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			'title' => 'Growing And Growing Cement',
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			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><em>Cement production in Nepal has been growing sharply over the past few years. The industry is among the country&#39;s most flourishing business sectors as the demand of cement is constantly rising. &nbsp;The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors. &nbsp;</em></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi and Sanjeev Sharma</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepal&rsquo;s cement industry has been flourishing despite all sorts of problems. The industry has seen significant growth over the last few years. According to Dhruba Thapa, President of the Cement Manufacturers Association of Nepal (CMAN), the country&rsquo;s cement industry has been steadily growing at 8-10 per cent annually for the past several years. &ldquo;The cement industry has seen growing steadily. Its future looks bright,&rdquo; says Thapa when asked to comment on the current situation of the Nepali cement industry. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The annual demand of cement in Nepal is about four million metric tonnes of which some 3.2 million metric tonnes is met through domestic production while the rest is imported,&rdquo; he adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s import of cement has been dropping year after year because of the rising domestic production. According to the Trade and Export Promotion Centre (TEPC), the rate of growth in cement imports has declined in the last fiscal year. Nepal imported OPC cement worth Rs 2.99 billion in fiscal 2013-14. In the previous fiscal year i.e. 2012-13, cement imports stood at Rs 3.75 billion. The decline in the import of both cement and clinker reflects Nepal&rsquo;s progress towards self-sufficiency in cement production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to CMAN, the domestic cement industry has an installed production capacity of about 6 million tonnes annually which is higher than the annual demand of four million metric tonnes. But the cement factories currently operational have been able to utilize only about 50 per cent of their total production capacity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, this hasn&rsquo;t stopped the private sector from entering this sector in a big way. Currently, according to the data provided by CMAN, there are 45 cement factories in operation producing 3.2 million metric tonnes of cement annually. Local production fulfils about 80 percent of the requirement and the rest is met by imports from India. Nepal produces OPC, PPC and PSC cement, of which OPC is preferred these days.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Out of the 45 factories, only 12 also produce clinker, a major raw material used in cement production. As early as a decade ago, Nepal used to depend on India for 95 per cent of its clinker requirement. However, with more factories now setting up clinker production units after acquiring limestone quarries, import from India has been declining year after year. Today, almost 60 percent of the clinker demand is met through domestic supply. &ldquo;The remaining is imported from India. A few factories will start producing own clinker in 2015. That will bring down the import to 20-25 per cent. Nepal will be self-reliant in clinker over the next three years,&rdquo; says Thapa.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn4.jpg" style="width: 550px; height: 205px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Problems</strong></div>
<div>
	Power shortage because of long hours of load-shedding is the biggest challenge being faced by cement manufacturers in the country. The power crisis has forced them to use diesel power which makes each cement sack costlier by Rs 25. The high import duty levied on raw material, mainly clinker, is another problem, according to cement manufacturers. It has weakened the competitiveness of Nepali cement in terms of price. &ldquo;The government has been continuously increasing the customs duty on clinker ignoring its effects on domestic cement manufacturers,&rdquo; complain cement manufacturers. Thapa says all this makes the Nepali cement costlier than cement in any other SAARC country. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The syndicate system in transportation is another big problem for the domestic cement industry. &ldquo;We are not getting sufficient number of trucks to supply our finished goods to the targeted location,&rdquo; says Anil Kumar Agrawal, Managing Director of Shree Cement Industries. &ldquo;The cost associated with transportation is high as well.&rdquo; Manufacturers complain that even with enough production and demand, they are unable to supply their products to the market due to unavailability of transportation. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Every commodity has a lifespan; and in the case of cement, it is 30 days,&rdquo; said Tej Bom, Head of Sales and Marketing at Ambe Cement, &ldquo;If the finished product is not used within 30 days, the desirable outcome is not achieved.&rdquo; The need of the hour, according to him, is to effectively end the syndicate system so that Nepali products remain competitive with Indian brands.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cn3.jpg" style="width: 300px; height: 313px; float: right;" />Declining Import</strong></div>
<div>
	With the rise in domestic production, import of foreign cement in Nepal has come down significantly over the past few years. The data compiled by the Trade and Export Promotion Center (TEPC) clearly points to this. The country which imported portland class cement (OPC and PPC) worth Rs 4.31 billion in FY 2090/10 saw the import decrease 30 per cent to Rs 2.99 billion in 2013/14. The rising production has also led to the increase in the import of gypsum, one of the major ingredients of cement. Nepal imported gypsum worth Rs 754 million in FY 2013/14, up 133 per cent from Rs 322 million in FY 2010. But the import of clinker, another key component is seen gradually declining. Import of clinker, which was recorded at Rs 8.03 billion in FY 2009/10, decreased to Rs 5.99 billion in 2012/13 before rising to Rs 6.54 billion in the last FY. The increase is due to the government provision made mandatory for the cement manufacturers to produce clinker they need by 2073. However, producers are seen dissatisfied by the government announcement. &quot;Clinker production means more investment. More than 70 per cent of the investment goes for clinker production. So, mere announcements are not enough. We need a supporting strategy as well,&quot; says Anil Kumar Agrawal , Managing Director of Shree Cement Industries. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite the fact that use of Indian cement has lessened in recent years, policy hurdles still remain in place to stop the use of Nepali cement in large constructions of national importance. &nbsp;&quot;General consumers are not importing cement from India. It&rsquo;s the big infrastructure projects run through the international competitive bidding (ICB) process that are importing cement from India,&quot; mentions Thapa,. Thapa, who is also the Executive Director of Cosmos Cement Industries, says that a provision in the ICB contract, which exempts the imported construction materials from taxes, is hampering the competitiveness of Nepali cement. &quot;The imported cement gets an exemption of Rs 185 per sack in customs duty. That is why it is cheaper. It has affected the Nepali cement market,&quot; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn1.jpg" style="width: 550px; height: 261px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Export Prospects</strong></div>
<div>
	With the increase in production, export of Nepali cement has also risen in the past few years. Though the size of the export is negligible compared to the import, the increasing trend indicates to the possibility of Nepali cement becoming a product of comparative advantage to the country&#39;s export. Nepal exported cement worth Rs 3.16 million in FY 2013/14 after starting the export in FY 2012/13 which was logged at Rs 148,700. Nevertheless, it will take time for Nepal to become a net exporter of cement, according to producers. &quot;As we are not being able to fulfill the domestic demand, there is no possibility of export currently. Most factories are selling their products within the country. We can think of exports once we meet the domestic demand,&quot; opines Tej Bom, Head of Sales and Marketing at Ambe Cement.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn2.jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Foreign Direct Investment</strong></div>
<div>
	Nepali cement industry has turned lucrative to foreign investors in recent years. Big international producers, namely, Dangote of Nigeria, China&#39;s Hongshi and Reliance of India are in the process to establish production facilities in Nepal. Lured by the infrastructure boom in Northern India and Western China, the companies are eying to tap Nepal&#39;s vast limestone reserves. Their products are expected to be export-oriented while also fulfilling the domestic demand in Nepal. Dangote Group, one of the largest industrial conglomerates of West Africa, is said to be starting the construction of cement factory in the next one year. The company which was granted a USD 500 million FDI approval in November 2013 by the Investment Board of Nepal (IBN) is currently looking for a local partner, according to an informed source.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, the top Chinese manufacturer Hongshi Holding Group has partnered with the Nepali company Shivam Cement to kickstart its business in Nepal. The company in March, 2015 signed a joint venture (JV) agreement with Shivam Holdings Nepal to set up a Rs 30 billion production facility. According to the agreement, Hongshi will have 70 per cent share (Rs 21 billion) and the rest (Rs 9 billion) will be invested by Shivam. The JV which will be named Hongshi-Shivam Cement Pvt Ltd aims to produce 120,000 sacks or 6,000 tonnes of cement per day and has plans to start production in three years. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, Reliance Cement Industries of India has also received endorsement from the IBN to establish a cement factory in the country. Though much is not known about the progress after the approval of its investment proposal last year, the company has pledge Rs 40 billion in FDI and aims to produce 2.3 million tonnes of cement annually. Collectively, the three foreign companies have received project approvals worth USD 1.2 billion which has been marked among the largest FDI commitments in the Nepali industrial sector for the time being. Likewise, two other foreign companies have also recently expressed their interests to invest in the country&#39;s cement industry, according to a source close to the matter.&nbsp;</div>',
			'published' => true,
			'created' => '2015-06-01',
			'modified' => '2015-06-01',
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			'description' => 'Cement production in Nepal has been growing sharply over the past few years. The industry is among the country's most flourishing business sectors as the demand of cement is constantly rising.  The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors.',
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	(int) 1 => array(
		'Article' => array(
			'id' => '2806',
			'article_category_id' => '40',
			'title' => 'The Story Of Nepali Startups',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	The startup scene in Nepal has changed significantly over the last five&ndash;seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The Nepali startup scene is heading slowly but surely in a good direction,&rdquo; thinks Mark Sears, CEO of CloudFactory, one of the most successful Nepali startups. Bidhyabaridhi Sigdel, Investment Director at Dolma Impact Fund, shares similar views. &ldquo;Now we are seeing new and unique businesses, which involve a brilliant choice of timing and products,&rdquo; he says. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s not just startups like CloudFactory and F1Soft which are doing quite well, nationally as well as internationally. There are others too. For example, Grepsr, a company specializing in web crawling service. The company has international clients such as The Boston Consulting Group, GE Capital, and Target, and is doing very well in their third year. Subrat Basnet, one of the co-founders of the company emphasizes on the massive opportunity for tech entrepreneurs in Nepal to make an impact on a global scale. &ldquo;With the growth of local talent, low risk investment and low operational cost, among other things, Nepali tech entrepreneurs can really compete in the global market if they have great ideas and the right marketing,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	11Beep is another up-and-coming startup from Nepal. It has been trying to build an anonymous mobile social network. It&rsquo;s CEO Bimal Maharjan who is an active participant at startup events around Kathmandu and has even has flown to Italy for a four-month bootcamp called TechPeaks&mdash;The People Accelerator, feels the excitement and challenges of working on an idea alongside other entrepreneurs, designers and hackers.</div>
<div>
	&nbsp;</div>
<div>
	Another idea which was developed in Nepal and has gained some ground locally with aggressive plans to expand internationally is CashOnAd, a mobile advertising platform that is working to revolutionize the advertising world. The fact that CashOnAd&rsquo;s android app on Google Play has already been installed in more than 100,000 devices shows their success in a comparatively short period. With the mobilization of local talent and the right growth strategy, CashOnAd has the potential to be very scalable and profitable in a short period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Innovative companies such as Grepsr, 11Beep and CashOnAd are pioneering a new era of tech entrepreneurship in Nepal. They are dreaming big and thinking of conducting business beyond the borders of Nepal and competing globally. There are also other tech companies making their presence felt in the domestic market as well as chasing the international market.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Many more innovative ideas are surfacing at events like StartupWeekend, GDG Meetups, Hackathons, Mobile Social Networking, Tedx , BarCamp, Mapthaons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Even Incubators like Biruwa Ventures and communities for open source and developers is growing,&rdquo; says Amit Agrawal of Janaki Technologies, &ldquo;Now the vision is crossing the borders and soon we will see kickass startups from the Himalayas, that will rock the world.&rdquo;</div>
<div>
	&nbsp;</div>
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						<span style="font-size: 14px;"><strong>Government&rsquo;s Startup Fund</strong></span></div>
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						&nbsp;</div>
					<div>
						Lately, it seems that the government has understood the importance of promoting entrepreneurship in the country. The latest national budget has announced a Startup Fund of Rs 500 million. While making his budget speech, Finance Minister Dr Ram Sharan Mahat said that this Fund, which is yet to take shape, will help cultivate the culture of entrepreneurship and promote fresh ideas by bankrolling promising startups. The government expects the private sector and NRNs, too, to contribute to this seed fund, according to officials at the Department of Industry.</div>
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						&nbsp;</div>
					<div>
						Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), thinks that the criteria and working procedure of the Fund should be established at the earliest possible to make the allotted resources useful. &ldquo;Though the seed amount is not large, the initiative is good. The government now needs to work out an implementation plan as soon as possible,&rdquo; said Murarka, adding that the private sector can decide how to support the programme once there is clarity about the working modality.</div>
					<div>
						&nbsp;</div>
					<div>
						&ldquo;It has already been four months since the government announced the Startup Fund through the national budget. Now, the government should focus on the implementation aspect of the Fund without any delay,&rdquo; advises Hari Bhakta Sharma, senior vice president of the Confederation of Nepalese Industries (CNI).</div>
					<div>
						&nbsp;</div>
					<div>
						Besides the Startup Fund, the government has been running a Business Incubation Programme (BIP) under the Department of Cottage and Small Industries (DoCSI). The BIP which has been running for the last eight years is targeted at supporting startup enterprises. &ldquo;BIP has been trying to create a favourable environment for innovative and aspiring entrepreneurs. This includes providing physical facilities and mentorship services on various aspects of management and production such as productivity enhancement, quality management, accounting, marketing and intellectual property rights,&rdquo; says Pawan Kumar Timalsena, director at DoCSI. &nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Incomplete ecosystem&nbsp;</strong></div>
<div>
	Startups in Nepal face some common challenges in terms of taking their products international and growing the brand. The most obvious challenge is financial. Startups don&rsquo;t get loans without collaterals from the banks. Likewise, angel investors are very few and far between. So, most startups are forced to survive on bootstrapping. Thus, finance is the most difficult problem that people face in Nepal to start a startup. There are no investors willing to invest in startups, according to industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If an idea or product solves a problem and provides value, the target customers need to be aware of the product or service. International customers can be reached through Google AdWords, Facebook ads, advertisements in relevant platforms, among other ways. But all this needs funding. Financial leverage is necessary for this, and the company should have adequate capital to properly market the product or service. This is one area where most of the Nepali startups are lagging behind.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In most cases, finding investors for ideas or early stage ventures is extremely challenging. Therefore, we recommend that entrepreneurs build some sort of track record before approaching investors,&rdquo; says Vidhan Rana, founder-managing partner of Biruwa Ventures.</div>
<div>
	&nbsp;</div>
<div>
	The risk-averse culture in Nepal has led to less competition among the startups than in other parts of the world. This lack of overall competition has hurt the start up ecosystem in terms of quality, valuations, and market-building. But the industry is growing, though slowly, say the industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Other Challenges</strong></div>
<div>
	Another challenge is talent. Nepal has many colleges from where thousands of students are graduating every year. However, tech companies have a hard time finding the right talent when necessary. &ldquo;While there are many young talented people in Nepal, there are few senior, experienced engineers and managers,&rdquo; shares Sears.</div>
<div>
	&nbsp;</div>
<div>
	Publicity is another challenge for the Nepali startups. To expand globally, Nepali startups need a network or presence outside of Nepal. Getting covered by popular tech blogs, websites, international media etc. could help create awareness of Nepal-based companies. In this context, events like Startup Weekend Kathmandu platform is a good one. At such events, innovative ideas can get some initial traction through its wide network and reach.</div>
<div>
	&nbsp;</div>
<div>
	Starting up a startup is another major challenge. Though some initiatives have been taken to provide funding for startups which have survived at least for a couple of years or more, startups do not get financial help from banks or other similar institutions at their initial stage. In simple words, there are no institutions to provide seed capital to startups.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The ecosystem here carries a general feeling that the startups do not know anything about business. Whereas, in advanced markets, startups are received in a positive connotation,&rdquo; observes Bibhusan Bista, CEO of Young Innovations, a Nepali tech startup, which has been helping new startups by organizing startup events like &ldquo;Hackathon&rdquo; among others.</div>
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	&nbsp;</div>
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						<span style="font-size: 14px;"><strong>IFC&rsquo;s Business Oxygen (BO2)</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						BO2 is a USD 14 million SME venture fund established in partnership with International Finance Corporation (IFC), Bank of Kathmandu and Beed Management. It was established in 2012 to provide risk capital to Small and Medium Enterprises in Nepal through structured equity and quasi-equity investments. It specializes in providing finance to SMEs that might be ignored by BFIs, or cannot access finance from BFIs due to a lack of collateral. BO2 looks for promising entrepreneurs who have worked on good business ideas and show a flair for entrepreneurship.</div>
					<div>
						&nbsp;</div>
					<div>
						Companies may qualify for BO2 if they satisfy any two of the three criteria, namely: less than 50 staff, total assets below Rs 250 million and total annual turnover below Rs 250 million. In addition to funding, BO2 provides advisory services to build the capacities of small and medium enterprises to reach the next level.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Who can qualify for investment?</strong></div>
					<div>
						BO2 concentrates on small entrepreneurs who want to take the step up to the next level. We are looking for SMEs in the growth stage with a history of profitable performance and potential for creating value for investors in the time period of the investment. Entrepreneurs should keep in mind the following points when considering funding from BO2:</div>
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						&nbsp;</div>
					<div>
						&bull; This is not &#39;free&#39; or &#39;subsidized&#39; money.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The business or its owners should not be blacklisted. Preferably the company should not have bank loans, or if it does, then it should be repayable with the investment amount.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The company should be registered in the CRO as a public limited or a private limited company.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull;Since BO2 is looking at growth stage companies for investment, the company should have been in business for at least 2 years. If under 2 years then the owners should have been involved in the same sector for more than 2 years.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; BO2&#39;s investment will be utilized for the purpose of increasing top or bottom line.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Investment Period</strong></div>
					<div>
						BO2 investment is only for a period of four years, which may be extended by a maximum of one year. At the end of the investment period BO2 will exit the investment by selling its shares in the company, back to the original owners at a predetermined value. BO2provides investment in nine sectors: Manufacturing, Energy Based, Agro and Forest Based, Tourism, Trading, IT and Communication, service industries, construction and infrastructure, and realty.&nbsp;</div>
					<div style="text-align: right;">
						<em>(Source: IFC)&nbsp;</em></div>
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	&nbsp;</div>
<div>
	<strong>Focus on the Global Tech Map</strong></div>
<div>
	&ldquo;Tech entrepreneurs are becoming more ambitious, focused on putting Nepal on the tech map, despite the challenges in taking their product into the global market. Soon, it would not be surprising to hear of big ideas from Nepal making a global impact,&rdquo; says Rana. He advises those who want to start a startup to focus on doing branding well, having a unique offering, scalable business model, global thinking, flat hierarchy with a good working culture, and getting inspired by what&rsquo;s happening globally.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	With quality product and right expansion strategy, a handful of tech companies from Nepal are venturing into the global stage and starting to make an impact. Though challenges come with the territory, Nepal&rsquo;s tech companies have a remarkable opportunity to take a bite out of the global tech scene.</div>
<div>
	&nbsp;</div>
<div>
	Subrat of Grespr believes that Nepal can be put on the tech map. &ldquo;But to put Nepal on the global tech map, we need more companies from Nepal like CloudFactory, F1Soft, Janaki Technologies and Grepsr, and an ecosystem that builds and nurtures quality startups,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Sustainability Issue</strong></div>
<div>
	Industry insiders believe that Nepalis are very capable of innovative work. But the reality on the ground is that Nepal doesn&#39;t seem to have good homegrown startups. There is foreign involvement in most of the leading startups from Nepal. Most of the tech startups that do exist are happy doing outsourcing jobs which might not be a sustainable solution for development of IT in Nepal. What could be the reason?</div>
<div>
	&nbsp;</div>
<div>
	Niranjan Bom Malla, founder of Vidinterest.com says, &ldquo;Based on my experience, there are two big problems that we have in our country right now. One, the Nepali culture of investment, very few angel investors - for most of them, IT startup is not the 1st choice. They think they have better places to invest in other sectors. Two, most of the foreign investors are not comfortable investing in our country, because of our political and financial situation. Trust me, I had talks with more than 100 angel investors over the last two years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Experts also believe that startup businesses should always focus on creating a strong team to sustain their growth. &ldquo;Without a strong team, even businesses with strong potential are at the risk of failure,&rdquo; observes Rana.</div>
<div>
	&nbsp;</div>
<div>
	Bista of Young Innovations believes that Nepali startups should come up with new ideas of business rather than copying successful global products and trends for sustainability in the long run.</div>
<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Janaki Technology: Building Acclaimed Software</strong></span></div>
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					&nbsp;</div>
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								<img alt="Amit Agrawal, CEO,  Janaki Technology" src="/userfiles/images/cs1(3).JPG" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
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						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amit Agrawal</strong></div>
									<div>
										CEO&nbsp;</div>
									<div>
										Janaki Technology</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					Janaki Technology is a software product company well known for its SMS based service, Sparrow SMS and it&rsquo;s much acclaimed application Picovico. Founded in 2007 as a normal web application and outsourcing company, it entered the Nepal SMS Value Added Service (VAS) Market in 2010. It harnessed its experience of catering to the software needs of its national and multinational clients and built &lsquo;Sparrow SMS&rsquo;in 2010 as a platform to facilitatevarious SMS based services.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					SMS services and VAS was not a new thing in Nepal by then, &ldquo;however, we were unique in our implementation and use of latest technology. Our strong technical team worked hard to make it better than other existing SMS services,&rdquo; Amit Agrawal, CEO of the company says while elaborating on the success mantra of the service.</div>
				<div>
					&nbsp;</div>
				<div>
					The company served multinational clients inside and outside the country and Sparrow SMS has received national and international awards. &ldquo;We are still focusing on innovating our products and there is a long way to go,&rdquo; Agrawal said.</div>
				<div>
					&nbsp;</div>
				<div>
					In 2011 the company rolled out Picovico, an application to convert photos into video. The product was selected for seed funding in 2011 by &lsquo;the Morpheus Ventures&rsquo; India. A year later, the Chile Government selected it for &quot;StartupChile&quot; programme awarding it equity free funding of 40,000 USD.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					Agrawal shares that the company focused on research and development for making the products and therefore remained in loss during its initial years. But since than the company has been in profit and presently its annual growth rate has been between 15 to 20%.</div>
				<div>
					&nbsp;</div>
				<div>
					Reflecting on challenges that the company faced as a startup, Agrawal shares that they also went through common problems faced other businesses in Nepal like load-shedding, delayed and multi-layered government processes, shortage of talented workforce and unfriendly business policies. &ldquo;Not having proper startup-ecosystem in the country was another big problem, when we started,&rdquo; he said. &nbsp;&ldquo;Lack of industry support from government, angel investors and startup accelerators along with unclear laws about IT industry and small market size are other major problems especially for Nepali tech companies,&rdquo; he shared. The company has gained substantial popularity among local clients and is presently doing market research to expand its reach beyond Nepal, Agrawal said adding that the company is working on pushing Picovico in the global market, especiallyin Europe and America. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<strong>&nbsp;(By Upashana Neupane)</strong></div>
			</td>
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	&nbsp;</div>
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								<img alt="Ujjwal Chapagain, Managing Director, Himalayan Rabbit Farm" src="/userfiles/images/cs2(7).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 238px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Ujjwal Chapagain</strong></div>
									<div>
										Managing Director</div>
									<div>
										Himalayan Rabbit Farm</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						<span style="font-size: 14px;"><strong>Himalayan Rabbit Farm: A Social Start-up</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Ujjwal Chapagain, managing director of The Himalayan Rabbit Farm took up the risk of leaving a secure job and entering into an unchartered business terrain of commercial rabbit meat production. Such a business is still little known about across the country. When Chapagain thought of it as a business venture, he was questioned more than assured to take the risk. But he succeeded.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						He thought that a small risk taken could help in the sectorial as well as his personal growth. In the very beginning, he had decided his business venture will be a social enterprise rather than a purely commercial. Established in 2012, the venture has provided 100 small farmers with an extra source of income in the form ofrabbit farming.Along with that six farmers have been producing rabbits on a larger scale, following the footsteps and guidelines of Chapagain.</div>
					<div>
						&nbsp;</div>
					<div>
						Chapagain was a jobholder in the non-governmental sector. He left the job and invested all his savings in starting up an organic vegetable shop at Jhamsikhel and an integrated farm in Bhaktapur in partnership with some friends. Unfortunately, the project did not succeed, the cause of which he alludes to lack of teamwork with his business partners. After this, he found himself at the crossroads forced to choose between doing business and reverting to being a jobholder. He decided to stay.</div>
					<div>
						&nbsp;</div>
					<div>
						He explored various business prospects and finally decided to start rabbit farming. He took the decision after figuring out that rabbit meat had high demand in the market, as it had remained unnoticed as a livestock farming option and therefore had no substantial competitors. Besides that, another major reason, which attracted his attention, was the fact that rabbit meat is considered to be healthy food and as people were being oriented towards healthy meat options, he thought that he could cater to this consumer sentiment.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						After finalizing his new business idea, Chapagain faced the problem of capital shortage. As he had spent all his savings in the previous venture, the only option left to him was borrowing from a bank. Considering the failure of his earlier business venture, it was hard to convince family members to put up family land as collateral for acquiring bank loan for his new venture. He convinced them and he acquired a bank loan and started rabbit farming in partnership.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has around 500 rabbits at its rabbit farm in Balambu, Kathmandu. For breeding, there are around 100 females. It is planning to upgrade the existing breeding centre into a modern one for breeding high yielding rabbit breeds. Presently, it procures 300 to 400 kilograms of rabbit meat every month from farmers situated in different parts of the country. Chapagain says that this quantity is consumed in the market, which primarily consists of hotels and restaurants.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs3(7).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						Within two years, Himalayan Rabbit Farm has succeeded to put rabbit meat as an option on menus. The success stems from the fact that people, who have tasted it, have loved it. Chapagain feels that interest towards the meat has been growing and he has been continuously working to boost it. To increase customer attraction and establish rabbit meat eating culture, the company had provided free tasting samples to visitors of Food, Drinks and Hospitality Exhibition held in September this year.The company has been working on innovating rabbit meat dishes in association with Nepal Academy of Tourism and Hotel Management (NATHM), so that hotels and restaurants could replicate them.</div>
					<div>
						&nbsp;</div>
					<div>
						On the social side, Chapagain has been constantly working with local farmers to help them in rearing rabbits and thereby generating additional household income. The company provides training on rabbit keeping, managing and shade building for rabbit farming to farmer, among other support.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						As of now, farmers in Mayagdi, Rasuwa, Sindhuli, Dolakha, Nawalparas and Kathmandu have taken up rabbit farming. He says that famers from other areas have been also showing interests.</div>
					<div>
						&nbsp;</div>
					<div>
						In the past two years, Chapagain has made a huge leap in introducing a totally new area to livestock farming in Nepal and now he wishes to establish rabbit farming as a national programme, similar to that of pig, goat and poultry farming. Along with this he wishes to make rabbit meat easily available in the market for purchase. To this end he has plans up his sleeves to set up outlets for selling rabbit meat products in places with higher market volume.</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
					<div>
						&nbsp;</div>
				</div>
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					<span style="font-size: 14px;"><strong>Selling the Innovation</strong></span></div>
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					&nbsp;</div>
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								<img alt="Madhukar KC, Founder, Matribhumi Urja Pvt Ltd" src="/userfiles/images/cs4(6).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Madhukar KC</strong></div>
									<div>
										Founder</div>
									<div>
										Matribhumi Urja Pvt Ltd</div>
								</div>
							</td>
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				<div>
					<div>
						Madhukar KC, founder of Matribhumi Urja Pvt Ltd invented a fuel-efficient wood fire stove that is being commercially developed. Recently, he has designed eight different burners and presented them to the Alternative Energy Promotion Centre, as requested. These designs include skewer stove, high-altitude stove, portable stove and bio-gas stove among others for household and commercial use.</div>
					<div>
						&nbsp;</div>
					<div>
						CB Urja Pvt Ltd has been granted the production and marketing rights for the wood fireportable stovesKC innovated. It started production since mid-May 2014 from its Balaju Industrial Estate based factory.</div>
					<div>
						&nbsp;</div>
					<div>
						The government has recently decided to provide five ropanis of land in Chitwan to set up a factory produce burners at a larger scale, KC informed. He is optimistic that the decision would help to develop his venture. His journey so far has been challenging, especially during the research stage, as he had to personally finance his research and development works. Sharing his experience, KC complains of banks and financial institution&rsquo;s unwillingness to take intellectual property as collateral for providing loans. In lack of loans, he has been managing investments with the profit earned by selling the products.</div>
					<div>
						&nbsp;</div>
					<div>
						KC, originally a resident of Pyuthan had moved to Chitwan and it is where he first introduced the product to the public. The first prototype of woodfire stove was developed after a long series of trial and errors on coal stove. A successful prototype was developed in the 33rd attempt. For over 13 years he has been devoting all his time in developing the product. Coming now, he has improvised his products to use bio-mass. KC says that the performance of his stoves is higher than the government benchmark claiming that his stoves scored 29 in the benchmark against the official benchmark of 25. KC plans to develop products that can score around 33 to 35 in terms of performance and fuel efficiency. &nbsp;Presently he has been working fuel-efficient stoves to be used with bio-gas and liquefiedpetroleum gas (LPG).</div>
					<div>
						&nbsp;</div>
					<div>
						KC&rsquo;s stove, besides firewood, can use biomass such as pine leaves, seeds of Schima Wallichi (Chilaune) tree, seeds of Hog Plum (Lapsi) and other bio wastages, which generally remain unused, as fuel source. A candy factory in Parbat entirely uses Hog Plum seeds to fuel the stove. This unique portable stove uses two watt computer fan for air supply. The insulated version of the stove does not heat the room as it is covered by mud, specially designed for the Terai region. The fixed stoves installed in rural households also have similar mechanism and provide better flames while emitting lower smoke. KC says that these stoves can be customised to fit in the requirements of an individual household. This mechanism makes it fuel-efficient, environment and user friendly while ensuring smoke free kitchen.Along with that stove uses parts made of recycled metals supplied by the Butwal based Metal Craft Pvt Ltd.</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs5(5).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;KC is the first to incubate at the Business Incubation Programme of the Department of Cottage and Small Industries (DoCSI). In 2009, KC was recognised by National Academy for Science and Technology (NAST) with an award for developing efficient stoves. He was also awarded with Surya Nepal Asha Social Entrepreneurship Award in 2013. After being awarded with the awards, KC realized the buzz that his business had created in the market. He has registered patent rights for his innovations. Presently he has been trying to acquire international patent rights for his LPG and bio-gas burners and the DoCSI has pledged assistance in this endeavour.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
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					<span style="font-size: 14px;"><strong>CloudFactory: A Crowd-sourcing Powerhub</strong></span></div>
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					&nbsp;</div>
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								<img alt="Mark Sears, CEO, CloudFactory" src="/userfiles/images/cs6(5).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 218px;" /></td>
						</tr>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Mark Sears</strong></div>
									<div>
										CEO, CloudFactory</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						As crowd-sourcing and cloud-working are becoming the next big things in the global outsourcing market, new companies are flocking into this lucrative business. CloudFactory, a Kathmandu-based startup has emerged among the frontrunners in the global crowd-sourcing market. The company, founded in 2010 by a Canadian tech entrepreneur, Mark Sears, is rapidly expanding its foothold in Nepal and beyond. CloudFactory came into existence when Sears came to Nepal on a vacation with his wife in 2008. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The company basically is a web-based outsourcing platform that hires cloud-workers who can work from their internet enabled locations. CloudFactory&#39;s clients are those who need big data services such as data entry, data processing, data collection along with audio/video transcription, categorization, web research and image tagging. The tasks are broken down into sets of &quot;microtasks&quot; which are then distributed to its pool of online workers who complete their work in the &quot;virtual assembly lines&quot;. CloudFactory currently employs 3,200 workers from Nepal and across the world, who process over a million tasks per day.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Nepali startup scene is heading slowly but surely in a good direction&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did the idea of CloudFactory germinate?</strong></div>
					<div>
						In 2008, we were a software development company building web and mobile applications for North American and European clients. Many of them started needing data entry related work and kept asking if we could hire people in Nepal and do it. We kept saying no because we were a high-end software boutique and not a data entry company. At the same time we had been living in Nepal for a year and only hiring talented computer engineering fresher. &nbsp;During the period we met many other talented Nepalis looking for an opportunity. The major existing solution was Amazon&#39;s Mechanical Turk (AMT) - a crowd sourcing internet marketplace. But its enterprise-grade was not enough for our clients and we faced many quality related problems. So we started CloudFactory on January 1, 2010 as a technology platform to cater to the big demand and supply of online workers and haven&#39;t looked back since then.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the turning points for your company?</strong></div>
					<div>
						&nbsp;The shift from a software development company to a product company back in Jan 2010 was a major turning point. Another major turning point was in May 2012 when we hired our first 25 cloud workers in Nepal. Up until then we were a tech/engineering company building a platform and now we had to learn how to recruit, train and manage large numbers of data operators.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						While there are many young, talented people in Nepal there are less senior, experienced engineers and managers. We are a young team and in many ways I think that has been a good thing, we have learned a lot and grown together. I am so proud of the things we have accomplished to get to this point and I look around and see that I am surrounded by some of the finest young leaders in Nepal - it is amazing to see the growth and maturity that comes from being part of a growing international startup like this.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did you manage the investments?</strong></div>
					<div>
						Our team, technology and traction are the keys to us for raising investments. This latest round was definitely related to our participation in a business accelerator in the US where I got to meet and pitch to a lot of great investors at the end of the 7-month program.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the major projects of CloudFactory? What are its main focuses?&nbsp;</strong></div>
					<div>
						Large-scale data entry, audio/video transcription, web research, image tagging and categorization are our major projects. Companies come to us with large amounts of routine and repetitive work that we can break down in small tasks that can be partially automated but require people as well to complete many of them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						&nbsp;While we have not received any formal help from the government we have very much appreciated informal support from people like Radhesh Pant at Nepal Investment Board. While their focus is mostly on the top hydropower investments in Nepal but he understands and appreciates the opportunity for companies like CloudFactory to provide job creation in Nepal. As a landlocked country we need to be thinking more about how we can accelerate the shift to a knowledge economy. For that ICT should be higher on the priority of the government. Even so, the most important thing the government could do is stay out of the way of ICT growth in Nepal and focus on not being a hindrance and let entrepreneurs continue to innovate from their internet-enabled residences across the Kathmandu valley.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the challenges being faced by the Nepali tech startups?</strong></div>
					<div>
						Tech startups in Nepal are mostly just freelancers working together in small teams of 2-20 people. They work on the early development side of web and mobile applications but rarely get the opportunity to build a full business by bringing products to market themselves. We need some more product startups to go through the full lifecycle to see some wins on the international stage. We will then have the capital and experience to start the second wave of tech startups in Nepal. I see this happening in the next 3-5 years. Until then many will continue to get experience on the engineering/product development side by building other people&#39;s products. The future is bright, Nepali startup scene is heading slowly but surely in a good direction.</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
			</td>
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	</tbody>
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<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&ldquo;Lack of human resource to work on our ventures is the major problem&rdquo;</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Anil Basnet, Chief Operating Officer  Metro Vibes" src="/userfiles/images/cs7(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Anil Basnet</strong></div>
									<div>
										Chief Operating Officer&nbsp;</div>
									<div>
										Metro Vibes</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Metro Vibes, is a startup company that specializes in web design, development and hosting, email services, graphic design, domain registration, and providing IT consultancy and internet marketing services. After working for over five years with other tech companies, Anil Basnet, Chief Operating Officer of Metro Vibes, felt the need to establish his own IT company. He shared the idea with his three friends and they conceived Metro Vibes.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						Company&rsquo;s growth curve has been pretty stable and has improved substantially since its establishment. Presently 22 employees are working with company and Basnet said more would be joining in the near future. &ldquo;We work hard to meet projects deadline. We get up at 4 in the morning for our venture Metro Tarkari and ensure that the delivery is made within the set time frame,&rdquo; Basnet said while elaborating on the growth factors.</div>
					<div>
						&nbsp;</div>
					<div>
						Though the venture faced financial crisis in its initial days, lack of skilled manpower was and remains the major problem. &ldquo;We have unique concepts, required finance and latest technological equipments, but there is scarcity of skilled manpower who can translate our venture ideas into actions,&rdquo; stated Basnet. Another problem is the absence of government policy on ecommerce. &ldquo;We are confused about the method of handling online transactions,&rdquo; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						Starting the Merotarkari.com, an online vegetable ecommerce system, was one of the most prominent turning points for the company. This venture boosted the company&rsquo;s working style and contributed in its expansion. The concept of virtual receptionist was another unique idea in office automation that became a major turning point for the company.</div>
					<div>
						&nbsp;</div>
					<div>
						The company started with five clients in the initial phase and coming now it is serving more than 120 trustable clients that range from national to international boundaries. Its core products are mterotarkari.com, metrofever.com, metro bulk email service, and metro biometric attendance system.&nbsp;<strong>(By Angila Sharma)</strong></div>
					<div>
						&nbsp;</div>
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<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>&lsquo;&lsquo;The company has been working hard to extend its reach to every field&rsquo;&rsquo;</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Shraddha Timilsina, CEO, Sastra Creations Pvt Ltd" src="/userfiles/images/cs8(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
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						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Shraddha Timilsina</strong></div>
									<div>
										CEO</div>
									<div>
										Sastra Creations Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sastra Creations Pvt Ltd is an IT startup company that provides wide range of services including web design and development, hosting, graphics designing, mobile app and software development. The company was founded in 2012 by two IT students Shraddha Timilsina and Binamra Dhakal in their pursuit of utilising their IT skills. &quot;We perceived that IT sector has great opportunities and possibilities in Nepal and hence decided to work and build our own IT business,&rdquo; Timilsina, who presently acts as the CEO of the company, said.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						In the two years of its establishment, the company had several major turning points. Launching the Nation Wide Web Competition 2013in partnership with the Computer Association of Nepal (CAN), on 2nd January, 2013 provided it with much needed publicity and helped gain reputation as an authority in the IT sector. &quot;It helped talented and skilled participants in acquiring better knowledge about opportunities in web design and development. It helped us to grow at the national level,&rdquo; Timilsina said. Next to it, the company provided IT support for conducting online election of Nepal Medical Council online. Launching its own range of software &ndash; school software and Catreen management software &ndash; in September 2014 provided it much impetus for being included in the top 20 IT startup companies by the ICT magazine.</div>
					<div>
						&nbsp;</div>
					<div>
						Software and websites sales has been major source of the company&rsquo;s income and investment. It claims that its annual income has grown about three times from 2012 to 2014 with current annual turnover resting at Rs 12 lakh. It has provided employment opportunities to more than 10 youths in 2 years.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The Company has been able to sustain and grow on its own due to the total dedication of its founders and employees. The success, however, was not easy. It has faced its share of financial and operational obstacles and challenges in the first few months of establishment. Timilsina thinks that lack of proper system and knowledge about IT and load shedding are the major problems faced by them. Reflecting on her experience, Timilsina said that it is hard to acquire big projects or partnership with bigger organizations in lack of personal links with them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						For any business, Timilsina thinks that market is important. She claims that taking business online just provides any business with the market. It is not possible to promote business without going online and it is time efficient if you are using digital marketing tools including software to run a business, she claims. The company perceives each and every sector including agriculture, entertainment, ecommerce, restaurants and hotels, travel agencies and any other business to be its potential client.<strong>&nbsp;(By Rashika Pokharel)</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<strong><span style="font-size: 16px;">&ldquo;We are working on making our technology strong and making it securer&rdquo;</span></strong></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt=" Bimal Maharjan, CEO, 11Beep" src="/userfiles/images/cs9(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Bimal Maharjan</strong></div>
									<div>
										CEO, 11Beep</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						11Beep is startup company, which since recently have been gaining popularity as a social network that provides platform to individuals to enjoy unrestrained personal freedom of expression.11Beep is a network built specially for mobilephones that doesn&rsquo;t keep any digital history. It lets you share freely what is on your mind with your friends without worrying about any digital footprint.</div>
					<div>
						&nbsp;</div>
					<div>
						11Beep came into operation on November 2013 following Bimal Maharjan&rsquo;s, the CEO of the company, competitive analysis of the market to find the company&rsquo;s startup idea. Maharjan had conceived the idea after analysing various posts on different social networking sites.</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;People only share trendy thoughts on social networking sites but hesitate to share thoughts that might be considered or taken in negative light by their social networking peers. 11Beep provides anonymity to individuals and emancipates them from the fear of being identified thereby enabling them to share their thoughts spontaneously without any restraints, says Maharjan, CEO of 11Beep. Thus this network paves way for individuals to share their thoughts, whatever their nature, whenever it strikes to their mind. Besides anonymity, this network has another cool feature of deleting all the post after certain time frame. This feature enables that the individual does not leave digital footprint behind for others to trace. Fundamentally, it is a social network with quite higher levelof security.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has been running by five-member team &ndash; with only CEO committing his full time to it and others helping him out on part time basis. 11Beep is preparing to launch another product in the market but before launching it, its been focusing on making the existing product more user friendly and winning user confidence.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;Our startup is based on the idea of a loosing algorithm and is designed for maintaining anonymity. We don&#39;t want to go wrong anywhere. We are working on making our technology strong and making it securer. We have required technical competencies and expertise and are very happy with our work and knowing that we are on the track of gaining our objective,&quot; says Maharjan.</div>
					<div>
						&nbsp;</div>
					<div>
						The company is sustaining through its own resources and has not got any support from government. &quot;Fortunately I don&#39;t have to pay my team so that is a relief .We don&#39;t require huge investment and our biggest need at the moment is human capital, we are investing on our own so right now we don&#39;t feel the need for funding but in the next phase, we will need huge investment,&quot; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						As a part of its aim, Beep11 believes in building something which people can make good use of. But being a start up it has its own woes too. &quot;Our society in not built to encourage tech entrepreneurs and as in the initial phase they don&rsquo;t earn much to sustain, it is very difficult for startups to establish in Nepal,&rdquo; Maharjan said.&nbsp;</div>
