FORMER INDIAN FINANCE MINISTER YASWANT SINHA IN TOWN; WILL HOLD HIGH-LEVEL CONSULTATIONS WITH PARTY LEADERS Kathmandu, 30 July: Former Indian Finance Minister Indian Yaswant Sinha is holding high-level consultations with political party leaders. He arrived Monday and offered puja at Pashupatinath temple in the third Monday of Shrawan considered the month of Lord Shiva. Sinha arrived at a time of political deadlock in Nepal. Nnnn NEPAL CARPET EXPORTS RECOVER Kathmandu, 30 July: Nepal’s carpet export revenue swelled despite an 11 percent drop in volume in the last fiscal year. The country earned US$ 70.65 million in 2011-12, up from US$ 60.67 million in the previous year. According to the Trade Export Promotion Centre (TEPC), Nepal exported 621,771 sq m of carpets in the last fiscal, down from 697,121 sq m in 2010-11, Rajesh Khanal writes in The Kathmandu Post.. The US is the largest buyer of Nepali carpets followed by Germany, the UK, Canada and Belgium. According to TEPC statistics, Nepal exported 228,713.77 sq m of carpets worth US$ 32.25 million to the US. Government apathy, lack of effective implementation of the refinancing facility, ongoing financial problems in Europe and increasing cost of production have been blamed for the decline in exports. President of the Nepal Carpet Exporters’ Association (NCEA) Kavindra Nath Thakur said the government’s apathy was among the factors behind falling exports. “Although the government had announced providing loans to the sector as a refinancing facility, many commercial banks are still reluctant to implement the provision,” he said. According to him, many exporters have not been able to benefit from the cash incentives announced by the government due to bureaucratic hassles. TEPC figures show that the US has surpassed Germany in both quantity and value as the largest importer of Nepali carpets. The US imported 228,713 sq m of carpets during the last fiscal year, accounting for 36.78 percent of the total exports. US imports doubled last year to US$ 32.25. Traders said that a growing attraction for high priced carpets in the US was the reason behind increasing exports. “Carpets in 100 knot and 150 knot fineness and expensive carpets made of silk and nettle fibres are finding a larger market in the US,” said Thakur. Meanwhile, the Euro zone crisis and increasing cost of production have been cited as the reasons for declining exports to the European market. According to traders, the price of wool imported from New Zealand has increased to US$ 6.20 per kg from US$ 2.10 per kg. Similarly, higher wages for carpet workers have also added to the cost. Thakur said that German importers who used to buy medium and low-priced carpets from Nepali exporters had started switching to Indian exporters. GK Joshi, director of Joshi Carpet Industry, said the ongoing economic problem in many European countries was the main reason behind falling exports. “Many German traders who are the main suppliers of Nepali carpet in the European market are unable to sell their products,” he said. Carpet Export FY Quantity Value 2011-12 621,771 sq m $70.65 million 2010-11 697,121 sq m $60.67 million Top Five Buyers US 228713.77 sq m Germany 226377.16 sq m UK 33657.04 sq m Canada 21373.26 sq m Belgium 14808.66 sq m Nnnn NEPAL TO HOST CACCI MEET 3 TO 5 OCT. Kathmandu, 30 July:The Federation of Nepal Chambers of Commerce and Industry (FNCCI) is hosting the 26th annual conference of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) in Kathmandu from Oct 3-5, 2012. The conference aims at attracting business leaders from the countries new to Nepal in terms of foreign investment with a theme “A Vision for Shared Prosperity”, The Kathmandu Post reports. According to the federation, some 300 businessmen from 27 Asia-Pacific countries will participate in the event, which is expected to provide a platform to expand the country’s industrial and business opportunities. The conference is being held in Nepal, coinciding with the government’s announcement to mark the current fiscal year as Nepal Investment Year (NIY) and Visit Lumbini Year (VLY)-2012. “We are getting an opportunity to host this conference for the first time. We hope it’s going to be a historical event that could bring in economic transformation in the country,” said Pradip Kumar Shrestha, former president of the FNCCI and executive member of the CACCI. FNCCI Senior Vice-president Bhaskar Rajkarnikar said that the conference would offer Nepal an opportunity to explore business prospects. The conference features break-out sessions, business-to-business (B2B) meetings and signing of memorandum of understanding (MoU). The programme is designed to make the Kathmandu gathering important occasion for CACCI members to discuss current business issues and explore possible areas of cooperation. The break-out sessions will be organised on sectors of interest to members, such as tourism, construction and contracting, food and agriculture, water and energy, SME development, young entrepreneurs, women entrepreneurs and ICT. Likewise, B2B meetings feature one-on-one business matching sessions between CACCI delegates and Nepalese businessman from various industry and service sectors to explore possible opportunities for business, trade and investments. The two-day event will also offer opportunities for perspective investors to sign MoU with FNCCI and other CACCI members on defined areas of cooperation. “Beside attracting foreign investors, the conference will also help Nepali business leaders to extend relationship with the entrepreneurs at international level,” Om Rajbhandary, coordinator of the conference said. The FNCCI is preparing to present around 60 projects in order to attract investments. The 25th CACCI conference was held in Turkey last year, while the Philippines will play host to the next event. nnnn