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Date: April 29, 2010

Highlights

John Tucknott MBE (Member of the Order of the British Empire) has been

appointed the new British Ambassador to Nepal, t he British Foreign Ministry

on Wednesday announced. He will succeed the current British Ambassador to

Nepal Dr Andrew Hall, who is retiring shortly.

Janata Bank Nepal Limited started operations at Baneshwor on Wednesday as

Nepal's 27th commercial bank. Its authorized capital amounts to Rs. 2 billion

while its issued capital is Rs. 2 billion.

Dr. Yuvaraj Khatiwada, governor Nepal Rastra Bank (NRB), has on Tuesday

said that top priority is being given to rural areas to improve financial

activities. NRB has already forwarded a draft of Micro-Finance Act to

promote establishment of micro-finance institutions and development banks in

rural areas, he said while speaking at the 55th anniversary of NRB in the

capital.

UCPN (Maoist) chairman Pushpa Kamal Dahal on Wednesday told his cadres

involved in the donation collection drive for their upcoming agitation not to

intimidate people into donating. He reminded them that the party's policy was

to collect voluntary donations.

Finance Minister Surendra Pandey has come up with the proposed national

budget amounting to some Rs 300 billion for the fiscal year (FY) 2067/68 B.S.

Minister Pandey forwarded the budget of this size to Finance Committee of

the legislature parliament Tuesday.

A study team has suggested the Ministry of Finance to set eight conditions to

Nepal Airlines Corporation before standing as a guarantor to sanction loan

from Employees´ Provident Fund to acquire new aircraft for the ailing national

flag carrier.

The government has established two revenue check posts and is adding five

new posts in the different parts of the country with the aim of tightening

revenue leakage.

United Arab Emirates (UAE) has shown keen interest to work with Nepali

private sector. “UAE government is ready to work with Nepali private

sector,”said Lubna Bint Khalid Ai Qasmi, minister for Foreign Trade to the

delegation of Federation of Nepalese Chambers of Commerce and Industry

(FNCCI).

The downward trend of the Nepal Stock Exchange (NEPSE) continued on

Wednesday with the index losing 2.15 points to settle at 405.45 points when

trading closed. All the sub-indices on NEPSE recorded losses on Wednesday.

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The others sector lost the most shedding 5.87 points followed by the

insurance, hydropower and development bank sectors.

Nepal Gold and Silver Dealers Association (Negosida) has resumed issuing

recommendations to its members to purchase gold after importing banks

Wednesday agreed to fix reasonable wholesale prices. Wholesale trading of

the yellow metal had come to a standstill from Sunday due to dispute between

Negosida and importing banks over fixation of prices of gold.

In what was probably the most followed live event in the nation‟s history, the

three major parties came together for a public dialogue on Wednesday but fell

short of striking a deal to resolve the current political stalemate. CPN-UML

Chairman Jhala Nath Khanal said his party was ready to quit the government

to make way for a national unity government if that led to a solution.

In a blow to Prime Minister Madhav Kumar Nepal, CPN-UML Chairman

Jhala Nath Khanal has said his party will not back him even if the coalition

partner, Nepali Congress, continues to support the incumbent government.

Ajay Chhibber, UN Assistant secretary general and UNDP assistant

administrator, and director of the Regional Bureau for Asia and the Pacific has

arrived today.

The United Nations Mission in Nepal (UNMIN) has urged the UCPN (Maoist)

to fully cooperate in the investigation and take appropriate action against

People‟s Liberation Army (PLA) platoon commander Santosh Rai who was

arrested in possession of a hand grenade in Chitwan on Tuesday.

Non Resident Nepalese (NRN) are being reached out to in hopes that they will

contribute to the economic growth and development of the country. “The

knowledge that NRN‟s have is immense, they have information and skills that

have been acquired in a different country and this can be applied for the

benefit of their own country,” said Dr Hemant Dawadi, director general at the

Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

Private schools across the country that had downed shutters on Sunday at the

call of the Maoist-aligned All Nepal National Independent Students‟ Union-

Revolutionary (ANNISU-R) may resume classes from Friday if talks between

the school mananagements and the union slated for Thursday go well. Private

schools across the country remained closed for the fourth consecutive day on

Wednesday.

The United States has expressed interest in supporting the Nepal Army (NA)

in promoting human rights. Visiting Admiral Robert F. Willard made this

commitment during his meeting with Defence Minister Bidhya Devi Bhandari

on Wednesday afternoon.

Taking advantage of fluid political situation, nine different truck

entrepreneurs committees have reintroduced dial system, allowing odd and

even numbered trucks to ply on the road on alternate days only.

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The general strike will have negative impact on economy, said the Maoist

affiliated trade wing chief. Speaking at a press meet, Krishna Acharya of

Nepal National Industries Federation said that the strike wil have negative

impact on industries. “However, the general strike is called due to the present

political scenario,” he said adding that “if political parties fail to move with

mutual coordination and agreement on the primary issues, we will support the

strike,” he said adding that the strike is „Third Janaandolan‟ The UCPN-

Maoist has called nationwide general strike from May 2.