					<div>
						<strong>(By Rashika Pokharel)</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Sasto Deal: Providing the Best Deals</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Amun Thapa, CEO, Sasto Deal" src="/userfiles/images/cs0(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amun Thapa</strong></div>
									<div>
										CEO, Sasto Deal</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sasto Deal (SD) is one of the prominent rising stars of online retail shops in Nepal. The company was started almost 3 years ago with the aim of switching offline Nepali market to online and providing best deals. Upon returning from the US, Amun Thapa, SD&rsquo;s CEO, decided to do some business and began to search for ideas that would sell. It did not take long to Amun to realize that Nepali people had been wasting some really useful hours in shopping. &ldquo;I found people lingering to different places in search of different items. I asked myself if everyone was doing the same and the answer was yes. I was compelled to seek for a solution and I knew there was one. However, the sad part was that no one was doing anything about it,&rdquo; says Thapa. He realized that he could save people this hours by taking it online and making it available on their desktop or mobile phones. The idea was simple but he needed people who could translate his vision into reality. This brought him in touch with his schoolmates who were pursuing their degree in the IT field. They worked around the idea and gave birth to Sasto Deal. The initial phase was a bumpy ride as they had problems in making deals. It was difficult for them to make people believe in online business. &ldquo;People laughed at our ideas and we had to go out to the market begging for deals. But now, the same people are begging us to feature their products,&rdquo; says Thapa proudly. The company believes that the initial phase was difficult because online business was a new term to this part of the world and also because the rulers find it difficult to trust the new comers. The company believes that they are grown large.&ldquo;I would probably say the growth rate is over 100% right now, this is not only due to the fact that the company is outperforming but also due to the fact that we are in the e-commerce business and with every single product, our chances for growth increases,&rdquo; Avash K.C, CO-CEO of Sasto Deal, said.</div>
					<div style="text-align: right;">
						<strong>(By Angila Sharma)</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Himalayan Wonders: A Travel Startup with a Difference</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Nishes Thapa, Operations Manager, Himalayan Wonders" src="/userfiles/images/cs01.jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 206px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Nishes Thapa</strong></div>
									<div>
										Operations Manager</div>
									<div>
										Himalayan Wonders</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						The Internet has changed the way companies do their business and tourism sector is no exception to it. Himalayan Wonders, a Nepali travel startup, also harnessed the latest developments made in the field of online technology and took all its business online. Founded in 2013, the company provides affordable tours and trekking packages to Nepal. This online portal is packed with informative contents and pictures and travellers can choose and book any tour package online through any Internet enabled device such as smartphone and tablet from anywhere in the world.Himalayan Wonders came into existence when an American geologist Dr David Urmann and his Brazilian friend Pablo Souto Maior suggested Nishes Thapato start his own company. Dr Urmann has been visiting Nepal since the mid-90s&#39; for research on climate change and in credited for establishing the company. Dr. Urmann and another Co-founder, Maior, promote the startup in the global market while Thapa heads the Nepal operations of the company. The company has been receiving overwhelming response from travellers and trekkers around the globe. Within a year it has received five-star rating from Trip Advisor and many positive reviews from its satisfied customers. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Ever since the inception of the company, we never looked back&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did your business idea germinate?</strong></div>
					<div>
						I was born in Tripureshwor VDC of Dhading and tourists visiting Ganesh Himal pass through it. Those tourists always fascinated me and it is during these days that my interest of doing something in tourism industry developed. In 1998 I came to Kathmandu and started working in the tourism sector. I worked for different people and gained industry experience that one must have in order to thrive in this booming industry. Dr David Urmann, an American friend of mine, suggested me to establish my own travel company. With his and his Brazilian friend Pablo Souto Maior constant help, we established the company in 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What is the growth rate of your company?</strong></div>
					<div>
						Since its inception, we have never looked back. Our business is growing every year. With the end of the decade long insurgency, the tourism and hospitality industry has been prospering. If this continues, I am hopeful of maintaining the existing healthy growth rate.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						We have not faced major problems till date. Our business so far has been smooth with tremendous support from staffs, friends and families. However, events such as general strikes and political instability in the country, have always posed to be a big threat. In the past, we have suffered financial losses due to such condition.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How are you managing investments?</strong></div>
					<div>
						We received bank loans to meet our initial investment requirements. In due course of time as the company started to grow, I borrowed money from friends and even used my personal savings to make further investment. We keep track of every penny that goes out as expenditure and comes in as earning. We keep our books up-to-date and this has become the success mantra of the company.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						We have not received any help from the government. &nbsp;If government agencies show interest in us, we would be glad to work together for the growth of this industry. Trekking Agencies Association of Nepal (TAAN) has provided us substantial help in promoting our business at the international level.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
				<div>
					&nbsp;</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
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			'created' => '2014-12-23',
			'modified' => '2015-06-01',
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			'description' => 'The startup scene in Nepal has changed significantly over the last five–seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.',
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			'title' => 'Unlocking Nepal's Growth Prospect',
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			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&nbsp;--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	&lsquo;Nepal does have natural resources. They are of course our growth potentials but not necessarily the key element needed for our future economic growth. The key element is human resource; the brainpower, creativity of the people, entrepreneurship and innovation. If we can unlock our human potential, if we can unlock entrepreneurship and innovation which will make use of the natural resources that Nepal has, then our growth potential will be unlocked; we will become a rich country.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Thus spoke Finance Minister Dr Ram Sharan Mahat, the chief guest of the second edition of the Asian Paints NewBiz Business Conclave &amp; Awards, organized by New Business Age Pvt Ltd at Hotel Soaltee Crowne Plaza on September 11.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(5).jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(2).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 397px;" />Investing in Human Resource</strong></div>
<div>
	The remarks of Dr Mahat, a six-time finance minister, are a clear departure from the traditional belief that natural resources are a must for the economic growth of any country. The appropriate use of the available natural resources is necessary, the Finance Minister said, adding, however, that the country&rsquo;s economic development is possible through the use of brainpower, creativity, entrepreneurship and innovation. He cited examples of Japan, Hong Kong, Taiwan and South Korea which have achieved fast economic growth despite having practically very little natural resource.</div>
<div>
	&nbsp;</div>
<div>
	Deependra Bahadur Kshetry, former vice-chairman of the National Planning Commission (NPC), who too attended the Conclave, agrees with the finance minister. &ldquo;We need more skilled and trained human resource, creativity and innovation in business and entrepreneurship to exploit our abundant natural resource, which gives us a comparative advantage. However, the endowment of natural resource alone is not enough. This is what the finance minister means. And this is true as well,&rdquo; said Kshetry, while talking to New Business Age after the conclusion of the Conclave.</div>
<div>
	&nbsp;</div>
<div>
	Kshetry says the government should invest more in developing the country&rsquo;s human resources because it will help build the national capacity. &ldquo;In simpler terms, it means investing more in education and skill-oriented training. Investment in human resource will help unlock our growth prospects,&rdquo; he added.</div>
<div>
	&nbsp;</div>
<div>
	To invest in human resource development is to compete with investment in infrastructure and other social sectors. Here, the government has harder choices to make as it cannot choose one sector over the other as almost all sectors in Nepal need investment, and huge ones, for the matter. So, according to economists and development experts, the government will do well to have a well-designed national development plan, which will clearly spell out our national priorities. &ldquo;It will help attract international support as well. Then it will be easier for the government to decide in which areas to use domestic resources and in which areas external resources,&rdquo; say Kshetri.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Managing Director of Jade Consult, Bkesh Pradhanga, another speaker of the Conclave, echoed similar sentiments. &ldquo;The government should mobilize our human resource properly. For this, the government should invest in higher education of the country&rsquo;s workforce and this should be the primary focus,&rdquo; he opined. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 604px;" />Focus on Three &lsquo;I&rsquo;s</strong></div>
<div>
	Our development priorities should not miss the three &lsquo;I&rsquo;s &ndash; infrastructure, investment and inclusion &ndash; according to Johannes Zutt, World Bank country director for Nepal and Bangladesh. Zutt, who was also one of the speakers of the Conclave, clearly said that the three &lsquo;I&rsquo;s should be Nepal&rsquo;s top priority for now if the country is to achieve fast economic growth.</div>
<div>
	&nbsp;</div>
<div>
	On the investment front, the level of foreign investment has been low. According to the Investment Board, the total amount of foreign investment in 2012 which was declared the Investment Year was USD 62 million. It went up in 2013 to USD 208 million. In 2014 so far, it is USD 130 million. Domestic investment, too, hasn&rsquo;t been growing at the expected rate. &ldquo;Nepal is investing below the rate of investment needed to achieve a double digit growth. There is actually money available in Nepal for higher investment, but it isn&rsquo;t happening. The business community complains about access to finance, regulatory burdens and labour costs. These are the problems existent is South Asia but it is debilitating in Nepal,&rdquo; observed Zutt.</div>
<div>
	&nbsp;</div>
<div>
	But why has large scale investment not come to Nepal? Pradhananga answers, &ldquo;It is because of political instability, lack of policy predictability, and industrial disputes that have caused the closure of companies like Surya Nepal in the recent past.&rdquo; He added that Nepal immediately needs an investment of USD 15 billion for various projects that are ready for implementation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;For private investment to come, we need to create more enabling environment. This is why we have initiated some new incentives to lure private investment from this year&rsquo;s budget, Dr Mahat said, &ldquo;In the hydropower sector, for example, we have announced income tax exemption for the next ten years and fifty percent tax rebate for another five years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Zutt opined that Nepal is caught in a vicious cycle of investment and infrastructure. &ldquo;Nepal doesn&rsquo;t have high enough levels of investment in infrastructure that is necessary for businesses to succeed and because it doesn&rsquo;t have that infrastructure, it is not getting the investment,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Pradhananga suggested to the government to focus on infrastructure development for the next one decade. He also advised to change old laws and policies and introduce new ones to attract private investment. &ldquo;The Hydropower Policy 2001 and Foreign Investment and Technology Transfer Act 1992, to give a few examples, are quite old. The aim of these laws and policies is to attract FDI in the country. But we haven&rsquo;t been able to make them timely and updated. This has negatively affected our development efforts,&rdquo; said Pradhananga. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Hydro Hopes</strong></div>
<div>
	All the speakers of the Conclave agreed that hydropower has great potential in Nepal. &ldquo;We are rich in water resource. We have huge hydropower potential. We can be the power house of clean energy in South Asia,&rdquo; said Dr Mahat.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But the reality is different from the rhetoric. Nepal has hardly tapped one percent of its total hydropower potential. So far, the country has been able to produce only about 750 MW of hydroelectricity though the total hydropower potential of the country is said to be over 80,000 MW. That means one of the sectors where Nepal&rsquo;s growth prospects lie is the hydropower sector. Over half a dozen projects that are together expected to produce more than 5,000 MW of hydroelectricity are in advanced stage of development (see box). The government&rsquo;s claim to do away with load-shedding over the next three-four years is based on these projects.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In Nepal, hydropower is one such sector of investment which can bring about a positive change in the entire econom</div>
<div>
	&ldquo;If the PDA [project development agreement] with the Upper Karnali hydropower project is signed over the next few days or weeks, then it will be a game changer. It will lead to the signing of PDA with half a dozen other major hydropower projects,&rdquo; said Dr Mahat.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs4(4).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 231px;" />Nepal&rsquo;s Strategic Location</strong></div>
<div>
	The speakers of the Conclave also said that Nepal&rsquo;s geographic location between China and India, two rapidly growing economies of the world, provides the Himalayan nation a great opportunity for economic growth. &ldquo;Nepal&rsquo;s growth prospects also lie in the fact that it is located between China and India, two of the fastest growing economies of the world. If Nepal can establish itself a trading partner between China and India, it will greatly help Nepal&rsquo;s economic growth,&rdquo; said Zutt.</div>
<div>
	&nbsp;</div>
<div>
	It is worth mentioning here that the annual trade volume between India and China has already crossed USD 70 billion and the two countries have planned to increase it to USD 100 billion by 2015. If Nepal can build roads, highways and rail links to connect its northern border with southern border, then it can effectively work as a trading partner between the two Asian giants, according to economists and development experts. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&lsquo;2015: Nepal&rsquo;s critical juncture&rsquo;</strong></div>
<div>
	Addressing the Conclave, Dr Swarnim Wagle, member of National Planning Commission said that the year 2015 will be very crucial for Nepal as the country&rsquo;s new constitution is expected to be promulgated in 2015. Once, the constitution is ready, Dr Wagle said, Nepal&rsquo;s political transition would be complete and then the country&rsquo;s economy can take off. &nbsp;&ldquo;We are few centuries behind other countries but I think that we can really make the year 2015 our critical juncture and really expedite our path into modernity,&rdquo; said Wagle.</div>',
			'published' => true,
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			'description' => 'Nepal needs to invest in its human resource and exploit its natural resource to the fullest to unlock its growth prospects.',
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		'Article' => array(
			'id' => '2794',
			'article_category_id' => '40',
			'title' => '2nd Newbiz Business Conclave & Awards 2014',
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			'content' => '<p>
	&nbsp;</p>
<p>
	<span style="font-size:14px;"><a href="http://www.abhiyan.com.np/article-conclav_27bhadau2071_presentation">Presentations of some speakers in the conclave</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_25bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड वितरण शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड कार्यक्रम शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_conclave">न्यूबिज कन्क्लेभ एण्ड अवार्डको दोस्रो संस्करण आज</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-BSchoolAward2014">न्यू विज् विजनेश स्कूल अवार्ड २०१४</a></span></p>',
			'published' => true,
			'created' => '2014-09-12',
			'modified' => '2014-10-10',
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			'description' => '2nd Newbiz Business Conclave & Awards 2014',
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			'title' => 'Nepal Strives For DC Degree: What Is In Store For Private Sector?',
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			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
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<div>
	<strong>--By Akhilesh Tripathi</strong></div>
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	&nbsp;</div>
<div>
	If everything goes as planned by the government, Nepal will graduate from the Least Developed Country (LDC) status over the next eight years (i.e. by 2022) to a Developing Country (DC) status. Even if that target is not achieved by the specified time, the process that has been initiated already with the start of the current three-year plan (FY 2014 to FY 2016) has a lot in store for the private sector as opportunities, say analysts.&nbsp;</div>
<div>
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<div>
	Foremost among such analysts is Dr Govind Raj Pokharel, Vice Chairman of National Planning Commission (NPC). He says, &ldquo;Graduation from the LDC status is a Herculean task but it is achievable if the government and the private sector work together and there is strong support of the donor community. We have pinned a lot of hope on the private sector.&rdquo;</div>
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	Dr Pokharel claims that the next eight years over which Nepal will try its best to graduate from the LDC status to DC status will be full of business opportunities for the private sector. &ldquo;We have expected a huge investment from the private sector. We know that the private sector will not invest without seeing opportunities first. Still, we hope that such investment will come from the private sector because there will indeed be opportunities,&rdquo; he says.&nbsp;</div>
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	<img alt="" src="/userfiles/images/cs1(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 485px;" />According to economists as well as the country&rsquo;s graduation strategists, there will be business opportunities in all major sectors - agriculture, manufacturing, services, hydropower, tourism, infrastructure development etc. &ldquo;These are the major areas where the private sector will find ample business opportunities provided that the government creates an enabling environment. But there will be opportunities in other sectors as well if there is an enabling environment,&rdquo; shares Dr Hemanta Dawadi, Director General of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).</div>
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<div>
	It seems the government is keen about creating those opportunities for the private sector through change in policy in line with the development targets which will have to be achieved over the next eight years for Nepal to become a developing country. The good thing is this has started with the recently announced budget for the new fiscal year. &ldquo;The budget is also poised to graduate Nepal from a Least Developed Country status as defined by the UN,&rdquo; said Finance Minister Dr Ram Sharan Mahat while presenting the budget on July 13.</div>
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	In his budget speech, Dr Mahat said that the country needs to invest minimum 30 percent of GDP in fixed capital formation to earn the identity of a developing country in the next eight years. &ldquo;However, the average investment of past three years has been only 22 percent,&rdquo; he noted, &ldquo;To bridge this gap of eight percentage point in fixed capital formation, additional Rs 160.00 billion should be invested in the coming Fiscal Year alone.&rdquo;&nbsp;</div>
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<div>
	The Finance Minister proclaimed that various reform measures will be carried out in this fiscal year in order to increase domestic and external investment and facilitation. He said additional reforms and revisions will be carried out by evaluating the practices and experiences of policies, regulations and laws regarding industry, trade, energy, banking and financial sector that were started back in 1990&#39;s decade, adding that the next (14th) Periodic Plan will have a clear roadmap for transforming the country into developing country status within coming eight years.&nbsp;</div>
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	To create the right opportunities for the private sector, the budget has also stated to amend the Companies Act, Competition Promotion and Market Protection Act and Insolvency Act. This will simplify the process of company establishment, renewal and liquidation. Similarly, the budget talks about amending the provisions of existing Debt and Guarantee Act in order to attract foreign investment in mega projects and viable sectors, where the domestic investment is insufficient.</div>
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	&ldquo;New laws regarding industrial enterprise and foreign investment and technology transfer will be formulated. Foreign Investment Policy and Industrial and Intellectual Property Policy will be formulated. Bill regarding Special Economic Zone will be tabled in Parliament. Procedures regarding the establishment of large industries under foreign investment will be simplified,&rdquo; said the Finance Minister.</div>
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	<strong><img alt="" src="/userfiles/images/cs2(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 468px;" />Opportunities in Energy Sector</strong></div>
<div>
	The government plans to end load-shedding over the next three years. In this period, four major public sector-funded projects namely Upper Tamakoshi, Kulekhani II, Chameliya and Upper Trishuli hydroelectric projects will enter production phase and will together generate 560 MW of electricity. Similarly, 42 private sector-funded hydroelectric projects will generate 628 MW of electricity in this period. Similarly, the government will start the construction of other projects such as Tamakoshi V, Madi Khola, Maiwa Khola hydroelectric projects including Tanahu and Rahughat projects. Similarly, according to the budget, the construction of Kabeli Hydroelectric Project will be started in Public-Private-Partnership model.</div>
<div>
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<div>
	&ldquo;The private sector will be invited to carry out various works related to these energy projects. That clearly means business opportunity,&rdquo; explains Dr Arjun Karki, International Coordinator of LDC Watch, &ldquo;Several other bigger projects will be initiated over the next eight years which means there will be good business opportunities for the private sector.&rdquo;</div>
<div>
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<div>
	In order to complete the projects on time, the budget has announced to provide full exemption on income tax for the first ten years and 50 percent exemption for additional five years to those producers who generate and connect electricity to national grid and export it within FY 2022/23. &ldquo;I have made an arrangement to provide a lump sum grant of Rs 5 million per MW of electricity to those producers who generate and connect the generated electricity to national grid. I have also made provision of an additional 10 percent of such grant to those producers who generate and connect the generated electricity to national grid within FY 2017/18,&rdquo; says Dr Mahat. &nbsp;&nbsp;</div>
<div>
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<div>
	<strong>Opportunities in Agriculture</strong></div>
<div>
	The government plans to modernise, diversify and commercialize the agriculture sector over the next one decade. This is reflected in the newly announced budget as well. The budget targets to keep interest rate on six percent on loans to be provided by the commercial banks for modern farming, livestock and poultry farming, medicinal plants, vegetables and horticulture, dairy business, aquaculture, agro storage, cold storage, slaughter house and meat-related business. This provision, the government thinks, will also help address the problem of unemployment and youth migration from rural areas.</div>
<div>
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	Similarly, the budget has provisioned up to 50 percent subsidy in the loan interest taken in order to develop land and mechanize farming for private groups which are involved in the commercialization and mechanization of farming by integrating 10 hectares land in mountain and 20 hectares land in Terai and up to 75 percent interest grant for the cooperatives of marginalized and landless farmers.</div>
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	Similarly, the construction of the main as well as branch canals of major irrigation projects such as Sikta, Babai, Mahakali and Rani Jamara Kulariya etc will be given continuity. It is the private sector that will be awarded contracts to carry out these works which clearly means good business opportunities for the private sector. Similarly, the tunnel construction work of Bheri Babai Multipurpose Diversion Project will also be initiated in this fiscal year.&nbsp;</div>
<div>
	&ldquo;The government wants significant private sector investment in agriculture. For this it is ready to create the environment,&rdquo; remarks Dr Pokharel.</div>
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<div>
	<strong><img alt="" src="/userfiles/images/cs3(6).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 434px;" />Opportunities in Tourism</strong></div>
<div>
	Tourism is going to be another sector of good business opportunities for the private sector. The government, through the latest national budget, has already announced to provide income tax exemption for five years to the industries established with an investment of more than Rs 2 billion in the tourism sector. Similarly, aviation companies, too, will get such income tax exemption. They will further get 50 percent income tax exemption for subsequent three years, according to the budget.</div>
<div>
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	&ldquo;This income tax exemption is aimed at promoting the establishment of good hotels and resorts at the major tourist destinations and other places of the country. This is a clear opportunity for the private sector,&rdquo; explains Dr Pokharel.</div>
<div>
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<div>
	<strong>Opportunities in Infrastructure Development</strong></div>
<div>
	Nepal has to do a lot in infrastructure development so as to increase accessibility, facilitate service delivery and enhance cost effectiveness. For example, the government wants to construct at least one road on multi-year contract basis in each electoral constituency where there is no year-round transportation. Similarly, the construction work of the Kathmandu-Terai Fast Track will be started in this fiscal year.&nbsp;</div>
<div>
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<div>
	The government plans to open the track of several new roads, black-top and expand several existing roads and build hundreds of bridges across the country. The government has allocated more than Rs 14.3 billion for this purpose in the current fiscal year alone. Similarly, the new budget has allocated Rs 4.5 billion for the maintenance of 16,788 kilometres of strategic and local roads including their regular maintenance, routine maintenance, periodic maintenance, and rehabilitation and urgent maintenance.</div>
<div>
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<div>
	Similarly, according to the new budget, the government will carry out urban infrastructure development programmes in cities like Biratnagar, Birgunj, Butwal, Dharan, Janakpur and Nepalgunj including the development of 10 Urban Corridors with eight ongoing and two new.</div>
<div>
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<div>
	&ldquo;The national budgets to be announced in the fiscal years to come will have to continue such infrastructure development programmes, if Nepal is to achieve the DC status by 2022. So, there is no dearth of business opportunities for the private sector,&rdquo; says Dr Pokharel. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;&nbsp;</div>
<div>
	<strong>Investment Requirement</strong></div>
<div>
	According to NPC&rsquo;s estimates, the government or the public sector will have to invest Rs 3,300 billion and the private sector will have to invest double the amount &ndash; a whopping Rs 6,600 billion -by 2022 if Nepal is to achieve the status of a developing country by then. But will such a huge investment really come from the private sector?</div>
<div>
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<div>
	&ldquo;We hope it will because the country is now headed towards political stability and legal and economic reforms are in the pipeline. That means the next eight years are going to be a wonderful business opportunity for the private sector,&rdquo; assures Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	According to NPC&rsquo;s investment plan, Nepal will need a total investment of Rs 1013.91 billion in the agriculture sector by FY 2021/22 to achieve the graduation target. Two-thirds of this investment, i.e. around Rs 675.94 billion is expected from the private sector. The agriculture sector includes forestry and fishing as its subsectors.&nbsp;</div>
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	&ldquo;The private sector is expected to invest in the modernization of agriculture and increase productivity, replace agricultural imports and promote exports. The government is expected to make this easier through policy and legal reforms, if necessary,&rdquo; says Dr Pokharel.</div>
<div>
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<div>
	Similarly, the industrial sector which includes mining and quarrying, manufacturing; electricity, gas and water, and construction will require a total investment of Rs 1807.87 billion. Of this amount, Rs 1205.24 is expected from the private sector. &ldquo;So there is a huge opportunity for the private sector in the industrial sector as well,&rdquo; thinks former NPC Vice Chairman Prithvi Raj Ligal.</div>
<div>
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<div>
	Likewise, according to the NPC plan, the service sector which comprises wholesale and retail trade; hotels and restaurants; transport, storage and communications; financial intermediation; real estate, renting and business activities; public administration and defence; education; health and social work; and other community, social and personal service activities will require a total investment of Rs 6874.98 billion &ndash; Rs 4583.32 billion from the private sector and Rs 2291.66 billion from the public sector.</div>
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	<img alt="" src="/userfiles/images/cs4(4).jpg" style="width: 550px; height: 110px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
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<div>
	<strong>Criteria for Graduation&nbsp;</strong></div>
<div>
	There are basically three criteria to graduate from the LDC status &ndash; Human Assets Index (HAI), Economic Vulnerability Index (EVI) and GNI per capita. HAI is about the stock of the human capital of the country and comprises the nutrition status of the population, mortality rate of children aged five or under, and gross secondary school enrolment ratio and adult literacy rate. EVI reflects the country&rsquo;s vulnerability to exogenous shocks and comprises of population size; remoteness; merchandise export concentration; share of agriculture, forestry and fisheries in GDP; share of population living in low elevated coastal zones; instability in export of goods and services; victims of natural disasters; and instability in agricultural production.&nbsp;</div>
<div>
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<div>
	Likewise, GNI per capita is related with the country&rsquo;s income-generating capacity and is based on a three-year average estimate of the country&rsquo;s per capita GNI (World Bank Atlas Method). After determining threshold level for each of the criteria every three years, the United Nations Committee for Development Policy (CDP) reviews the progress made by LDCs and if the country has been eligible at two successive triennial reviews, it recommends a country for graduation from the LDC category. At least two of the three criteria or GNI per capita twice higher than the threshold should be met in order to be eligible for graduation.</div>
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	&ldquo;Among the three criteria for LDC assessment, Nepal has already met the EVI threshold level and is very close to meeting the HAI criteria; however, there is a huge gap between the GNI threshold level and Nepal&rsquo;s present status. The role of the private sector is going to be very important to meet this criterion,&rdquo; observes Dr Karki.&nbsp;</div>
<div>
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<div>
	<strong>Increasing Productive Capacity</strong></div>
<div>
	Karki is of the opinion that Nepal will have to start working seriously to enhance its productive capacity significantly to achieve the GNI per capita threshold. &ldquo;The country is facing problems like huge trade deficits, high underemployment rate, income inequality and low quality of life,&rdquo; says Dr Karki, &ldquo;Factors including subsistence agriculture, deteriorated industrial environment, power shortage etc., have led to a low level of economic growth and development. Therefore, there exists a great challenge to sustain the achievements and narrow down the gaps between GNI threshold level and the current status.&rdquo;&nbsp;</div>
<div>
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	Our GNI per capita has improved over the past few years but we still need to accelerate it, he adds. Karki&rsquo;s observation points to two important areas where private sector can come forward &ndash; commercial agriculture and power generation. Fortunately, these are the two major areas of emphasis in the budget presented at the parliament recently. If the government really implements the policies and budget allocations announced in the budget speech, the privates sector can make good money while contributing to this graduation of the country.&nbsp;</div>
<div>
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	Ligal lists more areas where the private sector has such opportunities. &ldquo;Productive capacity has basically four components &ndash; infrastructure; energy; science, technology and innovation; and private sector development,&rdquo; says Ligal, adding &ldquo;The role of the private sector is very important in increasing the country&rsquo;s productive capacity by investing in infrastructure development, energy exploitation and by making technological innovations.&rdquo;</div>
<div>
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<div>
	&ldquo;Although Nepal has already met the EVI criterion, it still has to either increase its GNI per capita by US$ 770 or the HAI score by 6.17 before 2015 to be eligible for consideration for graduation. This is because eligibility conditions should be fulfilled during two successive triennial reviews, and the CDP will now review the progress only in 2015,&rdquo; Chandan Sapkota, an economist with the Asian Development Bank, Nepal, says, &ldquo;After the review, Nepal will have to sustain the progress through 2018, the next triennial review, only after which the CDP will recommend for graduation.&rdquo;</div>
<div>
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<div>
	This means Nepal has good length of time to fulfil the criteria. But effective intervention from the government is a must. And the NPC has recognised this clearly. &nbsp;&ldquo;If the past trend is of any guide to future, it will be difficult for Nepal to meet the projected threshold of US$ 1,502 even by 2021, unless effective policy interventions are in place. Vigorous efforts are needed to achieve the projected GNI per capita of US $ 2,094 in 2021 so that the economy is on the way to achieve the estimated threshold by 2021,&rdquo; reads NPC&rsquo;s Approach Paper to Graduation from LDC by 2022.</div>
<div>
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<div>
	According to Ligal, the private sector &ndash; both domestic and foreign &ndash; will have to invest heavily in sectors like physical infrastructure, hydropower, tourism and agriculture over the next eight years. &ldquo;But the private sector will not make such a huge investment under the present circumstances. For private sector investment to come, the government will have to create conducive environment through legal, administrative and policy reforms. If this happens, private sector will come forward as the Graduation process would offer lucrative business opportunities,&rdquo; he says, adding that Nepal needs more aggressive economic reforms in the near future.</div>
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	<img alt="" src="/userfiles/images/cs5.JPG" style="width: 550px; height: 430px; margin-left: 10px; margin-right: 10px;" /></div>
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<div>
	<strong>Partnership with Private Sector</strong></div>
<div>
	The Istanbul Programme of Action, which aims to at least halve the number of LDCsby 2020, too, has laid great emphasis on public-private partnership. It says, &ldquo;Partnerships with the private sector play an important role for promoting entrepreneurship, generating employment and investment, increasing the revenue potential, developing new technologies and enabling high, sustained, inclusive and equitable economic growth in least developed countries.&rdquo; In the present circumstances, when the private sector is complaining of lack of enough conducive environment for investment, PPP model can be a good alternative so that the private sector can feel secure as the government too will have stake in such projects. &nbsp;</div>
<div>
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	Economists say that investment in the industrial sector is a must to increase the economic productivity. &ldquo;Productivity and job opportunities in the service sector have remained low. And it consists of more informal sectors,&rdquo; observes Shanker Sharma, former vice-chairman of NPC, &ldquo;We need more manufacturing industries. If there is political stability, right policies in place and adequate legal reforms, then investment in the manufacturing sector will come.&rdquo;</div>
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<div>
	Karki, too, stresses on the need for public-private partnership (PPP) model of development. &ldquo;The PPP model is going to be very helpful in those areas of investment where the private sector alone is a bit hesitant to enter,&rdquo; he says. If the government comes forward to invest in such sectors, the private sector will follow suit, he adds.</div>
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<div>
	Dr Dawadi is also of the opinion that the government alone cannot take the country out of the LDC status to the developing country status. &ldquo;To be successful, the graduation strategy will require a full and uninterrupted understanding, support and cooperation from the private sector,&rdquo; he opines.</div>
<div>
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<div>
	True that both economists and development activists are right in their view that this target spelt out in the &nbsp;approach paper to the latest three-year plan (FY 2014 to FY 2016), is highly ambitious. But the government has its own basis for its optimism.</div>
<div>
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<div>
	The doubt of the economists and activists is based on the fact that the previous three-year plan (FY 2010 to FY 2013) had aimed such graduation by 2030. But the government officials say they pre-poned the target by eight years looking at the rapid progress in the recent years. They particularly cite increase in the country&rsquo;s per capita gross national income (GNI), decreased poverty level, and significant progress on major social indicators such as mortality rates, school enrolment rates, life expectancy etc. Since the LDC category was brought in practice in the international development parlance in 1970, only four LDCs &nbsp;have graduated to DC status so far &ndash; Botswana (1994), Cape Verde (2007), Maldives (2011) and Samoa (January 2014). But the number of LDCs has almost doubled since then. It means graduation from the LDC status is not so easy. But development experts think that the goal is achievable if the public and private sectors of the country work together.&nbsp;</div>
<div>
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<div>
	When the economy grows and businesses thrive, the sky is the limit for the individual private sector operator. It means a large pool of resources, a larger market and a higher level of operation,&rdquo; Dr Dabwdi concludes, &ldquo;The opportunity will be for both new business creation as well as horizontal growth of existing businesses.&rdquo;</div>',
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			'description' => 'The role of the Nepali private sector is going to be very crucial if Nepal is to become a developing country by 2022, as planned by the government. It means large business opportunities await the private sector over the next eight years.',
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		'Article' => array(
			'id' => '2786',
			'article_category_id' => '40',
			'title' => 'Outbound FDI : Can Nepali Businesses Go Global?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
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	<div>
		<strong>--By Siromani Dhungana</strong></div>
	<div>
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	<div>
		<em><span style="font-size: 16px;">A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still in force in Nepal which stops Nepali citizens from investing in a foreign country. The existing fear is that the country&rsquo;s economy will suffer if Nepal allows outbound FDI. But many evidences suggest that despite this law, Nepali people are investing in different other countries through one channel or other. And such evidences are becoming more visible. Policymakers are in dilemma while the business community is also largely divided on the issue. However, the debate on legitimatizing outbound FDI is heating up in recent times. What impact will it have on a country like Nepal where the national economy is not strong? Will it create BoP deficit as many fear? What happens if all businessmen start to set up industries in foreign countries which have better policy stability and lesser labour problem? New Business Age tries to analyse some of these major concerns:</span></em></div>
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		It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.</div>
	<div>
		&nbsp;</div>
	<div>
		However, zero capital mobility in and out of a country cannot be expected. Many evidences suggest that the investment is going abroad through one channel or the other. Any state should allow aspiring businessmen to invest anywhere globally because this will help the currency get its true value recognized, Dr Chiranjibi Nepal, Economic Advisor to the Prime Minister claims. &ldquo;Investment is a must to increase the value of the money. The government should open up avenue for outward FDI to acknowledge this fact.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Evidences also show that the flow of money cannot be barricaded by any laws or policies. For instance, Nepal, according to a report of Global Financial Integrity (GFI), lost a total of $ 8.01 billion between 2001 and 2010 due to illicit capital flight. It means that on an average, $ 801.4 million (Rs 70.39 billion) went out of Nepal annually during that period of almost a decade.&nbsp;</div>
	<div>
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		<img alt="" src="/userfiles/images/cs1(4).jpg" style="width: 550px; height: 163px; margin-left: 10px; margin-right: 10px;" /></div>
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	<div>
		GFI&rsquo;s another report entitled &lsquo;Illicit Financial Flows from the Least Developed Countries: 1990-2008&rsquo; had put Nepal&rsquo;s annual capital flight at $ 480.4 million. Based on the amount of capital flight, Nepal has been ranked 58th among 143 countries surveyed and sixth among the Least Developed Countries (LDCs) for exporting funds illegally.</div>
	<div>
		&nbsp;</div>
	<div>
		The report clearly points to the huge illegal financial flows from Nepal and it is high time that the government addresses this problem without making any further delays, Nepal opined. &ldquo;The government should legalize outward FDI to keep the record of outflow of financial transaction in the formal system,&rdquo; he said.</div>
	<div>
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							<span style="font-size: 14px;"><strong>Existing Laws Related to FDI</strong></span></div>
						<div>
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							<strong>Foreign Investment and Technology Transfer Act &ndash; 1992</strong></div>
						<div>
							Foreign Investment and Technology Transfer Act (FITTA) &ndash; 1992 &amp; Industrial Enterprises Act - 1992 are the two most important laws for the promotion of industries in Nepal. These two acts are highly encouraging acts for attracting FDI or Joint venture investments in Nepal.&nbsp;</div>
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							FITTA includes provisions related to facilities and concessions. This Act treats foreign investors as equals to local investors and provides them same incentives and facilities.</div>
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							The Act is also very positive on providing visa to foreign nationals. The Act has ensures 6 months non-tourist visa to a foreign national if he/she want to conduct survey, study or research with the objective of making investment in Nepal.&nbsp;</div>
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							After that if he or she makes investment or establishes an industry, the investor (along with the dependant family members) is granted business visa until the investment is retained. Similarly, residential visa is granted to a foreign investor and his family if s/he makes an investment of one hundred thousand US dollars in one business. All these are highly encouraging statements. However in actual practice, the investors face various problems, time and again.&nbsp;</div>
						<div>
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							FITTA and IEA also offer some fiscal incentives including income tax relief. But the amended Finance Act and New Income Tax Act have withdrawn all such incentives, which is considered a controversial decision. Several amendments to FITTA through the Finance Act of 2001 and the progress made in this regard helped the nation in its efforts to gain membership of WTO, SAFTA, and BIMSTEC, but these amendments too are not enough, say investors.</div>
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						<div>
							<strong>Industrial Enterprises Act - 1992</strong></div>
						<div>
							The IEA has &nbsp;one-window committee (OWC) provision, which is coordinated by the director general (DG) of Department of Industry (DoI) and has DGs of Customs, Inland Revenue, Value Added Tax (VAT) and Commerce as well as representatives from central bank, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the government.</div>
					</td>
				</tr>
			</tbody>
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	<div>
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	<div>
		<strong style="font-size: 14px;"><img alt="Dr Chiranjivi Nepal" src="/userfiles/images/cs2(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need: A Positive Beginning</strong></div>
	<div>
		Nepal&#39;s legal system begins from the word restriction, which, according to many, rightly articulates the government&rsquo;s mind-set. A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still effective in the country. The law was introduced to restrict Nepalis from investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		We need a fresh and positive beginning, economist and former chief secretary Dr Bimal Koirala told New Business Age. &ldquo;The government should reform existing laws to facilitate businessmen to invest in foreign countries instead of imposing restriction.&rdquo; The fear among policymakers is that what happens if businessmen do not bring back money to the country. And, the answer to this fear is to set up effective monitoring bodies that will keep record of every businessman who invests abroad, he suggested.&nbsp;</div>
	<div>
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	<div>
		Given the low trade volume of the country and frequent fluctuation in the Balance of Payment (BoP), some experts advise against allowing Nepali businessmen to invest abroad. Koirala slams such opinion claiming it to be an out-dated concept.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Times have changed and the government has to realize this fact. The government should understand and accept the new liberalized and globalized world and business scenario, Koirala opines.</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Act Restricting Investment Abroad, 2021BS (1964)</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							Article 3 Restriction on making investment abroad:&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							(1)<span class="Apple-tab-span" style="white-space: pre;"> </span>No one shall make any kind of investment abroad after the commencement of this Act.</div>
						<div>
							&nbsp;</div>
						<div>
							(2)<span class="Apple-tab-span" style="white-space: pre;"> </span>Notwithstanding anything contained in sub-section (1), in relation to any specific kind of investment, the Government of Nepal may, by a notification in the Nepal Gazette, grant exemption from the restriction set forth in that sub-section, and specify the kind, extent, period of the investment so exempted and other necessary terms pertaining thereto.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Past Initiatives</strong></span></div>
	<div>
		Nepal started systematic initiative of attracting FDI in 1981. The Sixth National Plan (1980/81-1984/85), for the first time, incorporated a policy for utilizing foreign capital and technology as a useful supplement. The Plan mentioned that foreign investment and technology was primarily required in large-scale industries and mineral industries. Since then, the government continued revising policies related to inward FDI. Foreign Investment and Technology Transfer Act was introduced in 1992 and amended in 1996 in line with open and liberal economic policies. But outward FDI-related provisions remained unchanged.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Recently, the government has started fresh initiative to review the policy. Foreign Investment Policy 2014 has been prepared and consultations with stakeholders are underway on it, according to Ministry of Industry. &nbsp;However, business community blames the government for not being proactive to introduce new policy. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Policies that Restrict Outward FDI</strong></span></div>
	<div>
		<strong>Act Restricting Investment Abroad, 2021(1964):</strong>&nbsp;This law, as its name suggests, restricts any Nepali citizen from investing outside of Nepal. While this may be an old Act, it is still valid in the country. It defines restricted investments as foreign securities, partnership with foreigners, foreign bank accounts, owning house and land in a foreign country and any foreign investment in cash or kind except as prescribed by the government. This law has severely affected outward FDI as Nepali citizens cannot freely invest outside the country. Despite a provision within the Act that leaves a space for aspirant businessmen to invest abroad by taking approval from the government, nobody has received such approval.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Foreign Exchange Regulation Act:&nbsp;</strong>This act does not allow Nepalis to open bank accounts in foreign countries if the money is earned in Nepal. Nepalis can open bank account abroad only if they earn money outside Nepal. But the account holder should inform Nepal Rastra Bank about the account.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Changing Times but Unchanged Laws</strong></span></div>
	<div>
		The existing laws were formulated at a time when entrepreneurship in Nepal was at a primitive stage and Nepali businessmen did not have sufficient capital and expertise to invest abroad, said Basudev Adhikari, Director of Nepal Rastra Bank.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepali business community has come a long way since 1964. &ldquo;For instance, now we have a Forbes-listed billionaire that shows that our businessmen have enough capital to invest in various sectors,&rdquo; said Adhikari. Competitiveness of Nepali business sector has tremendously increased over the last few years. Lawmakers should reform existing laws considering the changed scenario, he added. The prevailing laws have failed to prevent outflow of capital from Nepal anyway.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Anup Bahadur Malla" src="/userfiles/images/cs3(5).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need for Caution</strong></span></div>
	<div>
		Still the policy of allowing Nepalis to invest abroad cannot be introduced without caution. The most challenging job for the government is to set the ceiling for outward FDI, opined Anup Bahadur Malla, executive member of FNCCI. The government should not introduce any law haphazardly, he suggested. Meticulous studies are required even when formulating laws related to inward FDI, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		There are flaws in inward FDI policies as well which have created some adverse impact on the economy, according to him. Foreigners in Nepal are venturing into small businesses which have nominal contribution to the national economy, he argued. For instance, Chinese nationals, according to him, have been replacing Nepali small entrepreneurs from Thamel and other places but their contribution to the national economy and employment generation is negligible. From this, the government should learn that both inward and outward FDI can be harmful if laws are formulated without rigorous study, he claimed.</div>
	<div>
		&nbsp;</div>
	<div>
