Notice : 'Exam postpond'

The exam has been postponed till 15th may. The exam which was about to held on 5th may will be now held on 15th may or 1st jestha . for more detail please check to this link http://pu.edu.np/suchana.pdf or Click following pic. Thank you.

holiday

today 27th april, 2011 (Wednesday) is holiday.. no college so guys enjoy and study...

TRADE POLICY, 2009

source: http://www.visionapexcollege.blogspot.com 

Background

Nepal has been adopting an open and market oriented trade policy for the last two decades with expectations that such policy generates positive impacts on the resource mobilization, economic development and poverty alleviation. However, the poor and backward countries are not able to realize the benefits of trade liberalization due to difficulties in accessing capital, technology and market, and the unequal economic levels existing among the various countries. In spite of extension of market access due to the entry into the World Trade Organization and regional trading arrangements of SAFTA and BIMSTEC,

1. Main Objective:

To support the economic development and poverty alleviation initiatives through the enhanced contribution of trade sector to the national economy.

2. Objectives:

2.1 To create a conducive environment for the promotion of trade and business in order to make

it competitive at international level.

2.2 To minimize trade deficit by increasing exports of value added products through linkages

between imports and exports trade.

2.3 To increase income and employment opportunities by increasing competitive ness of

trade in goods and services and using it as a means of poverty alleviation.

2.4 To clearly establish interrelationship between internal and foreign trade, and develop them as

complimentary and supplementary to each other.

Policy:

1. The government will play the role of a guardian, regulator and facilitator to make export trade

competitive through commodity and regional diversification by bringing the private sector in

the forefront.

2. The fiscal and monetary policies , foreign investment, industrial estate , tourism, agriculture,

forest, and physical infrastructures policies will be reviewed with a view to harmonizing them

with the trade policy.

3. The export base will be widened by maintaining forward, backward and parallel linkages among

the above mentioned sectoral policies.

4. Efforts will be made for concluding bilateral and regional agreements for the recognition of Nepalese quality standards with a view to enhancing the supply of goods in the quantity and quality in line with the demand of international markets.

5. Foreign investors and non-resident Nepalese nationals will be encouraged to establish

international production network through the means of out-sourcing and contract of services

and production with a view to harnessing benefits from the cost effective and qualitative production opportunities which are available in the country and to be developed in future.

 

Tourism Policy, 1995

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Preamble:

The tourism industry is growing very rapidly and Nepal has tremendous potential for tourism development because of its unique natural and cultural heritage. In this context, this tourism policy has been formulated with the aims of: increasing national productivity and income; increasing foreign currency earnings; creating employment opportunities; improving regional imbalances and projecting the image of Nepal more assertively in the international arena; through the development and diversification of the travel and tourism industries.

1. Objectives :
   
   
1. To develop tourism as an important sector of the national economy by developing linkages between tourism and other sectors.
2. To diversify tourism down to rural areas so as to improve employment opportunities, foreign currency earnings, growth of national income and regional imbalances.
3. To improve natural, cultural and human environments of the nation in order to develop and expand the tourism industry.
4. To maintain a good image of the nation in the international community by providing quality service and a sense of security.
5. To develop and promote Nepal as an attractive tourist destination.

2. Policy :
   
   
1. The participation of the private sector will be sought to the maximum extent for development and diversification of tourism products. The involvement of government will be primarily directed towards infrastructure development. Apart from this, HMG will maintain its role as co-ordinator and motivator for the growth of the travel and tourism industries.
2. Participation of the Nepalese people in the integrated manner will be carried out for environmental conservation programmes which contribute to sustainable tourism development.
3. Existing tourism infrastructure and facilities will be upgraded. Priority will be given to developing new tourist destinations, particularly in rural areas.
4. Popular religious tourism sites will be improved and promoted in order to develop religious tourism.
5. Nepal will be developed as a centre for adventure tourism.
6. Tourist service and facilities in the kingdom will be encouraged to upgrade in quality. Special efforts will be made to make Nepal a secure place for tourists.
7. Due attention will be paid to improving regional imbalances while developing tourism.
8. Competitive tourism promotion and marketing will be launched in tourist originating markets to establish Nepal as a major tourist destination.
9. Linkages will be established between tourism and agro-based as well as cottage industries. Emphasis will be placed on developing these related sectors simultaneously.
10. Local investment will be encouraged in service-oriented, travel and trekking agency businesses in which local investors have proven capability. Foreign investment, including joint ventures, will be promoted in areas which transfers skills and technology or in capital intensive industries like hotels and resorts.
11. The National Civil Aviation Policy will be implemented as an integral part of Tourism Policy.

 

Privatization

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Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector (the state or government) to the private sector (businesses that operate for a private profit) or to private non-profit organizations. In a broader sense, privatization refers to transfer of any government function to the private sector - including governmental functions like revenue collection and law enforcement.