Expressing commitment to solve the Bhutanese refugee problem permanently,

the Bhutanese government today said that the ministerial level meeting will be

held at the earliest to discuss the issue. The Bhutanese government expressed

the commitment to better the relations that have soured in the recent years

between the two countries. Bhutanese Prime Minister Jigme Y Thinle

expressed the commitment with Prime Minster Madhav Kumar Nepal, who

arrived here today to take part in the 16th SAARC summit that will start from

tomorrow.

A much-anticipated public debate on Wednesday involving the top leaders of

the three major parties - Unified CPN (Maoist), Nepali Congress and CPN

(UML) -underscored their differences even as they reiterated their

'commitment' to find early consensus for constitution-drafting and peace

process.

The final exams of twelfth grade conducted by Higher Secondary Education

Board (HSEB) on Thursday has been disrupted in various centres by the

Unified CPN (Maoist) affiliated All Nepal National Independent Students

Union Revolutionary (ANNISU-R).

With the main opposition UCPN (Maoist) heading for “decisive and

indefinite” protests from May 1, the government has put Nepal Army on high

alert, directing it to safeguard “vital government installations at any cost”.

POLICY:

UK names new envoy

John Tucknott MBE (Member of the Order of the British Empire) has been appointed

the new British Ambassador to Nepal, the British Foreign Ministry on Wednesday

announced.

He will succeed the current British Ambassador to Nepal Dr Andrew Hall, who is

retiring shortly. “Tucknott will take up his appointment during August 2010,” the

announcement said. Currently, Tucknott is director of the United Kingdom Trade and

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Investment (UKTI) Global Investment Conference-London 2010, the British

government‟s international business development organisation.

According to the British Foreign Ministry, he has served in different UK missions

including in Baghdad, Stockholm, New York, Beirut, Cairo, and Rome. Tucknott

joined the diplomatic service in 1977.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Nation/UK-names-new-

envoy/207714/

Janata Bank comes into operations

Janata Bank Nepal Limited started operations at Baneshwor on Wednesday as Nepal's

27th commercial bank.

Its authorized capital amounts to Rs. 2 billion while its issued capital is Rs. 2 billion.

The bank has a paid-up capital of Rs 1.4 billion. With 836 promoters, Janata Bank has

the largest number of promoters among commercial banks.

"We aim to provide easy banking facilities and door-to-door service, focus on rural

areas and help various economic sectors like agriculture, tourism, fishery, mining and

infrastructure related projects," said chairman Guru Prasad Neupane.

Inaugurating the bank, Finance Minister Surendra Pandey said that the investment

being made by banks and financial institutions in the farm and power sectors was not

at a satisfactory level.

He added that investment by banks in the power sector was only 40 percent. "We are

ready to provide incentives and other facilities to banks willing to invest in the power

sector," he said.

Pointing to the small investment in the farm sector, he said that the coming budget

would focus on the agro sector instead of being revenue oriented.

"We are moving forward to acquire soft loans to boost the country's overall

development. Loans can be utilised in different development sectors instead of

depending on grants," he added. Nepal Rastra Bank governor Yuva Raj Khatiwada

said the balance of payments situation was worsening due to a decline in exports.

"Giving priority to agriculture can be the only hedge against the huge trade deficit and

worsening balance of payments in the country," he said.

He also pointed to the wide gap in the interest rates on deposits and loans which he

said the central bank was looking into.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Business/Janata-Bank-

comes-into-operations/207732/

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Priority in financial sector to rural areas: NRB gov

Dr. Yuvaraj Khatiwada, governor Nepal Rastra Bank (NRB), has on Tuesday said that

top priority is being given to rural areas to improve financial activities.

NRB has already forwarded a draft of Micro-Finance Act to promote establishment of

micro-finance institutions and development banks in rural areas, he said while

speaking at the 55th anniversary of NRB in the capital.

Khatiwada pointed out that high inflation, high trade deficit, BoP, current account

deficit and liquidity crisis are the major challenges for the economy.

Khatiwada also estimated that the country would see a 4.6 percent gross domestic

product growth this year.

He said that the export of products has decreased by 8 percent whereas the import has

increased by 43.9 percent during the first eight months of the fiscal year.

He informed that the trade deficit has increased to 61.2 percent to stand at Rs. 213.33

billion during the same period.

The remittance has showed slow growth by 9.9 percent in the eight months and the

balance of payment deficit (BoP) has increased to Rs. 23.53 billion during the first

eight months of current fiscal year from Rs. 21.83 billion in previous seven months.

During the same period, total expenditure of the government has increased by 30.9

percent to stand at Rs.140.9 billion.

Speaking at the function, former governor Dr. Vesh Bahadur Thapa said that NRB‟s

role has increased compared to past years so, it should have ability to analyse and

investigate and win the public‟s heart.

On the occasion, 79 employees who served the NRB over 20 years were also

felicitated. nepalnews.com

No forced donation, Dahal tells cadre

UCPN (Maoist) chairman Pushpa Kamal Dahal on Wednesday told his cadres

involved in the donation collection drive for their upcoming agitation not to intimidate

people into donating. He reminded them that the party's policy was to collect

voluntary donations.