		Along with fixing ceiling, he claims identification of competitive sectors is the most challenging job for the government. It should initiate debate on maximum investment-ceiling limit on outward FDI, and identify the sectors where Nepalis can take competitive advantages, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Defining FDI</strong></span></div>
						<div>
							Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that the investor exerts a significant degree of influence on the management of the enterprise resident in the other economy.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates, both incorporated and unincorporated. FDI may be undertaken by individuals as well as business entities.</div>
						<div>
							&nbsp;</div>
						<div>
							Flows of FDI comprise capital provided (either directly or through other related enterprises) by a foreign direct investor to an FDI enterprise, or capital received from an FDI enterprise by a foreign direct investor. FDI has three components: equity capital, reinvested earnings and intra-company loans.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Equity capital is the foreign direct investor&rsquo;s purchase of shares of an enterprise in a country other than its own.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Reinvested earnings comprise the direct investor&rsquo;s share (in proportion to direct equity participation) of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor. Such retained profits by affiliates are reinvested.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Intra-company loans or intra-company debt transactions refer to short- or long-term borrowing and lending of funds between direct investors (parent enterprises) and affiliate enterprises.</div>
						<div>
							(Source: World Investment Report 2012, UNCTAD)</div>
						<div>
							&nbsp;</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Outbound FDI: An Open Secret&nbsp;</strong></span></div>
	<div>
		Policies on outward investment have been seen as a screening device to restrict the outflow of capital from the country. But it is an open secret that Nepalis have already started investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Chaudhary Group (CG), a company owned by Forbes-listed billionaire and renowned industrialist Binod Chaudhary who has invested abroad through Cinnovation Group, a multi-dimensional conglomerate established in 1990 headquartered in Singapore. The company was created to take CG&rsquo;s business interests global. Currently, it is expanding its footprint in global market.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Business leaders and government officials hesitate to give opinion regarding outflow of capital from Nepal in public. &nbsp;But they privately confide that there are many instances where the investment is going abroad through one channel or the other. India has been one of the easiest destinations for Nepali investors to invest, one businessman told New Business Age. &ldquo;Businessmen channel capital to India through their relatives and acquaintances living in India,&rdquo; he disclosed. More than a dozen of reputed Nepali business houses have invested in India in one or other way and even government officials are aware of this fact, he claimed. So, it is better to legalize outward FDI to control informal outflow of money.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Dr Bimal Koirala" src="/userfiles/images/cs4(3).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 169px;" />Drives of Outward FDI</strong></span></div>
	<div>
		A question worth asking is: what triggers outward FDI from Nepal? There is not an easy answer. Generally, two major drives can be analysed: market-seeking drive and resource-seeking one. Nepali businessmen want to go outside country for market-seeking purpose, said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Businessmen eye foreign market when their businesses are saturated in the home country, he said. It can thus be said that the drivers of outward FDI from Nepal are largely determined by market-seeking factors with little role played by policy measures.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Political instability, labour unrest and terror created by conflicting parties might have triggered businessmen to invest abroad during a decade-long conflict, he said. But the situation has changed now and businessmen do not want to go global if there is prospect of good business in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Anti Outward FDI Logics</strong></span></div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Positive Financial and Macro Economic Indicators: Experts say that the overall economic indicators including economic growth should be in positive direction and should be stable to allow Nepalis to invest in foreign country. Given Nepal&rsquo;s volatile economic situation, some economists advise not to allow outflow of the capital.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Investment Climate: Why do our businesses want to go outside though market in Nepal has been growing? An easy answer is that there is no investment climate in the country. It is not possible to open up outward FDI without ensuring investment climate in the country. Our own country is in dire need of investment in almost all sectors and it is a matter of concern as to why businessmen are lobbying to open up outward FDI, an economist questioned. Several structural bottlenecks and supply-side constraints are impacting the investment climate in Nepal. Tough reform measures have to be formulated before bringing policies related to outward FDI, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Trade Deficit: Nepal has been witnessing a whopping trade deficit year after year. Nepal imports essentials goods and services by drawing on its foreign currency reserves, which are primarily contributed by remittances. Many experts fear that foreign currency reserve may deplete if the country allows businessmen to invest aboard.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Distrust on Businessmen: Another crucial problem is trust deficit. The government is not certain that businessmen who invest abroad will sincerely send their profit back to the country. &ldquo;The country that does not trust its own businessmen cannot make progress. The environment of trust should be built between business community and the government that will facilitate the process of bringing policies related to outbound FDI,&rdquo; opined CNI vice president Haribhakta Sharma.</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Competitiveness: According to Global Competitiveness Report released by World Economic Forum, Nepal ranked 117 among 144 economies in 2013-14. In order to succeed in the global business, businessmen should be competitive. But, can Nepali businessmen be competitive when they have not been able to show their competitiveness in domestic front, questioned Dr Chiranjibi Nepal. He suggests that the government should provide competitive business environment.</div>
	<div>
		&nbsp;</div>
	<div>
		6.<span class="Apple-tab-span" style="white-space: pre;"> </span>Absence of Entrepreneurial Attitude: Entrepreneurship needs innovative ideas and risk taking skills. Given their low entrepreneurial activities in homeland, many argue that the business community in Nepal still lacks entrepreneurial attitude. Most of the businessmen are involved either in hereditary business or in service sector or trade activities. These traits are not sufficient to compete in global market and most of them do not have entrepreneurial bent of mind, claims an expert. &ldquo;This fact should be kept in mind while formulating policies.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		7.<span class="Apple-tab-span" style="white-space: pre;"> </span>Poor Performance of Manufacturing Sector: Nepal&rsquo;s manufacturing sector is in weak state. The country cannot create much employment in absence of manufacturing activities. &nbsp;On the other hand, the country relies heavily on imports to meet daily consumer needs. In such circumstance, opening up outward FDI without improving the performance of country&rsquo;s manufacturing sector might be suicidal, says a FNCCI member requesting anonymity.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		8.<span class="Apple-tab-span" style="white-space: pre;"> </span>Fluctuation in BoP: Generally, businessmen prefer to invest in a strong economy where their capital is safe. If allowed to invest abroad, Nepali businessmen may make majority of their investment in the countries which have strong economy. Currently, remittance has helped maintain Nepal&rsquo;s Balance of Payment (BoP). If in the future, inflows of remittance drops and at the same time businessmen take capital abroad, there will be severe BoP crisis. This is why the government is still reluctant to introduce outward FDI-related policies, an official at Finance Ministry said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Rhetorical Logics and Laxity of the Government&nbsp;</strong></span></div>
	<div>
		Some experts vocally criticize the government&rsquo;s laxity in creating business friendly environment and improve overall macroeconomic scenario. For how long can Nepal restrict businessmen from investing abroad, questioned economist Dr Posh Raj Pandey. The government and experts who do not favour the idea of opening outward FDI often repeat the same rhetorical logic but do nothing to improve the scenario, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The government is literally idle in terms of bringing any policy to foster an environment favourable for investment. Presently, the government is not taking any risks as the remittance influx has helped maintain economic stability. But the same situation cannot continue forever, according to him. He said that the government should not always repeat same logic to restrict outward FDI. If our government wants to promote economic prosperity, it should be ready to take risks and formulate smart policies, he suggested.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>FDI and Mobility of Money&nbsp;</strong></span></div>
	<div>
		Numerous positive aspects of outward FDI are overshadowed by a few negative ones, said Dr Bimal Koirala, economist and former chief secretary. Outflow of capital also helps create more opportunities to lure inward FDI and Nepali businessmen come back to the home country with more expertise and skills which will ultimately contribute to the domestic economy, according to him.</div>
	<div>
		&nbsp;</div>
	<div>
		The mobility of money in and out of a country does not stop simply by laws. A state should facilitate in the continuity of the mobility of money because if the movement of money slowsdown it will depreciate the value of currency. Investment, regardless of the frontiers, is a must to increase the movement of the money. Acknowledging the fact, the government should open up avenue for outward FDI, said Dr Chiranjibi Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Pragmatic Approach</strong></span></div>
	<div>
		Some experts suggest the government to allow Nepalis to invest abroad but only in competitive sectors. According to economist and former finance secretary Rameshore Khanal, the government should identify competitive sectors and should allow businessmen to invest only in those sectors. Some of these sectors, according to him, are:</div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Tourism (eco-tourism, home stay)</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Adventurous sector (climbing, rafting)</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Hospitality sectors: Hotel and restaurant (antique hotels like Dwarika)</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Banking/insurance</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Construction</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Way Forward</strong></span></div>
	<div>
		The government should carry out empirical studies on the effect of outward FDI on domestic economic activities. Before formulating laws, the government should assess some aspects of outward FDI including whether it will have a positive and significant impact on economic growth, and potential adverse impacts on various sectors.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		On the part of the government, it is not appropriate to remain literally idle on the issue of outbound FDI. The government should not see policies as a screening device to restrict the outflow of capital from the country. Rather it should formulate policies that will facilitate it. The Nepali private sector&rsquo;s long wait to go around the globe to invest should take a positive turn soon.</div>
</div>
<p>
	&nbsp;</p>',
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			'created' => '2014-07-30',
			'modified' => '2014-09-12',
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			'description' => 'It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '2776',
			'article_category_id' => '40',
			'title' => 'Business Click By Click',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<em><span style="font-size: 14px;">The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.&nbsp;</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Compared to the developed countries, Nepal&rsquo;s e-commerce is still in its infancy. Its share in the national GDP is negligible at present but it has been growing,&rdquo; says Amrit Man Tuladhar, CEO of Muncha.com, one of the country&rsquo;s leading e-commerce websites which has been in operation since 2000. According to Tuladhar, the past couple of years have been particularly encouraging for e-commerce in the country. &ldquo;Some unique websites have come up over the past couple of years,&rdquo; he observes.</div>
	<div>
		&nbsp;</div>
	<div>
		Thamel.com is perhaps the first e-commerce site in the country. It started online business in 1999 and today it is one of the major players. &ldquo;We are probably the first company in Nepal to start online business with a dot com company name registered as Thamel Dot Com Pvt Ltd,&rdquo; claims Rajesh Lal Joshi, CEO of Thamel.com. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		E-commerce in Nepal started through gift-sending and bill payment services through online portals. Today, it&rsquo;s possible to buy almost everything online - new clothes, books, mobile phones, laptops, second-hand goods, jewelleries, home appliances, fresh vegetables and what not. One can even order one&rsquo;s lunch online from home or office, thanks to the latest developments in e-commerce activities. There are a number of e-commerce companies offering these services. Airlines have started selling air-tickets online through these services. Banks are handling online transactions because people have started paying and receiving online, though the trend is low.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;In 2000, there were a couple of websites doing e-commerce. Today there are more than a hundred. Of them, over a dozen are active in the business,&rdquo; says Tuladhar. &nbsp;&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs4(1).JPG" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 316px;" />Growing Popularity &amp; New Trends</strong></span></div>
	<div>
		Today, the online market has expanded due to the increasing purchasing power of Nepali consumers. The trend is also on the rise because of the rise in the number of Internet users. &ldquo;Online business is on a progressive path and the trend is evolving high with many players coming in the arena with their unique business models,&rdquo; says Joshi.</div>
	<div>
		&nbsp;</div>
	<div>
		The domestic e-commerce market has now expanded into various segments such as online shopping, e-banking, mobile commerce, electronic cash transfers and e-ticketing. Online markets are attracting buyers (and sellers too!) because they are time- and money-saving and are hassle free.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Lately, Nepal has graphed a swerving online presence. The proliferation of various online business portals in recent years is enough to valibate the claim that &nbsp;the presence of e-commerce is encouraging in Nepal,&rdquo; says Asgar Ali, CEO of eSewa Fonepay.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Annual online transactions in Nepal are estimated to be around Rs 10 billion, although an official figure is not available. Dozens of online shopping websites have emerged since the inception of e-commerce in Nepal. Muncha.com, Thamel.com, Harilo.com, YesKantipur.com, Metrotarkari.com, Foodmandu.com, Bhatbhatenionline.com, etc. are some of the popular websites among Nepali online shoppers (see Box). Some of them sell their own products whereas others deliver from global sites such as eBay and Amazon.</div>
	<div>
		&nbsp;</div>
	<div>
		According to industry insiders, Nepalis of the middle- and upper-middle class who have access to faster Internet have started enjoying shopping online. &nbsp;They find it easy because on the one hand it saves time, on the other, it&rsquo;s easy and reliable. &ldquo;You don&rsquo;t need to hang around shopping stores and malls wondering where a particular product is. With online shopping, all you need to do is find a product online, fill-in payment details and submit. That&rsquo;s all to get your stuffs delivered at your home,&rdquo; says Manish Shrestha, portal chief of Bhatbhatenionline.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-banking</strong></span></div>
	<div>
		Lately, electronic banking or e-banking, as it is more popularly known, is getting popular in Nepal. According to the stakeholders, the use of e-banking has been increasing with the rising competition among the banks and financial institutions. &ldquo;The trend of e-banking is growing,&rdquo; says NRB Spokesperson Bhaskar Mani Gyawali, &ldquo;The situation of e-banking in the country is satisfactory at present.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Instead of opening a new branch, banks have started focusing on e-banking which is a cost-effective way to expand their services. For this, banks have adopted modern banking technologies such as branch-less banking, mobile banking etc. According to NRB, all 32 commercial banks in the country have started branch-less banking and mobile banking by mid-January 2014.</div>
	<div>
		&nbsp;</div>
	<div>
		Banks&rsquo; customers are, however, yet to adopt online payment for the goods or services they buy on the Internet. Most online shoppers still prefer cash on delivery (COD) though all commercial banks provide e-banking services. &ldquo;There is a lack of awareness among Nepalis about e-banking. An overwhelming majority still prefers COD though they have bank accounts,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1.JPG" style="width: 550px; height: 412px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-ticketing</strong></span></div>
	<div>
		Nepali air travelers are gradually getting used to e-ticketing, a good evidence of growing e-commerce in the country. Today, all private sector airlines currently operational in Nepal are selling their tickets online. According to the Airline Operators Association of Nepal (AOAN), all air travellers who have access to the Internet have started buying tickets online. &ldquo;E-ticketing has become popular because it saves time,&rdquo; says AOAN Spokesperson Ghanashyam Acharya, &ldquo;Very few people reach the airline&rsquo;s office to buy tickets these days.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Agrees Prajwal Thapa, marketing director at Simrik Air. &ldquo;Both foreigners and Nepali travellers buy tickets online for domestic flights.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepal Airlines Corporation (NAC), the state-owned airline which is the only airline in Nepal that doesn&rsquo;t offer e-ticketing has started preparations to start providing the service within 2071 BS (by mid-April 2015), according to an NAC official. &ldquo;E-ticketing is one of NAC priorities for the new year,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs5(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 281px;" />Payment Options&nbsp;</strong></span></div>
	<div>
		In the past, Nepali online shoppers were dependent on international payment mechanisms and merchants to purchase online. However, today there are few, but enough for the time being, online payment processing companies in Nepal, which allow online shoppers to pay their bills online, without any processing fees, in most of the cases.</div>
	<div>
		Most of these companies allow the customers to send and receive money online, buy air tickets, pay utility bills, purchase mobile recharge cards, pay school college bills, Internet bills, subscribe to newspapers and magazines online; Some of these companies are eSewa and PayWay.</div>
	<div>
		&nbsp;</div>
	<div>
		People can also pay for the goods they buy online through e-banking and debit cards. This trend has started but it is negligible at present. A majority of online shoppers still prefer paying cash on delivery.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;The online payment structure in Nepal is still being developed so we still do a lot of cash business. &nbsp;We encourage our customers to pay online as much as possible given the options in Nepal which are basically bank to bank transfers or payment gateways who are tied to your bank account,&rdquo; says Akshay Sthapit, CEO of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Problems &amp; Limitations</strong></span></div>
	<div>
		Though an Internet-based business, e-commerce in Nepal seems to be limited to the Capital valley. Some online business activities have been reported in places like Pokhara and Dharan but such activities are few and far between.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;There are e-commerce websites which provide their services across the country. But may be because of the lack of awareness, the online customers are mainly from the Kathmandu valley, mainly Kathmandu and Lalitpur. However, we do have customers from a few other cities as well,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a clear policy is another problem and according to people in the online business, it is hindering the growth of online markets in the country. &ldquo;There is no clear policy. The government has neither helped the domestic e-commerce market nor obstructed it,&rdquo; says Joshi of Thamel.com. We don&#39;t have any act, law or regulation or government directives which allows conducting legal online financial transactions. Critics say that the Electronic Transaction Act without a single word on online payment is only half done.</div>
	<div>
		&nbsp;</div>
	<div>
		According to Tuladhar of Muncha.com, Nepal&rsquo;s e-commerce market is facing problems in the bill payment system. &ldquo;The government can facilitate by establishing a central payment gateway. The central bank and concerned authorities should look into this issue,&rdquo; he advises.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a regulator is another problem. At present, all one needs to do to run an e-commerce site is register a company at the Company Registrar&rsquo;s Office. Once the company is registered, one can start the business. No one knows which agency is responsible for regulating the e-commerce business &ndash; Ministry of Finance, Nepal Rastra Bank, Ministry of Science and Technology, High level Commission for Information Technology or National Information Technology Centre?&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs2.JPG" style="width: 550px; height: 337px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The Issue of Digital Signature</strong></span></div>
	<div>
		Although online transactions are on the rise in the country, the trend of acquiring authorized digital signature, which is essential for the business, has not started. According to Electronic Transaction Act 2008, all companies, which carry out electronic transactions must acquire digital signature from the Certified Authority (CA) licensed by the Office of the Controller of Certification (OCC). &ldquo;Banks and financial institutions, remittance companies, and e-commerce companies among others are the kind of companies which should acquire a digital signature from a CA licensed by the OCC,&rdquo; said Manish Bhattarai, deputy controller of the OCC, an agency under the Ministry of Science, Technology and Environment (MoSTE).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		So far, only one company, Nepal Certifying Authority (NCA), has acquired the license for CA from the OCC. &ldquo;Though one company has been issued the license of CA, no company or individual has acquired a digital signature so far in Nepal from the CA licensed by the OCC. Electronic transactions carried out without a digital signature from a CA licensed by the OCC do not have legal validity,&rdquo; claims Bhattarai. He also informed NewBiz that the OCC has drawn the attention of Nepal Rastra Bank regarding the issue of the BFIs not acquiring authorized digital signature.</div>
	<div>
		&nbsp;</div>
	<div>
		Biplav Man Singh of NCA, however, claims that the issuance of digital signature has not started in Nepal because of the government&rsquo;s negligence. &ldquo;The government has issued the CA license to NCA but it has not provided the Root Certificate to us. Therefore, we have not been able to issue any digital signature. It has been a year since we have been issued the license,&rdquo; laments Singh.</div>
	<div>
		&nbsp;</div>
	<div>
		Digital signature is like an electronic locking system, which facilitates and regulate the authenticity of electronic transactions. It cannot be stolen or copied by any fraud, authenticates the identity of the sender of a message or signatory of a document and ensures that the document is unchanged. Nepal government introduced digital signature in financial transactions from February 2012. The MoSTE established the OCC to manage electronic transactions and use technology to reduce electronic crimes.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Online transactions have been getting popular lately, but the question of security has always been there. A digital signature ensures secured, authentic and non-repudiation electronic transactions such as e-mail, e-commerce, e-banking and e-governance,&rdquo; shares Bhattarai.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Bhattarai informed NewBiz that OCC has already drawn the attention of the NRB to take action against BFIs for using digital signatures from unauthorized firms. At present, companies based in India and America are issuing digital signatures to local online transaction service providers, which is against the Electronic Transaction Act 2008. &ldquo;Sadly, all BFIs providing internet banking service are using digital signatures issued by unauthorized licensors,&rdquo; said Bhattarai.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs6(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 566px;" />Digital Agencies</strong></span></div>
	<div>
		With living standards and costs going up in developed nations, digital agencies and online business marketers from there gradually made headways into third world countries including Nepal looking for avenues to establish their offshore units. Today, there are many digital agencies or IT companies, as they are known in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		While outsourcing their software to clients from developed nations, many of these digital agencies also tried to educate Nepali entrepreneurs for taking their businesses online. &ldquo;It was very hard to find business persons who were willing to take their businesses online. My team struggled for a couple of years but our continuous efforts in educating entrepreneurs for going online bore fruits,&rdquo; says Deepak Bhandari, Founder of Radiant Infotech Nepal&mdash;a digital agency that has been in the software production business for more than a decade now.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		With the operational costs relatively lower and prospects much brighter, Bhandari shares that small investment, consistency in work quality coupled with good communicative and technical skills and a willingness to adapt and upgrade to technological advances is all that is needed to thrive in the digital agency business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Along with taking Nepali businesses online, Nepali digital agencies compete in the global freelance market. &ldquo;Competing in the global market is not an easy task unless you are ready to deliver outstanding products at relatively modest prices,&rdquo; says Sanjeev Singh, Co-founder of Catmandu- a startup Nepali digital agency that mostly outsources its products.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		It&rsquo;s not just Nepalis who are materializing their dreams via the Silicon Valley revolution offshoot; many digital agencies with foreign roots and international foot prints have established their offshore production in Nepal. India has been a major destination for software outsourcing in South Asia, but still Nepal has its own attributes to win over some share of it.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;I took a fortunate trip just over a decade ago to India and other countries, looking for ways to reduce my growing software development requirements for clients in Melbourne. Even though it was a challenging time in Nepal, with the UN assisting in the path to a new democracy, I felt Nepal offered a unique opportunity. It was not saturating like India&rsquo;s IT industry,&rdquo; says Michael Simonetti, founder of AndMine, an Australian digital agency that has its offshore production unit in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Though the growing inflation and corresponding increase in the operational and other costs have been testing the offshore model, Simonetti still sees future in the model. Complimenting his view, Bhandari says that Nepal has bright scope in the digital agency business. He quotes an online report: &ldquo;Over the coming years, outsourcers are expected to expand their operations quite substantially. Different survey reports have claimed that the growth of outsourcing will remain strong. Like India and other nations there is huge potential for Nepal also to grow in IT service outsourcing business&rdquo;.</div>
	<div>
		&nbsp;</div>
	<div>
		While Internet connectivity, working hours, political instability and power cut are the concerns of this sector, Deepak finds lack of any state mechanism to bring all financial transactions made by freelancer software manufacturer as a major problem for the growth of IT service outsourcing business. &ldquo;Many freelancers are involved in this business without any legal registration. The government should seriously implement the plans it has made so far for the development of this sector along with bringing freelancers within the boundary of taxation.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs3(3).jpg" style="width: 550px; height: 375px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Brighter Prospects</strong></span></div>
	<div>
		E-commerce has brighter prospects in the country, according to industry insiders. The access of Nepalis to the Internet has been increasing. The new generation is very keen about online activities. &ldquo;It seems the stage has been set for a rapid growth in online shopping as people find less and less time for physical shopping,&rdquo; observes Tuladhar.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;We will soon see a Cambrian moment with online shopping and services once proper payment systems and delivery infrastructures are in place which is already happening. &nbsp;When that happens, the change will be swift just like it was with mobile phones in Nepal,&rdquo; concludes Akshay Sthapit, CEO, Harilo.com.</div>
	<div>
		(With inputs from Chitra Raj Bhandari)</div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-05-07',
			'modified' => '2014-09-08',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '2784',
			'article_category_id' => '40',
			'title' => 'Rising Stars Of The Economy',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	--By Akhilesh Tripathi and Sanjeev Sharma</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We all know that all is not well with the Nepali economy. Insecurity, much-aggravated industrial atmosphere, power shortage, transport obstacles, strikes and closures and labour unrest stand as barriers in the path to Republic Nepal&rsquo;s economic progress. The country&rsquo;s economic growth rate, according to official government estimate is below four per cent at present as there is lack of political commitment on a common economic agenda, investment-friendly environment, energy and physical infrastructure in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But despite these obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector. The entry of the Nepali private sector into these areas, especially after the liberalization of the economy post 1990, has resulted in significant growth in these sectors.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the continuity of the economic liberalization policy in republican Nepal has produced a significant group of entrepreneurs and businesspersons who are now successful in these areas. This breed of entrepreneurs and business persons thinks that if there is political will and stability, adequate power supply, supportive policy and peaceful industrial environment, then these rising stars will rise even higher.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;However, political stability is the first condition for economic development. Political parties do have their respective ideologies and differences too, but there needs to be a minimum understanding on common issues of economic development, which would help build atmosphere conducive to investment and trust. This would help the rising stars of the economy to attain newer heights.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Construction Materials: Market Picking Up&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Construction Material" src="/userfiles/images/cs(2).jpg" style="width: 550px; height: 266px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The construction industry is a growing industry in Nepal. It contributes around 10 &nbsp;to 12 per cent to the national GDP and uses around 35 per cent of the government&rsquo;s annual budget. As the country plans to invest more in infrastructure such as roads, railways, airports, bridges, and irrigation and hydropower projects and as the housing sector shows sign of improvement, the prospects for the construction industry in the country look brighter.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector has created employment opportunities to more than one million people in the country. When it comes to development of any physical infrastructure, construction materials are the major components. With the growth in the construction industry, the demand for construction materials too has risen.</div>
<div>
	&nbsp;</div>
<div>
	In the last one decade, over 150 construction material factories from cement, paint and bricks to steel factories have been established with an eye on the realty sector and the government&rsquo;s infrastructure development projects. These factories have helped reduce import of construction materials. The country has also become almost self-reliant in bricks, steel and paint; cement production is also on an encouraging trend. The price of construction materials is growing by 20 to 22 per cent every year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The realty sector, which is one of the major buyers of construction materials in the country, has shown some signs of improvement. According to Ichchha Raj Tamang, president of Nepal Land and Housing Developers&rsquo; Association, the sector has started taking a turn for the better. &ldquo;In the recent couple of years, the realty sector has been improving by over 30 per cent annually,&rdquo; claims Tamang.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Lately, according to construction material dealers, the demand from housing developers and the general public that had slowed down a couple of years ago, has shown some progress. &ldquo;A couple of years ago, the demand went down by around 50 percent due to the government&rsquo;s failure to release the budget on time,&rdquo; said Manik Tuladhar of the Kathmandu Construction Materials&rsquo; Dealers Association. With the situation in the housing sector showing indications of improvement, developers have been speeding up work at their projects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, construction material dealers said that with demand for construction materials slowly picking up, prices too have increased. Shil Ratna Tamrakar, proprietor of Shristina Traders, which deals in paints, said that the demand had increased remarkably compared to last year and that prices had risen by up to 10 percent depending on the brand.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that around 90 percent of the country&rsquo;s requirement of paints is fulfilled by domestic products. Along with a growth in housing activities in the past one decade, the number of paint factories too has gone up. There are 32 paint factories in the country with a combined investment of around Rs 6.5 billion.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Steel Rolling Mills&rsquo; Association said that local steel factories had been able to exist mainly due to the demand from housing developers. There are around three dozen steel plants in the country, and of them, 12 are run in full-fledged operation. All these factories produce 400,000 tonnes of iron rods annually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are more than 70 cement factories that have obtained operating permits from the Department of Industry. The cement industry already has an investment of around Rs 30 billion. Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that even though the number of companies receiving government permits has gone up, only around 40 plants are in regular operation.</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s annual requirement of cement amounts to 3 million tonnes, of which nearly 80 percent is being met by local products. &ldquo;There are no authentic records, however, most of the production is going for construction of private houses and commercial buildings of housing developers,&rdquo; said Murarka. He added that if construction of physical infrastructure receives a boost, the country would be self-reliant in cement too.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector is creating employment opportunities to about one million people. That means it generates employment next to the agriculture sector in the country. Similarly, about 60 percent of the nation&#39;s development budget is spent through the use of contractors. From this, it is clearly seen that construction is a major sector and any productivity enhancement activity in this sector will have a positive impact on the overall improvement of the national economy.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Realizing the need for enhancement of the construction industry, Construction Business Act 2055 was promulgated and came into force from April 14, 1999. This is an effort made to institutionalize and systematize the construction sector. The Act has defined the procedures and requirements relating to issues and renewal of license and classification of and obligations of construction entrepreneurs. The law has established Construction Business Development Council (CBDC) under the chairpersonship of the Minister for Physical Planning and Works, and Construction Business Development &amp; Implementation Committee (CBDIC) under the chairpersonship of Joint Secretary (technical) designated by the Ministry for Physical Planning and Works. These both are regarded as the apex institutions to develop the Nepali construction industry. Establishment of the CBDC and CBDIC is the important step taken by the government to promote the country&rsquo;s construction industry.</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Education: On Private Sector Shoulders</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Education" src="/userfiles/images/cs1(3).jpg" style="width: 550px; height: 381px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	With private investment standing at nearly Rs29 billion at present, the education sector is well on the path of evolving into a lucrative service sector business in Nepal. Nobody needs to frown at the idea of education being compared with business. It has done much more good than bad. Even big business houses have started to invest in education.</div>
<div>
	&nbsp;</div>
<div>
	Private investment in the education sector has grown consistently over the past few years. It now stands at more than Rs29billion, including the investments in schools, colleges, educational consultancies and training institutes. Out of this investment, nearly Rs25 billion is in private schools and colleges, according to the statistics maintained by the Company Registrar&rsquo;s Office (CRO).</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs7(1).jpg" style="width: 550px; height: 130px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Statistics also reveal that the investment has been increasing since 2006, the year when the government decided to register privately-owned educational institutions as companies. New private investment in schools and colleges stood at more than five billion rupees and six billion rupees in 2010 and 2011, respectively. Similarly, private investors have committed an investment of Rs 2.53 billion in the first three months of 2014.</div>
<div>
	&nbsp;</div>
<p>
	<img alt="" src="/userfiles/images/cs8(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 200px; height: 345px;" />According to Umesh Shrestha, president of the Higher Secondary School Association Nepal (HISSAN), private investment in the education sector has increased because it provides good return. &ldquo;This is why even big business houses have pitched into the sector lately,&rdquo; he explains &ldquo;Leading Nepali industrialists and entrepreneurs have launched huge education projects. There will be more such projects in the future.&rdquo; Population growth and increasing demand for quality education are the other major factors behind the increase in private investment in education, he adds.</p>
<div>
	&nbsp;</div>
<div>
	Educational expert Mana Prasad Wagle credits it to the hype of the phasing out of the Proficiency Certificate Level (PCL) in the year 2010 that invited high investment in &lsquo;Plus Two&rsquo; colleges. In 2009, five new colleges with an authorized capital of more than Rs 100 million each were established. Since then, on an average, more than half a dozen such colleges have been established every year. In the eyes of education experts, an investment of Rs 100 million should be more than enough to ensure quality education.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The number of private educational institutions with massive investment is also increasing every year in the major cities, especially in Kathmandu. &ldquo;The number of students leaving the country after SLC for higher studies has drastically decreased now. This is because they find quality education within the country, thanks to a number of good private colleges. This has also prevented millions of rupees from going abroad,&rdquo; says Shrestha.</div>
<div>
	&nbsp;</div>
<div>
	It would not be an exaggeration to say that higher secondary (HS) education rests (and grows) on the strong shoulders of the private sector. Let&rsquo;s consider the following numbers: more than 60 per cent of the nearly a million HS students in the country get their education from private institutions; more than 80 per cent of the students who pass the HS level every year are from private institutions.</div>
<div>
	&nbsp;</div>
<div>
	There are around 3600 HS schools in Nepal at present. Out of them 291 are 0+2 colleges, which run classes for only the 11th and 12th grades. The remaining are 10+2 colleges, which run classes from grade 1 to 12.</div>
<div>
	&nbsp;</div>
<div>
	Private sector institutions have not only played a vital role in boosting Nepal&rsquo;s educational capacity but have also brought along a whole new market dimension. Consider these facts: The annual business transaction of private educational institutions amounts to Rs 22 billion &ndash; Rs 11 billion at school level, five billion rupees at HS level and six billion rupees at university level education.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector has been helping the government by a great deal by making such a huge investment in the education sector,&rdquo; says Rajendra Baral, Chief Executive Officer at Caspian Valley College.</div>
<div>
	&nbsp;</div>
<div>
	On the other hand, HISSAN chief Shrestha sees an immense possibility of educational tourism in the country. &ldquo;Nepal&rsquo;s naturally air-conditioned climate makes it a good educational destination for international students, if we can establish schools and colleges of international standard or open affiliates of internationally recognized universities here,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<div>
							The government&rsquo;s efforts in education are mainly focused on primary and secondary level education. The government has been increasing the budget allocated for the education sector year on year. The government has earmarked Rs 80.95 billion to this sector for the current fiscal year - up by Rs 60.13 billion of current fiscal year&rsquo;s revised allocation. Similarly, Nepal&rsquo;s education budget increased by more than double in just four years reaching Rs 63.91 billion in fiscal year 2011/12 from Rs 27.06 billion in 2007/08.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Nepal allocates 3.4 percent of its GDP and almost 17 percent of the national budget to the education sector. The country, however, does not meet the global standard of allocating at least 5 percent of GDP and 20 percent of the total budget to the education sector. Only 9.92 percent of the total education budget has been allocated for higher education, and merely 7.85 percent for university education.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Government investment in higher secondary education is even less&mdash;two percent of the total education budget&mdash;despite having around one million enrolments a year. Education expert Dr Tirtha Khaniya observes that there is scope for private sector investment and growth in higher study institutions. &ldquo;The government&rsquo;s negligence to the higher secondary level education provided an opportunity for the private sector which cashed in on the opportunity. A similar opportunity lies there for the private sector in university level education too. We will gradually see more private sector investment in this category,&rdquo; he says.</div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Banking sector: Time for Consolidation</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs2(3).jpg" style="width: 550px; height: 350px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Starting from the government-owned Nepal Bank in 1937, the banking industry in Nepal has come a long way. The industry grew tremendously, especially after the entry of the private sector after 1990. It is one of the sectors of the economy that have grown significantly over the past one decade. &nbsp;The sector has immense growth prospects as nearly 60 per cent of the population is still out of the range of formal financial channels. Today, the banking sector is more liberalized and modernized, systematic and managed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are various types of banks and financial institutions (BFIs) working under the modern banking system in Nepal. It includes central (1), commercial (30), development (87), finance companies (59), co-operatives (15), NGOs (30) and others (3). Technology is changing day by day. And the use of new technologies has affected the traditional method of the service of banks. Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc., services are available in banking system in Nepal. Nepal&rsquo;s banking sector has flourished over the years despite numerous challenges and is trying to be at par with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Today, there are ample opportunities for the banking sector to explore the small and medium enterprises and rural markets in Nepal via innovative products such as microfinance, mobile banking etc.,&rdquo; says Anil Shah, CEO of Mega Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs10.JPG" style="width: 550px; height: 348px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Nepal is an agro-based economy with nearly 84 percent of the population in the rural areas. The BFIs need to develop ingenious products and adopt new technologies to cater to the rural sector. By reaching remote locations, BFIs could contribute towards poverty alleviation as well,&rdquo; observes Nepal Rastra Bank Spokesperson Bhaskar Mani Gyawali.</div>
<div>
	&nbsp;</div>
<div>
	The public is gradually turning to the organized financial service providers i.e. the BFIs. At present, only 15.1 percent of the total households in Nepal borrow from local money-lenders, while 10 years ago some 40 per cent households were indebted to money lenders, according to the latest Nepal Living Standard Survey (NLSS) released by the Central Bureau of Statistics (CBS).</div>
<div>
	&nbsp;</div>
<div>
	Today, nearly 40 per cent households have access to commercial banks&rsquo; branch within 30 minutes walking distance. This was merely 22 percent a decade ago. Similarly, the presence of co-operatives within 30 minute walk radius has also increased from 25.9 per cent to 53.9 per cent during the same period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Though the growing number of financial intermediaries is not as successful as expected in increasing the financial accessibility, the expansion has definitely helped in general population&rsquo;s access to finance,&rdquo; says Gyanwali.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Going through the trends seen over the past few years, the country&rsquo;s financial sector seems heading for consolidation through mergers and acquisitions. According to experts, the number of banking and financial institutions (BFIs) will reduce by half over the next one decade. Statistics support this fact. Forty-three BFIs have merged with each other to become 18 over the past three years. According to NRB, another 25 BFIs are in the final stage of merger to become 10. NRB sources say that the central bank will continue with its merger campaign in the new Nepali Year.</div>
<div>
	&nbsp;</div>
<div>
	As a part of this campaign, the NRB is soon going to introduce the Acquisition Bylaws and there are signs that the minimum capital required to run banks could be increased significantly.</div>
<div>
	&nbsp;</div>
<div>
	Apart from banking, other financial sectors, too, are coming up. Credit rating, portfolio management, mutual funds and central depository system companies have already come into operation. This has opened new opportunities for investment.</div>
<div>
	&nbsp;</div>
<div>
	Due to stiff competition, banks are trying to provide specialized services such as investing in hydropower, infrastructure and agriculture. The trend is low at present but it has started. Similarly, expansion of branches of BFIs, especially in the urban areas, has reached almost a saturation stage. Now the banks are looking at cheaper ways to increase their outreach; so they are attracted towards branch-less banking, e-banking and mobile banking.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs11.JPG" style="width: 550px; height: 258px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The last one decade has been significant for the banking sector. Many good things happened. As a result, financial access increased by five times over the past one decade, according to statistics maintained by the CBS. Similarly, the statistics maintained by NRB reveal that 40 per cent of Nepalis have access to formal banking channels. These statistics incorporate only the A, B, C and D class BFIs licensed by the NRB. There are nearly 20,000 Savings and Credit Cooperatives operating throughout the country. Similarly, there is a large number of women&rsquo;s groups, farmers&rsquo; groups etc., which also provide banking services. If we consider these institutions, the number of Nepalis having access to financial services will increase significantly. This doesn&rsquo;t mean that the situation of financial access is great in Nepal; what it means is what has been achieved over the past one decade is more than satisfactory.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Increasing access to finance is one of the main roles of the central bank so that central bank is also encouraging the BFIs to venture into unbanked areas through its policy measures,&rdquo; informs Gyawali. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The achievement made by the banking sector over the past one decade can be broadly categorized into three parts: growth in financial access, expansion of loans and development of corporate culture. The rate of financial access increase is high for this period. Similarly, new areas for investment have been discovered. Today, banks have started investing in specialized long-term projects such as hydropower. Likewise, there has been development of corporate culture in the banking sector over this period. This has made the banking sector more transparent, credible and professional. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#E5E4E2">
						<div>
							<span style="font-size: 14px;"><strong>Weaker Side:</strong></span></div>
						<div>
							- All kinds of BFIs are allowed to mobilize deposits</div>
						<div>
							- Lack of adequate financial literacy</div>
						<div>
							- Increasing operational risks of BFIs</div>
						<div>
							- Failure to identify new areas for investment</div>
						<div>
							- Inadequate supervision capacity of NRB</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hotels: More Room for Growth</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs3(4).jpg" style="width: 550px; height: 397px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Nepali hotel industry is rapidly heading towards booming growth. After sluggishness for about a decade, during the conflict years, the country&#39;s hospitality sector is now looking more and more lucrative with hoteliers- both domestic and foreign- investing into multi-billion projects. Surge in visitor numbers with Nepal becoming a prime destination for international, regional and domestic tourists is leaving the country&#39;s hotels sector without much room. Recent tourism rankings published by reputed institutions points out that the country is gaining significant attention from travelers and visitors across the globe.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Industry leaders estimate the size of Nepali hotel sector- ranging from five star hotels to lodges- has reached about Rs 300 billion. &quot;It is one of the fastest growing sector which is providing considerable number of employment,&quot; says Madhav Om Shrestha, executive director of Hotel Association of Nepal (HAN). According to him, the sector is providing direct employment to over 3, 00,000 people and indirectly benefitting around one million. &quot;With big international hotel chains entering Nepal, the industry is treading on to track to healthy revival.&quot;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal, which has witnessed the departure of some big hotel chains in the past, is again set to become a rewarding market for renowned international hoteliers. Last year saw the US-based multinational hotel chains Marriott and Sheraton announce their entry into the Nepali market. In May 2013, Nepal Hospitality Group (NHG), a company under Nepal&#39;s leading conglomerate Maliram Shivakumar (MS) Group, signed an agreement with Marriott International to open a four-star hotel with an investment of around Rs 650 million. Dubbed as &quot;Fairfield by Marriott Kathmandu&quot;, the 10-storey business hotel with 108 rooms is under-construction at Thamel, a prime tourist and commercial location in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The hotel targeted towards mid-income guests will start its commercial service by the beginning of 2016. Fairfield is a brand of hotels franchised by Marriott International. NHG is also constructing a 250-room, four-star luxury hotel in Naxal, as a joint venture with the Marriot International.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In this foray, Sheraton Hotels and Resorts announced its re-entry into Nepal. Shesh Ghale, the Nepal born Australian millionaire businessman, has come up with a joint venture with Sheraton to operate a five-star hotel in Kathmandu. In April 2013, Ghale&#39;s investment company, MIT Group Holding Nepal set the project rolling by signing an agreement with Sheraton&#39;s owner Starwood Hotels and Resort Worldwide Inc.</div>
<div>
	&nbsp;</div>
<div>
