Leadership of central bank of Nepal is shaky

A leading business journalist Prem Khanal agues that the Nepal Rastra Bank and its leadership was successful to meet the target it set while assuming the post in 2010. However, he leaves the space open for people to make their own decision whether to celebrate it or not. The discussion over Nepal’s open border with a fast growing Indian economy and the pegged exchange rate with it are always hit by pressure, mostly from policy level officials. Dr Yuba Raj Khatiwada, governor of the central bank, in his meeting with business journalists from different media houses in Kathmandu, had explicitly said that it was quite necessary to change the ‘exchange system’ with India. Ironically, he, without any hesitation of public shame, later, denied to admit that he said that.

With all the due respect to his expertise and position, I doubt his guts to speak the truth with public. I have reached in this conclusion after listening to him in mid-term budget review of fiscal year 2011/12 few months back. Denouncing the fact that the growth of agricultural sector purely because of timely monsoon, he said that it was all government’s effort to maintain the growth.

Govt intervenes in Surya Nepal dispute

In the run up to the official launch of the Investment Year in mid-July, the government has intervened in the labor dispute at Surya Nepal, a multinational company, and asked both the management and trade unions to resolve the tension through dialogue.
The instruction was given during a tripartite meeting called by the Department of Labor (DoL) on Tuesday, which was also participated by representatives of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), the largest umbrella body of the private sector.
Although the meeting comprised government officials, members of the management of Surya Nepal and trade union leaders, it failed to put an end to the dispute, which has been affecting 66 percent of company´s production since the last few days.
However, the DoL-led meeting managed to ask both the parties to sit for another dialogue soon. It also took a decision to take production and dialogue at the factory side by side.
Industrial relations at Surya Nepal has gone into a tailspin after Nepal Multinational Workers´ Union, a Maoist-affiliated trade union, threatened to shut down the factory if its 11-point demand was not fulfilled. Seeking legal remedy, the company moved the court last month.
The Hetauda Appellate Court also gave verdict in favor of Surya Nepal and issued a stay order against workers´ strike. The court gave continuity to the order during another hearing on April 5.
Since the stay order was issued against the strike, the trade union has brought down demands from 11 to 7 points.
According to Beni Prasad Timilsina, president of the NMCWU, next meeting, as recommended by the DoL, would be held in Surya Nepal´s factory in Simara. "We are ready for talks with the management though our demands are still the same," he said.
Rabi KC, corporate vice president of the company said, "I am hopeful that we will have a fruitful dialogue in the factory." But he quickly added the workers´ demands should be logical. He also said the company can only provide benefits and perks to workers if they do not put a question mark on the sustainability of the company.
In case, the next meeting at the factory is unable to resolve the dispute, a committee comprising two persons each from trade unions and management will be formed to hold the final talk.
Surya Nepal´s production down 66pc
The daily production at Surya Nepal has gone down by 66 percent despite a court order that clearly instructed workers not to disturb day-to-day work at the factory, according to Rabi KC, corporate vice president of the company.
However, trade union leaders rejected KC´s claim. "We are working with full efficiency everyday," Devendra Sitaula, senior member of the Nepal Multinational Company´s Workers´ Union said.
According to KC, the factory has capacity of producing 3 million sticks of cigarette per day in normal time.