Amid complaints about extortion by Maoist cadres in different districts, the Maoist

supremo sought to explain the occurrence as a few isolated incidents. "We heard

complaints about forced donation drive by our cadres in a few areas including

Chitwan," said Dahal at the 'decisive dialogue' session of the three major political

parties organised by Federation of Nepalese Chambers of Commerce and Industry

(FNCCI). "The party brass has already directed them to stop such activities."

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The business community had protested the Maoists' 'extortion' drive in Chitwan and

registered complaints at the District Administration Office (DAO). The Maoists have

intensified their donation drive across the country for the May 1 mass rally and the

indefinite general strike called by them from May 2. Thousands of Maoist cadres have

already reached Kathmandu to participate in the agitation. Dahal, however, said it was

his party's compulsion to seek donation as it does not have the money to mobilise the

masses. "That's why, we are asking donation from the people."

He berated the tendency of some people to call the Maoists' donation drive a terror

and downplaying the prevailing corruption that has gobbled up millions of rupees. He

termed the current government the most corrupt in the history of the country.

CPN (UML) chairman Jhala Nath Khanal responded to Dahal saying that his party,

being a ruling one, was ready to probe any case of corruption committed by any

government official. "I urge anybody who has such complaints to go to the

Commission for Investigation of Abuse of Authority."

Nepali Congress (NC) leader Ram Sharan Mahat proposed keeping the economic

sector out of politics saying the politicisation of major hydropower projects was the

main impediment to the development of the hydropower sector. Pointing a finger at

the Maoists, he asked, "Who is hampering work in the Upper Karnali and Arun III

projects even when investors are interested in pouring in money?"

He also stressed on the need for prohibiting bandas for at least three years to create a

conducive investment climate. "The economy can flourish only in a peaceful

environment which was evident for some years after the political change of 1990."

During the interaction, FNCCI office-bearers pasted the commitment papers of the 17

political parties including the three largest ones on the wall.

The composite dialogue mainly focused on political issues. However, Constituent

Assembly (CA) member and industrialist Rajendra Kheran raised the issue of the

current trade deficit that may seriously hamper the economy in a few years if the gap

is not bridged.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Business/No-forced-

donation-Dahal-tells-cadre/207735/

FM Pandey forwards Rs 300 billion budget

Finance Minister Surendra Pandey has come up with the proposed national budget

amounting to some Rs 300 billion for the fiscal year (FY) 2067/68 B.S.

Minister Pandey forwarded the budget of this size to Finance Committee of the

legislature parliament Tuesday.

National Planning Commission (NPC) and other ministries have proposed the size of

the budget to the tune of Rs. 425.70 billion.

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However, the finance ministry, dogged by resource constraint, chalked out the budget

worth Rs 300 billion.

The government will arrange Rs 220.40 billion through the revenue mobilization and

some 35 billion via the domestic loans to contribute to create budget of the FY

2067/68.

And the remaining portion of the amount will be derived by way of foreign assistance.

According to Minister Pandey, the upcoming budget has accorded topmost priority to

agriculture sector, the traditional mainstay of Nepalese economy.

The size of the current FY is Rs 200.96 billion. nepalnews.com

BUSINESS & ECONOMY:

Panel tells govt to set conditions for EPF loan

A study team has suggested the Ministry of Finance to set eight conditions to Nepal

Airlines Corporation before standing as a guarantor to sanction loan from Employees´

Provident Fund to acquire new aircraft for the ailing national flag carrier.

The committee led by former joint secretary Bimal Wagle suggested the government

to treat the process of purchasing new aircraft as a different project and deposit

income generated by the new aircraft in a separate account, as conditions to stand as

guarantor. The amount can be spent only as per the recommendation of a panel

comprising experts, the report stated.

The report also suggested seeking commitments from NAC management to repay

loan with interest strictly as per the timetable and forming a monitoring committee,

comprising a member each from Ministry of Finance and Ministry of Tourism and

Civil Aviation, to monitor the accounts of the national flag carrier.

The study committee formed on December 24 last year had submitted its preliminary

report to the Ministry of Finance on February 15, 2010.

The committee submitted its comprehensive report with additional recommendations

to the parliamentary Economic and Labor Committee on Wednesday. Addressing the

members of the committee, Finance Secretary Rameshwor Khanal argued that NAC

was capable enough of acquiring new aircraft on its own capability and credibility.

“The national flag carrier is in immediate need of new aircraft to give leverage to the

tourism industry,” he added. He also said dependency on international airlines will not

be beneficial for the tourism industry in the long run.

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Khanal, however, informed that the NAC management was still undecided on the

number of narrow body and wide body aircraft that it wants to add in its fleet. The

Finance secretary also hinted that the advance amount of $75,000 paid by NAC to

Airbus won´t be refunded.

Coordinator of the study committee Wagle said NAC can acquire new aircraft in its

fleet only if the government is ready to stand as a guarantor. “Airlines can´t be

expected to perform well if they don´t have aircraft in their fleet. If it can´t acquire

aircraft, it would be better to liquidate it,” he added.