	Slated to open in February 2018, the cost of 225-room Sheraton Kathmandu project is expected to be around Rs 7 billion. Sheraton, the largest brand of Starwood Hotels and Resorts Worldwide has history of managing five-star hotel in Nepal. The chain in 1980s&#39; and 90s&#39; managed the Hotel Everest Sheraton in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Indian hotel chain Lord Hotels and Resorts has already started its operation in Nepal. The company opened its first international hotel in Kathmandu, the Mirage Lords Inn at Battisputali with an investment of Rs 200 million. The 40-room budget hotel is targeted to serve domestic and international guests ranging from religious visitors to adventure seekers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs12.JPG" style="width: 550px; height: 398px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:12px;"><strong>Investment Hotspot</strong></span></div>
<div>
	The hotel investment frenzy has also wrapped Nepali business community. Many have announced to open new hotels while some have already opened doors to welcome guests into their newly built auberge. The Hotel Shambala, a 65-room, four-star Tibetan- styled boutique hotel, located at Bansbari started its operations few months ago. Similarly, construction of the Chhaya Center at Thamel is in full swing. The structure upon its completion will accommodate a 200-room four-star hotel along with an exclusive shopping mall. Likewise, The Centurion Group has been constructing a 120-room hotel in Biratnagar.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Muktishree Group, Vaidya&#39;s Organization, Non-Resident Nepalese Association (NRNA) and Civil Aviation Authority of Nepal (CAAN) have made their announcements to establish five-star hotels. &nbsp;In the meantime, other major tourist destinations such as Pokhara, Lumbini, Biratnagarand Nepalgunj are also experiencing rising investments in the sector.</div>
<div>
	&nbsp;</div>
<div>
	This sector is becoming a center of attraction for Nepali banks and financial institutions (BFIs) as well. According to recent Nepal Rastra Bank (NRB) data, total investment of BFIs in the sector reached an estimated amount of Rs 21 billion by the end of April. The central bank also notes that in the first nine months of current fiscal year (FY), the sector welcomed an investment of Rs 3.16 billion, up by 20.8 percent from last FY&#39;s 2.30 billion.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div>
						<span style="font-size: 14px;"><strong>Time to be Cautious</strong></span></div>
					<div>
						Despite the significantly increasing activities in the hotel sector there are also cautionary calls arising within the industry itself. &quot;The overall trend in investment and the growth in infrastructure is satisfactory, but marketing of Nepal in international arena is lacking,&quot; opines Binayak Shah, vice president of Summit Group of Hotels. Shah, who is also the Managing Director of Airport Hotel, said that as the sector will have more than enough infrastructures amid the rise in number of international hotel chains coming to Nepal and growing domestic investments. &quot;In addition, unsold apartments are also being converted in to hotels. If we cannot market our resources innovatively, in a few years time, we will have more supply than demand,&quot; he says. &quot;This has to be balanced.&quot;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 14px;">ICT: Explosive Growth</strong></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).JPG" style="width: 550px; height: 271px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The Information, Communication and Technology (ICT) sector has grown in a geometric proportion over the last few years bringing speedy transformation. The explosive growth and rapid infrastructure developments led the sector, nascent only some years ago, to around Rs 50 billion worth strong sector in a year.</div>
<div>
	Nepal has been enjoying remarkable growth in ICT sector due to expanding telecom sector, increasing use of email/internet, emerging social media and steady growth in the use of state-of-art gadgets.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs121.jpg" style="width: 550px; height: 656px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The pace of mobile phone adoption in the country was surprising in the last couple of years as nearly two third households have access to telephone facility. The overall teledensity has increased to 87.20 per cent by mid-March, according to the telecom regulator Nepal Telecommunications Authority.</div>
<div>
	&nbsp;</div>
<div>
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 30.99 per cent till mid- March, and the rise of Internet users will have a direct impact on the trade of computers, claims Computer Association of Nepal (CAN).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	High competition among world class brands including HP, Samsung, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.</div>
<div>
	&nbsp;</div>
<div>
	Along with hardware parts, the software market is also experiencing a steady growth in the country. Experts and professionals involved in this business are taking this growth as a positive aspect of developing awareness related to information technology.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;The overall trade of software has increased in the domestic market though there is not actual data available from concerned authority. Amrit Kumar Pant, General Secretary of CAN, said, the market and activities related to this business have been increasing as the people have been using software and application as necessity while it was used in the form of luxury till some years ago.</div>
<div>
	&nbsp;</div>
<div>
	ICT has provided enormous opportunities from various aspects, according to the regulator Nepal Telecommunications Authority (NTA). Nepal&rsquo;s telecom sector has created employment opportunities for at least 50,000 people and contributed more than Rs 20 billion as revenues every year to the national coffer.</div>
<div>
	&nbsp;</div>
<div>
	Even the government has come up with some ambitious plan including that of connecting east and west via Optical Fibre network. For the purpose, the government has planned to utilise the Rural Telecom Development Fund (RTDF), the fund collected by Nepal Telecommunications Authority from telcos.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, the sector is not without problem. According to telcos, there are many problems in the policy front. The telecom sector has been witnessing government&rsquo;s dillydally in bringing relevant laws and policies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are still room to improve in terms of quality. On the one hand, telcos and internet service providers need to ensure quality of service. On the other, Nepal should not become trading hub for low quality ICT goods. In such situation, the government need to bring policies ensuring consumers&rsquo; rights. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	ICT is still an untapped market in Nepal, an expert told New Business Age. &ldquo;All concerned stakeholders need to put sincere effort to take this sector to the next level.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hydropower: From Deficit to Export Considerations</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs6.JPG" style="width: 550px; height: 342px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Forced to live under electricity cut averaging 10 hours a day during dry seasons, Nepal is gradually developing its hydropower projects to escape the long-standing power crisis. Things have changed positively in the recent years as the dust of political uncertainty is finally showing signs of settling down. 87 hydel projects totalling 2,345 megawatts are under construction. Both the government and private sector have ramped up their investments in these projects. The projects, upon completion, are expected to add electricity into the national power grid within the next seven years. Similarly, the Investment Board Nepal (IBN) has also taken initiatives to construct five mega-hydel projects of 3,750 MWs. IBN, which was formed four years ago to fast-track mega projects, is said to be involved with promoters for power development agreement (PDA). The promoters have assured to start the construction of projects immediately after the finalization of PDAs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This indicates the increasing involvement of private sector in the country&#39;s hydropower development. Nepali private sector has thus far managed to produce 232 MWs electricity after the electricity act of 1992 came into effect. According to Independent Power Producers Association, Nepal (IPPAN), the private sector has invested Rs 55 billion in 25 hydro projects till date since the establishment of the first private power plant in 2000.</div>
<div>
	&nbsp;</div>
<div>
	Increasingly positive tones of bilateral donors have also raised hopes in this sector. The World Bank and Asian Development Bank (ADB) are planning to raise their stakes in Nepal&#39;s hydropower development. The World Bank (WB),which has already provided development related financial assistance worth Rs 200 billion to Nepal is further adding investments in hydropower projects. The International Finance Corporation (IFC) of the World Bank Group has recently agreed to provide USD 84.6 million for the 37 MW Kabeli-&#39;A&#39; project. The electricity output from the run-of-river project situated in Panchthar district will be then connected to the national grid through the 132 KVA Kabeli Corridor Transmission line. The transmission line, which is jointly financed by the WB and Nepal Electricity Authority (NEA) is in the construction phase. Likewise, IFC has also expressed readiness in Arun III (900 MW), Upper Marsyangdi (600 MW), Upper Karnali (900 MW) and Upper Trishuli (213 MW). During his visit to a WB program in US and Mexico in April, Finance Minister Ram Sharan Mahat received commitment from the IFC for investing for Rs 600 billion in developing hydropower projects of 3,000 MWs. Similarly, ADB is also stepping up to invest in the country&#39;s big hydel projects. Last year the bank agreed to provide soft loan of Rs 13 billion for 140 MW Tanahu Hydropower Project. Likewise, the European Investment Bank (EIB) which also agreed to loan Rs 1.5 billion for the above mentioned project has also committed to provide Rs 12 billion to build the Kaligandaki and Marsyangdi Transmission line along with another Rs 3 billion to build the Trishuli Corridor Transmission Line.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The sector is also grabbing significant attention from foreign investors. Official data shows that hydropower sector has attracted highest FDI commitments in the recent months. According to data published by Department of Industry (DoI), foreign investors pledged Rs 11.8 billion worth FDI commitments in the first nine months of the current fiscal year against Rs 2.65 billion during the same period, last year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Rising Export Potential</strong></span></div>
<div>
	<img alt="" src="/userfiles/images/cs13.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 250px; height: 435px;" />Few years back it was almost unimaginable for power crisis marred Nepal to even think of supplying electricity to neighbouring countries. The scenario, however, is looking more and more real for Nepal to make its way forward to become a net power exporter. Nepal after producing 2,345 MW by 2018-19, will have surplus energy after consuming its annual demand of estimated 1,700 MW by that time. In this circumstance, India will be the most likely market of Nepali electricity as the energy hungry southern neighbour is increasingly looking to import power from its himalayan proximate.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The construction and installation of countrywide and cross-border high capacity transmission lines indicates the rising power trade potential between India and Nepal. The tower installations in Nepal section of 400 KVA Dhalkebar-Muzzafarpur Cross-Border Transmission line has started earlier this year. The construction of the project, which started in January is scheduled to be completed within 16 months of its commencement. Similarly, feasibility study of 400 KVA Bardaghat-Gorakhpur Transmission Line has also begun. The high capacity cross-border transmission lines would facilitate power transmission between the two countries. A secretary-level agreement between Nepal and India has already paved way to build the framework for power trading.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Private power producers say that both countries should look into effective modalities of power trading. &quot;Energy banking agreement model is the best option,&quot; says Er Gyanendra Lal Pradhan, Chairman of FNCCI&#39;s Energy Committee. According to Pradhan, if the model is adopted, Nepal can send surplus power to India in rainy season and bring back the same amount of electricity in dry seasons. He said that countries across the world are adopting this model owing to its flexibility and practical approach. &quot;The model is being effectively practiced by New York Electricity Exchange of United States and Hydro Quebec of Canada, they do banking up to 90 per cent of electricity they trade and remaining 10 per cent is priced.&quot; Pradhan stressed the need for building strong network of nationwide transmission lines as it would further help if Nepal and India engage in energy banking.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, absence of clear policies and other problems such as inefficient bureaucracy, rampant corruption, lack of nationwide transmission grid, issues related to infrastructure and land compensation are regarded as the bottlenecks in Nepal&#39;s hydropower development efforts. For instance, the draft of electricity bill, 2065 introduced in the parliament has seen little or no progress over the past five years. Similarly, issues related to power purchase agreement (PPA), higher bank lending rates in hydropower projects, value added tax (VAT) levied to private producers and low allocation of national budget are also seen as problems hindering the sector&#39;s overall development.</div>',
			'published' => true,
			'created' => '2014-06-09',
			'modified' => '2014-07-30',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the “rising stars” of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.',
			'sortorder' => '2626',
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	(int) 8 => array(
		'Article' => array(
			'id' => '2773',
			'article_category_id' => '40',
			'title' => 'The Business For Social Benefit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<em><span style="font-size:16px;">Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society. &quot;Fortune at the bottom of the pyramid&quot;, a phrase coined by the late Indian academic CK Prahalad, has become popular among social entrepreneurs. But the question is: are we heading towards ensuring benefit to the bottom billions or not? In this issue, we focus on scope, opportunities and motivation for social entrepreneurs and the way forward.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Those at the &#39;bottom of the pyramid&rsquo; have been neglected since decades and it is time to change perceptions through which they are perceived. They should not be perceived only as recipients of aid.They are agents of development and they can be partner in entrepreneurship, says Catrin Frohlich, co-founder of Hidden Journeys who is involved in promotion of social entrepreneurship in Nepal for the last couple of years. She opines that acceptance of bottom billion as business partner opens avenue to set up social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social entrepreneurship embraces market-based approach as social enterprise is about innovation and making profit along with makingimpact on development of the society, she argues. It is not the rejection of profit but rather is about sharing of profit with target groups and there by helping them in enhancing their living standards, Frohlich adds.</div>
<div>
	&nbsp;</div>
<div>
	Nepal needs to create jobs and job creation is not possible without enterprises. Social entrepreneurship is all about leading country towards prosperity through sustainable approaches.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Catrin Frohlich" src="/userfiles/images/cs1(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Scenario of Social Entrepreneurship</strong></span></div>
<div>
	A large number of population is reeling under acute poverty despite the fact that massive resources at the local level remain unused.In such a scenario, Nepal can be a very appropriate country for venturing into social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, it is again not an easy task to venture into social enterprises, especially in a country with relative absence of entrepreneurial aptitude. Social entrepreneurship is comparatively new phenomenon but it is gaining momentum, says Vidhan Rana of Biruwa Ventures. We have good understanding of the word social but less understanding of the word entrepreneurship, he opines. &ldquo;Social entrepreneurshipis not about establishing NGOs and distributing aid money to people in need,&rdquo; he says, adding, &ldquo;Innovative ideas to venture into business is a must to start enterprise.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Many people perceive the term social enterprise as a connotation of not-for-profit organization. The not-for-profit mantra is out-dated now, says Rana adding, &ldquo;Make profit but involve the bottom billions in business and share the profit with them. This is the philosophy behind the concept of social entrepreneurship.&rdquo; Social entrepreneurship has become a buzz word and Rana fears that this hypemight be misused by not genuine social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This is a new domain and there is a corresponding dilemma at the policy level. While a debate on what is genuine social entrepreneurship has started, Sadhana Shrestha, executive director at TEWA and former Country Representative, in Nepal at Ashoka, accepts the prevalence of dilemma about the termamong businessmen also. While attempting to correct the prevailing notion that perceives both types of organizations synonymously, she says that NGOs and social enterprises are different. Nepal does not have laws specific to social entrepreneurship but it certainly has a category in the Company Act, which describes such companies as those that do not distribute profits (though they makes profits).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The most encouraging part in this is the increasing involvement of young generation. Youth led organizations such as Biruwa Ventures, Entrepreneurs for Nepal (E4N), Udhyami Nepali, Hidden Journeys and ChangeFusion Nepal have been working to promote entrepreneurship including that of social entrepreneurship.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Sadhana Shrestha" src="/userfiles/images/cs2(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Fight Poverty with Profitability</strong></span></div>
<div>
	&ldquo;The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits,&rdquo; by C.K. Prahalad, professor of corporate strategy at the Ross School of Business of the University of Michigan is considered as a seminal work on social entrepreneurship. The concept of &lsquo;The Fortune at the Bottom of the Pyramid&rsquo; provided new business models targeted at providing goods and services to the poorest people in the world. Prahalad&rsquo;s concept seeks to solve global poverty by turning the bottom of the socioeconomic pyramid from victims of globalization into its beneficiaries through consumerism.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The book combined a pragmatic framework with inspirational case studies to show companies how they could develop innovative business models and find new profits by serving the world&rsquo;s five billion poorest people at the bottom of the economic pyramid (or BOP).</div>
<div>
	&nbsp;</div>
<div>
	Prof Prahalad was in favour of private-sector led social enterprises. Responding to a question &ldquo;What are the big lessons learned since the book was first published?&rdquo; by Triple Pundit, a new-media company for highly conscious business leaders, Prahalad said:&nbsp;</div>
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	&nbsp;</div>
<div>
	First, the thesis of the book that the private sector is an integral part of the poverty alleviation process is well accepted by multilaterals, aid agencies, many NGOs and large private sector firms as well. &nbsp;Second, there is now a growing belief that the bottom of the pyramid provides an opportunity for business to &ldquo;do good and do well.&rdquo; Third, we recognize that the BOP is more than micro-consumers. &nbsp;It also represents micro producers and micro investors who can be connected to national and global markets. And the BOP can also be the source of major innovations that affect us all. &nbsp;These ideas were in the original book but have been confirmed and amplified.</div>
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<div>
	Reviewing the book, Bill Gates, Chairman and Chief Software Architect, Microsoft says: &quot;C. K. Prahalad argues that companies must revolutionize how they do business in developing countries if both sides of that economic equation are to prosper. Drawing on a wealth of case studies, his compelling new book offers an intriguing blueprint for how to fight poverty with profitability.&quot; This book is considered a hallmark in introducing discourse and practices of private sector led social enterprises.&nbsp;</div>
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	&nbsp;</div>
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	<span style="font-size:14px;"><strong><img alt="Vidhan Rana" src="/userfiles/images/cs3(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Evolution of the Concept &amp; Growing Concern&nbsp;</strong></span></div>
<div>
	Many believe that business philanthropy and social involvement of business community is linked with long rooted concept of &ldquo;Sewa Hi Paramo Dharma&rdquo; [Social Service is the Ultimate Religion]. Historical evidences suggest that not all business leaders have been content in simply performing a commercial role in society. Numerous businesspersons, industrialists and entrepreneurs have made significant contributions to their local communities.</div>
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	Earlier, there were notable efforts to engage business in society via charity or social welfare activities. These were mainly inspired by religious affiliation and cultural inspirations. From mid-1970s onwards general interest in corporate social responsibility grew and this is reflected in the involvement of Nepali corporate sector in CSR activities. &nbsp;This interest was consolidated in the 1980s. As part of the general redefinition of state functions in this period, the role of business in addressing social problems became more prominent. Such political and policy developments, it is argued, have made a significant contribution towards enhancing social roles of businesses.</div>
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<div>
	<span style="font-size:14px;"><strong>Social Enterprises: Sustainable Approach of Development&nbsp;</strong></span></div>
<div>
	Sadhana Shrestha, while stating that NGO workers should not be considered as social entrepreneurs, claims that social entrepreneurship should have some basic qualities: innovation, breakthrough ideas, sustainable and replicable model and system changing ideas.&nbsp;</div>
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	Social entrepreneurs should give enough attention to the sustainability of their business and generally do not distribute dividend rather inject it in the business to ensure sustainability of the enterprise, she claims.&nbsp;</div>
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<div>
	Social enterprises are businesses whose primary purpose is the common good. The main characteristics that distinguish a social enterprise from other types of businesses, non-profits and the government agencies is its sustainable approach, opines Mahabir Pun, the winner of the Ramon Magsaysay Award 2007 for his project that brought wireless Internet to rural Nepal.</div>
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<div>
	Social enterprise directly addresses a difficult social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.</div>
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	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Challenges in Social Entrepreneurship&nbsp;</strong></span></div>
<div>
	The social enterprise movement was connected mainly with non-profits that used business models and earned income strategies to pursue their mission in the early days of social entrepreneurship. The understanding has become clearer now. Enterprises, whose sole purpose is to make social impact, are now considered as social enterprises. The sector, however, is not out of challenges.&nbsp;</div>
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	&nbsp;</div>
<div>
	<strong>Identification of business model:</strong> Business is often linked with profit in Nepal. And even the image of non-profits is not very positive. In such a situation, building positive image for social enterprises is a challenging task, says Catrin Frohlich.&nbsp;</div>
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<div>
	<strong>Capacity building: </strong>Building capacity of aspirant social entrepreneurs is another challenge for Nepal&rsquo;s social entrepreneurial world. Capacity building initiatives should not be limited to launch of businesses, but should be continued when it comes at scaling up level, addsFrohlich.</div>
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	&nbsp;</div>
<div>
	<strong>Financing:</strong> A real social entrepreneurship is about innovation but traditional financing institutions do not always believe in innovative ideas and may deny lending money, opines Frohlich while pointing to the challenge of acquiring financial assistance for social enterprises.&nbsp;</div>
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	&nbsp;</div>
<div>
	<strong>Legal provision:</strong> Policy and regulatory frameworks have many grey areas. In such a context, it is feared that the word social entrepreneurship could be easily misused by non-profits and others institutions to gain undeserving reputation, says VidhanRana.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Opportunities&nbsp;</strong></span></div>
<div>
	The concept of social entrepreneurship is an outcome of the realization that aid recipients cannot make tremendous progress in their life compared to entrepreneurs, says Vidhan Rana. In the same vein, Frohlich also opines that despite some good works, NGO-model of development is not always in favour of the bottom billion. Despite challenges, social entrepreneurship field in Nepal is recently witnessing positive trends and receiving new opportunities as it is the best model for optimum and sustainable use of resources.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If analysed from the perspective of national development, social entrepreneurship does not put the national economy at risk. It is a beautiful aspect of social entrepreneurship that while an individual takes all the risk of innovation, all members of the target community share the benefit.Similarly, social entrepreneurship is even more inclusiveforwomen entrepreneurs and adopting this approach can assist in making the entire development process more inclusive. Considering the present trend, it is obvious that in the coming years we&rsquo;ll see social entrepreneurship woven into the very fabric of existing disciplines and become an integral lens through which we will understand all sectors and fields of study.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Corporate Houses for Social Cause&nbsp;</strong></span></div>
<div>
	Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that will have positive impact in the society. Generally, CSR activities are carried out using profit amount. CSR is a process with the aim to embrace responsibility for the company&#39;s actions and encourage a positive impact through its activities on the environment, consumers, employees and communities.</div>
<div>
	&nbsp;</div>
<div>
	Though companies are not directly involved in social entrepreneurship, their involvement in social issues has been increasing in one or another form. In Nepal, many companies have been involved in many social activities such as Coke for water conservation, Unilever for hand washing promotion, Yeti Air tree plantation etc.</div>
<div>
	&nbsp;</div>
<div>
	Involvement of business community in social activities is not new phenomenon. Some renowned business houses have been involved in some traditional CSR activities. Operation of eye hospital from Golchha and donation to Briddhashram (old age home) from some business families can be taken as examples to this end.&nbsp;</div>
<div>
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<div>
	Further, some business houses have been involved in special CSR initiatives as annual events such as Asha Awards, Sports Tourism promotion, and health awareness program being carried out by Surya Nepal. There also are some companies such as NCELL that provide direct charity (e.g. school building, sukumbasi house roofing etc.) that is linked directly with their business promotion. Chaudhary Group has established a separate unit Yunus Centre to promote social entrepreneurship though it is yet to start work effectively.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides, recruitment of deaf staffs in the Nanglo restaurant can be taken as a good example of social entrepreneurship business. Dabur is also involved in social business as it provides help to farmers in herbal cultivation.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Future Outlook</strong></span></div>
<div>
	Positive impact made by existing social enterprises on target communities and in making profit has triggered enthusiasm in aspiring entrepreneurs. Numbers of aspirant social entrepreneurs are increasing and their conviction show that they can make money and can do things differently in the entrepreneurial world. &nbsp;Social enterprises will prove that enterprises can be financially sustainable, even profitable.&nbsp;</div>
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	&nbsp;</div>
<div>
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			'created' => '2014-04-10',
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			'description' => 'Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society.',
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			'title' => 'Nepali Women As Entrepreneurs',
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			'content' => '<div>
	&nbsp;</div>
<div>
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<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali women entrepreneurs have not broken the glass ceiling, says Pramila Rijal, president of SAARC Chamber Women Entrepreneurs Council (SCWEC). &ldquo;But they have already made the first cracks.&rdquo;</div>
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<div>
	Rijal&rsquo;s idea rightly summarizes the present conditions of women in business in Nepal. Alka Rajouria Rijal, executive director at Federation of Women Entrepreneurs&rsquo; Association of Nepal is also of the same opinion. Women entrepreneurs have come far but they still have a long way to go, she opines.&nbsp;</div>
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	According to her, there are many issues that still need to be improved: access to finance, gender-responsive policies, family barriers and deconstructing stereotypes about women entrepreneurs.</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs6(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 410px;" />Business: It was Men&#39;s Domain&nbsp;</strong></span></div>
<div>
	Hajuri Bista, one of the forerunners in the arena of women entrepreneurship says, &ldquo;I had never seen men and women work together. It was really challenging to get out of the dogma that women should take care of household chores and not venture into the business world.&rdquo;</div>
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	In 1990, the country adopted a &nbsp;democratic political system but women entrepreneurs still finding not an easy path at that time, she recalls. Late Yangzi Sherpa, Ambica Shrestha, Rita Thapa, Maggie Shah, Renchin Yonjan, Shyam Badan Shrestha, Shanti Chadha, Nilam Pande, Mohini Lama, Brinda Rana and some other faces were managed to shine in this period as entreprenuers. They were the trailblazers at that time, Bista recalls.&nbsp;</div>
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	&quot;Even after democracy, I have seen many times aspiring women entrepreneurs breaking into tears in meetings due to unexpected hurdles and apathy from their family and the society,&quot; she said reflecting on her experience. &ldquo;Why should be women engaged in business?&quot; &nbsp;was a common mindset at that time, she adds.&nbsp;</div>
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	Fortunately, times have changed now. There are host ofefforts underway to boost women&rsquo;s participation in business and women are in the condition to get guidance &nbsp;in all phasesof entreprise development &nbsp;-- from training on leadership, to new forms of financing.&nbsp;</div>
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<div>
	Entrepreneurship has been traditionally seen a male preserve and idea of women taking up entrepreneurial activities considered as a distant dream, she says. But the mindset has been changing, she adds. &ldquo;It takes time to change all the established social norms but we have achieved tremendous success in the field of women entrepreneurship.&rdquo;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs1(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 204px;" />Has a Long Way to Go</strong></span></div>
<div>
	There are umpteen problems even now. Women face problem from their initial commencement of enterprise, says Barsha Shrestha, deputy chief executive officer at Clean Energy Development Bank.&nbsp;</div>
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	&nbsp;</div>
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	The society still does not believe in their capacity and it is an uphill task for women to face such conflicts and cope with such challenges, she adds. Obtaining the support of bankers, managing the working capital, difficulty in getting credit are the problems to solve which male family member&#39;s support is still needed, she informs.&nbsp;</div>
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	&nbsp;</div>
<div>
	Now women are empowered enough and can lead big corporations too, says Ambica Shrestha, women entrepreneur and president of The Dwarika&rsquo;s Hotel. &ldquo;All they need is chance of working as freely as their male counterparts.&rdquo;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs2(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 188px;" />Absence of Entrepreneurial Aptitude</strong></span></div>
<div>
	If you have innovative idea to venture into business that is what we call entrepreneurship, says Renchin Yonjan. But male businessmen in Nepal lack entrepreneurial aptitude, she claims. Most of the women who are aspiring in entrepreneurs are involved either in their family business or in service sector that still does not have talents (male or female) with the basic ingredients of entrepreneurship. &nbsp;&nbsp;</div>
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<div>
	Parents want their daughter to be involved in jobs rather than entrepreneurship, shares Barsha Shrestha. The reason is clear. They do not want their daughters to take risk and put their money at risk.&nbsp;</div>
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	&nbsp;</div>
<div>
	Besides, even majority of women in the country lack entrepreneurial aptitude. Women have no entrepreneurial bent of mind, informs Pramila Rijal. &ldquo;But this problem does not prevail only among women but also among men too.&rdquo; &ldquo;Yes, women are more inclined towards household chores and existing social structure does not allow them to think broadly,&rdquo; she adds.&nbsp;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs3(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 187px;" />Expand Access to Finance&nbsp;</strong></span></div>
<div>
	Women in the country have been facing many problems to get going with their business ideas. Finance shortage is one of them. Women entrepreneurs always suffer from inadequate financial recourses and working capital, says Rita Bhandary, president of Federation of Woman Entrepreneurs Associations of Nepal (FWEAN). They are not able to afford external finance due to absence of tangible assets as security. Women have very less property and bank balance in their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in the women&#39;s ability to run a venture successfully.</div>
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<div>
	Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities, according to Shrestha. Marketing and financial problems are such obstacles where even training doesn&#39;t significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs. &nbsp;</div>
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	Bankers often deny women credit on the ground of lack of collateral security, Shrestha says. Therefore, their access to risk capital is limited. Women cannot start big business ventures unless equal access of finance is ensured, Shrestha claims.&nbsp;</div>
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	<span style="font-size: 16px;"><strong>A Wave of Progress in SME</strong></span></div>
<div>
	Small and Medium Enterprises (SMEs) are possibly one of the best and most cost-effective avenues for furthering economic development. Slowly but gradually, women have been expanding their foothold in this SME field. Currently, women own about 14,300 small and medium enterprises in Nepal, accounting for 2 percent of GDP (registered formal sector) and employing over 200,000 workers. A study commissioned by IFC, private sector lending arm of the World Bank Group, suggests that meeting their current credit requirements of US$ 106 million can increase their contribution to the economy, according to SAARC Chamber Women Entrepreneurs Council (SCWEC).</div>
<div>
	&nbsp;</div>
<div>
	Throughout the country, women have been setting up small and medium enterprises after acquiring the skills, resources, and support necessary to grow and sustain their businesses, says Alka Rajouria Rijal.&nbsp;</div>
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<div>
	It is very positive aspect of women in entrepreneurship that they are creating jobs at a time when the country is reeling under massive unemployment problem.&nbsp;</div>
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<div>
	Similarly, women&rsquo;s involvement in entrepreneurship will not only contribute to create jobs but also to change the stereotyped role of women which is largely limited to household chores. All should motivate women entrepreneurs to give them the moral support for their business ideas.</div>
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<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs4(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 166px;" />Networking: Key to Success&nbsp;</strong></span></div>
<div>
	The equation is very simple: you have to expand your business once you start it, you have to develop a network to expand business and you have to have a free-society to develop a network, says Barsha Shrestha who believes that Nepali women are struggling to this end.&nbsp;</div>
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<div>
	Women should have a very strong network at three levels: in the sector concerned, with all entrepreneurs and national and international level, according to women entrepreneur Renchin Yonjan.</div>
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<div>
	Women have tremendous potential for networking as they are polite and soft compared to their male counterparts, she opines. In business, exposure gives knowledge. Exposure is key that will help women to materialize their dreams. Women entrepreneurs should get out from social restrictions, expand their contacts and start business ventures. Women entrepreneurs should not hesitate to create their brand.&nbsp;</div>
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<div>
	Full-time entrepreneurs should have the broadest networks. Long-held belief is, however, that women have weaker networks and rely excessively on family and friends to build their business. This logic is directly linked with the perception that women cannot handle business independently and they are reliant on family and friends for networking, says Yonjan. &nbsp;</div>
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<div>
	<span style="font-size: 16px;"><strong>Dream Big&nbsp;</strong></span></div>
<div>
	The number of women-owned business has been growing over the past decade or so. However, evidences show that most of these businesses don&#39;t scale up. Further, women entrepreneurs are still considered suitable only in small and medium enterprises.&nbsp;</div>
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<div>
	Over the last few years, it is found that women entrepreneurs often seem to be pigeonholed into the &lsquo;lifestyle business&rsquo; category or education sector in Nepal. This is obviously good but not enough, says Ambica Shrestha. Women entrepreneurs are still missing out on the chance of a bigger slice of the pie.</div>
<div>
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<div>
	Women-owned businesses are still a drop in the ocean of commerce, according to Pramila Rijal. She suggests women entrepreneurs to dream high. &ldquo;It is time that women entrepreneurs start dreaming of setting up big corporations and running big businesses.&rdquo; We have to dream and we have to work to full our dreams, opines Rita Bhandary.&nbsp;</div>
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<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs5(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 168px;" />Changing Scenario</strong></span></div>
<div>
	Picture a woman and you might imagine a women busy in domestic chores and childcare. Further, if someone speaks about a female entrepreneur and you might imagine a woman at the helm of a small business, perhaps in a cosmetic outlet or childcare centre.&nbsp;</div>
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<div>
	For decades the symbol of women entrepreneurship has been, to many, the pickle, fashion or childcare. They were considered shadow of their male counterparts. Time has come now to break the stereotypes and women should take the baton.&nbsp;</div>
<div>
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<div>
	On the one hand, the mindset of society has been changing, Yonjan opines. &ldquo;But challenges have also increased and women have to compete in the highly competitive world.&rdquo; Access to Information and Communication Technology (ICT), and better exposure to the rest of the world have provided unique opportunities to the women entrepreneurs to expand their footholds,&rdquo; she claims.&nbsp;</div>
<div>
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<div>
	Our aim is not to steal the profit pie, which male entrepreneurs have been enjoying but to seek new chances of generating new and innovative sectors where women can see their future, says Yonjan. However, these sectors should not be limited to the small and medium industries.&nbsp;</div>
<div>
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<div>
	&ldquo;I am definitely seeing more women enter the entrepreneurship sector,&rdquo; Shrestha says. Is entrepreneurship a man&rsquo;s world? No not at all, she firmly believes. We need to break all the stereotypes prevailing regarding women in business.&nbsp;</div>
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<div>
	<span style="font-size: 16px;"><strong>Conclusion</strong></span></div>
<div>
	Women across the country have started several business ventures at their own initiatives. It is time to taking bigger steps towards providing flexible workplaces for women to get in the entrepreneurship. &quot;We know that where women are venturing now had been a male bastion. But that should not deter them. Women are equal partners in business,&rdquo; says Yonjan. All section of the society should encourage their effort of entering into the entrepreneurship because people&rsquo;s dream of peace and prosperity is directly related to the economic growth. Women&rsquo;s involvement in entrepreneurship should be encouraged because it will not only create more opportunities but also ensure inclusive growth. It will be imperative in achieving highest sustainable economic growth and employment and in raising living standard.</div>
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	<img alt="" src="/userfiles/images/cs1b.jpg" style="width: 550px; height: 611px; margin-left: 10px; margin-right: 10px;" /></div>
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						<span style="font-size:18px;"><strong>World&rsquo;s Top 10 Influential Female Entrepreneurs&nbsp;</strong></span></div>
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						<span style="font-size:16px;"><strong><img alt="Wu Yajun" src="/userfiles/images/1%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Wu Yajun</strong></span></div>
					<div>
						Wu Yajun holds the title of229th richest person in the world. The journalist-turned Chinese businesswoman is the Chairwoman of Longfor Properties, an investment holding company, which manages several businesses including real estate and property investment, development and management across China. Born to an ordinary family in 1965, she and her former husband founded Chongqing Zhongjianke Real Estate Co Ltd in 1995, which was later renamed as Longfor Properties. &nbsp;Her net worth as of 2013 is estimated at USD 4.4 billion. Wu is also serving as the member of China&#39;s National People&#39;s Congress. She is among the top 50 in Forbes&#39; Power-Women list.&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Zhang Yin" src="/userfiles/images/2%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Zhang Yin</strong></span></div>
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						Zhang Yin is the founder and director of China&#39;s biggest paper maker- Nine Dragons Paper Holdings Limited. The company buys scraps from US and other parts of the world and turns them into cardboard boxes to export Chinese goods. At the age of 49 in 2006, she became the first woman to top the list of richest Chinese businesspersons, according to the Huron Report. Zhang Yin&#39;s net worth is estimated at USD 3.9 billion as of 2012.&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Rosalia Mera" src="/userfiles/images/3%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Rosalia Mera</strong></span></div>
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						Rosalia Mera is the co-founder of Inditex, a worldwide fashion retailer, which owns famous brands such as Zara, Massimo Dutti, Pull and Bear and Bershka among others. At the age of 11 Mera dropped out of school and began to work as a sales person in a clothing store. With her former husband, she co-founded the Zara clothing chain in 1975, which later became the world&#39;s largest fashion retailer. Mera died on 15th August 2013 after suffering a stroke at the age of 69. At the time of her death she was the richest woman in Spain and the world&#39;s richest self-made woman. Before her death, Rosalia&#39;s net worth was estimated at USD 6.1 billion.&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Oprah Winfrey" src="/userfiles/images/4%20(Copy)(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Oprah Winfrey</strong></span></div>
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						Oprah Winfrey has been ranked as the richest African-American of the 20th century who is currently North America&#39;s only black billionaire. The 60- year old celebrity entrepreneur and philanthropist is best known for her talk show &quot;The Oprah Winfrey Show&quot;, which was considered as the highest-rated program of its kind in history from 1986 to its ending in 2011. She was also the world&#39;s only black billionaire in between 2004-2006. Winfrey is the founder of Harpo Productions, the Oprah Winfrey Network (OWN) television channel and Oprah Winfrey Leadership Academy for Girls. Oprah received the Presidential Medal of Freedom in 2013, the highest civilian award of the United States. Her net worth is estimated at USD 2.9 billion as of 2013.&nbsp;</div>
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						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Arianna Huffington" src="/userfiles/images/5%20(Copy)(3).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Arianna Huffington</strong></span></div>
					<div>
						Arianna Huffington is the creator of the Pulitzer-prize winning news website and blog &quot;The Huffington Post.&quot; She started the website in 2005. In 2009, she ranked 12 in Forbes&#39; list of the Most Influential Women in Media. The 63-year old Greek-American author and syndicated columnist has an estimated net worth of USD 35 million. In 2011, after the sale of The Huffington Post to AOL for USD 315 million, she became the President and editor-in-chief of The Huffington Post Media Group. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Kiran Mazumdar-Shaw" src="/userfiles/images/6%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Kiran Mazumdar-Shaw</strong></span></div>
					<div>
						Kiran Mazumdar-Shaw is the chairman and managing director of Biocon Limited, a biotech company based in Bangalore. Partnering with an Irish firm to make industrial enzymes, she founded the company in 1978 when she was just 25 with a seed capital of Rs 10,000. She is regarded as India&rsquo;s first biotech entrepreneur. The 60-year old businesswoman is also the Chairman of Indian Institute of Management (IIM-Banglore). She is in the Forbes&#39; list of the world&#39;s 100 most powerful women and the Financial Times&rsquo; top 50 women in business list. As of 2010, her net worth is estimated at USD 900 million.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yelena Baturina" src="/userfiles/images/7%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 115px;" />Yelena Baturina</strong></span></div>
					<div>
						Regarded as the richest Russian woman and the Russia&#39;s only woman with net worth more than USD one billion, Yelena Baturina is the founder of construction and infrastructure investment company Inteco. She founded the company in 1991 as a plastic manufacturer but later changed its business. Baturina witnessed her net worth fell dramatically during the height of the financial crisis of 2008/09. The 50-year old entrepreneur also owns a hotel chain and is the founder of BE OPEN, a cultural and philanthropic foundation.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Giuliana Benetton" src="/userfiles/images/8%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 116px;" />Giuliana Benetton</strong></span></div>
					<div>
						Giuliana Benetton is the founder of Benetton Group, a worldwide fashion brand, which operates a network of more than 6,500 stores and outlets across 120 countries. The Italian company, which is fully owned by the Benetton family, owns famous clothing line-up brands such as United Colors of Benetton, Undercolors of Benetton, Playlife and Sisley. Giuliana started the family business in 1965 by knitting sweaters. At the age of 76, Giuliana is currently serving asdirector of Benetton Group and Edizione S.R.L, a financial holding company of the Benetton family. Her net worth is estimated at USD 2 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Mary Perkins" src="/userfiles/images/9%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Mary Perkins</strong></span></div>
					<div>
						Mary Perkins is the richest self-made British businesswoman. Alongside with her husband Douglas Perkins, she co-founded Specsavers in 1984, a leading global retail chain of optics (eyeglasses and contact lenses), hearing equipment and optician services. Born in 1944, Mary was the daughter of an optician who studied optometry at Cardiff University where she met Douglas.</div>
					<div>
						&nbsp;</div>
					<div>
						Specsavers Optical Group Ltd which is fully owned and by Perkins family operates 1,650 stores across the globe. Mary became the first female optician in the UK to receive the title of &quot;Dame Commander of the Most Excellent Order of the British Empire&quot; (DBE) in 2007. She was also included in the list of BBC Radio 4&#39;s 100 most powerful women in the UK. As of 2011, her net worth is estimated at USD 1.15 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yoshiko Shinohara" src="/userfiles/images/10%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Yoshiko Shinohara</strong></span></div>
					<div>
						Yoshiko Shinihora is considered as the most influential Japanese female entrepreneur. At the age of 77, she is currently the chairman and CEO of Tempstaff Co. Ltd, a human resource management and consulting firm that specializes in contingent hiring, job placement along with childcare services. The company operates and provides services to its 59,000 clients across the world including Japan,United States, China, Singapore, India, Indonesia and South Korea. Shinohara started the company as a temporary job recruitment agency with a seed capital of USD 9,000 in 1973 in her apartment after divorcing at the age of 38. At first, she struggled to find clients as she had to lobby against Japan government&#39;s stiff opposition to temporary job placements. Her business flourished in the 1990s as economic downturn coupled with rising deflation forced Japanese companies to abandon long-term job guarantees to their employees. Tempstaff now has 5,000 staffs and earns USD 2.9 billion annually.&nbsp;</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-03-07',
			'modified' => '2014-05-07',
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			'description' => 'Women entrepreneurship is gaining importance in Nepal as well. In this issue, NewBiz focuses on the problems, issues, challenges faced by Nepali women entrepreneurs, and ways to overcome them.',
			'sortorder' => '2616',
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	(int) 10 => array(
		'Article' => array(
			'id' => '2583',
			'article_category_id' => '40',
			'title' => 'New Nepal Government Setting The Economic Agenda',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali economy counts on post-election confidence. With the elections for the Constituent Assembly (CA) and the legislature parliament just concluded, general public and business leaders want one thing for certain &ndash; political stability and economic prosperity.</div>
<div>
	&nbsp;</div>
<div>
	Nepali business and consumers have been on a decade-long roller-coaster ride of unstable government with changes in leadership, epic legislative struggles and policy reversals culminating in what has amounted to a mess.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now there are rays of hopes. The return of political stability is expected everywhere. Business community is upbeat by the successful second CA election. As the liberal forces are going to take the helm of the government, all are waiting for a decisive outcome that can provide real relief to people. And, it is the business community which has been waiting for a favourable situation for their business and investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Decoding the Election Result</strong></span></div>
<div>
	People expressed their aspirations and exercised their power during this election to set the progressive course for issues that matter them the most. Interestingly, people filtered those parties who often take to the street to fulfill their demands but fail to deliver when they lead the government.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The victory of Nepali Congress in the urban areas clearly indicates that urban voters favour liberal economy. Similarly, the fact that majority of votes were secured by Nepali Congress reflects people&rsquo;s will to be led by a political party which is in favour of social harmony and cohesion.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say that the business community was terrorized due to the hotpotch federal agenda put forth by UCPN (Maoist) and other ultra-leftist groups in a belligent manner. The recent poll results might have relieved the entire business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Business goes beyond the ethnicity. An entrepreneur from Madhesh has to do business in the hilly region and vice versa,&rdquo; says former finance secretary Rameshore Khanal. &ldquo;Political parties now should raise the issue of &lsquo;economic nationalism&rsquo; instead of creating tensions among various castes and classes,&rdquo; he remarks. In his words, policy stability and policy consistency is more important than caste and regional issues for development and prosperity.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Long Journey&nbsp;</strong></span></div>
