'Be alert while transacting with BFIs'

Financial sector experts who gathered at a function organized to mark the World Consumer Rights Day-2012 on Thursday urged consumers to be aware and read every details carefully while transacting with banks and financial institutions (BFIs) and while using ATMs and e-banking services.

They said service providers in Nepal are generally not sensitive to consumers´ rights.

"Consumers should be careful since many of the policies that are supposed to protect consumers´ rights have not been properly implemented," said Sanjeev Subba, CEO of the National Banking Training Institute (NBTI). At the same time, he also requested the banks to be more responsible toward consumers interests and serve them in fair manner.

The theme for this year´s consumers rights day was ´our money, our choice: campaigning for real choices in financial services´. Kalyani Shah, president of the SEWA Nepal even accused the financial sector players of exploiting consumers.

“We have to raise voice against those who exploit consumers,” she said.

On the occasion, Advocate Baburam Aryal presented a paper on safety procedures that consumers should follow while transacting with banks and financial institutions. “Banking consumers who use ATM should only use it where they feel comfortable and safe,” Aryal said.

He further added that consumers should keep the slips that they receive from ATMs after withdrawing money as a record since that could be used as proof if there is any problem with transaction and suggested to customers to cross-check the slip´s details with bank statements.

Maoist faction's protest puts SEZ law in limbo

Although Special Economic Zone (SEZ) has long been acknowledged as one of the major vehicle for luring foreign investment and giving boost to exports, efforts of the industry ministry to enact SEZ Bill have failed even though the same was endorsed by the cabinet three years ago.

Initially, the lack of clarity over social protection and objection of trade union on provisions like ´no extreme forms of strikes´ in the zone had prevented its ratification. Now that trade unions have softened their stance on the bill, MoI was hopeful of getting the bill endorsed by the parliament.

However, its bid to retable the bill in the parliament has hit yet another roadblock. A faction of ruling UCPN (Maoist) has strongly protested it, terming it as an ´anti-national´ document. Maoist Chief Whip Dev Gurung has even warned of stalling the parliament if the MoI tabled it.

“After gathering dust in the parliament for three long years, we had taken steps to reintroduce the bill in the parliament, hoping positive outcome due to changed political context,” said industry minister Anil Kumar Jha.

However, Jha has rolled back his initiative following such strong-worded reaction from Gurung.

The Maoist party´s resistance has come despite Prime Minister Baburam Bhattarai´s clear statement that the bill was crucial to lure some $1 billion worth of foreign investment that he has targeted to achieve in the Investment Year 2012/13. Bhattarai is also the vice-chairman of UCPN (Maoist).

Bhattarai has also cited its enactment as one of his priority works in the Immediate Action Plan (IAP) for Economic Growth and Prosperity. “The bill of SEZ will be immediately approved by the Parliament,” reads the IAP.

Jha said Gurung´s reaction was surprising, mainly as it contravenes with what his own party leader has said.

Gurung, however, said his party has different opinion about the bill. “First, it was prepared by the World Bank. Secondly, it damns labors´ rights and protection of natural resources. It is not acceptable to us,” Gurung stated.

He even ruled out the necessity of SEZ law, arguing that there were already multiple laws in the country to encourage inward flow of foreign investment and exports.
However, officials having knowledge on the contents of the bill, said Gurung´s reaction was based on his naivety. “Obviously he has not studied the bill. Otherwise, he would have known, the bill protects the labor rights and is sensitive to other issues as well. If that was not the case, trade unions won´t have agreed to it,” a senior official at industry ministry said.

Rameshwar Khanal, economic advisor to the PM, agreed with him. “The only difference is that the SEZ bill does not allow workers to halt productions while striking. Otherwise, the labor rights, including collective bargain, are all protected in the bill,” he added.

The latest objection by the UCPN (Maosit), meanwhile, has deferred yet again the chances of early operationalization of already built SEZ and infrastructures, including SEZ in Bhairahawa, for which the government has already spent millions of rupees. It has also put the fate of other proposed SEZs, including those in Birgunj, Panchkhal, Jhapa and Dhangadhi, among others in limbo.

If the government dragged feet on enacting the law, officials stated it would adversely impact the Investment Year as well. “Deferring the long-committed law that pledges minimum basic assurances to investors will only taint our image. In such a situation, how can we push our case strongly to lure foreign investment?” wondered the MoI official.

Nepal's trade policy discussed at WTO

Commerce secretary Lal Mani Joshi on Wednesday began detailed discussions on the country´s trade policy at the headquarters of the World Trade Organization (WTO) in Geneva.

“In Nepal´s first trade policy review meeting after joining WTO, secretary Joshi said Nepal has pursued structural reforms in all the sectors of economy and that the country has made considerable process in economic liberalization,” Shankar D Bairagi, Nepal´s permanent representative in Geneva told Republica over phone.

The review meeting kicked off on Tuesday. Nepal had joined WTO in 2004.

According to Bairagi, Joshi also answered to queries raised by representatives of Nepal´s major trading partners. “He will respond to the remaining queries on Thursday. Representatives of US, China and India, among others, are raising questions about Nepal´s investment environment and infrastructure development,” added Bairagi.

Bairagi further said major trading and development partners appreciated Nepal´s progress towards economic liberalization and strong commitment in compliance to the WTO norm.

According to a press release issued by Nepal´s permanent mission in Geneva, secretary Joshi told the meeting that Nepal had high-level Investment Board aiming to create investment friendly environment for both domestic and foreign investors.

“The Nepali delegation also pointed out number of challenges and constraints in Nepal´s efforts to promote international trade,” the release added.

Bairagi said Christine Hochstatter, alternate permanent representative of Germany, as the discussant, commented on reports of the Government of Nepal as well as of the WTO Secretariat and suggested measures for further reform of Nepal´s trade sector.