Wagle also said there was no ground to believe NAC´s business plan. He also

suggested bringing about managerial and institutional reforms to strengthen NAC´s

competitiveness.

Prachandajung Shah, member of NAC board, said there was no point acquiring new

aircraft in NAC fleet unless the management is totally revamped.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18045

Govt opens two new revenue check posts

The government has established two revenue check posts and is adding five new posts

in the different parts of the country with the aim of tightening revenue leakage.

It is also mulling over enhancing the capacity of Department of Revenue Investigation

(DoRI) in a bid to intensify control of revenue leakage and anti-money laundering

supervision of the state.

“As a part of this plan, we have already set up two new check posts in Bardibas and

Attariya,” Mahesh Dahal, director general of DoRI, told myrepublica.com.

DoRI is adding another check post in Bardaghat of Nawalparasi in the near future. It

has also set a plan of establishing check posts in Birtamod, Pokhara, Narayanghat and

Syafrubesi of Rasuwa in the next fiscal year. These check posts will function as

auxiliary hands of regional offices of DoRI.

DRI has regional offices in Kohalpur, Butwal, Itahari and Pathlaiya. It also has check

post in Thankot.

Meanwhile, Ministry of Finance is mulling over empowering the department with

additional manpower and adding more teeth to undertake anti-money laundering

works.

“We are even discussing on renaming the name of the DoRI into Revenue

Investigation and Money Laundering Department (RIMLD),” Dahal said.

Under this upgrading, DoRI has pushed for the creation of an additional post of

deputy director general and appointments of high level investigative staffers.

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Presently, DoRI is largely focused on controlling revenue evasion and investigating

on the cases of money laundering on case to case basis.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18044

UAE interested in investing in Nepal

United Arab Emirates (UAE) has shown keen interest to work with Nepali private

sector.

“UAE government is ready to work with Nepali private sector,”said Lubna Bint

Khalid Ai Qasmi, minister for Foreign Trade to the delegation of Federation of

Nepalese Chambers of Commerce and Industry (FNCCI).

“However, the areas of cooperation should be explored,” he added

FNCCI vice-president Pradip Jung Pandey during the meeting with him pointed out

that commercial agriculture, hydropower, carpet, handicraft, tourism and

infrastructure are the sectors that have potential for cooperation.

Qasmi urged the FNCCI delegation to start cooperating with the private sector of

UAE. “Private sector co-work is possible in commercial agriculture between the two

countries,” he said adding that the memorandum of understanding (MoU) signed

between FNCCI and Federation of UAE Chamber of Commerce can help boost

cooperation between the two countries.

The minister has shown interest in investment opportunities in Nepal. He showed

keen interest on Nepal‟s policy in foreign direct investment (FDI).

Nepal has $ 37.36 million trade deficit with the UAE, though Nepal exports

cardamom, tea, coffee, ginger, flowers, handmade carpet and handicrafts.

Qasmi also praised Nepali migrant workers for their hard labour and honesty.

“Because of honesty large numbers of Nepalis are working in the security sector,” he

said.

Around 1,50,000 Nepali migrant workers are working in the UAE and about 75 per

cent are in the security sector. FNCCI delegation also urged UAE government to

support tourism promotion during the Nepal Tourism Year 2011.

http://www.thehimalayantimes.com/fullTodays.php?headline=UAE+interested+in+in

vesting+in+Nepal&NewsID=241561

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MARKET:

NEPSE down 2.15pts

The downward trend of the Nepal Stock Exchange (NEPSE) continued on Wednesday

with the index losing 2.15 points to settle at 405.45 points when trading closed.

All the sub-indices on NEPSE recorded losses on Wednesday. The others sector lost

the most shedding 5.87 points followed by the insurance, hydropower and

development bank sectors.

Of the 22 commercial banks on the trading floor at NEPSE, Himalayan Bank was the

highest gainer with its stock going up by 35 points. Laxmi Bank suffered the most

dropping 60 points. Shares of 13 development banks and 16 finance companies

changed hands on Wednesday.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Business/NEPSE-down-

2.15pts/207733/

Wholesale market of gold resumes

Nepal Gold and Silver Dealers Association (Negosida) has resumed issuing

recommendations to its members to purchase gold after importing banks Wednesday

agreed to fix reasonable wholesale prices.

Wholesale trading of the yellow metal had come to a standstill from Sunday due to

dispute between Negosida and importing banks over fixation of prices of gold.

Stating that price of gold set by the banks is higher than the actual price, Negosida

had stopped issuing recommendation to its members for wholesale purchases. Gold

dealers said the price fixed by banks was Rs 300 per tola more than the actual rate.

“We issued recommendation to six wholesalers to purchase 30 kg of gold from banks

on Wednesday after the bankers agreed to provide us reasonable an indicative price

before 10.30 a.m.,” said Tej Ratna Shakya, president of Negosida.

A price determination committee of Negosida used to determine the price on the basis

of international price and foreign currency rate with the addition of customs duty and

profit margin before importer banks were given authority to fix gold price.