<div>
	Nepal became the 147th member of the World Trade Organization (WTO) in 2004. It is now over two decades since the government adopted liberalization and a development model based on private enterprise and foreign investment, with the market forces as a major driver of the economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Yet, the government&rsquo;s initiatives for strengthening the private sector have been illusive over the last decade. With over decade-long experience, it is perhaps time to evaluate the advantages Nepal took from the WTO membership and way forward to get maximum advantages as a WTO member.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is now time to seriously revisit the deep trade deficit Nepal has continued to run, says Bhawani Rana, vice president of FNCCI, one of the private sector umbrella organizations. The new government needs to make an overview of our foreign investment trends and identify policy bottlenecks, she emphasizes.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>We Can, If We Want</strong></span></div>
<div>
	In the early 1990s, the entire business environment was affected due to the people&rsquo;s movement. Democracy was recently restored. The country was in a state of euphoria as all had much expectation from the new democratic government. But the country&rsquo;s economic situation was not good as the overall economic indicators were in the red. Foreign reserve was depleted. In such a situation, Nepali Congress formed the government and was successful to bring economy back on track.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	That was thanks to the fact that one of the proponents of free market economy, Dr Ram Sharan Mahat took charge of the finance ministry. Though opponents blamed him for favouring economic giants, he despite criticism firmly advocated free market economy and that has proved to be the right decision. The country achieved a record high growth of 8.60 percent in the GDP in 1994.</div>
<div>
	&nbsp;</div>
<div>
	The situation after the 2013 election could hardly differ, hope the businessman and ordinary people. The situation is similar and so are the people&rsquo;s expectations. The early 1990s have proved that the economy can revive if the political leadership is committed for that, says economist Dr Jagadish Chandra Pokharel. A revival in confidence is sorely needed if the country is to deal with the slowdown in economic growth, he adds. The new government should facilitate the business environment. Stable policies and investment friendly mechanism help to make a recovery in business confidence, according to him. But, as NC this time is most likely to form the government with CPN-UML as almost equal partner, doubts are high wether the post-1990 miracle can be repeated. When CPN-UML came to power replacing NC during post-1990 period, it had reversed some crucial policies adopted by NC.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Fear Side</strong></span></div>
<div>
	Moreover, the country&rsquo;s economic sector is not completely terror-free. The Baidya-led ultra-left communist party may create troubles for the sake of making its presence feel. Given Nepal&rsquo;s immediate past, communal and caste issues may resonate strongly in the country&rsquo;s psyche, across the wide-ranging social and economic strata. Understandably, left-extremism (including UCPN-Maoist) may try to create trouble given the humiliating loss experienced by them in the latest polls. Though their presence has significantly reduced in the national politics, left-extremism may try to fuel labour issues to create trouble in the industrial relations.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists, however, argue that the economy and its development, and distribution of benefits, are at least as important as the emotional issue about communities, castes and class politics.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s clear that uncertainty over policy regime and regulations has been a hindrance to foster investment climate in the country,&rdquo; says businessman Pashupati Murarka.</div>
<div>
	&nbsp;</div>
<div>
	The only way out from the existing chaotic situation is to create more and more jobs in the country, Murarka reiterates. The country cannot get rid of political instability until the youths are left jobless, he claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Silver Lining&nbsp;</strong></span></div>
<div>
	What are the elements that shape the country&rsquo;s transition from volatile politics to stable democracy? All too often, policy analysts focus on the political process, while neglecting the vital role of economic reform in determining democratic success&nbsp;</div>
<div>
	or failure.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, high unemployment and lack of entrepreneurial opportunities posed serious challenges to Nepal&rsquo;s transition. On the other hand, the country faced growing unresolved grievances caused by issues such as misappropriation of private property, rampant corruption and widening inequality.</div>
<div>
	&nbsp;</div>
<div>
	Yet, there is silver lining. Despite a decade-long political turmoil and armed conflict, the country&rsquo;s economy was good enough to maintain its basic economic indicators in the positive direction. It is for sure that the country will go through a long and complex journey before the current political transition will settle to form a stable democracy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s micro as well as macroeconomic indicators are positive. &ldquo;We have sufficient foreign currency reserves,&rdquo; says joint secretary at the finance ministry Madhu Kumar Marasini. He underlines the need for utilizing the remittance inflow in the productive sector. &ldquo;All we need is proper management of our own resources to open new avenues of development,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;Despite political instability, Nepal has witnessed a noticeable growth in all sectors during the last decade. And, it is sure that the country can improve its economic indicators if we get visionary leadership, claims former finance secretary Rameshore Khanal.</div>
<div>
	&nbsp;</div>
<div>
	Nepal has made significant progress in various sectors including health, education, drinking water and telecommunication which clearly shows that the country&rsquo;s economy is ready to take off and all it needs is a runway to move on.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>The Issue of New Constitution&nbsp;</strong></span></div>
<div>
	Drafting the new constitution is going to be an uphill task. There are many differences among political parties. But, the country cannot bear perennial transition. It is the need of the hour to fulfill the aspirations and dreams of the people in a positive manner.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Underdevelopment creates multiple problems. It fuels the frustration and pessimism among people which is not good for country&rsquo;s economic health. And, politicians often blame the political transition for the dysfunction of development. In order to end the culture of blame game, we need the constitution which can end the existing political fiasco.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The business community wants this government to draft the constitution on time, opines Rajan Singh Bhandari. The economy cannot go ahead in an ad-hoc basis forever. This fact should be realized by all political parties and they need to draft the new constitution and promulgate it within the stipulated time, he adds.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion&nbsp;</strong></span></div>
<div>
	Many leaders often express the hopes of transforming Nepal into another Switzerland. And, it is not a far cry if we try. Can economic prosperity be achieved in a country that reels under perennial political problems? Entrepreneur Hari Bhakta Sharma says, &ldquo;Yes, we can achieve economic prosperity.&rdquo; We can achieve every success if there is collective effort from the government and the private sector and positive vibes for development among people, he claims.&nbsp;</div>
<div>
	It is widely believed that the new government will be successful to take a decisive role to make our collective dream of becoming rich and prosperous a reality. And, we all need to be clear that the economic prosperity is not meant only for business community but for all of us. Let us make a collective dream and start the journey of becoming a prosperous nation. It is a fact: &ldquo;United we stand and divided we fall.&rdquo; Let&rsquo;s make a collective effort to be the citizens of a prosperous country.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Cover Story" src="/userfiles/images/cs1%20(Copy)(3).jpg" style="width: 575px; height: 570px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2014-02-12',
			'modified' => '2014-02-17',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The results of the second Constituent Assembly (CA) election show that parties contesting on very radical economic ideologies have been rejected by the voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in the urban areas across the nation.',
			'sortorder' => '2429',
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	(int) 11 => array(
		'Article' => array(
			'id' => '2443',
			'article_category_id' => '40',
			'title' => 'Partners In Economic Growth',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;">Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? <strong>Achyut Wagle </strong>analyses the challenges and opportunities.</span></div>
<div>
	&nbsp;</div>
<div>
	When we say &#39;engaging development actors&#39; we are talking about hierarchical operational levels like local, district, sub-regional, regional, national, international and global, where each of these levels &nbsp;form a complex matrix of actual actors primarily from five sectors -- the public or government, private or business, civil society, actual beneficiaries or common people and, development partners (donors).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The economic growth is only possible through multidimensional interactions among these different groups of actors that are defined by the recent development literature as multi-stakeholder approach of development. The scope and limitation of the roles of each of these and conflicts and/or complementarities of the interests of these actors, singly or jointly, determines both the scale and the speed of the economic growth of any country, including Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, there is a problem in the definitional level, that is, whether all players in Nepal could be covered by these five categories of development actors mentioned above. Take for example Nepal&#39;s political parties who on their own right want to be the development actors, whereas their role and influence in development domain should either come through the public sector (for those who win the election and form the government) or only as the common people or the beneficiary (until they win the next election). The face of the civil society, if it has any, is not different from that of the political parties. In international practice, donors do not figure out with separate identities, who in Nepal&#39;s case appear even more quintessential actors. These distortions have serious implications both in engaging the development actors in their due roles and also attaining the ultimate results of our development endeavours.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Actors</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. The Government</strong></span></div>
<div>
	It is obvious that we need government for governance, hopefully a good governance. Although Nepal is not an exception among the least developed nations that face the crisis of governance, but one additional dimension in our case is we persistently face deficiency of democracy, perhaps more acutely at present. Nepal&#39;s politics during the last six decades of modern history has invariably been dominated by the dictatorial forces of some form that didn&#39;t believe in pluralistic, competitive democracy. This has been the main source of crisis of governance in general, manifested in the form of rule of force than rule of law, poor growth of institutions and their effectiveness, haphazardly conceived and weakly implemented policies, misuse of the state power by the powerfuls, strong nexus between the crime and law enforcement, utter lack of transparency and rampant corruption in public expenditure, rise of business syndicates and, worst of all, pervasive and persistent impunity. And, the list can on, and on.</div>
<div>
	&nbsp;</div>
<div>
	We don&#39;t have elected local governments at the local and district levels for last one decade, for no tangible reason for this vacuum, except for the height of irresponsibility and imperviousness of the political actors of the country. It should have in fact been the first priority of all particularly after the signing of Comprehensive Peace Treaty seven years ago; as the local governments would have been the best channels to deliver the much touted about peace dividend, many of the economic rights and delivery of the public services at the grassroots. Above all, it would have provided the people at the grassroots with direct access to the state mechanism. One can only imagine at this point, how many of new generation of leaders this process would have produced and how much would it have facilitated the process of proposed federalization of Nepal.</div>
<div>
	Nepal never created democratic government institutions at sub-regional or regional levels. We have bureaucratic arrangements like regional administrators who virtually have no role in economic planning and development except for that of official messengers.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="The Engagement Matrix" src="/userfiles/images/CS2%20(Copy).jpg" style="width: 550px; height: 307px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	At the national level, we have Himalayan scale of policy confusions at development governance. We still have National Planning Commission (NPC) located inside the high walls of Sigha Durbar, that mercifully distributes development to the people of far and wide corners of Nepal. We still believe that the people who live in NPC as if have divine senses to understand the exact development needs of the people living at Tinker and Olangchung Gola and ability to address them from here. The duplication of the roles between the finance ministry and NPC, the constant squabbles and ego-clashes of the mandarins in them is staple national drama. The independence of central bank has always been a mirage, as we saw ten governors in Nepal Rastra Bank in as many years. We never had and, nor will have the possibility of implementing &nbsp;an independent monetary policy of our own in foreseeable future due to &#39;pegging&#39; of Nepali currency with the Indian Rupee.</div>
<div>
	&nbsp;</div>
<div>
	At the international level, Nepal is gradually losing its credibility as a viable economy. We have not been able to organize the Nepal Development Forum, to interact with our international development partners, for the last one decade. Our ability to communicate about our needs with them and prioritize development areas to streamline their support has substantially reduced. &nbsp;The torch-bearers of our economic diplomacy are the political nominees typified, for example, by the recently sacked Nepali ambassador to Qatar. We may talk about FDI, but it has even stopped trickling in. We have also failed to introduce a functional mechanism to make sure that all official foreign assistance is spent through our budget, despite the fact that many of the donors are in favour of such a system.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. The Private Sector</strong></span></div>
<div>
	The post-1990 marked an era that tried to put the private sector in the driving seat of economic growth. The policies of liberalization, privatization and legal as well as institutional reforms initiated by the first elected government after reinstatement of democracy brought about substantial positive changes, the impact of which has withstood violent conflict of a decade. Private airlines, large private sector banks, private hospitals, multiple universities, private investment in communication, information technology and hydropower, and private participation in building infrastructures like roads and irrigation facilities are some of the exemplary outcomes of these policies.</div>
<div>
	&nbsp;</div>
<div>
	But this encouraging trend was abruptly truncated by the armed conflict waged by the Maoists and, after seven long years after cessation of hostilities too, there is no certain sign of putting the policy of private-sector-led growth back on track. The political mayhem we are witnessing even after the second Constituent Assembly elections last month is even more disgusting to say the least.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say, three preconditions for private sector actors to come forward to contribute to economic growth are: ensured private property rights, an appropriate business climate that encourages investment and a predictable policy regime that provides &nbsp;a reasonable time horizon for conceptualizing, executing, operating and if needed closing of the businesses without being unnecessarily anxious about the safety of, as well as, return from the investment.</div>
<div>
	&nbsp;</div>
<div>
	But, the greatest challenge to all of these aspects not only comes at the operational level but at the level of the very philosophy of the strongest of the political forces of Nepal. Confiscation of the private property, politically patronized trade unions disturbing the industrial atmosphere, politically sponsored extortions and sheer unpredictability of the public policies are true bottlenecks for the private sector investment, both foreign and domestic. Consequently, economy suffers from low level of investment and job creation, low level of private sector confidence and, as the result, massive amount of capital flight from the country.</div>
<div>
	&nbsp;</div>
<div>
	Despite all these odds, we must acknowledge the fact that the private sector has constantly been instrumental in the delivery of goods and services at the lowest possible price levels when the presence of government apparatus is as good as non-existent, and even when the armed conflict was at its height.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Civil Society and NGOs</strong></span></div>
<div>
	Nepal&#39;s civil society and the media don&#39;t believe in a long but natural process of the outcome of their activities. The natural role of the civil society or media is to cater the common people with factual information, on the basis of which people form their opinion, and that opinion gets reflected through the ballots. Then comes change through the policies of the mandated government. But, instead, in Nepal they want to be seen as activists and instant impact makers. The NGOs and INGOs strive deliberately to slip-out from the bracket of civil society and claim themselves to be real, grassroots development partners.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The media outlets in general have grown in terms of quantity, quality and reach, whereas NGO activities have become more suspicious and slanted. A large number of INGOs are deeply engaged in spreading this or that religion. . We probably need to re-examine the extent of real contribution of many of such NGOs to the economic growth, development and social harmony of our country.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. The Beneficiaries&nbsp;</strong></span></div>
<div>
	The common people both as actors and true beneficiaries of the economic growth and development efforts are at complete loss of direction. First, the people who are so far completely deprived of any form of meaningful development are not capable of even to identify and articulate their developmental needs. Let me directly quote from a woman whom I had met at Dehimandu of &nbsp;Baitadi, a year ago. In her early thirties, she looked like of fifties, who on top of a heavy load of fodder was carrying two malnourished kids and a pitcherful of water in her arms.</div>
<div>
	&nbsp;</div>
<div>
	When I asked her what did she looked for to ameliorate her sufferings, she first vehemently denied that she had had any suffering and then explained -- she was a happy woman as she could fetch drinking water walking just for 45 minutes whereas she had to spend some one hour in her parental home before marriage, collect fodder from the grassland half an hour away, her two kids out of six she gave birth have, fortunately, survived, her husband who worked in the Indian town of Pithoragarh visits twice a year, her mother-in-law beats her only once or twice a month, she had four cattle and enough land to feed her family for eight months in a year and rest is managed by her husband and his brother. She has plans for sending her kids to nearby school, just two hours of walk, for few years, and then they will follow their father to work in some Indian city. &#39;I am a happy woman and want nothing more,&quot; she emphasized.</div>
<div>
	&nbsp;</div>
<div>
	I don&#39;t think this story needs any further illustration.</div>
<div>
	&nbsp;</div>
<div>
	Second, who know what they want, they too don&#39;t have access to the authorities or knowledge on how to communicate their demands and concerns. Even if some managed to communicate, the end result may just be the same as being idle, ab initio.</div>
<div>
	&nbsp;</div>
<div>
	There is another extreme, where people lately have begun to obstruct the development projects claiming to have absolute ownership of the entire natural resources of their area. The process of participatory development is impeded either way.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. The Donors</strong></span></div>
<div>
	Unlike in other countries, donors for Nepal&#39;s case are imperatively very crucial development actors. It is but natural that the donors, particularly the bilateral ones, have their own interest or agenda in providing the financial assistance to Nepal. The nature of such interest, though, may vary from presenting a mere philanthropic face of the donor in question, influencing in certain policies, providing business to their home companies to increasing diplomatic clout.</div>
<div>
	&nbsp;</div>
<div>
	It is the responsibility of Nepal as a nation-state to identify our needs, prioritize them and explore the areas of possible engagements for the donors where their interest may be served without jeopardizing or compromising our own interests. We often degrade ourselves claiming that we cannot afford to be selective or, to say no. May be true. But we definitely can streamline the support and make them to agree to spend in our projects and programmes chosen by the national budget system.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Foreign Employment" src="/userfiles/images/CS3%20(Copy).jpg" style="width: 550px; height: 330px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	For years, we have tried to formulate a functional foreign aid policy but failed to conclusively frame and effectively implement it. Our absorption capacity of foreign assistance has often been below the &#39;fair&#39; mark and donors seem reluctant to increase and diversify the support mainly due to prolonged political transition and uncertainty coupled with administrative inefficiency. We have often failed to meet the capital expenditure earmarked by our own system that hardly gives incentive to major donors to augment their grant or loan portfolios.</div>
<div>
	&nbsp;</div>
<div>
	We often hear not only engagement but of overengaement of the donors in our development process. They are often alleged of directly interfering in policy making, selection and implementation of the projects etc. Many countries bring in their own experts and repatriate larger chunk of their support back home. Discrimination in pay for the same work between the Nepali staff of same qualification and caliber against their consultants is whopping. Probably Nepal has left more vacuum, not doing proper homework in time to make their engagement more fruitful yet unintrusive.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Dynamics and Correlations</strong></span></div>
<div>
	Let&rsquo;snow dwell briefly on a few key dynamics of Nepali economy. I will touch upon only those areas which appear to be inconsistent in pattern, look paradoxical or needed fresh looks and comparisons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Dynamics of the Human Resource and Migration</strong></span></div>
<div>
	Nepal&#39;s population growth rate now stands at 1.4 percent per annum according to census 2011. Without going into the boring details of numbers, &nbsp;we can say that some of the development indicators certainly show that we have made very impressive progress in terms of increasing the primary school enrollment, literacy and life expectancy, reducing child and maternal mortality rates, increasing access to health and transport services etc.</div>
<div>
	&nbsp;</div>
<div>
	But with regard to human resource development, we are caught in a very awkward position. About one third of the working age population (or about twelve percent of the total population) has out-migrated to foreign employment, mainly in menial jobs. Better educated too, have migrated to developed countries, majority of them with a set mind to permanently settle in the destination countries.</div>
<div>
	&nbsp;</div>
<div>
	It is an interesting paradox that migrated unskilled and uneducated youths are sending their entire earning back to Nepal and the remittances thus received have saved Nepali economy for at least a decade now from potentially falling into acute balance of payment crisis. On the contrary, the educated lot is not only migrating but also taking a hefty sum, on an average forex equivalent of about 35 billion rupees every year, from the national coffers towards tuition, travel and accommodation costs.</div>
<div>
	&nbsp;</div>
<div>
	In a rough calculation, to create a university graduate with sixteen years of education in private institution at present prices costs the nation between 5 to 6 million rupees. And, the return to the nation is clearly zero when one migrates never to come back. It is another paradox that the poor country like Nepal is investing so heavily in human resource to be used solely by the developed countries. The cost-benefit comparison shows that after such a big investment in education, it is unfeasible for them to stay in Nepal and get the cost returned given the lack of opportunities and relatively unattractive pays here.</div>
<div>
	&nbsp;</div>
<div>
	Then, left here in Nepal are true mediocres, who have spent less, studying in community schools, compelled to be contended with low rate of return and perform far below than the average. Nepali civil service is the true mirror of this phenomenon. If the trend of migration is not reversed, very soon Nepal will lack the required human resource of both low and high end skills. This is likely to have serious repercussion in national output. A trend is already visible in sectors like metal and construction works.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Direction of Foreign Trade" src="/userfiles/images/CS4%20(Copy).jpg" style="width: 550px; height: 429px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Dynamics of Foreign Trade and Remittances</strong></span></div>
<div>
	Nepal&#39;s trade deficit stood at scary level of 500 billion rupees in the last fiscal year (2012/13). Official figures show that export to import ratio was 1:6, whereas unofficial estimates suggest that such ratio should stand at 1:10. The accompanying table is self explanatory.</div>
<div>
	&nbsp;</div>
<div>
	In the last FY, Nepal received about 435 billion equivalent of remittances from the migrant workers. This definitely has put Nepal in comfortable level of forex reserve. But, a comparison of trade and remittance data suggests that our economy is heading to a very dangerous trend of the Dutch Disease like effect. Our consumption has been fueled by the remittance income of the households, which in turn is widening the export-import gap. Our productive sector is paralyzed for lack of power, human resource and investment. Our imports are largely consumables, perishables but hardly the production inputs. This apparently is unsustainable, dangerous trend. We need to re-identify Nepali goods that can have comparative and competitive advantage in the export market. At the same time, we must be able to diversify both export and import trade.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Dynamics of Growth and Poverty</strong></span></div>
<div>
	Nepal&#39;s average annual GDP growth rate during the last fifteen years has remained barely at 3.5 &nbsp;percent level. But, in the same period, the headcount poverty, the percentage of the population living below $1 dollar a day poverty line at PPP has unbelievably reduced from 58 percent in 1996 to 25 percent in 2011. What we are effectively saying here is that the poverty can be reduced without growth. In other words, we are challenging the existing theories that correlate growth and poverty and suggesting a completely new economic paradigm on both growth and poverty reduction. This is impossible. The government&#39;s development literature attributes this as the effect of the increased inflow of the remittances. Again, if that is the case too, we are saying that the remittances do not contribute to the economic growth but reduce poverty. This is equivalent to proposing an absolutely new economic theory.</div>
<div>
	&nbsp;</div>
<div>
	In countries like India and Argentina some 30 percent people still live under the poverty line. Mexico has 28 percent people under this magic line. It appears that we are very fast approaching to the United States which still has 15.1 percent people living under the poverty line, according to the World Bank data of 2011. All these are impossible and counter-intuitive arguments and one single conclusion of this is: what we are saying is not credible. On the one hand, we are saying that graduating a country from the least developed to a developing one is a highly ambitious enterprise, on the other our poverty data shows that we are already in far higher position than many of G-20 countries.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Investment and Infrastructure</strong></span></div>
<div>
	The private sector investment both domestic and FDI are in declining trend. The foreign direct investment of Rs. 9.08 billion was recorded in FY 2012/13compared to Rs. 9.20 billion in the previous year. The intent of investing about Rs. 39 billion was proposed by domestic entrepreneurs in the same year, which is less by some seven percent than the previous year. Apart from this, an investment of Rs 100 billion has been proposed for the hydel projects expected to be completed in next five years.</div>
<div>
	&nbsp;</div>
<div>
	One of the very encouraging developments is that the private sector has more aggressively come forward to invest in infrastructure than ever, not only in power but also in the telecommunications, surface transportation and airports. There are a number of large J-V projects in hydropower like Upper Karnali, Upper Seti and Arun III, at different stages of development. Yet, they have constantly been victim of political bickerings and protracted decision making process in the bureaucracy.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/CS1%20(Copy)(1).jpg" style="width: 550px; height: 367px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Very shaky political climate is main distraction to investment, both domestic and foreign.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. Agriculture and Manufacturing</strong></span></div>
<div>
	Our experience suggests that Nepal is not faring well in the manufacturing. Many products we tried could not compete with Indian and Chinese goods that are in instant supply and cheaper for the reasons of mass production and use mostly of their own raw materials. But on the contrary, Nepal has fared well in our niche products like hand-spun dhaaka and pashmina, handicrafts and herbs where there is our backward link in production and possibility of substantive value addition.</div>
<div>
	&nbsp;</div>
<div>
	The manufacturing industries that use Nepali agricultural products have seemingly given better returns to investment. The commercialization of agriculture itself presents real prospects for investment, perhaps in a scale thus far not even imagined of. Off-season farming of cash-crops and commercial farming of valuable herbs can open new avenues in the agriculture sector. Added road links to provide market access should be able to attract new investment for processing, phyto-sanitation and storage facilities. But, we often get carried away by the documentary camouflages like Agriculture Perspective Plan (APP), which presented every possible good plan for agricultural growth without any mention about the land where farming would be done. This was truly a plan made to farm in the air. Just an example.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>6. The Service Sector &amp; Growth Linkage</strong></span></div>
<div>
	Two sectors, financial services and tourism have exhibited very promising trend both in terms of attracting substantial amount of investment and promising good rate of returns. The financial sector now mobilizes about Rs 1.1 trillion of deposits and Rs. 0.9 trillion as loans and investments. The growth in the sub-sectors of insurance, stocks and commodities has also been impressive. But the hard fact is, Nepal&#39;s entire banking sector even jointly doesn&#39;t have liquidity enough to finance a medium-scale hydro project of say of 200 MW. Similar is the situation of insurance companies to provide insurance cover to these projects if they opted to insure. We don&#39;t have a domestic reinsurer, yet.</div>
<div>
	&nbsp;</div>
<div>
	Areas like transportation services have also expanded, along with the increased road networks. The tourism infrastructure is growing steadily. Health and education services by now have national reach due to private sector investment. But the issue here is: how do we make the expansion of these sectors contributory to the overall economic growth of the country? Anomalies like in these sectors have rather added new problems. For example, the over exposure of the banking credit in the real-estate has fueled inflation, created large portfolio of NPA in the industry and put &nbsp;the balance-sheet of a number of banks in a very bad shape for a number of years.</div>
<div>
	&nbsp;</div>
<div>
	The transportation facilities can contribute more if they provided easier market access to the products and supported supply of inputs to increase the production and add value to them. But, largely, the scenario is just opposite.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>7. Choice between Improved Subsistence &amp; Prosperity</strong></span></div>
<div>
	There has been virtual explosion in small scale development initiatives like solar and micro hydro for rural electrification, NGO-led rights based development and awareness campaigns, literacy classes, skill development and self-employment schemes, community or gender-focused empowerment programmes etc. Policies of reservation, inclusion and positive discrimination are now widely debated. These definitely are good things.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But we need to link these activities with our main objective. If our prime aim is a little improvement in the bare subsistence life-style and help reduce abject poverty, these are definitely the ways we should invest and focus on. But if our aim is tangible economic growth that can also compensate to the lost opportunity of decades, we need higher degree of commitment, massive investment and multi-stakeholder engagement at all possible levels, as we discussed about. By now, it is apparent that these small things may be beautiful in facilitating poorest of the poor to live relatively a better life, but seldom enough to effectively speed-up the economic growth and overall prosperity and well-being of the entire population. When we can uplift the living standard of every citizen, universally ensure education and employment, issues of inclusion and reservations automatically become redundant.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Choice" src="/userfiles/images/CD2%20(Copy).jpg" style="width: 550px; height: 413px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Engagement: Process &amp; Paradigm</strong></span></div>
<div>
	&#39;Engaging Overall Partners&#39; is a great concept and also an absolute imperative. But engaging multi-stakeholders with varying, often conflicting, interests is an equally challenging proposition. It perhaps requires a different development culture than Nepal is practicing now. We need both formal and informal common forums, factual information and access to them, effective communication amongst all stakeholders in multitude of directions, &nbsp;reasonable level of credible independent research to ascertain what is working and what is not and, of course, a unity of purpose at the macro level of objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Some key components that can be instrumental in enhancing such engagement can be as follows:</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Discourse</strong></span></div>
<div>
	Nepal utterly lacks any form of meaningful discourse, at any level on economic, financial and developmental issues, except for some media reports and limited number of seminars that take place, here and there. Such discourses should have taken place at three different arenas -- the political parties, policy making units and the academia. And, they should.</div>
<div>
	&nbsp;</div>
<div>
	Since the political parties are the one who govern the country, the economic policy of each major one of them is important tool to make people understand their means and ends of the economic growth and development. Such policy of each party, ideally, should be framed through fully democratic debate at all levels of the respective party organizations; and reflected in their manifestoes. But, this is not at all the case. Except for a couple of leaders in each major party who understand economic issues, the entire outfits are virtually illiterate about the economy, its components and trends. Worst of all, none of these parties have understood the importance of such debate and need to initiate them sooner than later.</div>
<div>
	&nbsp;</div>
<div>
	At the policy making level, trained economists are rare species. A couple of recent finance ministers, for example, were undergrads in subjects other than economics. Bureaucrats have more incentive in appeasing their bosses in any possible way but professionalism. They lack refreshment trainings, more so in economic issues. The redundancy of their rusted ideas gets amply reflected in the so-called new but essentially archaic policies. It is one of the main reasons that our economic policies seldom work.</div>
<div>
	&nbsp;</div>
<div>
	Both of the deficiencies in political and bureaucratic levels should have been bridged by the discourse at academic level. But, unfortunately, in Nepal such discourse is completely absent. A few academics who have made some name as economists have limited themselves in the role of consultants to INGOs and impartial viewpoints about national economy are non-existent. The reluctance of newer universities to institute the department of economics is indicative enough to explain the predicament.</div>
<div>
	&nbsp;</div>
<div>
	Discourses at stakeholders&#39; level, on the topics suitably designed to them are another striking need. At the donors&#39; level, they seem to have instituted a loose network, but its effectiveness as a debate forum on the core economic issues is still beyond the public knowledge.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Research</strong></span></div>
<div>
	For meaningful engagement at any level, credible data are the primary need. The factual information only can ascertain the scope of participation for each stakeholder. But, whenever we try to talk about any aspect of Nepali economy, we immediately loose thread for lack of proper data and absence of conclusions drawn out by properly analyzing them. As mentioned above, we have contradictory and unbelievable or just tentative figures even on cardinal data like GDP, inflation, unemployment and trade. All comparison and correlation conclusions, like I made above, are largely heuristic. We have no option citing whatever the government agencies like the National Planning Commission, Nepal Rastra Bank or Finance Ministry cook in the name of research and analysis. The nation hardly invests anything in research. There are not independent, credible and well-equipped institutions to carryout research in multi-dimensional aspects of the economy and its trends. Such large scale researches need substantial resources and experts right from the stage of research design to econometric analysis and interpretation of those results. There must be somebody to invest on them.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Reform</strong></span></div>
<div>
	The policy and institutional reforms are other important areas that ensure participatory engagement among the development actors. The continuous process of policy reforms provide opportunity to accommodate the emerging needs, practically realized in the development processes at different levels. The institutional reforms increase the functionality of the actors and replicability of the good practices. Nepal also greatly lags behind in undertaking reforms that are due for long time. Some multi-donor sectoral approaches (SAps) in education and health sectors have delivered impressive results. If similar policy as well as institutional frameworks can be extended to include other possible actors in more sectors, that is likely to increase the portfolio efficiency.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Streamlining</strong></span></div>
<div>
	It is important to understand, when we engage multiple stakeholders, it is natural to have varying interests, priorities, methodologies and objectives to come to fore. Without streamlining them, the national objective of economic prosperity is impossible to achieve. Extensive exercises of benchmarking, clustering, grading and ranking are the necessary part of this process. This can greatly reduce the duplication or omission of many of development endeavours; thereby increase the allocative efficiency of resources. A national focal point, a functional unit, not a generic large structure like a ministry, is internationally adopted practice. At times, when the government agencies try to do it, there are instances of conflicts between the different actors. Therefore, such tasks could be outsourced to some independent professional entity with established, proven credibility.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. &nbsp;Good Faith</strong></span></div>
<div>
	All forms of engagements are only possible if the actors are committed to support in good faith on single objectives of economic growth and development of Nepal. The source of good faith is the spirit of democracy that respects the plurality of views, culture of agreeing to disagree and readiness to be partner in the process than to be a savior or ruler. We all have our interests. Sacrifice of a small portion of it by each actor might create a large space for engagement and cooperation and also help serve our own interests better while helping others to serve their own.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em>&nbsp;(Based on paper presented by the author, in IVAAN seminar, 7th Dec 2013 in Kathmandu.)</em></div>',
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			'description' => 'Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? Achyut Wagle analyses the challenges and opportunities.',
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			'title' => 'New Nepali ‘Laissez Faire’ How Strong? How Long?',
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			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.</div>
<div>
	&nbsp;</div>
<div>
	There is hope in the air. Seven out of every ten Nepalis on the voters&rsquo; list of Nepal have exercised their franchise. And, six out of every ten Nepalis who have voted have gone for centrist and liberal left political forces (Nepali Congress &amp; CPN UML), while virtually rejecting the far left polls-boycotting so-called 33-party alliance, the radical left Maoists led by Prachanda, and the rightist regional forces of Madheshis and far right RPP forces.</div>
<div>
	&nbsp;</div>
<div>
	The message is clear. Enough of politicking, now make the polity firm and economy firmer. Create a business environment that is conducive to entrepreneurs, to foreign direct investment and to rapid employment generation.</div>
<div>
	&nbsp;</div>
<div>
	New Business Age interacted with several experts and noted people from various walks of life to ascertain the mood of the nation with regards to the economy of tomorrow.</div>
<div>
	&nbsp;</div>
<div>
	There is surely a high hope that the newly elected CA-Parliament will draft the new constitution that would introduce new economic policies that would propel the country toward the positive direction and we could witness the inevitable growth and development of the country coming with a stable economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Eminent economist Rameshore &nbsp;Khanal, the former Finance Secretary sums up the spirit rightly, &ldquo;The Constituent Assembly election results show parties contesting on conservative economic ideologies have been rejected by voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in urban areas across the nation. People expressed their aspirations and exercised their power during this election so as to set the progressive course for issues that matter them the most.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The defeat of the Maoists and the regional forces is also seen as the defeat of the federalist agenda. Khanal further notes, &ldquo;In fact, business community was terrorized due to ethnicity-based federal agenda put forth by UCPN Maoist,&rdquo; he said, adding that the recent poll results might have relieved the entire business community. More than 90 per cent businessmen do not want federalism based on ethnicity because they cannot do good business amid ethnic tensions. The entire business environment would be more volatile if political parties that favour regional and ethnic agenda had won the election&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Kamlesh Kumar Agrawal, the General Secretary of Nepal Chamber of Commerce, observe, &ldquo;Clear mandate for the centrist parties is a good sign indeed, and a major difference from the last CA election result. Now is the time for them to fulfill their promises of economic revolution or rapid development&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Shekhar Golchha, the President of Nepal Automobile Dealers&rsquo; Association, is visibly happy with the turnout, the peaceful polls and the results emerging out of the process. He is satisfied that while issues of federalism, sub-national identity etc found limited mention in election manifestos of most parties, the focus has rightly been on economic aspects and stability of the polity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bhaskar Raj Rajkarnikar, the Senior Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), is confident that the new Constitution shall finally be put in place in Nepal now. And the government shall now work firmly towards creating investment-friendly environment in the country. However, he also strongly espouses the need to have local governance bodies as well.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election " src="/userfiles/images/cs1%20(Copy)(2).jpg" style="width: 550px; height: 209px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Common Minimum Economic Agenda</strong></span></div>
<div>
	It would be pertinent to mention here that the five recent former Prime Ministers of Nepal (Madhav Nepal and Jhalanath Khanal of CPN UML, Sher Bahadur Deuba of Nepali Congress, and Pushpa Kamal Dahal and Dr Baburam Bhattarai of UCPN Maoist) came on the same platform of Nepal Leadership Summit created in Birgunj by the Birgunj Chamber of Commerce and Industry and New Business Age group, and at the end of their deliberations on Economic Growth Roadmap of Nepal for the next one decade, they had signed a 12-point Common Minimum Economic Agenda, which included several fundamental issues.</div>
<div>
	&nbsp;</div>
<div>
	The Declaration noted that the ratifying five leaders commit to give priority to the national economic agenda rather than their respective party agenda in national interests, and also to end the current uneasy industrial relations in favour of productivity, and bring in a new labour and industrial policy conducive to overall economic development. The leaders firmly were committed to individual property rights, the important role of the private sector in the economy, and to an environment to attract rapid FDI in Nepali industries.</div>
<div>
	&nbsp;</div>
<div>
	A sampling of the core issues taken up in the talks by these leaders: &ldquo;Unhindered power supply is the pre-condition for economic development, in which the government should not run businesses, but just be the regulator,&rdquo; Sher Bahadur Deuba; &ldquo;Green economy the focus of economic development,&rdquo; Madhav Nepal; &ldquo;Agriculture, regional market and infrastructure development for economic prosperity,&rdquo; Jhala Nath Khanal; &ldquo;Foreign investment urgently required, and economic revolution with justifiable distribution must,&rdquo; Dr Baburam Bhattarai; &ldquo;Time for economic revolution, in which agriculture is the base, and production, construction and development going hand in hand,&rdquo; Pushpa Kamal Dahal.</div>
<div>
	&nbsp;</div>
<div>
	Today, since three of these former PMs are the top leaders of the top two parties, Nepali Congress and CPN UML, getting support of above 50% of the voters who exercised their franchise, this itself can be the first corner-stone of economic policy-making of Nepal next.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election Nepal" src="/userfiles/images/cs2%20(Copy)(1).jpg" style="width: 550px; height: 355px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Securing Private Property</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
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			<td>
				<img alt="Narottam Aryal, Educationist" src="/userfiles/images/cs3%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 259px;" /></td>
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							<strong>Narottam Aryal</strong></div>
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							<em>Educationist</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	The first and the biggest concern is of security of private property and business.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The new constitution MUST acknowledge the role of private sector in the national development and ensure the property rights and should guarantee its security,&rdquo; notes Narottam Aryal, an educationist leading the forum of Nepali colleges affiliated to foreign universities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similar voice is echoed by the Manager (Business Development), Chaudhary Group, Roshee Lamichhane, &ldquo;There is an urgent need to espouse and introduce economic reforms in Nepal with their principal focus on Private Property holding, freedom for entrepreneurial innovation, and abolishing cartel systems.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Employment Generation</strong></span></div>
<div>
	Property rights apart, the next big concern is naturally of employment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to Central Bureau of Statistics, the unemployment rate stands at an alarming 46 percent. The only ambition that most young people have is to leave Nepal and a couple of thousands of young people get on planes every day and fly to the Middle East, South East Asia, Europe and beyond to find jobs. However, there is a huge potential of jobs within the country itself. &ldquo;To address this issue to a larger extent I believe private sectors should be promoted to play a vital role in the growth of national economy and in creating new employment opportunities as it is the only sector that remains the single largest employer,&rdquo; notes Amit Giri, CEO of International Centre of Academics focused on the task of taking higher education through distance and online learning mode to working people of Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Limiting Government Role in Business</strong></span></div>
<div>
	A well-known axiom states that the business of government is not to do business. The government has to define in a very clear and precise terms the roles and responsibilities and limit of the state and roles of the private sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Educationist Narottam Aryal of King&rsquo;s College notes in this context, &ldquo;I think that there is still a huge confusion on this front in Nepal. I think that the Government should limit itself to building infrastructure, creating maintaining legal institutions, maintain law and order and peace, and education and health. For the rest of the things the Government must create an enabling environment for the private sector. The new government must bring the programs to promote youth entrepreneurship with a special focus on agriculture and tourism.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Agriculture: the Mainstay of the Economy</strong></span></div>
<div>
	Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Amit Giri calls for policies that allow agrarian credit, market forces to help develop agri-business and conducive environment ensured by the government for the same.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Infra-structure Leap: Backbone for Industrialization to follow</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Bijay Rajbhandary, Managing Director CE Construction Pvt Ltd" src="/userfiles/images/cs4%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 223px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Bijay Rajbhandary</strong></div>
						<div>
							<em>Managing Director</em></div>
						<div>
							<em>CE Construction Pvt Ltd</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;Infrastructure development is a basic tool to upgrade the country&rsquo;s economic activities, hence there has to be special policies to accelerate the development activities. Real Estate sector, despite its significant contribution in country&rsquo;s economy is highly fragmented and disorganized. Hence, in order to strengthen this sector, it should be treated as an industry and proper norms and policies should be formulated protecting the interest of this industry, Policies need to be introduced for allowing the foreigners to buy apartments in Nepal with $ 100,000 ceiling but through foreign currency to help boost foreign currency reserves in Nepal,&rdquo; notes Bijay Rajbhandary, the Managing Director of CE Constructions, a leading realtor of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is worthwhile to note that though more than 10,000 kms of roads have been blacktopped, at least another 10,000 kms need to be done so out of the 40,000 kms of graveled roads to help push business through ground transport.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Power Surplus Nepal</strong></span></div>
<div>
	Former Finance Secretary, Rameshore Khanal, is bang on, when he says, &ldquo;New government should focus on power generation to boost the production since the overall productivity of the country has been affected due to the condition of power deficit. &nbsp;Also, new government should immediately forward some laws related to economy including banking, electricity, industries among others and it should bring special measures to attract more foreign direct investment.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Bijay Rajbhandary echoes the same spirit when he says, &ldquo;Needless to mention, our country is reeling under the acute energy crisis, and in the light of the fact that Nepal has the capacity to generate hydropower sufficient to export, apart from internal consumption, there has to be some special arrangement from the government side to ensure that such projects are protected from any kind of hindrances, be that political or social.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	A nation with more than 80,000 MW of hydel power producing capacity, and with immense solar and biomass power resources, has less than 1000 MW of installed capacity. Nothing can be a larger wastage of resources than this, indeed.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Power Surplus Nepal movement, engulfing enabling policy-making by the government, active domestic and foreign direct investment in this sector, a pro-active media influencing public opinion towards it and a dynamic bureaucracy, has to be the primary national mission today,&rdquo; notes journalist Janardan Baral.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Investments: Domestic and Foreign</strong></span></div>