Public Enterprises and Privatization

Public enterprises were established as a strong means of development after the Second World War in developing countries. such enterprises were established in developed countries from the Eighteenth century. However, in the developing countries, constrained with the scarcity of capital and professional skills, the significance of such enterprises was evidently even greater; so in these countries, right from the infrastructural and service areas to the production and even distribution sectors, public enterprises were established. It was believed that the government should play a predominant role in national economic development especially in those developed and developing countries cast in the socialistic pattern. with this view, public enterprises were established in production, distribution and even in business sectors. In Nepal too, the same ideas were behind the emergence of such enterprises. 

In Nepal, the public enterprises were  established in public services, industry, trade, finance and other sectors to create the infrastructure for basic services; and also because the private sector was seen as inefficient in important areas; the capital investment capability was low, and because technical know-how development was still in a very primary stage. After Nepal Bank Limited was established in 1954 as a public enterprise, other such enterprises like Nepal Industrial Development Corporation and Royal Nepal Airlines Corporation also came into being. In the industrial sector also, industries like the Janakpur Cigarette Factory, Birgunj sugar Mill, and Bansbari Leather Shoe Factory were established in 1961. Subsequently, banks, business sector, telecommunication, electricity and water supply in the services sector; cement, bricks, medicines and textiles in the industrial sectors came into existence.

White Elephant

Despite the long term protection given to these public enterprises they have not been able to achieve financial capability and work efficiency and are still dependent upon government grants. So in order to enhance their efficiency, it has become necessary to think seriously

about them.

Upto the fiscal year 1990/91 His Majesty's Government had invested a capital of Rs. 6,303.2 million and loan investment worth Rs. 15,584.2 million on the existing public enterprises. The enterprises which were audited in the fiscal year 1989/90 showed a loss of Rs. 240 million, which increased upto Rs. 1,870 million in the fiscal year 1990/91. From this, it has been evident that public enterprises have become a perpetual financial burden. As the average capacity utilization of these enterprises was only 52 percent and had mostly gone into loss, the capital

grants to be given by Government for functional and transportation expenses gradually increased to Rs. 76,720 million in the fiscal year 1990/91. Since it has become necessary to enhance the working efficiency, to effect managerial reforms and to run these enterprises from the ommercial point of view, it is necessary to analyze the nature of these enterprises and to privatize them.

The Necessity of Privatization

1. The returns from these enterprises are negligible. Even to keep them functioning, the government has had to provide additional annual grants. Thus, most of these enterprises are running in losses.

2. the corporations are tied up by various rules and regulations they lack necessary flexibility and, hence, the competitiveness.

3. Most of the corporations are overstaffed, the expenditures are unduly high and their  productivity and competitive capabilities are adversely affected. Therefore, they are not being able to provide expected services.

4. There is a lack of skilled professionals and responsible management in the corporations.

5. It has become necessary to direct the government resources more towards social welfare and other areas than to these    enterprises and commercial sectors.

Because or these reasons HMG has adopted the aim of privatising public enterprises. The objectives of privatisation are mainly concerned with the development of industry and business sectors, increment in productivity and efficiency, the mobilisation. of savings and increase in public participation in the commercial

field.

Objectives

1 By enhancing the efficiency and competitive ability of corporations, production and  productivity will be increased along with the promotion of co-operatives.

2. Programmes to increase efficiency in both types of corporations which are not to be privatised and which are to be privatised in future are to be initiated and reorganization works for better management are to be conducted.

Policies

1. A long-term strategy on privatization will be devised. Corporations of industrial and business nature will be gradually privatized. All policies and  programmes relating to privatization will be made transparent.

2. The private sector will be allowed to operate projects related to public utility sector like hydroelectricity, drinking water and other public utility services but for the present, public enterprises set up in those areas will continue to operate in the government sector. And, those public enterprises which are considered as important from the public view point will also be operated under the government sector.

3. In the process of privatisation of corporations or in implementing efficiency enhancing programmes the current employees will also be included as far as possible, but if the number of employees/ labourers are more than necessary, they will be removed only after providing adequate compensation.

4. To privatise and to increase the efficiency in corporations, a central unit will be formed. This unit will conduct ail the works relating to privatisation with the support of concerned ministries.

5. The privatisation of public enterprises will be undertaken in groups such as those being privatized immediately, those to be privatised after a certain period of time, or those to be privatised after restructuring in the long-term. Necessary improvement programmes will be launched for corporations to be privatised later and not to be privatised at all. Corporations will be shut down, should it be difficult to introduce improvement programmes, where privatisation cannot take place and where it is irrelevant to continue operating as a public enterprise.

6. In the process of privatisation, the evaluation will be made together with other necessary preparatory arrangements. Efforts will be made to increase public participation in the ownership as far as possible. In future it will be clearly stated whether a reduction in employees/labourers is possible or not, and in the case of having to reduce them, how much compensation they will be given.

7. Legal basis will be prepared for the privatisation of corporations, considering their structure. Those corporations, established through special legal provisions will be handed over through the company laws and privatised.

8. Public awareness programmes on privatization will also be launched. In the process of privatization, arrangements will also be made to involve the participation of employees and labourers.