Nepal Rastra Bank has allowed banks to import 10 kg of gold per day on the

recommendation of Nepal Bankers Association. The association has recommended

NMB Bank, Standard Chartered Bank, NIC Bank and Machhapuchhre Bank to import

gold. These banks, except Machhapuchhre Bank, have already imported 50 kg each so

far.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18031

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POLITICS:

Big three public dialogue for consensus, unity govt

In what was probably the most followed live event in the nation‟s history, the three

major parties came together for a public dialogue on Wednesday but fell short of

striking a deal to resolve the current political stalemate.

CPN-UML Chairman Jhala Nath Khanal said his party was ready to quit the

government to make way for a national unity government if that led to a solution. “If

we sit together with utmost honesty, we can make a breakthrough in the next couple

of days,” said Khanal.

The public talks, beamed live across the country for three hours, by all major TV and

radio networks were followed by millions. Organised by the Federation of Nepalese

Chambers of Commerce and Industry, this was meant as a last-resort pressure tactic to

force the parties to express public commitment for a compromise, if not an immediate

one.

The parties were brought together for the dialogue at a time when the Maoists have

announced an “indefinite strike” after May 1 if Prime Minister Madhav Kumar Nepal

does not quit by then. At the centre of discussion were the major three agendas:

integration and rehabilitation of the Maoist combatants, formation of a national

coalition government and new constitution. Though a new power equation featured as

an entry point for discussion, the issue of integration and rehabilitation of the Maoist

combatants was, as usual, the bone of contention among the parties. UCPN (Maoist)

Chairman Pushpa Kamal Dahal said that unless the ruling parties stop treating the

Maoist combatants as “losers” and agree to total restructuring of the Nepal Army so

as to create a new national army, the task of managing the combatants will not

proceed.

On formation of the national coalition government though, the parties had one voice

that it was necessary they differed on whether the prime minister should resign before

the Maoists withdraw their protest or after. “We will remain flexible and open to any

possible agreement over the next couple of days,” said Dahal. “As the first condition

to create the environment, the prime minister should resign.” He also assured that the

scheduled protests, if not withdrawn, would be peaceful.

However, NC and the UML said disbanding the government without the parties

agreeing in advance on a new power equation was illogical. NC Acting President

Sushil Koirala said a new consensus government was possible “if the Maoists could

build trust” by withdrawing the protests.

On the dissension over the new constitution, the Maoist leaders said it was possible to

come to a meeting point once they come to an agreement for a national consensus

government. “The constitution writing process has stalled mainly because we have

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moved from the politics of consensus to the politics of competition. Once we correct

that, everything will fall in line,” said Dahal.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/top-stories/Big-three-

public-dialogue-for-consensus-unity-govt/207704/

Khanal goes the whole nine yards

In a blow to Prime Minister Madhav Kumar Nepal, CPN-UML Chairman Jhala Nath

Khanal has said his party will not back him even if the coalition partner, Nepali

Congress, continues to support the incumbent government.

Khanal made this remark during a meeting with senior leaders of Nepali Congress on

Wednesday at the UML party headquarters ahead of the Maoists' May Day mass

protest in the Capital aimed at toppling the government.

He urged NC, the largest coalition in the government, to be more flexible for the

formation of a national consensus government.

“Since the main opposition has announced a mass protest, it is not necessary to back

the incumbent government. We have no alternative to consensus,” a source quoted

Khanal as saying. “Be prepared. UML is planning to come up with a resignation letter

of Prime Minister Madhav Kumar Nepal and consensus paper for parties

simultaneously.”

He flayed the government and coalition partners for undermining the main opposition

and people's mandate, saying such an attitude had resulted in failure to complete the

constitution drafting and take the peace process forward.

“He urged for the formation of a national unity government at the earliest to end the

protracted political deadlock and take the Maoists into confidence,” said the source.

Khanal's stance is a direct contradiction of the Congress stand that continuation of the

present government is a better option than handing over power to the Maoists.

A joint meeting of the 10 ruling parties is scheduled for Thursday to take a decision to

this effect.

Over the past few weeks, Khanal has been publicly lobbying for a new government

for a timely statute.

His clamour is falling on deaf ears within his own party though he has a strong

majority in the UML's Parliamentary Party and Standing Committee.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Nation/Khanal-goes-the-

whole-nine-yards/207711/

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Chhibber in Kathmandu

Ajay Chhibber, UN Assistant secretary general and UNDP assistant administrator,

and director of the Regional Bureau for Asia and the Pacific has arrived today. He is

on a four-day mission to gain perspective of the current development situation in

Nepal and exchange views regarding the current and future UNDP projects and

programmes. He will address the opening of „South Asia Conference‟ on the „Impact

caused by Global Financial Crisis‟. The Conference is to be held during the week in

kathmandu. He will officially inaugurate a UNDP supported Bom Khola micro-hydro.

http://www.thehimalayantimes.com/fullTodays.php?headline=Chhibber+in+Kathman

du&NewsID=241565

UNMIN: Book PLA errant

The United Nations Mission in Nepal (UNMIN) has urged the UCPN (Maoist) to

fully cooperate in the investigation and take appropriate action against People‟s

Liberation Army (PLA) platoon commander Santosh Rai who was arrested in

possession of a hand grenade in Chitwan on Tuesday.

