Japan signals support to private sector development

Japan, a major development partner of Nepal, has hinted at the introduction of assistance for private sector development in Nepal through its official development assistance (ODA).
“We want private sectors of both Nepal and Japan to work together and series of meetings have already been held so far to seek areas of cooperation for the development of Nepal´s private sector. We are also interested to support private sector in Nepal through ODA,” said Kunio Takahashi, ambassador of Japan for Nepal.
In a meeting with the private sector leaders on Sunday, Takahashi said that the Japanese government has been evaluating the effectiveness of existing ODA for Nepal.
Ambassador Takahashi also revealed that Professor Ryokichi Hirono of Seikei University of Japan was carrying out the evaluation of the ODA.
The Japanese embassy had initiated process of establishing a forum of private sector of the two countries few months back. However, the process couldn´t go ahead after abrupt political change in Nepal following the dissolution of Constituent Assembly in May.
“We are again working on establishing a forum for private sectors of the two countries,” Takahashi said.
A meeting held among Takahashi, Prog Hirono and Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) focused on the role of private sector and prospects of investment in the country.
On the occasion, Professor Hirono, called for increased saving at people level to increase investment source within the country as evidenced in Japan,Singapore and Thailand.
“There should be saving in people´s side and that should come as a sustainable investment source in the country,” Hirono said.
He categorically identified five core areas-- political stability, investment in human capital development, saving of the people, policy consistency in the government and collaboration among stakeholders of development as the crucial sector for development.
He also stressed on the need for collaboration among five major stakeholders such as government, business people, labor unions, consumers and academics to successfully implement the development efforts.
Vaidya, said the government should bring a full-fledged budget irrespective of any political situation in the country to ensure the proper utilization of foreign assistance.
Prof Hirono also suggested that the government issues national bond in order to utilize the remittance that the country receives from overseas workers.
“Issuing national bond could be a better instrument to streamline the remittance money in the productive sector of the country,” Hirono said.
Japan government, through Japan International Cooperation Agency (JICA) has been assisting Nepal in areas such as infrastructure development, power generation, water supply, improving public administration, education and health among others.
According to Ministry of Finance, Japan extended cooperation worth Rs 30 billion during 2001 to 2010 in three sectors-to support transport infrastructure, power generation and water supply in Nepal

26th CACCI conference to kick off on Wednesday

The 26th annual conference of Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) is scheduled to start in Kathmandu from Wednesday. Around 300 business people and government officials from the Asia-Pacific region are expected to take part in the conference.
The conference, a common platform to discuss and share ideas for economic development, with a theme ´A Vision for Shared Prosperity´ will focus on how Asian governments and private sectors can work together to achieve sustainable development.
According to a press release issued on Sunday by Federation of Nepalese Chambers of Commerce and Industry (FNCCI), which will be hosting the conference, it will also be a platform to have business to business meeting among private sectors of different countries.
“The conference aims to provide a platform for CACCI members to share their ideas on how they can help their respective countries, and the Asia-Pacific region as a whole, in strengthening and spreading the benefits of regional cooperation,” said the release.
Additionally, interested member chambers will also have the opportunity to sign memorandum of understanding (MOU) with FNCCI and other CACCI members defining possible areas of cooperation during the conference period. “There will be time allocated for MOU signing during the two-day event,” the statement said.
CACCI is a regional grouping of apex national chambers of commerce and industry, business associations and business enterprises in Asia and the Western Pacific.

Jute factories get 70% discount on electricity for another year

The government has decided to continue providing 70 percent discount on electricity tarrif to the jute producers - one of the largest foreign currency spinner industries in the country.
The government had provided 70 percent off on total electricity bill to the jute industries in 2008/09 in order to support the industry, which provides jobs to around 20,000 people, saying that the facility will hold good for for three years.
As the term of the facility was expiring soon, the Cabient decided to continue the facility last week, said a senior Ministry of Industry (MoI) official. "The facility has been extended for a year," Bishnu Dhakal, under secretary at the MoI told Republica.
The government´s decision will benefit nine jute factories operating in the country at present, enabling them to reduce the cost of production.
The MoI, entrusted to work with the private sector and industrialists to uplift the country´s industrial sector, has said that it was working on providing five percent cash incentives to jute producers who export to India. So far, such incentive is arranged for the third country exports only.
"The jute producers have demanded for five percent cash incentive in ratio of export even to India," Dhakal said. "However, no decision has been made so far to this effect but we are considering their proposal positively."
MoI officials view that extending cash incentive to third country exports, but excluding exports to India makes no sense, especially given that their earnings have been enabling the country to manage the Indian currency needs.
"It is true, chances of leakage of this facility is high. As a state, we must have the confidence that we will be able to plug its leakage," said another MoI official.
Beside, he argued that earning of Indian currency (IC) was no different than USD earning, particularly as the Nepal Rastra Bank (NRB) has been fulfilling IC supply by buying it against USD.
Data of NRB show, Nepal exported jute products worth Rs 4.06 billion to India in fiscal year 2011/12.
Prime Minister Babu Ram Bhattarai in May had said he was positive toward providing cash incentive on exports made to India by the industries employing a large number of workers. He had even assured of providing four percent cash incentive to jute factories through the new budget of 2012/13.
However, the government has failed to live up to the commitment as it failed to announce full-fledged annual budget due to deepening political rift.