Business Confidence Index Improves

The Second Business Confidence Survey report released by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) revealed that the Nepali private sector felt more confident over the last six months. The survey measured the confidence of business people to have increased by nearly 10 points to 49.5, up from 39.7 six months earlier. 

 

Increased foreign trade, more convenience in securing loan and declining cost of production are the factors boosting the confidence of business people, the report said. 

 

The survey has showed that both confidence about the present (CSI) and optimism about the future (EI) have increased among the business community. 

 

The survey has found that the Business Confidence Index (BCI) in the agricultural sector is the highest among the sectors of economy. However, the BCI of manufacturing is the lowest. 

 

The report, which incorporated responses from 420 business people from all districts, identified 10 factors, including weak governance and energy crisis, as having affected business confidence in the country. 

 

According to the report, political instability has posed as the major challenge for the Nepali economy. The survey has also pointed out energy crisis and poor governance as the second and third critical challenges. Similarly, the survey stated that corruption and frequent strikes are also hitting the economy hard. 

 

FNCCI had conducted the survey from March to May and collected a total of 420 responses from all over the country covering all sizes of enterprises of agriculture, manufacturing and service sector.

 

 

MoneyExpo 2013 in the Offing 

A three-day MoneyExpo 2013 is being held in the capital from October 31 to November 2. Aarthik Abhiyan daily and Jamb Technologies are jointly organising the event. According to the organizers, the expo is a unique business-networking event for the companies of financial sectors and their constituents. It provides investors a valuable opportunity to speak directly with the nation’s top financial expert related to trading and investment, banking, insurance, mutual funds, stocks, tax strategies, commodities and personal financial planning. This is the third edition of the expo being organised by the same organizations.

 

WB Approves Credit to Strengthen Nepal’s Financial Sector 

The World Bank has approved a US$ 30 million credit to help Nepal accelerate its financial sector reform program to reduce vulnerability of the banking sector and increase its transparency. “The Government of Nepal’s medium-term program for the financial sector focuses on reforms designed to place the financial sector on a sound foundation for the future,” states a press statement by the bank.

 

NDC Targets 6 percent Growth Rate

The National Development Council (NDC) fixed a target of six percent annual economic growth during its 13th periodic plan (2070-73). It was concluded during a two-day meeting held on July 5-6 in Kathmandu which was attended by experts, leaders of political parties and top bureaucrats. The approach paper aims to upgrade Nepal to the status of Developing Country by 2022 from the existing status of Least Developed Country (LDC). 

 

To attain the 6 percent growth rate, the plan focuses on agricultural growth rate of 4.5 percent per annum while the target for non-agricultural sectors is 6.7 per cent per annum. These growth rates are expected to trigger employment by 3.2 percent per annum, reducing the population living below the poverty line to 18 percent. Effective mobilization of the public, private and cooperative sector is the major strategy to achieve the set targets. 

 

Development of physical infrastructure, expansion of social services, enhancement of good governance in public and inclusive and sustainable development are other priorities. Similarly, development of hydropower and energy sectors, commercialisation and diversification of the agricultural sector, enhancement of farm productivity and increased access to basic education and health services, drinking water and sanitation are also among the programmes incorporated in the approach paper. The meeting also discussed about the hurdles in the aim to achieve the targeted development. 

 

The paper has formulated plans to spend a total Rs 1.62 trillion till 2015/16. Of this, Rs 960.69 billion will be spent to cover recurrent expenses, while Rs 277.94 billion is allocated for capital spending. These expenses, according to the plan, would be met through estimated revenue collection of Rs 1.13 trillion in the three-year period, while the rest would be raised through domestic debt, grants and loans from development partners.

 

Full and Timely Budget after Two Years 

The government has unveiled the budget amount of Rs 517.25 billion rupees for the Fiscal Year 2013/14 that appears to give a sigh of relief to the country’s grappling economy that was yearning for timely and full-fledged budget for two years. Of the total budget, 68.33 per cent would be spent on recurrent expenses, which accounts Rs 353.42 billion, while 16.45 per cent would be for capital expenditure. Capital expenditure amounts Rs 85.10 billion. The remaining 15.22 per cent budget (Rs 78.72 billion) is meant for meeting debt obligatory financing provision. 

 

The budget has laid special focus on holding the Constituent Assembly (CA) election slated for November 19. For the CA poll purpose, the government has allocated Rs 16 billion. Energy and agriculture sectors are two other sectors of top priorities in the new budget. 

 

The government budget has jacked up the salary of the civil servants by 18 per cent who will also get an additional Rs 1,000 monthly allowance. 

 

According to the new budget, Rs 30 billion has been allocated for the hydropower development and building transmission lines while the agriculture sector has received Rs 21.40 billion with the aim to boost the productivity of the agriculture and modernise and commercialise the sector. 

 

Similarly, the budget seeks to restrict the inflation at 8 per cent and attain the economic growth rate of 5.5 per cent. 

 

The education sector has received Rs 80.95 billion from the budget of the FY 2013/14 of which Rs 1 billion will be spent in the literacy campaign. Likewise, the government has allocated Rs 30.43 billion for the health sector with a launch of universal health insurance schemes in 15 districts. 

 

The government has also come up with a plan for orientation programmes to 50,000 youths and skill training for 10,000 youths. The budget has also continued the Youth Self Employment Program introduced during the tenure of then Finance Minister Dr Baburam Bhattarai. 

 

Though the government hasn’t introduced major new programmes in the new fiscal year, Pashupati Area Development and Lumbini Area Development, President Chhure Conservation, Bheri Babai Diversion projects have been added in the Projects of National Pride in the new budget. 

 

The budget has planned to raise Rs 354.50 billion through tax and non-tax revenue and Rs 69.54 billion through foreign grants. Similarly, the government has also planned to raise Rs 5.5 billion from principal refund, Rs 43.7 billion from foreign loans and Rs 44 billion from internal loans. 

 

Excise on tobacco and alcohol has been raised in the new budget. However, it has increased the amount of tax exempt on personal income to Rs 200,000 for individual from present Rs 160,000 and to Rs 250,000 for couple from Rs 200,000. However, the government has refrained from increasing the personal and corporate tax rate. 

 

The government plans- like rewarding investors with investment on above Rs 1 billion with Prime Minister Entrepreneur Award, power supply for industrial areas during the load shedding time, developing Nawalparasi, Surkhet, Dang and Kailali as Special Economic Zones- are likely to boost the morale of industrial and business sector, which is at all time low.

 

 

Training on Branding and Marketing

A training program on branding and marketing for micro and middle-sized enterprises was jointly organized by New Business Age Pvt Ltd and Birgunj Chamber of Commerce and Industries (BiCCI) in Birgunj. 

 

Entrepreneurs from and around Birgunj, officials and members of working committee of BiCCI participated in the training presided by BiCCI President Ashok Baidya. 

 

Speaking at the training, Chairperson of New Business Age Pvt Ltd, Madan Lamsal, said that none of the enterprises could flourish in the lack of product’s branding and marketing. 

 

Similarly, Senior Consultant of the New Business Age Pvt Ltd, Ujjwal Kumar Chowdhury, underlined the need of identifying special requirements of the market for the product. 

 

BiCCI’s outgoing President Ashok Kumar Temani, General Secretary Gopal Kedia, Treasurer Sunil Khetan, Vice-Treasurer Dipak Tibrewal were also present in the training. The training was facilitated by FNCCI Administrative Officer Manoj Upadhyaya.