“UNMIN condemns this reckless risk to life and calls on the UCPN (Maoist) to

cooperate fully in an investigation and take appropriate disciplinary actions,” UNMIN

said in a statement on Wednesday. “Holding and carrying arms in violation of the law

is legally punishable and breach of Agreement on the Monitoring of the Management

of Arms and Armies (AMMAA).”

Meanwhile, UNMIN Chief Karen Landgren on Wednesday morning met Maoist Vice

Chairman Baburam Bhattarai at his residence and registered strong concerns over the

PLA commander‟s arrest with arms.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Nation/UNMIN-Book-

PLA-errant/207710/

GENERAL:

NRNs knowledge, skills should be utilised

Non Resident Nepalese (NRN) are being reached out to in hopes that they will

contribute to the economic growth and development of the country.

“The knowledge that NRN‟s have is immense, they have information and skills that

have been acquired in a different country and this can be applied for the benefit of

their own country,” said Dr Hemant Dawadi, director general at the Federation of

Nepalese Chambers of Commerce and Industry (FNCCI).

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It has been empirically proven that individuals can strengthen economic ties between

two countries if the individual can speak the language of both the countries, “once the

language barrier is overcome dialogues can be improved between two countries and it

can help immensely in economic development and investment opportunities,” added

Dawadi.

According to Dawadi an investment of approximately Rs 6 billion has been invested

in the country by NRN‟s, which does not include the remittance coming in from

foreign countries worldwide.

Excluding SAARC countries there are about 2.5 million NRN‟s spread all over the

world. Nepal‟s reach outside is secure as long as the government is willing to bring

them in and help develop the country‟s economy.

The NRN community has contributed significantly to the society as well as their

communities in Nepal, by opening schools, libraries, and sports organisations, many

are making a strong mark and creating a niche for themselves and the country on

foreign land.

Non Resident Nepali Association is looking to achieve a few objectives that have

been set by them which includes promotion for the rights of NRN‟s, make

arrangements to encourage foreign investment into Nepal, as well as distribute and

impart knowledge acquired by NRN‟s to the government as well as the society so as

to share experiences, skills, knowledge and expertise. Some of the NRNs have

invested in hydropower and other sectors in the country. “If they are encouraged,

more will follow.”

A few suggestions have been made to help NRN‟s to attain their objectives “dual

citizenship should be provided, clear cut definition for rules and regulations need to

be set for NRN‟s, dual tax system also needs to be scrapped,” added Dawadi.

http://www.thehimalayantimes.com/fullTodays.php?headline=NRNs+knowledge,+ski

lls+should+be+utilised&NewsID=241563

No respite for private schools

Private schools across the country that had downed shutters on Sunday at the call of

the Maoist-aligned All Nepal National Independent Students‟ Union-Revolutionary

(ANNISU-R) may resume classes from Friday if talks between the school

mananagements and the union slated for Thursday go well.

Private schools across the country remained closed for the fourth consecutive day on

Wednesday.

“An informal meeting with the student union on Wednesday was positive,” said D.K.

Dhungana, secretary of Private and Boarding Schools‟ Organisations Nepal

(PABSON). “We hope the meeting scheduled for Thursday will help end the

deadlock.”

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The student body has closed private schools to protest what it called an “illegal” hike

in school fees.

PABSON and National PABSON on Tuesday decided to be flexible on the issue. “We

are ready to review the fee structure through talks,” Dhungana said. The closure of the

schools has hit over 1.5 million students.

“The strike will be called off immediately after the school managements decide to

withdraw the fee hike,” said Himal Sharma, General Secretary of ANNISU-R.

CPN-UML leader Ishwor Pokhrel alleged on Wednesday that the shutdown of the

schools was part of the Maoist strategy to provide shelter to their cadres.

Speaking at the „Decisive Debate‟ programme organised here by the Federation of

Nepalese Chambers of Commerce and Industry, Pokhrel said, “Issues related to the

fee hike can be sorted out through talks.”

Refuting the allegations, Maoist Chairman Pushpa Kamal Dahal said the fee hike was

not “scientific” and that it was against the people‟s interests.

Meanwhile, Education Ministry formed a three-member talk coordination committee

headed by Joint Secretary Mahashram Sharma. The panel has appealed to ANNISU-R

to withdraw the protest and hold talks.

Closure may mar +2 exams

KATHMANDU: Grade XII examinations to be conducted by the Higher Secondary

Education Board from Thursday are likely to be affected due to the agitation of the

Maoist-affiliated All Nepal National Independent Students' Union-Revolutionary.

“We will not obstruct the examinations but the students are not in a mood to take

them,” said Himal Sharma, general secretary of ANNISU.

Issuing a press statement on Wednesday, INSEC appealed to the stakeholders to work

for ending the shutdown of private schools through dialogue.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/Nation/No-respite-for-

private-schools/207713/

US vows help for Nepal Army

The United States has expressed interest in supporting the Nepal Army (NA) in

promoting human rights. Visiting Admiral Robert F. Willard made this commitment

during his meeting with Defence Minister Bidhya Devi Bhandari on Wednesday

afternoon.

