FOUDATION STONE LAID FOR DRY PORT AT LRCHA TO FACILITTE TRADE WITH TIBET Kathmandu, 21 Dec.; Chinese Ambassador Yang Houlan and Commerce and Supply Secretary Lalmani Sharma Thursday jointly laid the foundation of a dry port at Tatopani Larcha to facilitate Nepal-Tibet trade. The Rs.1.2 billion project will be completed in 30 months. The dry port is located 6lm from the border. Nnnn APPOINTMENT OF PREMIER’S SISTER-IN-LAW STAYED BY COURT Kathmandu, 21 Dec.: An interim order was issued Thursday by a division bench of Kathmandu Valley appellate court not to remove Chairman Pyauag Lal Joshi of Kathmandu Valley Drinking Water Ltd. (KUKL) The court ordered not to remove Joshi until a hearing on 3 January. Government appointed Timla Yami- sister-in-law of the premier in place of Joshi—a move that was challenged in court. The premier came under heavy criticism for the appointment of his sister-in-law. nnnn PRIVATE SECTOR DEMORALIZED Kathmandu, 21 Dec.: Prolonged uncertainty, lack of policy clarity, and government apathy towards export promotion coupled with the worsening investment climate and rising cost of production have demoralised the private sector, The Himalayan Times reports.. “The economy has never been a priority for the government,” said president of Confederation of Nepalese Industries (CNI) Binod Chaudhary here today. “Political parties have used the private sector only to strengthen their hold,” he said, adding that the manufacturing sector’s contribution to the gross domestic product (GDP) has come down to 6.2 per cent, the lowest in a decade, from over 10 per cent earlier, reflecting the mood of the private sector. “Due to the declining productivity of labour and increasing cost of capital, cost of production has also spiralled making Nepali products less competitive.” The worsening investment climate has pulled the private sector’s morale down, said senior vice president of CNI Narendra Basnyat. “Security of investment and property is key to boost investment climate,” he said, adding that the private sector has become a victim of prolonged uncertainty and policy illusion. “Political parties have mixed economy with politics,” according to vice president of CNI and executive director of Deurali-Janta Pharmaceuticals Hari Bhakta Sharma. “Highly politicised labour unions have also spoiled the investment climate,” he added. Nepal had the second lowest minimum wage ($33.54 per month) in South Asia, according to the International Labour Organisation (ILO). In 2006, it increased by 35.21 per cent, the highest increase compared to any other South Asian countries to $45.36 per month. As of 2011, Nepal has the highest minimum wage in South Asia ($83.76 per month), followed by Pakistan ($82.17 per month), India ($64.07 per month), Sri Lanka ($51.22 per month), and Bangladesh ($40.46 per month), according to the ILO data. The private sector has more than 70 per cent investment but the sector has been taken hostage by the political parties to fulfill their vested interests, forcing the people to suffer and leading to higher imports. The government itself is not interested in promoting exports, said managing director of Shivam Cement — that employs around 350 and has an investment of around Rs five billion — Satis More. “There is a huge demand for cement in the country and investors have also been attracted to invest in the sector but frequent disturbances in the cement companies by some groups have always been posing a security threat,” he said, adding that unless the government provides security to the industries, the country will never be able to substitute imports leading to huge trade deficit. A decade of CNI Confederation of Nepalese Industries (CNI) will organise its 10th annual general meeting on Saturday. “We have invited Nobel Laureate Prof Muhammad Yunus as a key note speaker for our 10th anniversary,” said CNI president Binod Chaudhary, who has been leading CNI since its establishment. “However, this time, the institution will see a new leadership,” he said, indicating that senior vice president Narendra Basnyat might lead CNI. Nnnn FOREIGN MINISTRY INTERVENTION SOUGHT TO RECOVER MONEY FROM CHINESE COMPANY Kathmandu, 21 Dec.: The High Level Financial Sector Coordination Committee led by the finance minister today [Thursday] decided to ask the Ministry of Foreign Affairs to take a diplomatic initiative to get back the bank guarantee from the Chinese contractor of Melamchi Drinking Water Board, The Himalayan Times reports.. In a meeting in the capital today, the board also directed Nepal Rastra Bank (NRB) to hold talks with its Chinese counterpart to look into the matter. The meeting also concluded that the overall economic indicators of the country are satisfactory despite the increasing trade deficit. It also directed NRB to prepare a concept paper to establish a separate Property Management Company to manage non-performing loans. Similarly, it directed the Finance Ministry to prepare a paper to form a separate committee to take appropriate action to collect non-performing loans. The meeting also decided to regulate savings and credit cooperatives according to recommendations that will be made by a taskforce formed by the committee. “The taskforce will submit its report soon,” the Finance Ministry said. It has also decided to request the Ministry of Cooperatives and Poverty Alleviation not to float loans to cooperatives based on good for payment cheques. Nnnn TEACHERS CARRY GUNS IN TEXAS, USA Kathmandu, 21 Dec.: In the tiny Texas town of Harrold, children and their parents don’t give much thought to safety at the community’s lone school — mostly because some of the teachers are carrying concealed weapons, AP reports from Harrold, Texas.. The nearest sheriff’s office is 30 minutes away, and people tend to know — and trust — one another. So the school board voted to let teachers bring guns to school. “We don’t have money for a security guard, but this is a better solution,” Superintendent David Thweatt said. “A shooter could take out a guard or officer with a visible, holstered weapon, but our teachers have master’s degrees, are older and have had extensive training. And their guns are hidden. We can protect our children.” In the aftermath of last week’s Connecticut elementary school shooting, lawmakers in a growing number of states have said they will consider laws allowing teachers and school administrators to carry firearms at school. Harrold’s school board voted in 2007 to allow employees to carry arms. After obtaining a state concealed-arms permit, each staff who wants to carry a weapon must be approved by the board based on his or her personality and reaction to a crisis, Thweatt said. nnnn