NEPAL'S GROWTH PROJECTED AT FOUR PERCENT, ONE OF LOWEST IN SOUTH ASIA

NEPAL’S GDP GROWTH PROJECTED AT LOW FOUR PERCENT—ONE OF LOWEST IN SOUTH ASIA

Kathmandu, 17 Sept.: Against the government’s forecast of five per cent growth, Asian Development Bank (ADB) has projeted Nepal’s growth at four per cent for the fiscal year 2012 (ending in July 2012), The Himalayan Times reports.

But Nepal’s gross domestic product (GDP) growth slowed somewhat in fiscal year 2011 (ended in July 2011) to 3.5 per cent from the earlier forecast of 3.8 per cent, according to the Asian Development Outlook Update 2011. A weather induced rebound in agriculture could not fully offset the deceleration in nonfarm activities and high international food and oil prices kept inflation near double digits, said the flagship publication of the Asian Development Bank published on Wednesday.

Competition from non bank financial institutions has siphoned off deposits, exacerbating liquidity constraints on lending by banks, it said, adding that four-month delay in budget also hit revenue and capital spending, undermining already weak economic conditions.

The external position strengthened modestly, as import growth gradually decelerated and remittance growth stabilised at around 12 per cent. The overall current account, however, posted a small — but wider than forecast — deficit with exports staying weak.

In the fiscal year 2012, the GDP growth will likely edge back up — to reach the ADO 2011 forecast — with the marginal improvement coming fromagriculture and services.

Given a favourable monsoon, agricultural output is expected to grow faster than fiscal year 2011’s four per cent, according to the report.

“For services, some slackness is expected to tighten in fiscal year 2012, reflecting Nepal Rastra Bank’s more accommodative monetary stance, a pickup in remittance inflows, robust tourist arrivals and the the timely budget.”Industry, however, is likely to remain unchanged, as power outages, sporadic fuel shortages, and poor labour relations are likely to persist.

Continuing inflation among key trading partners, high international oil prices and upward adjustments in domestic oil prices, and a generous hike in civil servants’ salaries will exert upward pressure in fiscal year 2012, thereby raising the forecast, despite expectations of a solid food crop, the Asian Development Outlook Update 2011 revealed.

Remittance, the bulwark of Nepal’s external position, is expected to grow, as it did even during the turmoil in the Middle East earlier in 2011 benefitting the current account to move to a small surplus, even as the trade deficit remains wide.

“Growth in South Asia is also slowing this year as monetary authorities move to combat still high levels of inflation, the report said, “Next year growth should pick up to 7.7 per cent, led by India, after higher interest rates crimped consumer spending and investment in 2011.”
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PM SEEKS COOPERATION FOR PEACE, CONSTITUTION DRAFTING





Kathmandu, 17 Sept : Prime Minister Dr. Baburam Bhattarai Friday said the government had a huge responsibility of completing the peace process, bringing the first draft of the new constitution and providing minimum relief to the people within the extended term of the Constituent Assembly (CA), The Rising Nepal reports.
Addressing the Legislature-Parliament for the first time after being elected the Premier, PM Dr. Bhattarai compared these three tasks with gigantic hills and said, "The government alone could not climb up these hills. There is the need of support of all responsible political parties, the august assembly and the people to accomplish the historic tasks."
Prime Minister Dr. Bhattarai said that there should be uniformity in the understanding among the parties to finish the remaining works of the peace process such as clear roadmap of army integration, post adjustment, and respectable package for rehabilitation and voluntary retirement.
"The government couldn’t complete the tasks in the absence consensus, alliance and an environment of trust. Personally I am committed to implementing common consensus, agreements and commitments of the past, and creating a basis for the new consensus," he added.
He, however, said, that everything would be futile if the government’s works being carried out on a fast speed were seen with suspicion and the country would again plunge into the whirlwind of political crisis.
Bhattarai said that the tendency of either seeking whole solution to the army integration or doing nothing was not an appropriate policy.
"The better way is to implement the agreed matters and to seek new agreement on the remaining issues. At least, the regrouping of the combatants could be started by fixing the modality, rehabilitation package and an estimated number of combatants being integrated. This way of doing things generates trust and saves time. But, it is a sheer paradox that previous establishment sides have become very rigid and irresponsible at a time the rebel group of yesterday is presenting itself with high flexibility and responsibility."
PM Bhattarai expressed
his hope that the parties would demonstrate responsibility and whole-