According to defence secretary Nabin Kumar Ghimire, the admiral also vowed to

support the Army in areas of training, disaster management and defense ministry

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restructuring. At the end of the 45-minute meeting, Willard said the discussion

centred on building NA‟s relation with the Pacific Command and the challenges

before Nepal‟s defence ministry. He later met Home Minister Bhim Rawal.

With Army chief General Chhatra Man Singh Gurung he discussed issues of regional

and national security and disaster management. Gen. Gurung appreciated the US

government‟s decision to provide logistics for the NA peacekeepers in Sudan and

resume support by the US Foreign Military Financing Programme. Gurung also

organised a reception in honour of the senior US navy official on Wednesday.

http://www.ekantipur.com/2010/04/29/capital/us-vows-help-for-nepal-army/313297/

Truckers reintroduce syndicate system

Taking advantage of fluid political situation, nine different truck entrepreneurs

committees have reintroduced dial system, allowing odd and even numbered trucks to

ply on the road on alternate days only.

The existing law ban such dial-system and syndicate in transportation sector.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) too has been

protesting such practice, as transporters hike service charges citing curtailed

businesses.

Western Truck Transport Entrepreneurs Committee (WTTEC) has reintroduced the

practice effective from Wednesday. “Nine different committees of truck operators

based between Banganga of Kapilvastu and Sarlahi of eastern Tarai have started this

practice from Wednesday,” said Gupta Bahadur KC, president of the committee.

The committees entering into anti-competitive practice include Balkhu Truck

Entrepreneurs Committee of Kathmandu, Western Truck Entrepreneurs Committee of

Butwal, Banganga Truck Entrepreneurs Committee of Kapilvastu, Gandaki Truck

Entrepreneurs Committee of Pokhara, Narayani Truck Entrepreneurs Committee of

Hetauda, Tarai Truck Entrepreneurs Committee of Birgunj, Tanahun Truck

Entrepreneurs Committee of Damauli, Rautahat Truck Entrepreneurs Committee and

Sarlahi Truck Entrepreneurs Committee.

With the introduction of the system, WTTEC has jacked up the transportation service

charges as well.

“Now transportation cost of ferrying goods from Bhairahawa to Kathmandu has gone

up to Rs 16,000. Previously it was Rs 13,500 only,” said KC. He told

myrepublica.com that the rates for ferrying goods to other parts of the country too

have been increased accordingly.

Interestingly, the committee has claimed that it has started the odd-even playing

practice in order to cut diesel consumption, support the country to narrow down trade

deficit, prevent capital flight and lower rate of accidents.

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KC further stated that free-competition and open policy has caused imports of more

than 40,000 trucks, whereas operations of just 15,000 trucks were more than enough

to fulfill the transportation demand in the market.

“This unnecessary inflow of trucks is causing imports to soar. It has also spurred rise

in imports of spare parts and fuel, among others,” said Ganesh Pant, general secretary

of the committee. “If we succeed in controlling it, it will instantly bring down the

trade deficit by Rs 12 billion,” he claimed.

So far, 300 trucks were operating in Butwal region. The dial-system would now allow

operation of only half of them in a day. This would also cut fair business opportunities

for good and efficient operators.

“Before the system, we were effectively operating 15 trips to and from Bhairahawa

and Kathmandu. Now we will be able to operate only eight trips,” said a truck

operator.

KC stated that the decision to reintroduce odd-even operating system was taken by the

recently concluded general meeting of Nepal Truck Tanker and Cargo Entrepreneurs

Federation.

“It will be gradually implemented in all the parts of the country,” he added.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18032

General strike to bleed economy white

The general strike will have negative impact on economy, said the Maoist affiliated

trade wing chief.

Speaking at a press meet, Krishna Acharya of Nepal National Industries Federation

said that the strike wil have negative impact on industries. “However, the general

strike is called due to the present political scenario,” he said adding that “if political

parties fail to move with mutual coordination and agreement on the primary issues,

we will support the strike,” he said adding that the strike is „Third Janaandolan‟

The UCPN- Maoist has called nationwide general strike from May 2. “The industries

and businesses will be shut down,” its supremo Puspakamal Dahal „Prachanda‟

announced here yesterday.

Though the strike is going to be peacefulaccording to the UCPN-Maoists, the closure

of industries will have a long-term impact on the ailing economy. “The strike is being

organised with political agendas,” said Janak Raj Shah, president of Management

Association Nepal (MAN).

He said that the strike is for human rights though it definitely will have an impact.

“To avoid adverse impact, there must be some code of conducts that could help

reduce the negative impact during the proposed general strike,” he said.

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FNCCI concerned

KATHMANDU: Federation of Nepalese Chambers of Commerce (FNCCI) has

shown serious concern over the general strike announced by the UCPN- Maoist.

According to the umbrella organisation of the Nepali private sector, the country

dogged by continuous load-shedding and security threats cannot sustain such strike

programmes. The FNCCI is organising a press meet on Wednesday to appeal for

solution.