<div>
	&ldquo;There are lots of investments currently held up with the hope of much anticipated stability. The election result clearly embraces free market economy and has rejected federalism based on ethnic provinces (showing inclination towards economic development). Militant workers&rsquo; union affiliation is assumed weakened that gives hope for local industries that have suffered over a decade. I have reasons to hope these foundations will be addressed in the Constitution. I hope the government will vigorously implement promises, focus on stability, invest in infrastructure and recoup the lost decade of dark era. All this will boost investor confidence that will take the country to a much awaited, rather needed, growth trajectory,&rdquo; notes Managing Partner of Mathema + Partners, an architectural firm Ajaya Mathema.</div>
<div>
	&nbsp;</div>
<div>
	Taking the discourse to the policy level, Bijay Rajbhandary says, &ldquo; We need clear-cut policy for Foreign Direct Investment in Nepal that would allow a good influx of foreign capital along with their expertise that would create a good development as well as job opportunities within Nepal. Likewise, we also need a policy allowing Nepali investment in foreign land in order to explore and exploit the growth opportunities present in those countries.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Educated, Trained Nepal</strong></span></div>
<div>
	&ldquo;A major focus in the new Nepal should be on providing free and quality primary and secondary public education to all as the research shows that access to secondary education (grades 9-12) remains a major challenge, as evidenced by the disturbingly low net enrollment rate of 24 percent at this level. More than half of primary students do not enter secondary schools, and only one-half of them complete secondary schooling. In addition, fewer girls than boys join secondary schools and, among those who do join, fewer complete the 10th grade. Girls should be encouraged more to study as I believe that when a girl gets educated a family gets educated and when a family gets educated the society gets educated. Hence, the country gets educated. Alongside, to make higher education accessible at every Nepali, liberalization of the education sector leading to more and private Universities and even Distance and Open Learning Universities need to be allowed by the government changing the current policy regime in this context,&rdquo; notes Amit Giri.</div>
<div>
	&nbsp;</div>
<div>
	Focusing on systemic changes within the sphere of public education in Nepal, Bijay Rajbhandary notes, &ldquo;Education sector must be secluded from any kind of political interference at all levels. Besides, teaching methodologies also need to be amended giving more emphasize on general and practical knowledge and skill development rather than making it exam focused&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Media &amp; Entertainment Sector</strong></span></div>
<div>
	Narayan Puri, noted film-maker and the CEO of Himalaya TV, speaking on expectations of the entertainment sector, says, &ldquo;We&rsquo;ve been waiting for development in our industry as well. There must be given soft loan for this industry in low interest, which can happen if this sector is recognized formally as an industry by the government. We need electricity facilities as other normal industries. Further, the owners of entertainment enterprises are often been made hostage by the workers on minor issues and no security is provided for the investors. There has to be strict policy in this regard. This is largely a non-profit business as well as social awareness and information providing business. And, hence, the government should provide subsidy for this business. Different new technical equipments are required in this business so government must tax rebates in this sector. Any kind of media which gives awareness and information to the public about education, public health, etc must be encouraged by the government.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Tourism Promises</strong></span></div>
<div>
	&ldquo;With Nepal having abundant scenic beauty is already attracting many tourists from across the world but there could be an added milestone in this line with some development in tourism sector by adding Health tourism and Religious Tourism in the existing portfolio,&rsquo; Bijay Rajbhandary notes.</div>
<div>
	&nbsp;</div>
<div>
	With airborne tourists still less than a million in Nepal, and per capita spending of tourists coming below USD 40 a day, there is a long way to go indeed. Power supply, better infra-structure, better hygiene, new destinations, integrated promotion of Nepal tourism in select markets with focus on digital communication, along with enabling policy encouraging FDI in tourism as well from the government end will help make Nepal move higher from the current 112th position in world tourism revenues of nations.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Ashok Pokharel, the President of Nepal Association of Tour Operators, say, &ldquo;Peace, security and physical infra-structure are the hall-marks of rapid tourism growth.&rdquo; Buddhist centre of Lumbini and leading Himalayan destination Pokhara surely need international air connectivity, while Kathmandu needs faster upgradation of road infrastructure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>The Last Word</strong></span></div>
<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Roshee Lamichhane, Manager, CG" src="/userfiles/images/cs5%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 224px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Roshee Lamichhane</strong></div>
						<div>
							Manager, CG</div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;I favour national consensus government should be formed for stability in the political arena&rdquo;, says Rameshore Khanal. And the national consensus government can be created only by bringing the top two largely centrist parties closer, rather together, in their mission, Nepali Congress and CPN UML, he adds.</div>
<div>
	&nbsp;</div>
<div>
	CG Manager Roshee Lamichhane, a representative young voice, notes, &ldquo;New government should therefore ensure that the benefits of economic growth and development are not going to be cornered away by few influential people and businessmen or politicians but are going to be conferred among the masses and the new political regime operates the economy to make it become and remain vibrant with employment opportunities and marketable surplus. I can only envision an ever growing economy wherein the government can satisfy the Nepal&rsquo;s appetite for good food, well served, at a price that even common man can afford.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Taking the discussion to another level, Ajaya Ghimire, Chairman, Ace Institute of Management, says, &ldquo;I do hope however that a constitution will be written within two years. It will embrace periodic elections allowing people to choose who will govern the state. It will also embrace freedom of expressions and freedom of economic activity and constitutional right of the individual against state oppressions. &nbsp;But for people to truly experience those rights and freedom, we will have to wait for our society to evolve from its present feudal mindset.&rdquo; Prophetic, quintessential aspiration of the moment.</div>',
			'published' => true,
			'created' => '2013-12-20',
			'modified' => '2014-01-19',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.',
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		'Article' => array(
			'id' => '2178',
			'article_category_id' => '40',
			'title' => 'Tourism Next In Nepal Vision Ahead',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Premium positioning for higher revenues, advanced infra-structure &amp; larger domestic and foreign direct investment are the mainstay of Nepali Tourism Next, whereas Nepal already excels in authentic and ethnic route to tourism, notes <strong>Prof. Ujjwal K Chowdhury.</strong></span></em></div>
<div>
	&nbsp;</div>
<div>
	The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion. One out of every seven persons travelled to another nation in 2012 and 1 out of every 11 adults of the world is engaged in tourism industry. Emergence of new travel destinations and innovative approaches for catering to the needs of the industry, provides it with the potential to be an important component of the national economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In light of these facts, the New Business Age reviewed the present standing and potential sectors of Nepali Tourism industry and the lessons that the industry could learn from countries including India, Malaysia, Bhutan, Middle East, et al.</div>
<div>
	&nbsp;</div>
<div>
	An international symposium entitled &ldquo;Understanding Tourism and Aviation Next in Nepal&rdquo;, participated by niche experts from India, Malaysia and Nepal itself, was organized in Kathmandu in September this year. This symposium jointly organized by New Business age and Hotel Del&rsquo; Annapurna and sponsored by Qatar Airways and Ace Travels, &nbsp;focused on: raising service standards; creating premium brand of experiential tourism apart from the existing largely value-for-money backpackers&rsquo; tourism; positioning of exotic Nepal; upgrading the tourism and hospitality infra-structure: adding new international airport, additional terminals and new air-routes; and increasing domestic and foreign investments in tourism services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Tourism Next Inaugration" src="/userfiles/images/cs1%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 336px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<div style="text-align: center;">
							<strong>Secretary of the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire,inaugurating Tourism and Aviation Next 2013. (From left) New Business Age Pvt Ltd Chairman Madan Lamsal, Incredible India pioneer Amitabh Kant and South Asia Director of Tourism Malaysia Amran Abdul Rahman.</strong></div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Goal: 5% of GDP by 2080 BS</strong></span></div>
<div>
	As the opening speaker, Secretary at the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire elaborated on how Nepal aims to achieve tourism turnover equal to 5% of the GDP by 2080 BS. Presently the turnover is less than 2%. Secondly, Ghimire focused on strengthening the capacity of national flag bearer, Nepal Airlines and claimed that the ministry is working towards that end. &nbsp;He laid stress on accessing all major stake-holders&rsquo; views while preparing a long-term future course for a private sector driven domain like that of tourism &amp; aviation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Following Ghimire, key participants from India and Malaysia shared their experience and case studies on how their respective nations took their tourism industry to next level. Key giveaways of their presentations follow:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Case-studies: India &amp; Malaysia</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>INDIA</strong></span></div>
<div>
	The former Tourism Secretary of India and of Kerala state, and the man behind &ldquo;Incredible India&rdquo; and &ldquo;God&rsquo;s Own Country Kerala&rdquo; branding, Amitabh Kant, lamented that the positioning, branding and pricing of an otherwise high-end premium exotic destination like Nepal has been actually very low. He rued that the focus has been on low-end mass tourism in Nepal (however the arrival number has not yet touched a million), while it now needs to be on niche high-end tourism promotion with a clear positioning.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Noting that more than 1 billion people are travelling and almost 9% of the global GDP has been in tourism across the world, he said, Nepal needs to catch up with this burgeoning industry. Moving from sun-sand-sea focused tourism, globally travelers are looking at authentic experience now and Nepal has a huge advantage in it. Referring to the lessons learned from &ldquo;Incredible India&rdquo; campaign, he noted that to take Nepal to the next level in this sector, unique positioning and integrated marketing communication strategy and plan are a must.</div>
<div>
	&nbsp;</div>
<div>
	Kant ended expounding 6Cs for a holistic tourism development approach: civic governance, capacity building, communication strategy, convergence, community participation, and civil aviation.</div>
<div>
	&nbsp;</div>
<div>
	He expanded the concept that in every crisis there is an opportunity. During the onset of the &ldquo;Incredible India&rdquo; campaign, there were several crises going through India and the world. The 9/11 attack on the World Trade Centre (WTC), the Gujarat earthquake, the coalition force war in Afghanistan, attack on the Indian Parliament, etc, were the stories of the day. India was then very low in several aspects of the travel trade competitive index.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite these setbacks, the unique positioning of &ldquo;Incredible India&rdquo; was taken up, and international consumers were reached directly through exhaustive campaigns, consistent communication, public relations in travel media, and documentaries in television channels. The results started showing up. During this phase, India strategically positioned tourism as a major engine of economic growth, harnessed the direct and multiplier effects of tourism for employment generation, focused on domestic tourism as a major driver of tourism growth (India being a large nation), positioned India as a global brand, acknowledged the critical role of the private sector, and, finally, created and developed integrated tourism circuits based on India&rsquo;s unique civilization (like the Golden Triangle of Delhi-Jaipur-Agra, the Buddhist circuit of Gaya-Ajanta-Ellora, the sun-sand-sea tourism of Goa-Pondicherry, etc).</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Kerala, India" src="/userfiles/images/cs2%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Kerala, India</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	Some key strategies and actions taken during the last ten years for increasing the expansion and impact of the &ldquo;Incredible India&rdquo; campaign are:</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Integrated communication strategy with the aim of promoting India as a destination of choice for travelling from 2002.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Showcasing different aspects of Indian culture and history like yoga, spirituality, etc.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2008, the Ministry of Tourism launched a campaign targeted at the local population. Aamir Khan endorsed the campaign &lsquo;Atithidevo Bhava&lsquo; (Guests are like God).&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2009, Minister of Tourism, Kumari Selja further extended the &ldquo;Incredible India&rdquo; campaign at the domestic level. Of the total USD 200 million budget, USD 12 million was allocated for promoting domestic tourism that year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Result</strong></span></div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2000 India&rsquo;s share of the world&rsquo;s tourism income was 0.5% but by March 2013 the share soared to 1.7%.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>MALAYSIA</strong></span></div>
<div>
	The South Asia Director of Tourism Malaysia, Amran Abdul Rahman, elaborated on how Malaysia moved away from &lsquo;Coca-Cola tourism&rsquo; and how it became a major tourist destination from an &lsquo;add-on&rsquo; tourist destination for Singaporean tourists, two decades earlier.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation received 13 million visitors in 2003 and 25 million visitors in 2012. The target of 2014, declared as the Visit Malaysia Year, is now 36 million visitors with USD 44 billion income.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Elaborating on the key factors that assisted in gaining such results, Rahman said, Malaysia could achieve this success due to infrastructure growth including the remarkable makeover of Kuala Lumpur Airport, changing mindset of the people and government with tourism coming under direct special supervision of the Prime Minister, heavy promotion of rural Malaysia while ensuring ethnic amity, and focusing on MICE (Meetings, Incentives, Convention and Exhibitions) tourism events heavily.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Malaysia" src="/userfiles/images/cs3%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Malaysia</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Next: Branding&nbsp;and Capacity-building are Key Drivers</strong></span></div>
<div>
	The Tourism Next panel, a panel comprising some key stakeholders and industry experts on different facets from the private sector, elaborated on key areas where the private and public sector should focus to alleviate the existing condition of the industry. &nbsp;Moderator of the panel, Upaul Majumdar, CEO of Hotel Del&rsquo; Annapurna laid focus on developing a &lsquo;can-do&rsquo; attitude, instead of just talking about challenges.</div>
<div>
	&nbsp;</div>
<div>
	Nalin Mandiratta, General Manager of Soaltee Crowne Plaza, focused on the need of constructing a large Convention Centre for MICE activities to grow; organizing more sports tournaments in Nepal, preparing and implementing dynamic and integrated destination marketing, preparing an integrated One Nepal concept by uniting efforts of various sections of the industry, and focusing on China and India more.</div>
<div>
	&nbsp;</div>
<div>
	Madhusudan Acharya, the Vice President of the Nepal Association of Tours and Travel Agents, explained the benefits of unique positioning by referring to the success of Apple and said that to establish Nepal as a unique tourism destination, it needs similar positioning based on green initiatives and its ethnicity. He emphatically noted that tourism is both a cause and an effect of more holistic socio-economic growth. He noted that Nepal-China roads and Kathmandu&rsquo;s direct air connectivity with Chennai and Bengaluru are much needed pending measures.</div>
<div>
	&nbsp;</div>
<div>
	Nandini Lahe Thapa, the Senior Director of the Nepal Tourism Board and International Marketing In Charge, noted relative maturity of Nepal as a tourism destination However, she noted that it has been quite low at the high-end of the price-service spectrum. &ldquo;We have lowered our rates for other tourism services, but the cost of travel to and from Nepal has been exponentially costly. Hotels have already set the bar higher, but travel trade still needs to come together and raise the standards with rational pricing,&rdquo; she noted. Promotion of new destinations is possible, she told, if concrete proposals come to NTB from entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	Sumit Baral, the Senior Consultant with the International Finance Corporation of The World Bank Group, working for its investment climate programmes, with key focus on tourism programmes, recalled how Lufthansa dropped Kathmandu sector to protest the rampant child labor in the carpet industry and how it adversely affected German tourists&rsquo; travel to Nepal. Also, a diagnostic study categorically has shown that service standards decline has been the major factor behind lower per day spending by tourists. Noting that Nepal does not feature in luxury travel, he illustrated how Peru since 2000 has positioned itself as high-end destination, and how Maldives with almost same number of tourists like Nepal (little less than a million a year), actually has been earning double the income that Nepal has been earning from this sector.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Talking from the tourism technology perspective, Prerna Mimani, the Country Head of Amadeus (a global leader in travel trade distribution and marketing), noted that the e-commerce route to promote Nepal is must while stating that presently it is still at a rudimentary level. Mimani elaborated on the potential of collaborating with global travel portals with ethnicity focus for Nepal through efficient use of e-commerce.</div>
<div>
	&nbsp;</div>
<div>
	Suman Pandey , Chairman of PATA Nepal and an entrepreneur, defended budget tourism noting it as an important part of the Nepali tourism eco-system and saying that it is different a way of travelling to experience the country. He poignantly noted, &ldquo;The seven days Golden Triangle plan is over-done and new tourism products are now necessary, as seen in the case of trekking tours being re-packaged as photography tours.&rdquo; Next to that Pandey suggested on organizing events replete with potentials to gain global media visibility, as seen in the case of the earlier Nepali cabinet meeting at Everest base-camp.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Aviation Next: Start Small, But Act in Unison</strong></span></div>
<div>
	Civil aviation has an important role in tourism industry. A separate discussion panel, &ldquo;Aviation Next&rdquo;, forwarded areas in which Nepal has to improvise in the days ahead to gain its tourism promotion objectives. Valentino Bagatsing, the Country Head of International Finance Corporation (IFC) of The World Bank group and moderator of the session, raised the issue air safety standards in Nepal. He noted, that there have been 70 accidents in 60 years, 3 of them being in the last two years and informed that IFC is presently tasked with safety management systems research and planning.</div>
<div>
	&nbsp;</div>
<div>
	Bhola Bikram Thapa, the MD of President Travels, emphasized that the &ldquo;Government should make stronger policies and facilitate processes, and not do business directly.&rdquo; &nbsp;He lamented that the government has been unable to add more aircrafts to the existing fleet of the national carrier, Nepal Airlines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ghanshyam Acharya, Chief of Corporate Affairs, Simrik Airlines, noted that three out of every four international traveler to Nepal is airborne and said IATA&rsquo;s Outlook for 2013 that looks forward positively at $711 billion global tourism turnover, has huge potential for Nepal&rsquo;s tourism sector too. Adding to it, he said that blacktopping of many airports in Nepal has increased air safety and air-travel is now available to middle class as well. However, he pointed the need for better regulatory support from policy-makers and rued that no domestic carrier has flown new aircraft since 1998.</div>
<div>
	&nbsp;</div>
<div>
	Representing the government voice, Buddhisagar Lamichchane, the Joint Secretary of Civil Aviation, and Roshan Chitrakar, the Deputy Director General of the Air Navigation Services of CAAN, shared the government&rsquo;s initiatives in addressing the needs of the industry. Chitrakar informed that blacktopping and expansion of airports is going on in a high speed and the hurdles in fleet expansion of the national airlines are now almost removed. He also informed that one year compulsory Air Traffic Controllers&rsquo; training is now split into two parts - six-months in the first phase and then after some work experience another six months of second phase. This will address the problem of human resource crunch in the industry, he added.</div>
<div>
	&nbsp;</div>
<div>
	Lamichchane shed light on the installation of navigational safety equipment, and emphasized that the air safety standards in Nepal is reasonably strong by global standards. Further, he said, &ldquo;Nepali air-routes integration with more global air-routes is underway. And the construction of a second international airport at Bara which will create an East-West air corridor, is also taking off soon. Lamichhane further informed that &ldquo;the regulator and service provider functions of government with regards to aviation are being separated soon and a global consultancy is looking into this.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The Air India Country Head, TK Saha, defended the pricing strategy of his carrier noting that only 10-15 percent seats go vacant. He advocated for new small aircraft routes and services for various potential sectors like Gaya-Lumbini, Patna-Kathmandu, and Varanasi-Pokhara.</div>
<div>
	&nbsp;</div>
<div>
	Ramdas Shivram, the Qatar Airways Country Head, brought in a basic issue and presented with emphasis. &ldquo;Garbage management is poor in Kathmandu airport&rdquo; he said calling for &ldquo;a blended approach that includes raising awareness in passengers, training airport staff, and implementing strong punitive regulation.&rdquo; &nbsp;He also advocated for more efficient and faster immigration services, quest for quality tourism instead of stressing only on volume-based tourism, and focus on finding and investing in new markets to expand Nepal&rsquo;s tourism and aviation base.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Bhutan Tourism Info" src="/userfiles/images/cs4%20(Copy).jpg" style="width: 550px; height: 426px; margin-left: 15px; margin-right: 15px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Smaller Cases: Bhutan and Sikkim</strong></span></div>
<div>
	BHUTAN has positioned itself as a &lsquo;high-value, low-impact&rsquo; tourism, with USD 250 as average on season spending per day by a tourist, and minimum of USD 200 any time of the year. Bhutan claims to have the Highest Gross National Happiness, and the slogan of Bhutan Tourism is &ldquo;Happiness is a Place&rdquo;.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Tiger’s Nest Monastery, Bhutan" src="/userfiles/images/cs5%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 395px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Tiger&rsquo;s Nest Monastery, Bhutan</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>SIKKIM</strong></span></div>
<div>
	What should be the agenda for Sikkim in 2013 if it plans to be anywhere close to Switzerland? It&rsquo;s the oomph factor, about Switzerland, Dubai, and even backdoor ASEAN countries like Singapore and to some extent Thailand, Malaysia and Indonesia that make them a most sought after destination. Switzerland received more than 10 million tourists in 2010. Even Goa received nearly 3 million tourists in 2010. The highest number of foreign tourists who visit Sikkim never crossed the 5000 mark in a month ever till now.</div>
<div>
	&nbsp;</div>
<div>
	Sikkim would need to emerge as a shopping and fun destination; a destination which film makers and market executives like. Sikkim hence, has introduced para-gliding, trekking, and bike riding in recent years, a few world class universities, a few niche products with enviable reputation, a highly educated libertarian civil society.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s empowering every Sikkimese to figure out where Sikkim should need to focus on rather than a top to bottom approach&rdquo; has been Chief Minister Pawan Kumar Chamling&rsquo;s Approach in developing the Indian state.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Sikkim came out with an integrated vision that brought together and synergized Nature &amp; Trekking Tourism, Eco-tourism &amp; Wilderness Tourism, Village/Rural &amp; Home stay Tourism, Adventure Tourism, Wellness Tourism: Meditation, Yoga, Spa &amp; Herbal medicine etc, Pilgrimage &amp; Buddhist Tourism, Culture &amp; Heritage Tourism, Conference Tourism (MICE destination), Tea Tourism, and Snow Travel and Hydro Tourism.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, Sikkim has also pro-actively developed these niche aspects of tourism industry there: Flori-Tourism, Geo-Tourism (fossil study), Fairs-Festivals Tourism, Wedding/Honeymoon Tourism, Peace /Health Rejuvenation Tourism, Heli Tourism, Monsoon Tourism, Cave Tourism, Ekant Vas &amp; Agyat Van Vas, Developments of lakes and wetlands, Wayside Amenities- at every 10 Kms distance, Arts Crafts and Souvenir and some premium destinations.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Sikkim" src="/userfiles/images/cs6%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 413px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Sikkim</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong><img alt="Nepal Vs Switzerland" src="/userfiles/images/nepalvzswitz%20(Copy).jpg" style="
float: right; margin: 0px 0px 0px 10px;width: 300px; height: 378px;" />Premium Positioning for Nepal&rsquo;s Tourism: Possible Road-map</strong></span></div>
<div>
	Nepal, the 36th largest nation of the world by land-area, and enriched with most of the world&rsquo;s tallest mountain peaks, huge fresh water-resource and glaciers, &nbsp;home to some of the best lakes and forests in South Asia, and a nation rich in centuries-old civilization heritages and cultures, has often been under-valued in tourism. The recent Travel &amp; Tourism Competitiveness Index 2013 places Nepal at 112th position out of 140 nations surveyed, while Switzerland retained its position at the top of the chart.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Situation Analysis:</strong></span></div>
<div>
	While Nepal is the preferred Himalayan destination globally, it is one of the cheapest travel destinations. Ministry of Culture, Tourism and Civil Aviation study shows that the average daily spending of an airborne tourist in Nepal skidded down to USD 35 from USD 79 in 2003. Some 700,000 foreign tourists (including some 530,000 by air) came to Nepal in 2012 (as per Nepal Tourism Board estimates). But the image of Nepal has been that of the backpackers&rsquo; paradise, value-for-money tourism, and often a glorious destination for the run-away tourists. The image of Nepal&rsquo;s Tourism has been further tarnished in the last decade by the insurgency followed by political instability.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, things can take turn for the better. This piece throws open the discussion on the paradigm shift in Nepal Tourism. Without harming the current flow of tourists to Nepal every year with an average per head daily spending of USD 48, we can still look at creating a new crop of premium tourists who will hopefully spend a fortnight minimum in this Himalayan nation with a daily expense of at least USD 200 (four times higher than the current average). Even if there are 5,000 such tourists in a year to begin with, the national average and the total income of all stake-holders of tourism economy will have a qualitative leap ahead.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Mt Everest" src="/userfiles/images/cs7%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Mt Everest</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Positioning of the Premium Tourism Product</strong></span></div>
<div>
	Let us look at what the premium tourists look for and what &lsquo;tourism product&rsquo; can be dovetailed for them. Then, we can look at what channels and process of marketing communications should be taken to ensure that 5,000 or more such premium tourists actually come for their date with the Himalayas and spend a daily average of USD 200 or stay in Nepal for more than 14 days.</div>
<div>
	&nbsp;</div>
<div>
	The possible product must have a distinct positioning with a clear and creative packaging. The positioning that can be suggested is &lsquo;Pristine, Priceless &amp; Personal&rsquo;. The pristine beauty of nature and culture of Nepal needs no further elucidation. The experience of the &lsquo;product&rsquo; has to be made priceless incorporating a wide variety of the best expectations fulfilled - the Wow-effect of which should out-price the costs. And, surely, the entire experience has to be very personal, to be treasured for long, with an immense nostalgia-value.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Lumbimi" src="/userfiles/images/cs8%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 321px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<strong>Lumbimi</strong></div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size:16px;"><strong>Premium Tourism Product Defined</strong></span></div>
	<div>
		Keeping these parameters in mind, it is suggested that the proposed product should be for couples only, of any age, to make it truly experiential and personal, and should be an all-planned well-packaged fortnight-long visit incorporating the best elements of Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		For example, a very personal aspect is ensured the moment the visiting couple immediately after landing at Kathmandu airport or on reaching the pre-chosen five-star or boutique hotel is traditionally welcomed and given a set of traditional Nepali wear (based on personal information given while booking the trip). The visit to the five most known heritage points of Kathmandu-- blending heritage, royalty and spiritualism in good measures-- must surely be done along with a broad understanding of the valley over the next two full days in the country, land-travel served with the best of tourist cars available.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The visit in Kathmandu on the fourth day can be customized to each couple&rsquo;s needs: cuisine, shopping, social entrepreneurship or educational initiative, any theatre or cultural activity, the NTB archaeological museum or any other specific spot. Hour-long flight above Mt Everest and Mt Kanchenjunga can be another sure winner on the morning of this day.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Nagarkot" src="/userfiles/images/cs10%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Nagarkot</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		The fifth day can be at Nagarkot with the sunset and sunrise covered soaking in the beauty of natural landscapes. Subsequent two days can be spent at Chitwan, with lake, park, rural life, festivities (season specific),etc., all planned well.</div>
	<div>
		&nbsp;</div>
	<div>
		Eighth to tenth days can be at Pokhara, ensuring all aspects of the valued hill-destination rated among top ten by Lonely Planet - a bit of trekking, rafting and para-gliding, depending on the couple&rsquo;s interest, age and health. Celebrations like anniversary or birthday or even the marriage of the couple in a few cases could be another &lsquo;personal&rsquo; winner either in Kathmandu or Chitwan or Pokhara depending upon the date.</div>
	<div>
		&nbsp;</div>
	<div>
		Eleventh and twelfth days could be a visit to busy Terai city of business: Birganj or Nepalgunj to bring home other aspects of Nepali life and economy, with shopping, handicrafts, etc., thrown in.</div>
	<div>
		&nbsp;</div>
	<div>
		Last two days can be used for a visit to Lumbini and Buddhist heritage sites or, for those who want it otherwise, to Muktinath and more lakes, hills and forests.</div>
	<div>
		&nbsp;</div>
	<div>
		And, as each couple bids adieu, they should be given an exquisitely packaged album of best moments of their visit, their blogs and comments taken for social media use, and take-away souvenirs also given for their closest family members based on the information shared while booking the trip.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Patan Durbar Square" src="/userfiles/images/cs9%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Patan Durbar Square</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Integrated Marketing Communications:</strong></span></div>
	<div>
		For such a concept to click at the market there has to be a focused high-decibel concerted IMC campaign integrating all four channels of communication: online, offline, on-air and on-ground and across ten to twelve selected markets of the world from where most tourists come to Nepal, as understood through research conducted by professionals.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 12px;">An experiential tourism product needs an experiential video that documents actual experience of say, three distinctly different couples -an Indian, a Chinese/Japanese, and an European/American- who go through the entire &lsquo;product&rsquo; and share their views online and on camera. Such a video needs to be used in every marketing meet, aired in selected channels across the globe in the target nations, and clippings promoted through YouTube. Such experiential videos without any explicit marketing commentary, speak volumes more than guided narrative documentaries of hills and rivers made usually from the government stable.</span></div>
	<div>
		&nbsp;</div>
	<div>
		Social Media and the internet make the most powerful channel to reach to an audience scattered across the globe. Hence, a very high-end interactive portal, ideally on third generation internet platform that&rsquo;s &nbsp;being customized to each individual user, on the concept and product of Premium Nepal, incorporating blogs, photo albums, do&rsquo;s and don&rsquo;ts at every level of the experience will also serve the purpose well. Along with the portal, intense and creative use of Facebook, MySpace, Google+, Dig, Youtube, Twitter, Blogs in e-groups, and other social media platforms need to be used with the single-minded purpose of creating a premium positioning of the said high-end tourism product of Nepal. Online booking of this product should also be facilitated through the right mix of technology options.</div>
	<div>
		&nbsp;</div>
	<div>
		A Premium Nepal Tour Plan Book can be an effective offline (printed) tool of communication. The book will interestingly present possible experiences and options for each day of the visit on one side and provide space for documenting personal experiences, cuisine, culture, visits, and people befriended in the process and small anecdotes on the other side. Still pictures of various events can also be placed and preserved. This book will eventually have an immense personal nostalgia value and will also serve to market the &lsquo;product&rsquo; to future customers spreading a positive buzz or word of mouth. Each customer in the process becomes an advocate realizing thus the life-time value of the premium customers.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PR &amp; Sales Driven High Decibel Road-Shows</strong></span></div>
	<div>
		However, closing the deal will largely happen through an intensive PR driven high-end road-show in at least ten to twelve of the leading sources of tourism to Nepal. This road-show must combine the said film, tour plan-book, and interactive session by the organizing partners and must lead to a plethora of writing on Nepal and on this uniquely positioned tourism product. The road-show must bring together the premier tour operators to South Asian destinations, adventure or heritage tourism operators, leadership of selected chambers of commerce, entertainment industry and travel journalism biggies, including the lead travel writers. The cities where the road-shows can be held may be selected from Delhi, Mumbai, Kolkata, London, New York, Shanghai, Hong Kong, Singapore, Dubai, among others. These road-shows must ensure immediate or follow-up bookings of couples coming to Nepal in the subsequent season.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PPP Model with a Consortium Approach:</strong></span></div>
	<div>
		&nbsp;This project can only succeed if it is done on private-public-partnership in which Nepal Tourism Board representing the government and a consortium of private tourism players join hands to first build a brand of Premium Nepal and then execute the product immaculately (execution largely being in private hands). The Consortium can be of a few five star and boutique or heritage hotels with properties in all the places covered in the tour, domestic airlines, premium road transport providers, adventure tourism organizers and may be helicopter-services providers, apart from selected handicrafts-cuisine-apparel-souvenir providers.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Revenue Output</strong></span></div>
	<div>
		Even if 3,000 couples, with per couple investment within Nepal being USD 5,000 for a fortnight of Premium Nepal tourism experience, come in a year, Nepali Tourism industry stands to gain a minimum of 15 million USD minus the marketing communications expenses and tour operator commission of a maximum of 20 percent. Some 12 million USD means an additional Rs. 10,000 million infused into the economy by just one new concept implemented creatively and aggressively! Are the government and the industry listening?</div>
	<div>
		&nbsp;</div>
	<div>
		<em>(The author, the Consulting Editor of the NBA, is the former Dean of Symbiosis International University, Pune, Mumbai, and Whistling Woods International, Mumbai.)</em></div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-11-27',
			'modified' => '2013-12-22',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '2066',
			'article_category_id' => '40',
			'title' => 'Nepal Leadership Summit: Nepal @ 2080 BS, 12 - Point Economic Growth Roadmap',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	It was an uphill task, but the gathering of influential leaders and high-level representatives succeeded in adopting a document of a 12-point declaration that renewed their political commitment to lead the country on a path of prosperity and development.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Leadership Summit 2013 was to bring five former Prime Ministers -- Sher Bahadur Deuba, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, Madhav Kumar Nepal, Jhalanath Khanal and Dr Baburam Bhattarai &ndash; in a common platform. The outcome of the event was a 12-point Birgunj Declaration in which the leaders agreed that the path to prosperity is only possible through a private sector-led economic growth.</div>
<div>
	&nbsp;</div>
<div>
	Due to political instability and resultant fragile environment for investment, the dream of prosperity and development continued to be elusive and leaders in the past displayed weak political will to fulfill their commitments for economic development. But it seems they have now realized that the country is desparate for development. And the 12-point Birgunj Declaration was historic in forging a common agenda on economic issues.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of UCPN Maoist and former PM, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, said that the time has now come to be engaged in production, construction and development of the country. &ldquo;In fact, our party has come to a conclusion that political stability is not possible without economic revolution,&rdquo; he informed. &ldquo;We can break the vicious cycle of poverty in the country only by promoting economic activities and adopting the approach of inclusive growth.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Former PM and Nepali Congress (NC) senior leader Sher Bahadur Deuba argued that the government should not engage in trade or operate industries. &ldquo;The government treasury was almost empty when NC formed the government in 1990,&rdquo; he said. &ldquo;The situation has now changed as we have enough money. The problem, however, is that we have been unable to invest due to lack of infrastructure and the energy crisis.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Deuba stressed on the need for common commitment to end the existing energy crisis. The country will head in the direction of economic prosperity if we will be able to address the problem of infrastructure, industrial security and energy, he added.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal should attract Indian investment and should promote exports to reduce trade deficit, he opined. &ldquo;The government should reduce all bureaucratic hassles. We should provide tax rebate to companies that create 100 or more jobs.&rdquo; he said.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s economy remains in a state of confusion, with an expanding budget, energy crisis, trade deficit, inflation, unemployment problem and lack of resources, said former Prime Minister and CPN UML leader Madhav Kumar Nepal. He blamed the revenue-oriented government, the short-term profit oriented private sector and rebellious labour for the slow economic growth. &ldquo;We need to improve our educational system and ensure that we have the skills to pursue the available opportunities,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Clarity in policy, investment friendly environment and investment in service and production sector will ensure the country&rsquo;s development, he claimed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of CPN-UML and former PM Jhalanath Khanal emphasized the need for policy stability for economic growth. Modernisation of the agriculture sector will have positive impact for development, he said, adding that the banking sector should increase investment in the agricultural sector.</div>
<div>
	&nbsp;</div>
<div>
	Absolute poverty and backwardness are the main problems in the country at present, UCPN Maoist leader and former PM Dr Baburam Bhattarai said. &ldquo;The country can achieve the target of 10 per cent growth by increasing investment in productive sectors,&rdquo; he argued. &ldquo;Key factors that are having negative effect in all sectors of the economy are poor governance and corruption. Another important factor is the decline in investment to GDP ratio, which is one of the root causes of the slowdown in GDP growth,&rdquo; Bhattarai said. &ldquo;At least 40 per cent of the GDP should be invested in productive sectors to achieve a double digit growth.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	As of now, the government should ensure that at least Rs 700 billion should be utilized in productive sectors to achieve 10 per cent growth since the GDP now stands at nearly Rs 1,700 billion.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We need to build capacity at all levels to deliver as per the policies,&rdquo; he further said, adding that the first question is whether the country&rsquo;s economic boom will allow it to break the cycle of poverty.</div>
<div>
	&nbsp;</div>
<div>
	Nepal must focus on developing its skills and human resources, especially by harnessing the talents of Nepali people from around the world, he advised. &ldquo;We need to make the building of robust private sectors an urgent priority and promote true entrepreneurship because that is how jobs are created.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	He also suggested all political parties to balance between China and India to get maximum benefit from neighbouring economic giants.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of BiCCI Ashok Baid said that political commitment is a must to create an environment of wealth creation through investment, to alleviate poverty, increase the annual GDP growth rate, contain inflation, promote entrepreneurship and generate employment.</div>
<div>
	In the programme, editor-in-chief and chairman of New Biz Madan Lamsal asked politicians to address economic concerns and map out a strategy with the business community and international support to address the country&rsquo;s economic problems.</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 16px;">Former PMs&rsquo; Common Points:</strong></div>
<div>
	&bull;Nepal is in dire need of economic revolution as it has suffered much during the various political changes of the past</div>
<div>
	&bull;Energy, agriculture and tourism sectors should be prioritized&nbsp;</div>
<div>
	&bull;The private sector should lead the country&rsquo;s development</div>
<div>
	&bull;The government should play the role of a catalyst for the development of the country&nbsp;</div>
<div>
	&bull;Nepal should focus on turning the optimism on the country&rsquo;s future into real action</div>
<div>
	&bull;Inclusive growth must be the main goal for Nepal&rsquo;s development</div>
<div>
	&bull;The mood should be changed from thinking Nepal as a poor country to a country that holds hope</div>
<div>
	&nbsp;</div>
<div>
	<img alt="NEPAL LEADERSHIP SUMMIT" src="/userfiles/images/DECLN%20(Copy).jpg" style="width: 550px; height: 727px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-12-09',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'One may call it an ambitious plan, but it is not impossible. In the fi rst week of September, the country’s five former prime ministers came together in a common platform to share their vision to revolutionize the local economy. The Nepal Leadership Summit which was organised jointly by the Birgunj Chamber of Commerce and Industry (BiCCI) and New Business Age (NBA) with the slogan: ‘Roadmap of Economic Revolution: Vision 2080 BS’ cae up with 12-point Birgunj Declaration  pledging, among others, to give priority to national economic agenda and to honour individual property rights.',
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			'title' => 'Growing And Growing Cement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><em>Cement production in Nepal has been growing sharply over the past few years. The industry is among the country&#39;s most flourishing business sectors as the demand of cement is constantly rising. &nbsp;The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors. &nbsp;</em></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi and Sanjeev Sharma</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepal&rsquo;s cement industry has been flourishing despite all sorts of problems. The industry has seen significant growth over the last few years. According to Dhruba Thapa, President of the Cement Manufacturers Association of Nepal (CMAN), the country&rsquo;s cement industry has been steadily growing at 8-10 per cent annually for the past several years. &ldquo;The cement industry has seen growing steadily. Its future looks bright,&rdquo; says Thapa when asked to comment on the current situation of the Nepali cement industry. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The annual demand of cement in Nepal is about four million metric tonnes of which some 3.2 million metric tonnes is met through domestic production while the rest is imported,&rdquo; he adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s import of cement has been dropping year after year because of the rising domestic production. According to the Trade and Export Promotion Centre (TEPC), the rate of growth in cement imports has declined in the last fiscal year. Nepal imported OPC cement worth Rs 2.99 billion in fiscal 2013-14. In the previous fiscal year i.e. 2012-13, cement imports stood at Rs 3.75 billion. The decline in the import of both cement and clinker reflects Nepal&rsquo;s progress towards self-sufficiency in cement production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to CMAN, the domestic cement industry has an installed production capacity of about 6 million tonnes annually which is higher than the annual demand of four million metric tonnes. But the cement factories currently operational have been able to utilize only about 50 per cent of their total production capacity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, this hasn&rsquo;t stopped the private sector from entering this sector in a big way. Currently, according to the data provided by CMAN, there are 45 cement factories in operation producing 3.2 million metric tonnes of cement annually. Local production fulfils about 80 percent of the requirement and the rest is met by imports from India. Nepal produces OPC, PPC and PSC cement, of which OPC is preferred these days.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Out of the 45 factories, only 12 also produce clinker, a major raw material used in cement production. As early as a decade ago, Nepal used to depend on India for 95 per cent of its clinker requirement. However, with more factories now setting up clinker production units after acquiring limestone quarries, import from India has been declining year after year. Today, almost 60 percent of the clinker demand is met through domestic supply. &ldquo;The remaining is imported from India. A few factories will start producing own clinker in 2015. That will bring down the import to 20-25 per cent. Nepal will be self-reliant in clinker over the next three years,&rdquo; says Thapa.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn4.jpg" style="width: 550px; height: 205px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Problems</strong></div>
<div>
	Power shortage because of long hours of load-shedding is the biggest challenge being faced by cement manufacturers in the country. The power crisis has forced them to use diesel power which makes each cement sack costlier by Rs 25. The high import duty levied on raw material, mainly clinker, is another problem, according to cement manufacturers. It has weakened the competitiveness of Nepali cement in terms of price. &ldquo;The government has been continuously increasing the customs duty on clinker ignoring its effects on domestic cement manufacturers,&rdquo; complain cement manufacturers. Thapa says all this makes the Nepali cement costlier than cement in any other SAARC country. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The syndicate system in transportation is another big problem for the domestic cement industry. &ldquo;We are not getting sufficient number of trucks to supply our finished goods to the targeted location,&rdquo; says Anil Kumar Agrawal, Managing Director of Shree Cement Industries. &ldquo;The cost associated with transportation is high as well.&rdquo; Manufacturers complain that even with enough production and demand, they are unable to supply their products to the market due to unavailability of transportation. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Every commodity has a lifespan; and in the case of cement, it is 30 days,&rdquo; said Tej Bom, Head of Sales and Marketing at Ambe Cement, &ldquo;If the finished product is not used within 30 days, the desirable outcome is not achieved.&rdquo; The need of the hour, according to him, is to effectively end the syndicate system so that Nepali products remain competitive with Indian brands.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cn3.jpg" style="width: 300px; height: 313px; float: right;" />Declining Import</strong></div>
<div>
	With the rise in domestic production, import of foreign cement in Nepal has come down significantly over the past few years. The data compiled by the Trade and Export Promotion Center (TEPC) clearly points to this. The country which imported portland class cement (OPC and PPC) worth Rs 4.31 billion in FY 2090/10 saw the import decrease 30 per cent to Rs 2.99 billion in 2013/14. The rising production has also led to the increase in the import of gypsum, one of the major ingredients of cement. Nepal imported gypsum worth Rs 754 million in FY 2013/14, up 133 per cent from Rs 322 million in FY 2010. But the import of clinker, another key component is seen gradually declining. Import of clinker, which was recorded at Rs 8.03 billion in FY 2009/10, decreased to Rs 5.99 billion in 2012/13 before rising to Rs 6.54 billion in the last FY. The increase is due to the government provision made mandatory for the cement manufacturers to produce clinker they need by 2073. However, producers are seen dissatisfied by the government announcement. &quot;Clinker production means more investment. More than 70 per cent of the investment goes for clinker production. So, mere announcements are not enough. We need a supporting strategy as well,&quot; says Anil Kumar Agrawal , Managing Director of Shree Cement Industries. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite the fact that use of Indian cement has lessened in recent years, policy hurdles still remain in place to stop the use of Nepali cement in large constructions of national importance. &nbsp;&quot;General consumers are not importing cement from India. It&rsquo;s the big infrastructure projects run through the international competitive bidding (ICB) process that are importing cement from India,&quot; mentions Thapa,. Thapa, who is also the Executive Director of Cosmos Cement Industries, says that a provision in the ICB contract, which exempts the imported construction materials from taxes, is hampering the competitiveness of Nepali cement. &quot;The imported cement gets an exemption of Rs 185 per sack in customs duty. That is why it is cheaper. It has affected the Nepali cement market,&quot; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn1.jpg" style="width: 550px; height: 261px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Export Prospects</strong></div>
<div>