heartedly cooperate with the peace and constitution drafting works.
"If we fail and leave the remnants of violence to the next generation, the latter will curse us, and the regressive and revivalists would benefit," he warned.
Stating that the mandate of the CA election was that all ‘isms’ and parties of different ideologies should work together, he said that the CA should work round the clock.
"Like the sacrifices made for the restoration of loktantra, let us sacrifice from our respective sides in the constitution making and not make unnecessary disputes on the common contents. We would do better to evaluate all of us after crossing the bend of peace and constitution. If we get mired into disputes, our vehicle of peace and constitution will either be stuck beyond the hills or it will meet accident. It will be a great mistake if we think that anyone of us will be spared in the accident," he said.
Bhattarai said that no one would be opposition in the peace and constitution writing and this would be the last chance to tread on the path of peace and constitution building.
"Let’s us compete for the ideological political agenda but join hands for accomplishing these historic tasks."
The PM clarified that he had no intention of evading the House while introducing the relief package, which he said aimed at benefiting conflict victims, promoting social justice, improving law and order, ensuring the easy supply of goods, checking black marketing and finally boosting the peace process. "This is just a casting of the government’s future works."
Transitional justice
He said that the government had accorded top priority to the establishment and promotion of transitional justice system. However, the peace process will not be meaningfully concluded until the conflict victims, people form disadvantaged region, poor, helpless, the old and other marginalized groups realized justice and relief.
Stating that the government is committed to form the Commission on the Disappearance and Truth and Reconciliation Commission, he asked the parliament to approve the Bills relating to these as early as possible.
He said that the government was working out to develop an appropriate structure and legal system to make the governance system inclusive and enhance the participation and proportionate access of all people to every organ of the state, resources and means.
Focus on double-digit growth
Dr. Bhattarai noted that socio-economic transformations were high on the priority list of the government and he would concentrate all his attention to lift the Nepalese from the vicious cycle of poverty by securing double digit economic growth.
"We will achieve the double digit growth by adopting the development policy a la the leap of a frog, not in the manner of slithering of a snake. We will move aggressively to increase investment for the development physical infrastructures, water resources, tourism, productive and service industries," he said.
Ensuring industrial security, cordial labour-management relation, easy supply of energy, minimum wage for the workers and their productivity are necessary to create congenial atmosphere for investment, he said and added that Investment Board would be set up soon to ease the flow of domestic and foreign investment.
"The economic policy of the government entails the economic growth with social justice as reflected in the village-oriented development drive, cooperative movement and youth self-employment," he noted.
On foreign policy
Prime Minister Dr. Bhattarai said that Nepal would serve as ‘friendship bridge’ between the two big neighbours.
"We discard the traditional policy of being buffer state between India and China and adopt the policy of being a friendship bridge between the two nations that are making quick economic progress," he said.
He further said, "Promoting the national welfare will be a guiding parameter to increase the foreign relations based on the Panchasheel principles."
He said that the Nepalese land would not be allowed to be used against any neighbouring country and it also expected the same from the neighbours.
"We will extend cooperative friendship ties with all nations and expand the scope of cooperation with those countries which have been helping Nepal as per the need and priorities of the country," added Dr. Bhattarai.
He said that the government would encourage the NRNs to invest in Nepal.
Stating that the government would make appointments in the constitutional bodies transparently and as per appropriate standards, he said that there was the need of accountable political mechanism to run local bodies.
He expressed commitments to the zero tolerance policy on corruption, end of red tape and indiscipline, and impunity, and promotion of austere and ethical practices in bureaucracy.
"Press is the mirror of society and ornament of loktantra. We are committed to the press freedom, freedom of expression, rule of law and multiparty competition," he said and added that the government would bring a provision requiring certain amount of collateral to open the media industry so as to ensure investment and future security.
The PM also called upon the Nepalese, who had gone abroad for jobs, to return home and start new entrepreneurship, pledging that the government would create the right environment for the same.

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PRACHANDA THEATENS UNILATERAL ACTION TO COMCLUDE PEACE AND CONSTITUTION DRAFTING





Kathmandu, Sept 16, UCPN-Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ Friday said his party would even take unilateral step for eliciting reciprocity from the other parties to conclude peace and constitution building process within two and a half months.
The chief of the main ruling party, however, warned of resorting to people if at least the major parties like Nepali Congress and CPN-UML did not cooperate with his party’s ‘much flexible and unilateral initiatives.’
"If we fail to make agreement with the NC and UML to conclude peace and constitution, our party will do what it needs to do unilaterally. I believe our step will be much flexible. If that also does not work, we will go to the people as the people are the ultimate judges," Prachanda said speaking at the Janata Ko Sabal Neta Ko Jabaf organised by Proletariat Fund Nepal.
The chief of the largest party reasoned for unilateral step saying the conclusion of the peace and constitution writing process was linked with the glory, fate and prosperity of the country.
Saying that the parties were close to agreement on five most debated issues related to army integration or the peace process that include integration modality, standard norms, number, rank harmonisation and rehabilitation package, Prachanda claimed "We had reached agreements on these with the UML and even inked them for signing. However, with the formation of the government under our party leadership, the UML has come out with a different opinion as they held discussions with the NC."
The Maoist chief affirmed that his party had felt its greater responsibility to the historic tasks.
Prachanda pointed out the need to appreciate

positive elements in all the parties and build on them for peace and constitution.
Responding to the suggestion of the civil society leaders, the former Prime Minister assured that the senior leaders of the major parties would now hold an intensive and regular meeting and strike agreements.
NC senior leader Sher Bahadur Deuba remarked that the delay made by the parties to make agreement was nothing abnormal as making agreements was a difficult task for the parties with different and opposing political schooling and background.
"However, there is no time to wait. We must make agreement as without peace there can be no investment and without investment there cannot be any development," the former Prime Minister observed.
UML chairman Jhala Nath Khanal reiterated that national consensus was a must for performing the historic tasks.
"We are very close to agreement on two of the three most disputed issues related to constitution making, on forms of the government and electoral system while we need more discussions over state restructuring as it is linked to the fate of our country," he said.
The former Prime Minister termed Prime Minister Dr Bhattarai’s step for moving peace process ahead as simply decorative. Unless until we strike agreement on the five core issues related to peace process, we will be going nowhere."
Top civil society leader Dr. Devendra Raj Pandey demanded that the parties keep the civil society leader in their discussions as witness.
He said lambasted the political party leadership for devoting much of their time to settle intra-party rift instead of using the precious time to resolve inter-party dispute in issues related to conclusion of peace and constitution.
Former Minister Ramesh Nath Pandey showed concerns over increasing foreign concerns and interference in domestic affairs of the country and said it could jeopardize national sovereignty. Senior human rights defender Padma Ratana Tuladhar suggested the parties to uphold their revolutionary and democratic spirit and hold intensive discussions to conclude peace and constitution writing.
Daman Nath Dhungana, former Speaker and senior human rights defender, blamed the NC and UML for not cooperative with the present government to conclude the historic process of peace and constitution building.
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