CNI concerned

KATHMANDU: Confederation of Nepalese Industries (CNI) has also expressed its

serious concern over the pre-announced general strike of UCPN- Maoist. According

to the organisation, the country is no more in a condition to bear more strike

programmes. The strikes, chakka jam, load shedding, lack of liquidity, and labour

problems in the country have hurt the economy badly.

NCC show concern

KATHMANDU: Nepal Chamber of Commerce (NCC) has shown concern over

growing forced donation before UCPN-Maoist‟s indefinite strike. “NCC has saddened

by the activities that giving mental torture to businessmen,” the NCC said. Forced

donation and strike will definitely bleed the country white that has been suffering

from decade long conflict. It has urged the political parties to solve the problem in

consensus.

http://www.thehimalayantimes.com/fullTodays.php?headline=General+strike+to+blee

d+economy+white&NewsID=241559

Bhutan to resolve refugee row

Expressing commitment to solve the Bhutanese refugee problem permanently, the

Bhutanese government today said that the ministerial level meeting will be held at the

earliest to discuss the issue. The Bhutanese government expressed the commitment to

better the relations that have soured in the recent years between the two countries

Bhutanese Prime Minister Jigme Y Thinle expressed the commitment with Prime

Minster Madhav Kumar Nepal, who arrived here today to take part in the 16th

SAARC summit that will start from tomorrow.

Talking to The Himalayan Times, Finance Minister of Bhutan Lyampo Khandu

Wanchuk, who is also the Foreign Minister, said, “‟We want to solve the problems

between the two countries through talks.‟‟

He also informed that the Bhutanese issue would be solved after a formal ministerial

level meeting of the two countries in near future.

Though more than 27,000 refugees from Bhutan have been resettled in the third

country, more than 80,000 refugees are still in Nepal. No formal meeting has been

held between the two countries for the past six years regarding the issue. Earlier,

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speaking at a press meet, Khandu had opined that the third country resettlement was

not a permanent solution.

Meanwhile, the prime ministers of both the countries said that they talked about

Bhutan-Nepal trade and cooperation in tourism, among others. Earlier, PM Nepal also

held meetings with Sri Lankan President Mahinda Rajapakshe and Maldivian

President Mohhamed Nasheed. PM Nepal discussed climate change problems and

ways to minimise the effect.

Meanwhile, a SAARC cabinet level meeting concluded today here expressing

commitment to extend cooperation and coordination to combat climate change effect.

The meeting passed a charter of the SAARC Development Fund and a proposal to

open a SAARC University.

http://www.thehimalayantimes.com/fullTodays.php?headline=Bhutan+to+resolve+ref

ugee+row&NewsID=241523

HSEB exams disrupted in various centres

The final exams of twelfth grade conducted by Higher Secondary Education Board

(HSEB) on Thursday has been disrupted in various centres by the Unified CPN

(Maoist) affiliated All Nepal National Independent Students Union Revolutionary

(ANNISU-R).

Exams have been cancelled in various centres including Sigma College, Sohrakhutte,

Shanti Niketan Vidhya Kunja, Lainchaur and Grameen Adarsha College, Nepaltar.

Exams in Chitwan have been cancelled after students tore apart questions papers in

few centres. nepalnews.com

Govt tells Army to brace itself

With the main opposition UCPN (Maoist) heading for “decisive and indefinite”

protests from May 1, the government has put Nepal Army on high alert, directing it to

safeguard “vital government installations at any cost”.

Following the instruction from the Defence Ministry, the Army has enforced special

security arrangements to protect these installations. Surveillance of the activities of

the Maoist cadres has been intensified and preparations are being made to fortify the

installations including Singha Durbar, the prime minister‟s residence and the

president‟s residence, according to a Defence Ministry official.

“The defence minister has instructed the Army leadership to adopt all measures to

stop the Maoists from taking control of these installations,” said the source, adding

that additional soldiers will be deployed to provide security to banks, airports,

powerhouses and telephone towers, amongst others. A PLA platoon commander,

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Santosh Rai, was arrested from Chitwan with a grenade on Monday night following a

tip-off from the Army intelligence.

The Army has admitted that it is on high alert in view of the volatile developments.

“We have received orders from the government to remain on high alert,” said Army

Spokesman Brig. Gen. Ramindra Chhetri. “All leave of our personnel except on

humanitarian grounds has been cancelled for now.”

Amid fears continuing to deepen about the possibility of confrontation during the

Maoist agitation, senior Army officials have warned of “severe consequences” if the

demonstrators target state installations. “If anybody tries to attack the Army post or

installations under our security, the Army will consider it as a call for provocation,”

said a General.

Chief of the Army Staff Gen. Chhatra Man Singh Gurung briefed Defence Minister

Bidhya Bhandari on Wednesday morning on the latest security situation. Bhandari is

pushing for the mobilisation of Nepal Army “should the Maoist protest turn violent.”

Senior CPN-UML leader K. P. Oli was also present during the briefing. On Sunday,

Prime Minister Madhav Kumar Nepal had discussed the security issue with the heads

of the Nepal Police, the Armed Police Force and the Nepal Army.

http://www.ekantipur.com/the-kathmandu-post/2010/04/28/top-stories/Govt-tells-

Army-to-brace-itself/207706/