9. In order to increase the efficiency of public enterprises which are not going to be privatised or which are going to be privatised in future; programmes related to organizational changes, financial and managerial reforms and top level managerial appointments will be conducted in order to create a responsible management.

Situation of Public Enterprises

The government of Nepal began setting up Public Enterprises (PEs) for manufacturing, provision of services and utilities and for the overall economic development of the country since the early 1960s. Out of established PEs, currently 36 are operating under full or majority ownership of the government. Out of 36 enterprises, seven are in the industrial sector, six in the trading sector, seven in the service sector, five in the social sector, three in the public utility sector and eight in the financial sector.

Net fixed assets of these 36 public enterprises (including those under construction) has increased to Rs. 133.74 billion at the end of FY 2008/09 from Rs. 124.89 billion in 2007/08.

Considering the overall financial situation of the existing 36 public enterprises of Nepal during FY 2008/09, 18 PEs have earned the net profit whereas 18 PEs were in loss. The number of PEs incurring losses has decreased to 18 in FY 2008/09 from 19 in 2007/08. This indicates some improvements in financial situation of the PEs in Nepal. Likewise, the overall net profit of the PEs has increased to Rs. 10.55 billion in FY 2008/09 from Rs. 4.94 billion in FY 2007/08. The PEs mainly contributing to the net profits are Nepal Telecom Ltd, Rastriya Banijya Bank Ltd, Nepal Oil Corporation and Agricultural Development Bank Ltd. earning net profit of Rs. 10.18 billion, Rs. 2.06 billion, 3.31 billion and 1.05 billion respectively. Overall financial situation of the existing 36 public enterprises of Nepal during FY 2008/09 seems to have improved with respect to previous year. By the Middle of April this year net loss of the Nepal Oil corporation reached  to around Rs. 4 billion.

Labour and Employment Policy 2062

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1. Background

Labour is the keystone of development of human life, personality and civilization. The gene ration of income-generating employment opportunities is necessary for proper human living. Since income distribution can take place in society only through occupation or employment, the right to work is considered one of the fundamental rights of the person. Similarly, the generation of income- generating employment opportunities is the chief means of poverty alleviation. In this context, it becomes the State’s duty to build an environment that enables a life that is full of dignity, exploitation-free and just with at least the minimum social and professional security by ensuring access to income-generating employment opportunities for all citizens of the country without discrimination.

2. Long-term Goal

The long-term goal of the Labour and Employment Policy 2062 is to provide productive, non-discriminatory, exploitation-free , decent, safe and healthy work opportunities for citizens of the working ages by build ing an environment of friendly investments, in addition to building and managing a labour market that contributes to the national economy so that it can compete at the global level.

3. Objectives

3.1 To pave the path of sustainable economic development by offer ing opportunities of productive and full employment for the entire workforce available in the country and by creating an investment-friendly environment.

3.2 To augment productivity by eliminating forced labour practices, including bonded labour , as well as by establishing congenial labour relations through gradual  introduction of international labour standards at the workplace in both formal and informal sectors.

3.3 To make the labour market safe, healthy, competitive and open by developing a social security system that also encompasses the informal sector, as well as by promoting and developing  ccupational safety and health.

3.4 To enhance the prospects of employment and self -employment by developing high quality multi-skilled human resources.

3.5 To ensure equal access of women, dalits, indigenous nationalities and the displaced to employment.

3.6 To eliminate child labour.

3.7 To make labour and employment administration smart, up-to-date , efficient and effective.

 

Emeging trend in Nepalese Business Environment

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Nepal has adopted the policy of free market and economy liberalization after 80s. It has already privatized some of the state owned public corporation. Nepal government has also adopted the policy to hand over state owned enterprises to private sectors expect those related to defense and other basic needs. The government has made no policy to nationalize any private company.

The social awareness of Nepalese people has already risen high. Consumers are conscious. consumer's forum, environment protection forum etc. are active. So Nepal civil society has awakened. Nepal has remained active in different international forum. Nepal has expressed its commitment in different international issues. Employee's participation us increasing in decision making process. High level technology and methods have transferred. So private sector investment is increasing in core industries. Private sector is developing and multinational companies are appearing.

1.    Increase of private investment in core industries: Nepal's core industries such as electricity, communication, transportation etc. were conducted only by the government. But now the government has adopted open door policy in all the sectors including these sectors except those related to defense and very important basic needs. This has paved the way towards industrialization. As a result private investment in hydro power, communication and other sectors is increasing.

2.    Development of private sectors: Economic reform program has shown symptoms in economic sectors mainly in the private sectors. Private sectors has gone ahead in sectors of hydro power, airlines, communication, road, water supply, food and drinking water, banking and financing companies, hotel, small and cottage industries, services industries etc.

3.    Appearance of multinational companies: Nepal has adopted the policy of open market and economic liberalization. It has forwarded special policy to attract foreign investment. So, the foreign investor have entered Nepal through multinational companies. Now hotels, banks, hydro power projects, nursing homes, finance companies etc are being run in joint venture with the members of WTO. Globalization has begun to influence Nepal's business environment.