	With the increase in production, export of Nepali cement has also risen in the past few years. Though the size of the export is negligible compared to the import, the increasing trend indicates to the possibility of Nepali cement becoming a product of comparative advantage to the country&#39;s export. Nepal exported cement worth Rs 3.16 million in FY 2013/14 after starting the export in FY 2012/13 which was logged at Rs 148,700. Nevertheless, it will take time for Nepal to become a net exporter of cement, according to producers. &quot;As we are not being able to fulfill the domestic demand, there is no possibility of export currently. Most factories are selling their products within the country. We can think of exports once we meet the domestic demand,&quot; opines Tej Bom, Head of Sales and Marketing at Ambe Cement.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn2.jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Foreign Direct Investment</strong></div>
<div>
	Nepali cement industry has turned lucrative to foreign investors in recent years. Big international producers, namely, Dangote of Nigeria, China&#39;s Hongshi and Reliance of India are in the process to establish production facilities in Nepal. Lured by the infrastructure boom in Northern India and Western China, the companies are eying to tap Nepal&#39;s vast limestone reserves. Their products are expected to be export-oriented while also fulfilling the domestic demand in Nepal. Dangote Group, one of the largest industrial conglomerates of West Africa, is said to be starting the construction of cement factory in the next one year. The company which was granted a USD 500 million FDI approval in November 2013 by the Investment Board of Nepal (IBN) is currently looking for a local partner, according to an informed source.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, the top Chinese manufacturer Hongshi Holding Group has partnered with the Nepali company Shivam Cement to kickstart its business in Nepal. The company in March, 2015 signed a joint venture (JV) agreement with Shivam Holdings Nepal to set up a Rs 30 billion production facility. According to the agreement, Hongshi will have 70 per cent share (Rs 21 billion) and the rest (Rs 9 billion) will be invested by Shivam. The JV which will be named Hongshi-Shivam Cement Pvt Ltd aims to produce 120,000 sacks or 6,000 tonnes of cement per day and has plans to start production in three years. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, Reliance Cement Industries of India has also received endorsement from the IBN to establish a cement factory in the country. Though much is not known about the progress after the approval of its investment proposal last year, the company has pledge Rs 40 billion in FDI and aims to produce 2.3 million tonnes of cement annually. Collectively, the three foreign companies have received project approvals worth USD 1.2 billion which has been marked among the largest FDI commitments in the Nepali industrial sector for the time being. Likewise, two other foreign companies have also recently expressed their interests to invest in the country&#39;s cement industry, according to a source close to the matter.&nbsp;</div>',
			'published' => true,
			'created' => '2015-06-01',
			'modified' => '2015-06-01',
			'keywords' => '',
			'description' => 'Cement production in Nepal has been growing sharply over the past few years. The industry is among the country's most flourishing business sectors as the demand of cement is constantly rising.  The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors.',
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	(int) 1 => array(
		'Article' => array(
			'id' => '2806',
			'article_category_id' => '40',
			'title' => 'The Story Of Nepali Startups',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	The startup scene in Nepal has changed significantly over the last five&ndash;seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The Nepali startup scene is heading slowly but surely in a good direction,&rdquo; thinks Mark Sears, CEO of CloudFactory, one of the most successful Nepali startups. Bidhyabaridhi Sigdel, Investment Director at Dolma Impact Fund, shares similar views. &ldquo;Now we are seeing new and unique businesses, which involve a brilliant choice of timing and products,&rdquo; he says. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s not just startups like CloudFactory and F1Soft which are doing quite well, nationally as well as internationally. There are others too. For example, Grepsr, a company specializing in web crawling service. The company has international clients such as The Boston Consulting Group, GE Capital, and Target, and is doing very well in their third year. Subrat Basnet, one of the co-founders of the company emphasizes on the massive opportunity for tech entrepreneurs in Nepal to make an impact on a global scale. &ldquo;With the growth of local talent, low risk investment and low operational cost, among other things, Nepali tech entrepreneurs can really compete in the global market if they have great ideas and the right marketing,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	11Beep is another up-and-coming startup from Nepal. It has been trying to build an anonymous mobile social network. It&rsquo;s CEO Bimal Maharjan who is an active participant at startup events around Kathmandu and has even has flown to Italy for a four-month bootcamp called TechPeaks&mdash;The People Accelerator, feels the excitement and challenges of working on an idea alongside other entrepreneurs, designers and hackers.</div>
<div>
	&nbsp;</div>
<div>
	Another idea which was developed in Nepal and has gained some ground locally with aggressive plans to expand internationally is CashOnAd, a mobile advertising platform that is working to revolutionize the advertising world. The fact that CashOnAd&rsquo;s android app on Google Play has already been installed in more than 100,000 devices shows their success in a comparatively short period. With the mobilization of local talent and the right growth strategy, CashOnAd has the potential to be very scalable and profitable in a short period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Innovative companies such as Grepsr, 11Beep and CashOnAd are pioneering a new era of tech entrepreneurship in Nepal. They are dreaming big and thinking of conducting business beyond the borders of Nepal and competing globally. There are also other tech companies making their presence felt in the domestic market as well as chasing the international market.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Many more innovative ideas are surfacing at events like StartupWeekend, GDG Meetups, Hackathons, Mobile Social Networking, Tedx , BarCamp, Mapthaons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Even Incubators like Biruwa Ventures and communities for open source and developers is growing,&rdquo; says Amit Agrawal of Janaki Technologies, &ldquo;Now the vision is crossing the borders and soon we will see kickass startups from the Himalayas, that will rock the world.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#84F2AE">
					<div>
						<span style="font-size: 14px;"><strong>Government&rsquo;s Startup Fund</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Lately, it seems that the government has understood the importance of promoting entrepreneurship in the country. The latest national budget has announced a Startup Fund of Rs 500 million. While making his budget speech, Finance Minister Dr Ram Sharan Mahat said that this Fund, which is yet to take shape, will help cultivate the culture of entrepreneurship and promote fresh ideas by bankrolling promising startups. The government expects the private sector and NRNs, too, to contribute to this seed fund, according to officials at the Department of Industry.</div>
					<div>
						&nbsp;</div>
					<div>
						Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), thinks that the criteria and working procedure of the Fund should be established at the earliest possible to make the allotted resources useful. &ldquo;Though the seed amount is not large, the initiative is good. The government now needs to work out an implementation plan as soon as possible,&rdquo; said Murarka, adding that the private sector can decide how to support the programme once there is clarity about the working modality.</div>
					<div>
						&nbsp;</div>
					<div>
						&ldquo;It has already been four months since the government announced the Startup Fund through the national budget. Now, the government should focus on the implementation aspect of the Fund without any delay,&rdquo; advises Hari Bhakta Sharma, senior vice president of the Confederation of Nepalese Industries (CNI).</div>
					<div>
						&nbsp;</div>
					<div>
						Besides the Startup Fund, the government has been running a Business Incubation Programme (BIP) under the Department of Cottage and Small Industries (DoCSI). The BIP which has been running for the last eight years is targeted at supporting startup enterprises. &ldquo;BIP has been trying to create a favourable environment for innovative and aspiring entrepreneurs. This includes providing physical facilities and mentorship services on various aspects of management and production such as productivity enhancement, quality management, accounting, marketing and intellectual property rights,&rdquo; says Pawan Kumar Timalsena, director at DoCSI. &nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Incomplete ecosystem&nbsp;</strong></div>
<div>
	Startups in Nepal face some common challenges in terms of taking their products international and growing the brand. The most obvious challenge is financial. Startups don&rsquo;t get loans without collaterals from the banks. Likewise, angel investors are very few and far between. So, most startups are forced to survive on bootstrapping. Thus, finance is the most difficult problem that people face in Nepal to start a startup. There are no investors willing to invest in startups, according to industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If an idea or product solves a problem and provides value, the target customers need to be aware of the product or service. International customers can be reached through Google AdWords, Facebook ads, advertisements in relevant platforms, among other ways. But all this needs funding. Financial leverage is necessary for this, and the company should have adequate capital to properly market the product or service. This is one area where most of the Nepali startups are lagging behind.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In most cases, finding investors for ideas or early stage ventures is extremely challenging. Therefore, we recommend that entrepreneurs build some sort of track record before approaching investors,&rdquo; says Vidhan Rana, founder-managing partner of Biruwa Ventures.</div>
<div>
	&nbsp;</div>
<div>
	The risk-averse culture in Nepal has led to less competition among the startups than in other parts of the world. This lack of overall competition has hurt the start up ecosystem in terms of quality, valuations, and market-building. But the industry is growing, though slowly, say the industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Other Challenges</strong></div>
<div>
	Another challenge is talent. Nepal has many colleges from where thousands of students are graduating every year. However, tech companies have a hard time finding the right talent when necessary. &ldquo;While there are many young talented people in Nepal, there are few senior, experienced engineers and managers,&rdquo; shares Sears.</div>
<div>
	&nbsp;</div>
<div>
	Publicity is another challenge for the Nepali startups. To expand globally, Nepali startups need a network or presence outside of Nepal. Getting covered by popular tech blogs, websites, international media etc. could help create awareness of Nepal-based companies. In this context, events like Startup Weekend Kathmandu platform is a good one. At such events, innovative ideas can get some initial traction through its wide network and reach.</div>
<div>
	&nbsp;</div>
<div>
	Starting up a startup is another major challenge. Though some initiatives have been taken to provide funding for startups which have survived at least for a couple of years or more, startups do not get financial help from banks or other similar institutions at their initial stage. In simple words, there are no institutions to provide seed capital to startups.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The ecosystem here carries a general feeling that the startups do not know anything about business. Whereas, in advanced markets, startups are received in a positive connotation,&rdquo; observes Bibhusan Bista, CEO of Young Innovations, a Nepali tech startup, which has been helping new startups by organizing startup events like &ldquo;Hackathon&rdquo; among others.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#84F2AE">
					<div>
						<span style="font-size: 14px;"><strong>IFC&rsquo;s Business Oxygen (BO2)</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						BO2 is a USD 14 million SME venture fund established in partnership with International Finance Corporation (IFC), Bank of Kathmandu and Beed Management. It was established in 2012 to provide risk capital to Small and Medium Enterprises in Nepal through structured equity and quasi-equity investments. It specializes in providing finance to SMEs that might be ignored by BFIs, or cannot access finance from BFIs due to a lack of collateral. BO2 looks for promising entrepreneurs who have worked on good business ideas and show a flair for entrepreneurship.</div>
					<div>
						&nbsp;</div>
					<div>
						Companies may qualify for BO2 if they satisfy any two of the three criteria, namely: less than 50 staff, total assets below Rs 250 million and total annual turnover below Rs 250 million. In addition to funding, BO2 provides advisory services to build the capacities of small and medium enterprises to reach the next level.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Who can qualify for investment?</strong></div>
					<div>
						BO2 concentrates on small entrepreneurs who want to take the step up to the next level. We are looking for SMEs in the growth stage with a history of profitable performance and potential for creating value for investors in the time period of the investment. Entrepreneurs should keep in mind the following points when considering funding from BO2:</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; This is not &#39;free&#39; or &#39;subsidized&#39; money.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The business or its owners should not be blacklisted. Preferably the company should not have bank loans, or if it does, then it should be repayable with the investment amount.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The company should be registered in the CRO as a public limited or a private limited company.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull;Since BO2 is looking at growth stage companies for investment, the company should have been in business for at least 2 years. If under 2 years then the owners should have been involved in the same sector for more than 2 years.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; BO2&#39;s investment will be utilized for the purpose of increasing top or bottom line.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Investment Period</strong></div>
					<div>
						BO2 investment is only for a period of four years, which may be extended by a maximum of one year. At the end of the investment period BO2 will exit the investment by selling its shares in the company, back to the original owners at a predetermined value. BO2provides investment in nine sectors: Manufacturing, Energy Based, Agro and Forest Based, Tourism, Trading, IT and Communication, service industries, construction and infrastructure, and realty.&nbsp;</div>
					<div style="text-align: right;">
						<em>(Source: IFC)&nbsp;</em></div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Focus on the Global Tech Map</strong></div>
<div>
	&ldquo;Tech entrepreneurs are becoming more ambitious, focused on putting Nepal on the tech map, despite the challenges in taking their product into the global market. Soon, it would not be surprising to hear of big ideas from Nepal making a global impact,&rdquo; says Rana. He advises those who want to start a startup to focus on doing branding well, having a unique offering, scalable business model, global thinking, flat hierarchy with a good working culture, and getting inspired by what&rsquo;s happening globally.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	With quality product and right expansion strategy, a handful of tech companies from Nepal are venturing into the global stage and starting to make an impact. Though challenges come with the territory, Nepal&rsquo;s tech companies have a remarkable opportunity to take a bite out of the global tech scene.</div>
<div>
	&nbsp;</div>
<div>
	Subrat of Grespr believes that Nepal can be put on the tech map. &ldquo;But to put Nepal on the global tech map, we need more companies from Nepal like CloudFactory, F1Soft, Janaki Technologies and Grepsr, and an ecosystem that builds and nurtures quality startups,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Sustainability Issue</strong></div>
<div>
	Industry insiders believe that Nepalis are very capable of innovative work. But the reality on the ground is that Nepal doesn&#39;t seem to have good homegrown startups. There is foreign involvement in most of the leading startups from Nepal. Most of the tech startups that do exist are happy doing outsourcing jobs which might not be a sustainable solution for development of IT in Nepal. What could be the reason?</div>
<div>
	&nbsp;</div>
<div>
	Niranjan Bom Malla, founder of Vidinterest.com says, &ldquo;Based on my experience, there are two big problems that we have in our country right now. One, the Nepali culture of investment, very few angel investors - for most of them, IT startup is not the 1st choice. They think they have better places to invest in other sectors. Two, most of the foreign investors are not comfortable investing in our country, because of our political and financial situation. Trust me, I had talks with more than 100 angel investors over the last two years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Experts also believe that startup businesses should always focus on creating a strong team to sustain their growth. &ldquo;Without a strong team, even businesses with strong potential are at the risk of failure,&rdquo; observes Rana.</div>
<div>
	&nbsp;</div>
<div>
	Bista of Young Innovations believes that Nepali startups should come up with new ideas of business rather than copying successful global products and trends for sustainability in the long run.</div>
<div>
	&nbsp;</div>
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	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Janaki Technology: Building Acclaimed Software</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Amit Agrawal, CEO,  Janaki Technology" src="/userfiles/images/cs1(3).JPG" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amit Agrawal</strong></div>
									<div>
										CEO&nbsp;</div>
									<div>
										Janaki Technology</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					Janaki Technology is a software product company well known for its SMS based service, Sparrow SMS and it&rsquo;s much acclaimed application Picovico. Founded in 2007 as a normal web application and outsourcing company, it entered the Nepal SMS Value Added Service (VAS) Market in 2010. It harnessed its experience of catering to the software needs of its national and multinational clients and built &lsquo;Sparrow SMS&rsquo;in 2010 as a platform to facilitatevarious SMS based services.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					SMS services and VAS was not a new thing in Nepal by then, &ldquo;however, we were unique in our implementation and use of latest technology. Our strong technical team worked hard to make it better than other existing SMS services,&rdquo; Amit Agrawal, CEO of the company says while elaborating on the success mantra of the service.</div>
				<div>
					&nbsp;</div>
				<div>
					The company served multinational clients inside and outside the country and Sparrow SMS has received national and international awards. &ldquo;We are still focusing on innovating our products and there is a long way to go,&rdquo; Agrawal said.</div>
				<div>
					&nbsp;</div>
				<div>
					In 2011 the company rolled out Picovico, an application to convert photos into video. The product was selected for seed funding in 2011 by &lsquo;the Morpheus Ventures&rsquo; India. A year later, the Chile Government selected it for &quot;StartupChile&quot; programme awarding it equity free funding of 40,000 USD.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					Agrawal shares that the company focused on research and development for making the products and therefore remained in loss during its initial years. But since than the company has been in profit and presently its annual growth rate has been between 15 to 20%.</div>
				<div>
					&nbsp;</div>
				<div>
					Reflecting on challenges that the company faced as a startup, Agrawal shares that they also went through common problems faced other businesses in Nepal like load-shedding, delayed and multi-layered government processes, shortage of talented workforce and unfriendly business policies. &ldquo;Not having proper startup-ecosystem in the country was another big problem, when we started,&rdquo; he said. &nbsp;&ldquo;Lack of industry support from government, angel investors and startup accelerators along with unclear laws about IT industry and small market size are other major problems especially for Nepali tech companies,&rdquo; he shared. The company has gained substantial popularity among local clients and is presently doing market research to expand its reach beyond Nepal, Agrawal said adding that the company is working on pushing Picovico in the global market, especiallyin Europe and America. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<strong>&nbsp;(By Upashana Neupane)</strong></div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt="Ujjwal Chapagain, Managing Director, Himalayan Rabbit Farm" src="/userfiles/images/cs2(7).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 238px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Ujjwal Chapagain</strong></div>
									<div>
										Managing Director</div>
									<div>
										Himalayan Rabbit Farm</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						<span style="font-size: 14px;"><strong>Himalayan Rabbit Farm: A Social Start-up</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Ujjwal Chapagain, managing director of The Himalayan Rabbit Farm took up the risk of leaving a secure job and entering into an unchartered business terrain of commercial rabbit meat production. Such a business is still little known about across the country. When Chapagain thought of it as a business venture, he was questioned more than assured to take the risk. But he succeeded.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						He thought that a small risk taken could help in the sectorial as well as his personal growth. In the very beginning, he had decided his business venture will be a social enterprise rather than a purely commercial. Established in 2012, the venture has provided 100 small farmers with an extra source of income in the form ofrabbit farming.Along with that six farmers have been producing rabbits on a larger scale, following the footsteps and guidelines of Chapagain.</div>
					<div>
						&nbsp;</div>
					<div>
						Chapagain was a jobholder in the non-governmental sector. He left the job and invested all his savings in starting up an organic vegetable shop at Jhamsikhel and an integrated farm in Bhaktapur in partnership with some friends. Unfortunately, the project did not succeed, the cause of which he alludes to lack of teamwork with his business partners. After this, he found himself at the crossroads forced to choose between doing business and reverting to being a jobholder. He decided to stay.</div>
					<div>
						&nbsp;</div>
					<div>
						He explored various business prospects and finally decided to start rabbit farming. He took the decision after figuring out that rabbit meat had high demand in the market, as it had remained unnoticed as a livestock farming option and therefore had no substantial competitors. Besides that, another major reason, which attracted his attention, was the fact that rabbit meat is considered to be healthy food and as people were being oriented towards healthy meat options, he thought that he could cater to this consumer sentiment.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						After finalizing his new business idea, Chapagain faced the problem of capital shortage. As he had spent all his savings in the previous venture, the only option left to him was borrowing from a bank. Considering the failure of his earlier business venture, it was hard to convince family members to put up family land as collateral for acquiring bank loan for his new venture. He convinced them and he acquired a bank loan and started rabbit farming in partnership.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has around 500 rabbits at its rabbit farm in Balambu, Kathmandu. For breeding, there are around 100 females. It is planning to upgrade the existing breeding centre into a modern one for breeding high yielding rabbit breeds. Presently, it procures 300 to 400 kilograms of rabbit meat every month from farmers situated in different parts of the country. Chapagain says that this quantity is consumed in the market, which primarily consists of hotels and restaurants.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs3(7).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						Within two years, Himalayan Rabbit Farm has succeeded to put rabbit meat as an option on menus. The success stems from the fact that people, who have tasted it, have loved it. Chapagain feels that interest towards the meat has been growing and he has been continuously working to boost it. To increase customer attraction and establish rabbit meat eating culture, the company had provided free tasting samples to visitors of Food, Drinks and Hospitality Exhibition held in September this year.The company has been working on innovating rabbit meat dishes in association with Nepal Academy of Tourism and Hotel Management (NATHM), so that hotels and restaurants could replicate them.</div>
					<div>
						&nbsp;</div>
					<div>
						On the social side, Chapagain has been constantly working with local farmers to help them in rearing rabbits and thereby generating additional household income. The company provides training on rabbit keeping, managing and shade building for rabbit farming to farmer, among other support.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						As of now, farmers in Mayagdi, Rasuwa, Sindhuli, Dolakha, Nawalparas and Kathmandu have taken up rabbit farming. He says that famers from other areas have been also showing interests.</div>
					<div>
						&nbsp;</div>
					<div>
						In the past two years, Chapagain has made a huge leap in introducing a totally new area to livestock farming in Nepal and now he wishes to establish rabbit farming as a national programme, similar to that of pig, goat and poultry farming. Along with this he wishes to make rabbit meat easily available in the market for purchase. To this end he has plans up his sleeves to set up outlets for selling rabbit meat products in places with higher market volume.</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
					<div>
						&nbsp;</div>
				</div>
			</td>
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	</tbody>
</table>
<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Selling the Innovation</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt="Madhukar KC, Founder, Matribhumi Urja Pvt Ltd" src="/userfiles/images/cs4(6).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Madhukar KC</strong></div>
									<div>
										Founder</div>
									<div>
										Matribhumi Urja Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Madhukar KC, founder of Matribhumi Urja Pvt Ltd invented a fuel-efficient wood fire stove that is being commercially developed. Recently, he has designed eight different burners and presented them to the Alternative Energy Promotion Centre, as requested. These designs include skewer stove, high-altitude stove, portable stove and bio-gas stove among others for household and commercial use.</div>
					<div>
						&nbsp;</div>
					<div>
						CB Urja Pvt Ltd has been granted the production and marketing rights for the wood fireportable stovesKC innovated. It started production since mid-May 2014 from its Balaju Industrial Estate based factory.</div>
					<div>
						&nbsp;</div>
					<div>
						The government has recently decided to provide five ropanis of land in Chitwan to set up a factory produce burners at a larger scale, KC informed. He is optimistic that the decision would help to develop his venture. His journey so far has been challenging, especially during the research stage, as he had to personally finance his research and development works. Sharing his experience, KC complains of banks and financial institution&rsquo;s unwillingness to take intellectual property as collateral for providing loans. In lack of loans, he has been managing investments with the profit earned by selling the products.</div>
					<div>
						&nbsp;</div>
					<div>
						KC, originally a resident of Pyuthan had moved to Chitwan and it is where he first introduced the product to the public. The first prototype of woodfire stove was developed after a long series of trial and errors on coal stove. A successful prototype was developed in the 33rd attempt. For over 13 years he has been devoting all his time in developing the product. Coming now, he has improvised his products to use bio-mass. KC says that the performance of his stoves is higher than the government benchmark claiming that his stoves scored 29 in the benchmark against the official benchmark of 25. KC plans to develop products that can score around 33 to 35 in terms of performance and fuel efficiency. &nbsp;Presently he has been working fuel-efficient stoves to be used with bio-gas and liquefiedpetroleum gas (LPG).</div>
					<div>
						&nbsp;</div>
					<div>
						KC&rsquo;s stove, besides firewood, can use biomass such as pine leaves, seeds of Schima Wallichi (Chilaune) tree, seeds of Hog Plum (Lapsi) and other bio wastages, which generally remain unused, as fuel source. A candy factory in Parbat entirely uses Hog Plum seeds to fuel the stove. This unique portable stove uses two watt computer fan for air supply. The insulated version of the stove does not heat the room as it is covered by mud, specially designed for the Terai region. The fixed stoves installed in rural households also have similar mechanism and provide better flames while emitting lower smoke. KC says that these stoves can be customised to fit in the requirements of an individual household. This mechanism makes it fuel-efficient, environment and user friendly while ensuring smoke free kitchen.Along with that stove uses parts made of recycled metals supplied by the Butwal based Metal Craft Pvt Ltd.</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs5(5).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;KC is the first to incubate at the Business Incubation Programme of the Department of Cottage and Small Industries (DoCSI). In 2009, KC was recognised by National Academy for Science and Technology (NAST) with an award for developing efficient stoves. He was also awarded with Surya Nepal Asha Social Entrepreneurship Award in 2013. After being awarded with the awards, KC realized the buzz that his business had created in the market. He has registered patent rights for his innovations. Presently he has been trying to acquire international patent rights for his LPG and bio-gas burners and the DoCSI has pledged assistance in this endeavour.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
				</div>
			</td>
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	</tbody>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>CloudFactory: A Crowd-sourcing Powerhub</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Mark Sears, CEO, CloudFactory" src="/userfiles/images/cs6(5).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 218px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Mark Sears</strong></div>
									<div>
										CEO, CloudFactory</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						As crowd-sourcing and cloud-working are becoming the next big things in the global outsourcing market, new companies are flocking into this lucrative business. CloudFactory, a Kathmandu-based startup has emerged among the frontrunners in the global crowd-sourcing market. The company, founded in 2010 by a Canadian tech entrepreneur, Mark Sears, is rapidly expanding its foothold in Nepal and beyond. CloudFactory came into existence when Sears came to Nepal on a vacation with his wife in 2008. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The company basically is a web-based outsourcing platform that hires cloud-workers who can work from their internet enabled locations. CloudFactory&#39;s clients are those who need big data services such as data entry, data processing, data collection along with audio/video transcription, categorization, web research and image tagging. The tasks are broken down into sets of &quot;microtasks&quot; which are then distributed to its pool of online workers who complete their work in the &quot;virtual assembly lines&quot;. CloudFactory currently employs 3,200 workers from Nepal and across the world, who process over a million tasks per day.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Nepali startup scene is heading slowly but surely in a good direction&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did the idea of CloudFactory germinate?</strong></div>
					<div>
						In 2008, we were a software development company building web and mobile applications for North American and European clients. Many of them started needing data entry related work and kept asking if we could hire people in Nepal and do it. We kept saying no because we were a high-end software boutique and not a data entry company. At the same time we had been living in Nepal for a year and only hiring talented computer engineering fresher. &nbsp;During the period we met many other talented Nepalis looking for an opportunity. The major existing solution was Amazon&#39;s Mechanical Turk (AMT) - a crowd sourcing internet marketplace. But its enterprise-grade was not enough for our clients and we faced many quality related problems. So we started CloudFactory on January 1, 2010 as a technology platform to cater to the big demand and supply of online workers and haven&#39;t looked back since then.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the turning points for your company?</strong></div>
					<div>
						&nbsp;The shift from a software development company to a product company back in Jan 2010 was a major turning point. Another major turning point was in May 2012 when we hired our first 25 cloud workers in Nepal. Up until then we were a tech/engineering company building a platform and now we had to learn how to recruit, train and manage large numbers of data operators.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						While there are many young, talented people in Nepal there are less senior, experienced engineers and managers. We are a young team and in many ways I think that has been a good thing, we have learned a lot and grown together. I am so proud of the things we have accomplished to get to this point and I look around and see that I am surrounded by some of the finest young leaders in Nepal - it is amazing to see the growth and maturity that comes from being part of a growing international startup like this.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did you manage the investments?</strong></div>
					<div>
						Our team, technology and traction are the keys to us for raising investments. This latest round was definitely related to our participation in a business accelerator in the US where I got to meet and pitch to a lot of great investors at the end of the 7-month program.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the major projects of CloudFactory? What are its main focuses?&nbsp;</strong></div>
					<div>
						Large-scale data entry, audio/video transcription, web research, image tagging and categorization are our major projects. Companies come to us with large amounts of routine and repetitive work that we can break down in small tasks that can be partially automated but require people as well to complete many of them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						&nbsp;While we have not received any formal help from the government we have very much appreciated informal support from people like Radhesh Pant at Nepal Investment Board. While their focus is mostly on the top hydropower investments in Nepal but he understands and appreciates the opportunity for companies like CloudFactory to provide job creation in Nepal. As a landlocked country we need to be thinking more about how we can accelerate the shift to a knowledge economy. For that ICT should be higher on the priority of the government. Even so, the most important thing the government could do is stay out of the way of ICT growth in Nepal and focus on not being a hindrance and let entrepreneurs continue to innovate from their internet-enabled residences across the Kathmandu valley.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the challenges being faced by the Nepali tech startups?</strong></div>
					<div>
						Tech startups in Nepal are mostly just freelancers working together in small teams of 2-20 people. They work on the early development side of web and mobile applications but rarely get the opportunity to build a full business by bringing products to market themselves. We need some more product startups to go through the full lifecycle to see some wins on the international stage. We will then have the capital and experience to start the second wave of tech startups in Nepal. I see this happening in the next 3-5 years. Until then many will continue to get experience on the engineering/product development side by building other people&#39;s products. The future is bright, Nepali startup scene is heading slowly but surely in a good direction.</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&ldquo;Lack of human resource to work on our ventures is the major problem&rdquo;</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
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							<td>
								<img alt="Anil Basnet, Chief Operating Officer  Metro Vibes" src="/userfiles/images/cs7(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Anil Basnet</strong></div>
									<div>
										Chief Operating Officer&nbsp;</div>
									<div>
										Metro Vibes</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Metro Vibes, is a startup company that specializes in web design, development and hosting, email services, graphic design, domain registration, and providing IT consultancy and internet marketing services. After working for over five years with other tech companies, Anil Basnet, Chief Operating Officer of Metro Vibes, felt the need to establish his own IT company. He shared the idea with his three friends and they conceived Metro Vibes.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						Company&rsquo;s growth curve has been pretty stable and has improved substantially since its establishment. Presently 22 employees are working with company and Basnet said more would be joining in the near future. &ldquo;We work hard to meet projects deadline. We get up at 4 in the morning for our venture Metro Tarkari and ensure that the delivery is made within the set time frame,&rdquo; Basnet said while elaborating on the growth factors.</div>
					<div>
						&nbsp;</div>
					<div>
						Though the venture faced financial crisis in its initial days, lack of skilled manpower was and remains the major problem. &ldquo;We have unique concepts, required finance and latest technological equipments, but there is scarcity of skilled manpower who can translate our venture ideas into actions,&rdquo; stated Basnet. Another problem is the absence of government policy on ecommerce. &ldquo;We are confused about the method of handling online transactions,&rdquo; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						Starting the Merotarkari.com, an online vegetable ecommerce system, was one of the most prominent turning points for the company. This venture boosted the company&rsquo;s working style and contributed in its expansion. The concept of virtual receptionist was another unique idea in office automation that became a major turning point for the company.</div>
					<div>
						&nbsp;</div>
					<div>
						The company started with five clients in the initial phase and coming now it is serving more than 120 trustable clients that range from national to international boundaries. Its core products are mterotarkari.com, metrofever.com, metro bulk email service, and metro biometric attendance system.&nbsp;<strong>(By Angila Sharma)</strong></div>
					<div>
						&nbsp;</div>
				</div>
			</td>
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	</tbody>
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<div>
	&nbsp;</div>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&lsquo;&lsquo;The company has been working hard to extend its reach to every field&rsquo;&rsquo;</strong></span></div>
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					&nbsp;</div>
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								<img alt="Shraddha Timilsina, CEO, Sastra Creations Pvt Ltd" src="/userfiles/images/cs8(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Shraddha Timilsina</strong></div>
									<div>
										CEO</div>
									<div>
										Sastra Creations Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sastra Creations Pvt Ltd is an IT startup company that provides wide range of services including web design and development, hosting, graphics designing, mobile app and software development. The company was founded in 2012 by two IT students Shraddha Timilsina and Binamra Dhakal in their pursuit of utilising their IT skills. &quot;We perceived that IT sector has great opportunities and possibilities in Nepal and hence decided to work and build our own IT business,&rdquo; Timilsina, who presently acts as the CEO of the company, said.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						In the two years of its establishment, the company had several major turning points. Launching the Nation Wide Web Competition 2013in partnership with the Computer Association of Nepal (CAN), on 2nd January, 2013 provided it with much needed publicity and helped gain reputation as an authority in the IT sector. &quot;It helped talented and skilled participants in acquiring better knowledge about opportunities in web design and development. It helped us to grow at the national level,&rdquo; Timilsina said. Next to it, the company provided IT support for conducting online election of Nepal Medical Council online. Launching its own range of software &ndash; school software and Catreen management software &ndash; in September 2014 provided it much impetus for being included in the top 20 IT startup companies by the ICT magazine.</div>
					<div>
						&nbsp;</div>
					<div>
						Software and websites sales has been major source of the company&rsquo;s income and investment. It claims that its annual income has grown about three times from 2012 to 2014 with current annual turnover resting at Rs 12 lakh. It has provided employment opportunities to more than 10 youths in 2 years.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The Company has been able to sustain and grow on its own due to the total dedication of its founders and employees. The success, however, was not easy. It has faced its share of financial and operational obstacles and challenges in the first few months of establishment. Timilsina thinks that lack of proper system and knowledge about IT and load shedding are the major problems faced by them. Reflecting on her experience, Timilsina said that it is hard to acquire big projects or partnership with bigger organizations in lack of personal links with them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						For any business, Timilsina thinks that market is important. She claims that taking business online just provides any business with the market. It is not possible to promote business without going online and it is time efficient if you are using digital marketing tools including software to run a business, she claims. The company perceives each and every sector including agriculture, entertainment, ecommerce, restaurants and hotels, travel agencies and any other business to be its potential client.<strong>&nbsp;(By Rashika Pokharel)</strong></div>
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	&nbsp;</div>
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					<strong><span style="font-size: 16px;">&ldquo;We are working on making our technology strong and making it securer&rdquo;</span></strong></div>
				<div>
					&nbsp;</div>
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								<img alt=" Bimal Maharjan, CEO, 11Beep" src="/userfiles/images/cs9(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Bimal Maharjan</strong></div>
									<div>
										CEO, 11Beep</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						11Beep is startup company, which since recently have been gaining popularity as a social network that provides platform to individuals to enjoy unrestrained personal freedom of expression.11Beep is a network built specially for mobilephones that doesn&rsquo;t keep any digital history. It lets you share freely what is on your mind with your friends without worrying about any digital footprint.</div>
					<div>
						&nbsp;</div>
					<div>
						11Beep came into operation on November 2013 following Bimal Maharjan&rsquo;s, the CEO of the company, competitive analysis of the market to find the company&rsquo;s startup idea. Maharjan had conceived the idea after analysing various posts on different social networking sites.</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;People only share trendy thoughts on social networking sites but hesitate to share thoughts that might be considered or taken in negative light by their social networking peers. 11Beep provides anonymity to individuals and emancipates them from the fear of being identified thereby enabling them to share their thoughts spontaneously without any restraints, says Maharjan, CEO of 11Beep. Thus this network paves way for individuals to share their thoughts, whatever their nature, whenever it strikes to their mind. Besides anonymity, this network has another cool feature of deleting all the post after certain time frame. This feature enables that the individual does not leave digital footprint behind for others to trace. Fundamentally, it is a social network with quite higher levelof security.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has been running by five-member team &ndash; with only CEO committing his full time to it and others helping him out on part time basis. 11Beep is preparing to launch another product in the market but before launching it, its been focusing on making the existing product more user friendly and winning user confidence.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;Our startup is based on the idea of a loosing algorithm and is designed for maintaining anonymity. We don&#39;t want to go wrong anywhere. We are working on making our technology strong and making it securer. We have required technical competencies and expertise and are very happy with our work and knowing that we are on the track of gaining our objective,&quot; says Maharjan.</div>
					<div>
						&nbsp;</div>
					<div>
						The company is sustaining through its own resources and has not got any support from government. &quot;Fortunately I don&#39;t have to pay my team so that is a relief .We don&#39;t require huge investment and our biggest need at the moment is human capital, we are investing on our own so right now we don&#39;t feel the need for funding but in the next phase, we will need huge investment,&quot; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						As a part of its aim, Beep11 believes in building something which people can make good use of. But being a start up it has its own woes too. &quot;Our society in not built to encourage tech entrepreneurs and as in the initial phase they don&rsquo;t earn much to sustain, it is very difficult for startups to establish in Nepal,&rdquo; Maharjan said.&nbsp;</div>
					<div>
						<strong>(By Rashika Pokharel)</strong></div>
				</div>
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<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Sasto Deal: Providing the Best Deals</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Amun Thapa, CEO, Sasto Deal" src="/userfiles/images/cs0(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
						</tr>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amun Thapa</strong></div>
									<div>
										CEO, Sasto Deal</div>
								</div>
							</td>
						</tr>
					</tbody>
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				<div>
					<div>
						Sasto Deal (SD) is one of the prominent rising stars of online retail shops in Nepal. The company was started almost 3 years ago with the aim of switching offline Nepali market to online and providing best deals. Upon returning from the US, Amun Thapa, SD&rsquo;s CEO, decided to do some business and began to search for ideas that would sell. It did not take long to Amun to realize that Nepali people had been wasting some really useful hours in shopping. &ldquo;I found people lingering to different places in search of different items. I asked myself if everyone was doing the same and the answer was yes. I was compelled to seek for a solution and I knew there was one. However, the sad part was that no one was doing anything about it,&rdquo; says Thapa. He realized that he could save people this hours by taking it online and making it available on their desktop or mobile phones. The idea was simple but he needed people who could translate his vision into reality. This brought him in touch with his schoolmates who were pursuing their degree in the IT field. They worked around the idea and gave birth to Sasto Deal. The initial phase was a bumpy ride as they had problems in making deals. It was difficult for them to make people believe in online business. &ldquo;People laughed at our ideas and we had to go out to the market begging for deals. But now, the same people are begging us to feature their products,&rdquo; says Thapa proudly. The company believes that the initial phase was difficult because online business was a new term to this part of the world and also because the rulers find it difficult to trust the new comers. The company believes that they are grown large.&ldquo;I would probably say the growth rate is over 100% right now, this is not only due to the fact that the company is outperforming but also due to the fact that we are in the e-commerce business and with every single product, our chances for growth increases,&rdquo; Avash K.C, CO-CEO of Sasto Deal, said.</div>
					<div style="text-align: right;">
						<strong>(By Angila Sharma)</strong></div>
				</div>
			</td>
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<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Himalayan Wonders: A Travel Startup with a Difference</strong></span></div>
				<div>
					&nbsp;</div>
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							<td>
								<img alt="Nishes Thapa, Operations Manager, Himalayan Wonders" src="/userfiles/images/cs01.jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 206px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Nishes Thapa</strong></div>
									<div>
										Operations Manager</div>
									<div>
										Himalayan Wonders</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						The Internet has changed the way companies do their business and tourism sector is no exception to it. Himalayan Wonders, a Nepali travel startup, also harnessed the latest developments made in the field of online technology and took all its business online. Founded in 2013, the company provides affordable tours and trekking packages to Nepal. This online portal is packed with informative contents and pictures and travellers can choose and book any tour package online through any Internet enabled device such as smartphone and tablet from anywhere in the world.Himalayan Wonders came into existence when an American geologist Dr David Urmann and his Brazilian friend Pablo Souto Maior suggested Nishes Thapato start his own company. Dr Urmann has been visiting Nepal since the mid-90s&#39; for research on climate change and in credited for establishing the company. Dr. Urmann and another Co-founder, Maior, promote the startup in the global market while Thapa heads the Nepal operations of the company. The company has been receiving overwhelming response from travellers and trekkers around the globe. Within a year it has received five-star rating from Trip Advisor and many positive reviews from its satisfied customers. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Ever since the inception of the company, we never looked back&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did your business idea germinate?</strong></div>
					<div>
						I was born in Tripureshwor VDC of Dhading and tourists visiting Ganesh Himal pass through it. Those tourists always fascinated me and it is during these days that my interest of doing something in tourism industry developed. In 1998 I came to Kathmandu and started working in the tourism sector. I worked for different people and gained industry experience that one must have in order to thrive in this booming industry. Dr David Urmann, an American friend of mine, suggested me to establish my own travel company. With his and his Brazilian friend Pablo Souto Maior constant help, we established the company in 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What is the growth rate of your company?</strong></div>
					<div>
						Since its inception, we have never looked back. Our business is growing every year. With the end of the decade long insurgency, the tourism and hospitality industry has been prospering. If this continues, I am hopeful of maintaining the existing healthy growth rate.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						We have not faced major problems till date. Our business so far has been smooth with tremendous support from staffs, friends and families. However, events such as general strikes and political instability in the country, have always posed to be a big threat. In the past, we have suffered financial losses due to such condition.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How are you managing investments?</strong></div>
					<div>
						We received bank loans to meet our initial investment requirements. In due course of time as the company started to grow, I borrowed money from friends and even used my personal savings to make further investment. We keep track of every penny that goes out as expenditure and comes in as earning. We keep our books up-to-date and this has become the success mantra of the company.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						We have not received any help from the government. &nbsp;If government agencies show interest in us, we would be glad to work together for the growth of this industry. Trekking Agencies Association of Nepal (TAAN) has provided us substantial help in promoting our business at the international level.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
				<div>
					&nbsp;</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-12-23',
			'modified' => '2015-06-01',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The startup scene in Nepal has changed significantly over the last five–seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.',
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		'Article' => array(
			'id' => '2800',
			'article_category_id' => '40',
			'title' => 'Unlocking Nepal's Growth Prospect',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&nbsp;--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	&lsquo;Nepal does have natural resources. They are of course our growth potentials but not necessarily the key element needed for our future economic growth. The key element is human resource; the brainpower, creativity of the people, entrepreneurship and innovation. If we can unlock our human potential, if we can unlock entrepreneurship and innovation which will make use of the natural resources that Nepal has, then our growth potential will be unlocked; we will become a rich country.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Thus spoke Finance Minister Dr Ram Sharan Mahat, the chief guest of the second edition of the Asian Paints NewBiz Business Conclave &amp; Awards, organized by New Business Age Pvt Ltd at Hotel Soaltee Crowne Plaza on September 11.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(5).jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(2).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 397px;" />Investing in Human Resource</strong></div>
