial stage in the data analysis process, which needs close inspection from CBS.The tender for data processing can be awarded to a Nepali agency if the Cabinet makes a special decision, said CBS officials.
Census expert say this situation wouldn’t have surfaced now had CBS timely upgraded its system. “It is the failure of the statistics bureau that it has not utilised the technical experts available in the country to develop new expertise,” said Bal Gopal KC, a member of the CBS technical committee.
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NPL PROVISIOING COME DOWN
Kathmandu, 1 Sept.: Defying all the speculation, commercial banks’ non-performing loan (NPL) and amount for provisioning for possible losses declined in the last fiscal year, The Kathmandu Post reports.
Amid slowdown in the realty sector, minimal economic growth and protracted liquidity crunch, it was expected that the banks’ NPL and provisioning bad loans would rise sharply.
However, last quarter results of all 31 commercial banks show that the banking sector’s NPL, which stood at 2.54 percent in 2009-10, decreased to 2.4 percent in 2010-11. Commercial banks have provisioned a total of Rs 5.73 billion at the end of FY 2010-11 against Rs 5.99 billion in FY 2009-10. It has been found that the amount for banks’ provisioning for 2009-10 differs from the statistics kept by Nepal Rastra Bank (NRB). As per the NRB statistics, total provisioning in FY 2009-10 was at Rs 5.01 billion, which is less by Rs 980 million than that stated by banks’ last quarter report of 2010-11. This difference, according to an NRB official, is due to the NRB direction to five banks to increase their provisioning.
Although NPL and provisioning have decreased, commercial banks’ lending has increased. Their lending increased to Rs 520 billion in 2010-11 from Rs 462 billion in 2009-10.
At a time when getting loans is difficult due to high interest rate, the increased lending amount might have been used for interest repayment of old loans, suspect NRB officials. “Banks might have done refinancing for customers who were finding it difficult to repay interest,” said the NRB official. “This increases the size of lending, while the NPL level remains constant.”
The official, however, said the trend will not repeat from this fiscal year as the format in which details are submitted has been changed. “This fiscal year onward, clear details will come.”
Nepal Bankers’ Association President Ashoke Rana also expressed doubts over the NPL and provisioning that commercial banks have published. “IMF has been raising questions over the NPL shown by banks,” said Rana. “When looked at the economic condition of the country, the ratio of the NPL cannot be low as shown by the banks.” He added that pressure to CEOs to increase profitability might be the reason.
NRB officials say one of the reasons behind the decline in NPL and provisioning might be the relaxation given to the realty sector.
NRB had given one more year for BFIs to renew realty loans if borrowers pay all outstanding interest. This provision allowed banks to make provisioning of just one percent of the loan amount, eventually reducing their overall provisioning and NPL level.
According to NIC Bank CEO Sashin Joshi, NRB’s provision that extended the interest payment deadline by one more month even after the completion of fiscal year might have helped. “The directive might have played a crucial role in lowering NPL and provisioning,” he said.
NPL level
2009-10 2.54 pc
2010-11 2.4 pc
Provisioning
2009-10 Rs 5.99 billion
2010-11 Rs 5.73 billion
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FOOD SECURITY SITUATION STABLE
Kathmandu, 1 Sept.: The overall food security situation has remained stable across the country, The Himalayan Times reports.

“It is mainly attributed to a good harvest of winter crops (April-June) and employment opportunities generated by development aid,” according to Nepal Food Security Bulletin jointly produced by Ministry of Agriculture and Cooperatives and World Food Programme (WFP).

The main winter crops of wheat and barley production increased by 12.2 per cent and 9.6 per cent respectively compared to last year. Wheat production set a national record of 1.75 million metric tonne.

The situation, however, remains a concern for some in some pocket areas where crops were affected by localised natural disasters like insufficient rainfall and hailstorm, the report added.

In Saptari the District Food Security network (DFSN) has identified 28 Village Development Committees (VDCs) in the south-western belt of the district as highly food insecure.

The report has attributed it to a 60 per cent reduction of wheat and spring paddy production due to a dry spell, which was cumulative to the 2010 reduction of 40-60 per cent in the main paddy production.

Parts of the Eastern Hill and Mountain districts are reported as moderately food insecure, it said, adding that it reflected a seasonal deterioration in those areas where winter crops like wheat and barley are cultivated in limited areas and hence do not play a significant role in food security.

Most of the Mid and the Far Western Hill and Mountain districts reported a food secure situation, according to the report. Overall wheat and barley production ranged from normal to a 30 per cent or higher increase compared to last year.

Development programmes supported by various organisations have created good employment opportunities, it said, adding that main summer crops of maize and paddy are growing well across the country and the overall production outlook is good.

Good production of winter crops, wage employment opportunities created by development programmes, remittances, and regular supply of food to the local markets contributed to a stable food security situation across the country, it concluded, adding that a seasonal deterioration is reported in part of the Eastern Hill and Mountain districts where the winter crops of wheat and barley are cultivated in limited areas and do not play a vital role in food security.

The situation in upper Dolpa and some Village Development Committees in the northern and the southernbelt of Baitadi are likely to deteriorate to the highly food insecure phase during the next cycle as there will be no incoming harvest and employment opportunities as well as market supply will be affected by monsoon.

The food security situation in the rest of the country will remain stable expected to improve due to the positive outlook of summer crops.

According to the central bank, High food prices remain a concern. The year-on-year inflation, measured by the Consumer Price Index, increased by 8.8 per cent in mid-June 2011 whereas the indices of the cereal subgroup increased by 10.4 per cent.
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JAPAN EXPLORING REASONS FOR INEFFECTIVENESS IN HIRING PROCESS
Kathmandu, 1 Sept.: Japan International Training Cooperation Organisation (JITCO) is exploring Nepali job market and related policies to find out causes of ineffectiveness in hiring process, The Himalayan Times reports.

About 80 Nepalis – 40 from Federation of Nepalese chambers of Commerce and Industry (FNCCI) and 40 from outsourcer – have reached Japan for JITCO job in last 20 months.

The JITCO officials are visiting Nepal in mid-September to get the clear picture on the problems in sending and hiring process, said executive director of Foreign Employment Promotion Board Sthaneshwor Devkota.

“They will meet government officials, outsourcers and FNCCI and discuss possible ways to ease the hiring process,” he said.

Complex process of hiring and lack of marketing knowledge of outsourcer in developed countries are the major causes of ineffectiveness in JITCO hiring. “We don’t have marketing access in Japan,” general secretary of Nepal Association of Foreign Employment Agencies Kumud Khanal, said, adding that major hindrance is lack of marketing in the destination. “Japan government has not been providing visa to the outsourcer to explore Japanese market,” he added.

Likewise, finding manpower prescribed by the JITCO is yet another hardship. JITCO demands workers with specific qualifications that is hard to get in the domestic market because we don’t have sophisticated industries like in Japan, Khanal said.

Service fee is yet another problem in promotion of the job market. “It is not possible to explore Japanese job market and get demand in Rs 50,000,” he said, adding that the association will demand easy visa to outsourcers and increase in service fee in meeting with JITCO officials.

About 185 outsourcing agencies, including FNCCI are associated in JITCO but only two dozen have got demand so far. According to the Department of Foreign Employment, the total JITCO demand in last 20 months stands at 700 industrial trainees.

JITCO hires industrial trainees with two years working experience in Nepali industry, agriculture and other fields. They earn about Rs 36,000 per month and could get upto Rs 1,00,000 working as intern
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