<div>
	The remarks of Dr Mahat, a six-time finance minister, are a clear departure from the traditional belief that natural resources are a must for the economic growth of any country. The appropriate use of the available natural resources is necessary, the Finance Minister said, adding, however, that the country&rsquo;s economic development is possible through the use of brainpower, creativity, entrepreneurship and innovation. He cited examples of Japan, Hong Kong, Taiwan and South Korea which have achieved fast economic growth despite having practically very little natural resource.</div>
<div>
	&nbsp;</div>
<div>
	Deependra Bahadur Kshetry, former vice-chairman of the National Planning Commission (NPC), who too attended the Conclave, agrees with the finance minister. &ldquo;We need more skilled and trained human resource, creativity and innovation in business and entrepreneurship to exploit our abundant natural resource, which gives us a comparative advantage. However, the endowment of natural resource alone is not enough. This is what the finance minister means. And this is true as well,&rdquo; said Kshetry, while talking to New Business Age after the conclusion of the Conclave.</div>
<div>
	&nbsp;</div>
<div>
	Kshetry says the government should invest more in developing the country&rsquo;s human resources because it will help build the national capacity. &ldquo;In simpler terms, it means investing more in education and skill-oriented training. Investment in human resource will help unlock our growth prospects,&rdquo; he added.</div>
<div>
	&nbsp;</div>
<div>
	To invest in human resource development is to compete with investment in infrastructure and other social sectors. Here, the government has harder choices to make as it cannot choose one sector over the other as almost all sectors in Nepal need investment, and huge ones, for the matter. So, according to economists and development experts, the government will do well to have a well-designed national development plan, which will clearly spell out our national priorities. &ldquo;It will help attract international support as well. Then it will be easier for the government to decide in which areas to use domestic resources and in which areas external resources,&rdquo; say Kshetri.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Managing Director of Jade Consult, Bkesh Pradhanga, another speaker of the Conclave, echoed similar sentiments. &ldquo;The government should mobilize our human resource properly. For this, the government should invest in higher education of the country&rsquo;s workforce and this should be the primary focus,&rdquo; he opined. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 604px;" />Focus on Three &lsquo;I&rsquo;s</strong></div>
<div>
	Our development priorities should not miss the three &lsquo;I&rsquo;s &ndash; infrastructure, investment and inclusion &ndash; according to Johannes Zutt, World Bank country director for Nepal and Bangladesh. Zutt, who was also one of the speakers of the Conclave, clearly said that the three &lsquo;I&rsquo;s should be Nepal&rsquo;s top priority for now if the country is to achieve fast economic growth.</div>
<div>
	&nbsp;</div>
<div>
	On the investment front, the level of foreign investment has been low. According to the Investment Board, the total amount of foreign investment in 2012 which was declared the Investment Year was USD 62 million. It went up in 2013 to USD 208 million. In 2014 so far, it is USD 130 million. Domestic investment, too, hasn&rsquo;t been growing at the expected rate. &ldquo;Nepal is investing below the rate of investment needed to achieve a double digit growth. There is actually money available in Nepal for higher investment, but it isn&rsquo;t happening. The business community complains about access to finance, regulatory burdens and labour costs. These are the problems existent is South Asia but it is debilitating in Nepal,&rdquo; observed Zutt.</div>
<div>
	&nbsp;</div>
<div>
	But why has large scale investment not come to Nepal? Pradhananga answers, &ldquo;It is because of political instability, lack of policy predictability, and industrial disputes that have caused the closure of companies like Surya Nepal in the recent past.&rdquo; He added that Nepal immediately needs an investment of USD 15 billion for various projects that are ready for implementation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;For private investment to come, we need to create more enabling environment. This is why we have initiated some new incentives to lure private investment from this year&rsquo;s budget, Dr Mahat said, &ldquo;In the hydropower sector, for example, we have announced income tax exemption for the next ten years and fifty percent tax rebate for another five years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Zutt opined that Nepal is caught in a vicious cycle of investment and infrastructure. &ldquo;Nepal doesn&rsquo;t have high enough levels of investment in infrastructure that is necessary for businesses to succeed and because it doesn&rsquo;t have that infrastructure, it is not getting the investment,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Pradhananga suggested to the government to focus on infrastructure development for the next one decade. He also advised to change old laws and policies and introduce new ones to attract private investment. &ldquo;The Hydropower Policy 2001 and Foreign Investment and Technology Transfer Act 1992, to give a few examples, are quite old. The aim of these laws and policies is to attract FDI in the country. But we haven&rsquo;t been able to make them timely and updated. This has negatively affected our development efforts,&rdquo; said Pradhananga. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Hydro Hopes</strong></div>
<div>
	All the speakers of the Conclave agreed that hydropower has great potential in Nepal. &ldquo;We are rich in water resource. We have huge hydropower potential. We can be the power house of clean energy in South Asia,&rdquo; said Dr Mahat.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But the reality is different from the rhetoric. Nepal has hardly tapped one percent of its total hydropower potential. So far, the country has been able to produce only about 750 MW of hydroelectricity though the total hydropower potential of the country is said to be over 80,000 MW. That means one of the sectors where Nepal&rsquo;s growth prospects lie is the hydropower sector. Over half a dozen projects that are together expected to produce more than 5,000 MW of hydroelectricity are in advanced stage of development (see box). The government&rsquo;s claim to do away with load-shedding over the next three-four years is based on these projects.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In Nepal, hydropower is one such sector of investment which can bring about a positive change in the entire econom</div>
<div>
	&ldquo;If the PDA [project development agreement] with the Upper Karnali hydropower project is signed over the next few days or weeks, then it will be a game changer. It will lead to the signing of PDA with half a dozen other major hydropower projects,&rdquo; said Dr Mahat.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs4(4).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 231px;" />Nepal&rsquo;s Strategic Location</strong></div>
<div>
	The speakers of the Conclave also said that Nepal&rsquo;s geographic location between China and India, two rapidly growing economies of the world, provides the Himalayan nation a great opportunity for economic growth. &ldquo;Nepal&rsquo;s growth prospects also lie in the fact that it is located between China and India, two of the fastest growing economies of the world. If Nepal can establish itself a trading partner between China and India, it will greatly help Nepal&rsquo;s economic growth,&rdquo; said Zutt.</div>
<div>
	&nbsp;</div>
<div>
	It is worth mentioning here that the annual trade volume between India and China has already crossed USD 70 billion and the two countries have planned to increase it to USD 100 billion by 2015. If Nepal can build roads, highways and rail links to connect its northern border with southern border, then it can effectively work as a trading partner between the two Asian giants, according to economists and development experts. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&lsquo;2015: Nepal&rsquo;s critical juncture&rsquo;</strong></div>
<div>
	Addressing the Conclave, Dr Swarnim Wagle, member of National Planning Commission said that the year 2015 will be very crucial for Nepal as the country&rsquo;s new constitution is expected to be promulgated in 2015. Once, the constitution is ready, Dr Wagle said, Nepal&rsquo;s political transition would be complete and then the country&rsquo;s economy can take off. &nbsp;&ldquo;We are few centuries behind other countries but I think that we can really make the year 2015 our critical juncture and really expedite our path into modernity,&rdquo; said Wagle.</div>',
			'published' => true,
			'created' => '2014-11-09',
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			'description' => 'Nepal needs to invest in its human resource and exploit its natural resource to the fullest to unlock its growth prospects.',
			'sortorder' => '2645',
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		'Article' => array(
			'id' => '2794',
			'article_category_id' => '40',
			'title' => '2nd Newbiz Business Conclave & Awards 2014',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	&nbsp;</p>
<p>
	<span style="font-size:14px;"><a href="http://www.abhiyan.com.np/article-conclav_27bhadau2071_presentation">Presentations of some speakers in the conclave</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_25bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड वितरण शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड कार्यक्रम शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_conclave">न्यूबिज कन्क्लेभ एण्ड अवार्डको दोस्रो संस्करण आज</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-BSchoolAward2014">न्यू विज् विजनेश स्कूल अवार्ड २०१४</a></span></p>',
			'published' => true,
			'created' => '2014-09-12',
			'modified' => '2014-10-10',
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			'description' => '2nd Newbiz Business Conclave & Awards 2014',
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	(int) 4 => array(
		'Article' => array(
			'id' => '2790',
			'article_category_id' => '40',
			'title' => 'Nepal Strives For DC Degree: What Is In Store For Private Sector?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	If everything goes as planned by the government, Nepal will graduate from the Least Developed Country (LDC) status over the next eight years (i.e. by 2022) to a Developing Country (DC) status. Even if that target is not achieved by the specified time, the process that has been initiated already with the start of the current three-year plan (FY 2014 to FY 2016) has a lot in store for the private sector as opportunities, say analysts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Foremost among such analysts is Dr Govind Raj Pokharel, Vice Chairman of National Planning Commission (NPC). He says, &ldquo;Graduation from the LDC status is a Herculean task but it is achievable if the government and the private sector work together and there is strong support of the donor community. We have pinned a lot of hope on the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Dr Pokharel claims that the next eight years over which Nepal will try its best to graduate from the LDC status to DC status will be full of business opportunities for the private sector. &ldquo;We have expected a huge investment from the private sector. We know that the private sector will not invest without seeing opportunities first. Still, we hope that such investment will come from the private sector because there will indeed be opportunities,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 485px;" />According to economists as well as the country&rsquo;s graduation strategists, there will be business opportunities in all major sectors - agriculture, manufacturing, services, hydropower, tourism, infrastructure development etc. &ldquo;These are the major areas where the private sector will find ample business opportunities provided that the government creates an enabling environment. But there will be opportunities in other sectors as well if there is an enabling environment,&rdquo; shares Dr Hemanta Dawadi, Director General of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).</div>
<div>
	&nbsp;</div>
<div>
	It seems the government is keen about creating those opportunities for the private sector through change in policy in line with the development targets which will have to be achieved over the next eight years for Nepal to become a developing country. The good thing is this has started with the recently announced budget for the new fiscal year. &ldquo;The budget is also poised to graduate Nepal from a Least Developed Country status as defined by the UN,&rdquo; said Finance Minister Dr Ram Sharan Mahat while presenting the budget on July 13.</div>
<div>
	&nbsp;</div>
<div>
	In his budget speech, Dr Mahat said that the country needs to invest minimum 30 percent of GDP in fixed capital formation to earn the identity of a developing country in the next eight years. &ldquo;However, the average investment of past three years has been only 22 percent,&rdquo; he noted, &ldquo;To bridge this gap of eight percentage point in fixed capital formation, additional Rs 160.00 billion should be invested in the coming Fiscal Year alone.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Finance Minister proclaimed that various reform measures will be carried out in this fiscal year in order to increase domestic and external investment and facilitation. He said additional reforms and revisions will be carried out by evaluating the practices and experiences of policies, regulations and laws regarding industry, trade, energy, banking and financial sector that were started back in 1990&#39;s decade, adding that the next (14th) Periodic Plan will have a clear roadmap for transforming the country into developing country status within coming eight years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	To create the right opportunities for the private sector, the budget has also stated to amend the Companies Act, Competition Promotion and Market Protection Act and Insolvency Act. This will simplify the process of company establishment, renewal and liquidation. Similarly, the budget talks about amending the provisions of existing Debt and Guarantee Act in order to attract foreign investment in mega projects and viable sectors, where the domestic investment is insufficient.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;New laws regarding industrial enterprise and foreign investment and technology transfer will be formulated. Foreign Investment Policy and Industrial and Intellectual Property Policy will be formulated. Bill regarding Special Economic Zone will be tabled in Parliament. Procedures regarding the establishment of large industries under foreign investment will be simplified,&rdquo; said the Finance Minister.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 468px;" />Opportunities in Energy Sector</strong></div>
<div>
	The government plans to end load-shedding over the next three years. In this period, four major public sector-funded projects namely Upper Tamakoshi, Kulekhani II, Chameliya and Upper Trishuli hydroelectric projects will enter production phase and will together generate 560 MW of electricity. Similarly, 42 private sector-funded hydroelectric projects will generate 628 MW of electricity in this period. Similarly, the government will start the construction of other projects such as Tamakoshi V, Madi Khola, Maiwa Khola hydroelectric projects including Tanahu and Rahughat projects. Similarly, according to the budget, the construction of Kabeli Hydroelectric Project will be started in Public-Private-Partnership model.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector will be invited to carry out various works related to these energy projects. That clearly means business opportunity,&rdquo; explains Dr Arjun Karki, International Coordinator of LDC Watch, &ldquo;Several other bigger projects will be initiated over the next eight years which means there will be good business opportunities for the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	In order to complete the projects on time, the budget has announced to provide full exemption on income tax for the first ten years and 50 percent exemption for additional five years to those producers who generate and connect electricity to national grid and export it within FY 2022/23. &ldquo;I have made an arrangement to provide a lump sum grant of Rs 5 million per MW of electricity to those producers who generate and connect the generated electricity to national grid. I have also made provision of an additional 10 percent of such grant to those producers who generate and connect the generated electricity to national grid within FY 2017/18,&rdquo; says Dr Mahat. &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Agriculture</strong></div>
<div>
	The government plans to modernise, diversify and commercialize the agriculture sector over the next one decade. This is reflected in the newly announced budget as well. The budget targets to keep interest rate on six percent on loans to be provided by the commercial banks for modern farming, livestock and poultry farming, medicinal plants, vegetables and horticulture, dairy business, aquaculture, agro storage, cold storage, slaughter house and meat-related business. This provision, the government thinks, will also help address the problem of unemployment and youth migration from rural areas.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the budget has provisioned up to 50 percent subsidy in the loan interest taken in order to develop land and mechanize farming for private groups which are involved in the commercialization and mechanization of farming by integrating 10 hectares land in mountain and 20 hectares land in Terai and up to 75 percent interest grant for the cooperatives of marginalized and landless farmers.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the construction of the main as well as branch canals of major irrigation projects such as Sikta, Babai, Mahakali and Rani Jamara Kulariya etc will be given continuity. It is the private sector that will be awarded contracts to carry out these works which clearly means good business opportunities for the private sector. Similarly, the tunnel construction work of Bheri Babai Multipurpose Diversion Project will also be initiated in this fiscal year.&nbsp;</div>
<div>
	&ldquo;The government wants significant private sector investment in agriculture. For this it is ready to create the environment,&rdquo; remarks Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(6).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 434px;" />Opportunities in Tourism</strong></div>
<div>
	Tourism is going to be another sector of good business opportunities for the private sector. The government, through the latest national budget, has already announced to provide income tax exemption for five years to the industries established with an investment of more than Rs 2 billion in the tourism sector. Similarly, aviation companies, too, will get such income tax exemption. They will further get 50 percent income tax exemption for subsequent three years, according to the budget.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;This income tax exemption is aimed at promoting the establishment of good hotels and resorts at the major tourist destinations and other places of the country. This is a clear opportunity for the private sector,&rdquo; explains Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Infrastructure Development</strong></div>
<div>
	Nepal has to do a lot in infrastructure development so as to increase accessibility, facilitate service delivery and enhance cost effectiveness. For example, the government wants to construct at least one road on multi-year contract basis in each electoral constituency where there is no year-round transportation. Similarly, the construction work of the Kathmandu-Terai Fast Track will be started in this fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The government plans to open the track of several new roads, black-top and expand several existing roads and build hundreds of bridges across the country. The government has allocated more than Rs 14.3 billion for this purpose in the current fiscal year alone. Similarly, the new budget has allocated Rs 4.5 billion for the maintenance of 16,788 kilometres of strategic and local roads including their regular maintenance, routine maintenance, periodic maintenance, and rehabilitation and urgent maintenance.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, according to the new budget, the government will carry out urban infrastructure development programmes in cities like Biratnagar, Birgunj, Butwal, Dharan, Janakpur and Nepalgunj including the development of 10 Urban Corridors with eight ongoing and two new.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The national budgets to be announced in the fiscal years to come will have to continue such infrastructure development programmes, if Nepal is to achieve the DC status by 2022. So, there is no dearth of business opportunities for the private sector,&rdquo; says Dr Pokharel. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;&nbsp;</div>
<div>
	<strong>Investment Requirement</strong></div>
<div>
	According to NPC&rsquo;s estimates, the government or the public sector will have to invest Rs 3,300 billion and the private sector will have to invest double the amount &ndash; a whopping Rs 6,600 billion -by 2022 if Nepal is to achieve the status of a developing country by then. But will such a huge investment really come from the private sector?</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We hope it will because the country is now headed towards political stability and legal and economic reforms are in the pipeline. That means the next eight years are going to be a wonderful business opportunity for the private sector,&rdquo; assures Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	According to NPC&rsquo;s investment plan, Nepal will need a total investment of Rs 1013.91 billion in the agriculture sector by FY 2021/22 to achieve the graduation target. Two-thirds of this investment, i.e. around Rs 675.94 billion is expected from the private sector. The agriculture sector includes forestry and fishing as its subsectors.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector is expected to invest in the modernization of agriculture and increase productivity, replace agricultural imports and promote exports. The government is expected to make this easier through policy and legal reforms, if necessary,&rdquo; says Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the industrial sector which includes mining and quarrying, manufacturing; electricity, gas and water, and construction will require a total investment of Rs 1807.87 billion. Of this amount, Rs 1205.24 is expected from the private sector. &ldquo;So there is a huge opportunity for the private sector in the industrial sector as well,&rdquo; thinks former NPC Vice Chairman Prithvi Raj Ligal.</div>
<div>
	&nbsp;</div>
<div>
	Likewise, according to the NPC plan, the service sector which comprises wholesale and retail trade; hotels and restaurants; transport, storage and communications; financial intermediation; real estate, renting and business activities; public administration and defence; education; health and social work; and other community, social and personal service activities will require a total investment of Rs 6874.98 billion &ndash; Rs 4583.32 billion from the private sector and Rs 2291.66 billion from the public sector.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(4).jpg" style="width: 550px; height: 110px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Criteria for Graduation&nbsp;</strong></div>
<div>
	There are basically three criteria to graduate from the LDC status &ndash; Human Assets Index (HAI), Economic Vulnerability Index (EVI) and GNI per capita. HAI is about the stock of the human capital of the country and comprises the nutrition status of the population, mortality rate of children aged five or under, and gross secondary school enrolment ratio and adult literacy rate. EVI reflects the country&rsquo;s vulnerability to exogenous shocks and comprises of population size; remoteness; merchandise export concentration; share of agriculture, forestry and fisheries in GDP; share of population living in low elevated coastal zones; instability in export of goods and services; victims of natural disasters; and instability in agricultural production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Likewise, GNI per capita is related with the country&rsquo;s income-generating capacity and is based on a three-year average estimate of the country&rsquo;s per capita GNI (World Bank Atlas Method). After determining threshold level for each of the criteria every three years, the United Nations Committee for Development Policy (CDP) reviews the progress made by LDCs and if the country has been eligible at two successive triennial reviews, it recommends a country for graduation from the LDC category. At least two of the three criteria or GNI per capita twice higher than the threshold should be met in order to be eligible for graduation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Among the three criteria for LDC assessment, Nepal has already met the EVI threshold level and is very close to meeting the HAI criteria; however, there is a huge gap between the GNI threshold level and Nepal&rsquo;s present status. The role of the private sector is going to be very important to meet this criterion,&rdquo; observes Dr Karki.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Increasing Productive Capacity</strong></div>
<div>
	Karki is of the opinion that Nepal will have to start working seriously to enhance its productive capacity significantly to achieve the GNI per capita threshold. &ldquo;The country is facing problems like huge trade deficits, high underemployment rate, income inequality and low quality of life,&rdquo; says Dr Karki, &ldquo;Factors including subsistence agriculture, deteriorated industrial environment, power shortage etc., have led to a low level of economic growth and development. Therefore, there exists a great challenge to sustain the achievements and narrow down the gaps between GNI threshold level and the current status.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our GNI per capita has improved over the past few years but we still need to accelerate it, he adds. Karki&rsquo;s observation points to two important areas where private sector can come forward &ndash; commercial agriculture and power generation. Fortunately, these are the two major areas of emphasis in the budget presented at the parliament recently. If the government really implements the policies and budget allocations announced in the budget speech, the privates sector can make good money while contributing to this graduation of the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ligal lists more areas where the private sector has such opportunities. &ldquo;Productive capacity has basically four components &ndash; infrastructure; energy; science, technology and innovation; and private sector development,&rdquo; says Ligal, adding &ldquo;The role of the private sector is very important in increasing the country&rsquo;s productive capacity by investing in infrastructure development, energy exploitation and by making technological innovations.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Although Nepal has already met the EVI criterion, it still has to either increase its GNI per capita by US$ 770 or the HAI score by 6.17 before 2015 to be eligible for consideration for graduation. This is because eligibility conditions should be fulfilled during two successive triennial reviews, and the CDP will now review the progress only in 2015,&rdquo; Chandan Sapkota, an economist with the Asian Development Bank, Nepal, says, &ldquo;After the review, Nepal will have to sustain the progress through 2018, the next triennial review, only after which the CDP will recommend for graduation.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	This means Nepal has good length of time to fulfil the criteria. But effective intervention from the government is a must. And the NPC has recognised this clearly. &nbsp;&ldquo;If the past trend is of any guide to future, it will be difficult for Nepal to meet the projected threshold of US$ 1,502 even by 2021, unless effective policy interventions are in place. Vigorous efforts are needed to achieve the projected GNI per capita of US $ 2,094 in 2021 so that the economy is on the way to achieve the estimated threshold by 2021,&rdquo; reads NPC&rsquo;s Approach Paper to Graduation from LDC by 2022.</div>
<div>
	&nbsp;</div>
<div>
	According to Ligal, the private sector &ndash; both domestic and foreign &ndash; will have to invest heavily in sectors like physical infrastructure, hydropower, tourism and agriculture over the next eight years. &ldquo;But the private sector will not make such a huge investment under the present circumstances. For private sector investment to come, the government will have to create conducive environment through legal, administrative and policy reforms. If this happens, private sector will come forward as the Graduation process would offer lucrative business opportunities,&rdquo; he says, adding that Nepal needs more aggressive economic reforms in the near future.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs5.JPG" style="width: 550px; height: 430px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Partnership with Private Sector</strong></div>
<div>
	The Istanbul Programme of Action, which aims to at least halve the number of LDCsby 2020, too, has laid great emphasis on public-private partnership. It says, &ldquo;Partnerships with the private sector play an important role for promoting entrepreneurship, generating employment and investment, increasing the revenue potential, developing new technologies and enabling high, sustained, inclusive and equitable economic growth in least developed countries.&rdquo; In the present circumstances, when the private sector is complaining of lack of enough conducive environment for investment, PPP model can be a good alternative so that the private sector can feel secure as the government too will have stake in such projects. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists say that investment in the industrial sector is a must to increase the economic productivity. &ldquo;Productivity and job opportunities in the service sector have remained low. And it consists of more informal sectors,&rdquo; observes Shanker Sharma, former vice-chairman of NPC, &ldquo;We need more manufacturing industries. If there is political stability, right policies in place and adequate legal reforms, then investment in the manufacturing sector will come.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Karki, too, stresses on the need for public-private partnership (PPP) model of development. &ldquo;The PPP model is going to be very helpful in those areas of investment where the private sector alone is a bit hesitant to enter,&rdquo; he says. If the government comes forward to invest in such sectors, the private sector will follow suit, he adds.</div>
<div>
	&nbsp;</div>
<div>
	Dr Dawadi is also of the opinion that the government alone cannot take the country out of the LDC status to the developing country status. &ldquo;To be successful, the graduation strategy will require a full and uninterrupted understanding, support and cooperation from the private sector,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	True that both economists and development activists are right in their view that this target spelt out in the &nbsp;approach paper to the latest three-year plan (FY 2014 to FY 2016), is highly ambitious. But the government has its own basis for its optimism.</div>
<div>
	&nbsp;</div>
<div>
	The doubt of the economists and activists is based on the fact that the previous three-year plan (FY 2010 to FY 2013) had aimed such graduation by 2030. But the government officials say they pre-poned the target by eight years looking at the rapid progress in the recent years. They particularly cite increase in the country&rsquo;s per capita gross national income (GNI), decreased poverty level, and significant progress on major social indicators such as mortality rates, school enrolment rates, life expectancy etc. Since the LDC category was brought in practice in the international development parlance in 1970, only four LDCs &nbsp;have graduated to DC status so far &ndash; Botswana (1994), Cape Verde (2007), Maldives (2011) and Samoa (January 2014). But the number of LDCs has almost doubled since then. It means graduation from the LDC status is not so easy. But development experts think that the goal is achievable if the public and private sectors of the country work together.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	When the economy grows and businesses thrive, the sky is the limit for the individual private sector operator. It means a large pool of resources, a larger market and a higher level of operation,&rdquo; Dr Dabwdi concludes, &ldquo;The opportunity will be for both new business creation as well as horizontal growth of existing businesses.&rdquo;</div>',
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			'description' => 'The role of the Nepali private sector is going to be very crucial if Nepal is to become a developing country by 2022, as planned by the government. It means large business opportunities await the private sector over the next eight years.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '2786',
			'article_category_id' => '40',
			'title' => 'Outbound FDI : Can Nepali Businesses Go Global?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>--By Siromani Dhungana</strong></div>
	<div>
		&nbsp;</div>
	<div>
		<em><span style="font-size: 16px;">A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still in force in Nepal which stops Nepali citizens from investing in a foreign country. The existing fear is that the country&rsquo;s economy will suffer if Nepal allows outbound FDI. But many evidences suggest that despite this law, Nepali people are investing in different other countries through one channel or other. And such evidences are becoming more visible. Policymakers are in dilemma while the business community is also largely divided on the issue. However, the debate on legitimatizing outbound FDI is heating up in recent times. What impact will it have on a country like Nepal where the national economy is not strong? Will it create BoP deficit as many fear? What happens if all businessmen start to set up industries in foreign countries which have better policy stability and lesser labour problem? New Business Age tries to analyse some of these major concerns:</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.</div>
	<div>
		&nbsp;</div>
	<div>
		However, zero capital mobility in and out of a country cannot be expected. Many evidences suggest that the investment is going abroad through one channel or the other. Any state should allow aspiring businessmen to invest anywhere globally because this will help the currency get its true value recognized, Dr Chiranjibi Nepal, Economic Advisor to the Prime Minister claims. &ldquo;Investment is a must to increase the value of the money. The government should open up avenue for outward FDI to acknowledge this fact.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Evidences also show that the flow of money cannot be barricaded by any laws or policies. For instance, Nepal, according to a report of Global Financial Integrity (GFI), lost a total of $ 8.01 billion between 2001 and 2010 due to illicit capital flight. It means that on an average, $ 801.4 million (Rs 70.39 billion) went out of Nepal annually during that period of almost a decade.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1(4).jpg" style="width: 550px; height: 163px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		GFI&rsquo;s another report entitled &lsquo;Illicit Financial Flows from the Least Developed Countries: 1990-2008&rsquo; had put Nepal&rsquo;s annual capital flight at $ 480.4 million. Based on the amount of capital flight, Nepal has been ranked 58th among 143 countries surveyed and sixth among the Least Developed Countries (LDCs) for exporting funds illegally.</div>
	<div>
		&nbsp;</div>
	<div>
		The report clearly points to the huge illegal financial flows from Nepal and it is high time that the government addresses this problem without making any further delays, Nepal opined. &ldquo;The government should legalize outward FDI to keep the record of outflow of financial transaction in the formal system,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Existing Laws Related to FDI</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Foreign Investment and Technology Transfer Act &ndash; 1992</strong></div>
						<div>
							Foreign Investment and Technology Transfer Act (FITTA) &ndash; 1992 &amp; Industrial Enterprises Act - 1992 are the two most important laws for the promotion of industries in Nepal. These two acts are highly encouraging acts for attracting FDI or Joint venture investments in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA includes provisions related to facilities and concessions. This Act treats foreign investors as equals to local investors and provides them same incentives and facilities.</div>
						<div>
							&nbsp;</div>
						<div>
							The Act is also very positive on providing visa to foreign nationals. The Act has ensures 6 months non-tourist visa to a foreign national if he/she want to conduct survey, study or research with the objective of making investment in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							After that if he or she makes investment or establishes an industry, the investor (along with the dependant family members) is granted business visa until the investment is retained. Similarly, residential visa is granted to a foreign investor and his family if s/he makes an investment of one hundred thousand US dollars in one business. All these are highly encouraging statements. However in actual practice, the investors face various problems, time and again.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA and IEA also offer some fiscal incentives including income tax relief. But the amended Finance Act and New Income Tax Act have withdrawn all such incentives, which is considered a controversial decision. Several amendments to FITTA through the Finance Act of 2001 and the progress made in this regard helped the nation in its efforts to gain membership of WTO, SAFTA, and BIMSTEC, but these amendments too are not enough, say investors.</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Industrial Enterprises Act - 1992</strong></div>
						<div>
							The IEA has &nbsp;one-window committee (OWC) provision, which is coordinated by the director general (DG) of Department of Industry (DoI) and has DGs of Customs, Inland Revenue, Value Added Tax (VAT) and Commerce as well as representatives from central bank, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the government.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<strong style="font-size: 14px;"><img alt="Dr Chiranjivi Nepal" src="/userfiles/images/cs2(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need: A Positive Beginning</strong></div>
	<div>
		Nepal&#39;s legal system begins from the word restriction, which, according to many, rightly articulates the government&rsquo;s mind-set. A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still effective in the country. The law was introduced to restrict Nepalis from investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		We need a fresh and positive beginning, economist and former chief secretary Dr Bimal Koirala told New Business Age. &ldquo;The government should reform existing laws to facilitate businessmen to invest in foreign countries instead of imposing restriction.&rdquo; The fear among policymakers is that what happens if businessmen do not bring back money to the country. And, the answer to this fear is to set up effective monitoring bodies that will keep record of every businessman who invests abroad, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Given the low trade volume of the country and frequent fluctuation in the Balance of Payment (BoP), some experts advise against allowing Nepali businessmen to invest abroad. Koirala slams such opinion claiming it to be an out-dated concept.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Times have changed and the government has to realize this fact. The government should understand and accept the new liberalized and globalized world and business scenario, Koirala opines.</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Act Restricting Investment Abroad, 2021BS (1964)</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							Article 3 Restriction on making investment abroad:&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							(1)<span class="Apple-tab-span" style="white-space: pre;"> </span>No one shall make any kind of investment abroad after the commencement of this Act.</div>
						<div>
							&nbsp;</div>
						<div>
							(2)<span class="Apple-tab-span" style="white-space: pre;"> </span>Notwithstanding anything contained in sub-section (1), in relation to any specific kind of investment, the Government of Nepal may, by a notification in the Nepal Gazette, grant exemption from the restriction set forth in that sub-section, and specify the kind, extent, period of the investment so exempted and other necessary terms pertaining thereto.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Past Initiatives</strong></span></div>
	<div>
		Nepal started systematic initiative of attracting FDI in 1981. The Sixth National Plan (1980/81-1984/85), for the first time, incorporated a policy for utilizing foreign capital and technology as a useful supplement. The Plan mentioned that foreign investment and technology was primarily required in large-scale industries and mineral industries. Since then, the government continued revising policies related to inward FDI. Foreign Investment and Technology Transfer Act was introduced in 1992 and amended in 1996 in line with open and liberal economic policies. But outward FDI-related provisions remained unchanged.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Recently, the government has started fresh initiative to review the policy. Foreign Investment Policy 2014 has been prepared and consultations with stakeholders are underway on it, according to Ministry of Industry. &nbsp;However, business community blames the government for not being proactive to introduce new policy. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Policies that Restrict Outward FDI</strong></span></div>
	<div>
		<strong>Act Restricting Investment Abroad, 2021(1964):</strong>&nbsp;This law, as its name suggests, restricts any Nepali citizen from investing outside of Nepal. While this may be an old Act, it is still valid in the country. It defines restricted investments as foreign securities, partnership with foreigners, foreign bank accounts, owning house and land in a foreign country and any foreign investment in cash or kind except as prescribed by the government. This law has severely affected outward FDI as Nepali citizens cannot freely invest outside the country. Despite a provision within the Act that leaves a space for aspirant businessmen to invest abroad by taking approval from the government, nobody has received such approval.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Foreign Exchange Regulation Act:&nbsp;</strong>This act does not allow Nepalis to open bank accounts in foreign countries if the money is earned in Nepal. Nepalis can open bank account abroad only if they earn money outside Nepal. But the account holder should inform Nepal Rastra Bank about the account.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Changing Times but Unchanged Laws</strong></span></div>
	<div>
		The existing laws were formulated at a time when entrepreneurship in Nepal was at a primitive stage and Nepali businessmen did not have sufficient capital and expertise to invest abroad, said Basudev Adhikari, Director of Nepal Rastra Bank.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepali business community has come a long way since 1964. &ldquo;For instance, now we have a Forbes-listed billionaire that shows that our businessmen have enough capital to invest in various sectors,&rdquo; said Adhikari. Competitiveness of Nepali business sector has tremendously increased over the last few years. Lawmakers should reform existing laws considering the changed scenario, he added. The prevailing laws have failed to prevent outflow of capital from Nepal anyway.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Anup Bahadur Malla" src="/userfiles/images/cs3(5).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need for Caution</strong></span></div>
	<div>
		Still the policy of allowing Nepalis to invest abroad cannot be introduced without caution. The most challenging job for the government is to set the ceiling for outward FDI, opined Anup Bahadur Malla, executive member of FNCCI. The government should not introduce any law haphazardly, he suggested. Meticulous studies are required even when formulating laws related to inward FDI, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		There are flaws in inward FDI policies as well which have created some adverse impact on the economy, according to him. Foreigners in Nepal are venturing into small businesses which have nominal contribution to the national economy, he argued. For instance, Chinese nationals, according to him, have been replacing Nepali small entrepreneurs from Thamel and other places but their contribution to the national economy and employment generation is negligible. From this, the government should learn that both inward and outward FDI can be harmful if laws are formulated without rigorous study, he claimed.</div>
	<div>
		&nbsp;</div>
	<div>
		Along with fixing ceiling, he claims identification of competitive sectors is the most challenging job for the government. It should initiate debate on maximum investment-ceiling limit on outward FDI, and identify the sectors where Nepalis can take competitive advantages, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Defining FDI</strong></span></div>
						<div>
							Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that the investor exerts a significant degree of influence on the management of the enterprise resident in the other economy.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates, both incorporated and unincorporated. FDI may be undertaken by individuals as well as business entities.</div>
						<div>
							&nbsp;</div>
						<div>
							Flows of FDI comprise capital provided (either directly or through other related enterprises) by a foreign direct investor to an FDI enterprise, or capital received from an FDI enterprise by a foreign direct investor. FDI has three components: equity capital, reinvested earnings and intra-company loans.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Equity capital is the foreign direct investor&rsquo;s purchase of shares of an enterprise in a country other than its own.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Reinvested earnings comprise the direct investor&rsquo;s share (in proportion to direct equity participation) of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor. Such retained profits by affiliates are reinvested.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Intra-company loans or intra-company debt transactions refer to short- or long-term borrowing and lending of funds between direct investors (parent enterprises) and affiliate enterprises.</div>
						<div>
							(Source: World Investment Report 2012, UNCTAD)</div>
						<div>
							&nbsp;</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Outbound FDI: An Open Secret&nbsp;</strong></span></div>
	<div>
		Policies on outward investment have been seen as a screening device to restrict the outflow of capital from the country. But it is an open secret that Nepalis have already started investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Chaudhary Group (CG), a company owned by Forbes-listed billionaire and renowned industrialist Binod Chaudhary who has invested abroad through Cinnovation Group, a multi-dimensional conglomerate established in 1990 headquartered in Singapore. The company was created to take CG&rsquo;s business interests global. Currently, it is expanding its footprint in global market.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Business leaders and government officials hesitate to give opinion regarding outflow of capital from Nepal in public. &nbsp;But they privately confide that there are many instances where the investment is going abroad through one channel or the other. India has been one of the easiest destinations for Nepali investors to invest, one businessman told New Business Age. &ldquo;Businessmen channel capital to India through their relatives and acquaintances living in India,&rdquo; he disclosed. More than a dozen of reputed Nepali business houses have invested in India in one or other way and even government officials are aware of this fact, he claimed. So, it is better to legalize outward FDI to control informal outflow of money.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Dr Bimal Koirala" src="/userfiles/images/cs4(3).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 169px;" />Drives of Outward FDI</strong></span></div>
	<div>
		A question worth asking is: what triggers outward FDI from Nepal? There is not an easy answer. Generally, two major drives can be analysed: market-seeking drive and resource-seeking one. Nepali businessmen want to go outside country for market-seeking purpose, said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Businessmen eye foreign market when their businesses are saturated in the home country, he said. It can thus be said that the drivers of outward FDI from Nepal are largely determined by market-seeking factors with little role played by policy measures.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Political instability, labour unrest and terror created by conflicting parties might have triggered businessmen to invest abroad during a decade-long conflict, he said. But the situation has changed now and businessmen do not want to go global if there is prospect of good business in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Anti Outward FDI Logics</strong></span></div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Positive Financial and Macro Economic Indicators: Experts say that the overall economic indicators including economic growth should be in positive direction and should be stable to allow Nepalis to invest in foreign country. Given Nepal&rsquo;s volatile economic situation, some economists advise not to allow outflow of the capital.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Investment Climate: Why do our businesses want to go outside though market in Nepal has been growing? An easy answer is that there is no investment climate in the country. It is not possible to open up outward FDI without ensuring investment climate in the country. Our own country is in dire need of investment in almost all sectors and it is a matter of concern as to why businessmen are lobbying to open up outward FDI, an economist questioned. Several structural bottlenecks and supply-side constraints are impacting the investment climate in Nepal. Tough reform measures have to be formulated before bringing policies related to outward FDI, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Trade Deficit: Nepal has been witnessing a whopping trade deficit year after year. Nepal imports essentials goods and services by drawing on its foreign currency reserves, which are primarily contributed by remittances. Many experts fear that foreign currency reserve may deplete if the country allows businessmen to invest aboard.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Distrust on Businessmen: Another crucial problem is trust deficit. The government is not certain that businessmen who invest abroad will sincerely send their profit back to the country. &ldquo;The country that does not trust its own businessmen cannot make progress. The environment of trust should be built between business community and the government that will facilitate the process of bringing policies related to outbound FDI,&rdquo; opined CNI vice president Haribhakta Sharma.</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Competitiveness: According to Global Competitiveness Report released by World Economic Forum, Nepal ranked 117 among 144 economies in 2013-14. In order to succeed in the global business, businessmen should be competitive. But, can Nepali businessmen be competitive when they have not been able to show their competitiveness in domestic front, questioned Dr Chiranjibi Nepal. He suggests that the government should provide competitive business environment.</div>
	<div>
		&nbsp;</div>
	<div>
		6.<span class="Apple-tab-span" style="white-space: pre;"> </span>Absence of Entrepreneurial Attitude: Entrepreneurship needs innovative ideas and risk taking skills. Given their low entrepreneurial activities in homeland, many argue that the business community in Nepal still lacks entrepreneurial attitude. Most of the businessmen are involved either in hereditary business or in service sector or trade activities. These traits are not sufficient to compete in global market and most of them do not have entrepreneurial bent of mind, claims an expert. &ldquo;This fact should be kept in mind while formulating policies.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		7.<span class="Apple-tab-span" style="white-space: pre;"> </span>Poor Performance of Manufacturing Sector: Nepal&rsquo;s manufacturing sector is in weak state. The country cannot create much employment in absence of manufacturing activities. &nbsp;On the other hand, the country relies heavily on imports to meet daily consumer needs. In such circumstance, opening up outward FDI without improving the performance of country&rsquo;s manufacturing sector might be suicidal, says a FNCCI member requesting anonymity.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		8.<span class="Apple-tab-span" style="white-space: pre;"> </span>Fluctuation in BoP: Generally, businessmen prefer to invest in a strong economy where their capital is safe. If allowed to invest abroad, Nepali businessmen may make majority of their investment in the countries which have strong economy. Currently, remittance has helped maintain Nepal&rsquo;s Balance of Payment (BoP). If in the future, inflows of remittance drops and at the same time businessmen take capital abroad, there will be severe BoP crisis. This is why the government is still reluctant to introduce outward FDI-related policies, an official at Finance Ministry said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Rhetorical Logics and Laxity of the Government&nbsp;</strong></span></div>
	<div>
		Some experts vocally criticize the government&rsquo;s laxity in creating business friendly environment and improve overall macroeconomic scenario. For how long can Nepal restrict businessmen from investing abroad, questioned economist Dr Posh Raj Pandey. The government and experts who do not favour the idea of opening outward FDI often repeat the same rhetorical logic but do nothing to improve the scenario, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The government is literally idle in terms of bringing any policy to foster an environment favourable for investment. Presently, the government is not taking any risks as the remittance influx has helped maintain economic stability. But the same situation cannot continue forever, according to him. He said that the government should not always repeat same logic to restrict outward FDI. If our government wants to promote economic prosperity, it should be ready to take risks and formulate smart policies, he suggested.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>FDI and Mobility of Money&nbsp;</strong></span></div>
	<div>
		Numerous positive aspects of outward FDI are overshadowed by a few negative ones, said Dr Bimal Koirala, economist and former chief secretary. Outflow of capital also helps create more opportunities to lure inward FDI and Nepali businessmen come back to the home country with more expertise and skills which will ultimately contribute to the domestic economy, according to him.</div>
	<div>
		&nbsp;</div>
	<div>
		The mobility of money in and out of a country does not stop simply by laws. A state should facilitate in the continuity of the mobility of money because if the movement of money slowsdown it will depreciate the value of currency. Investment, regardless of the frontiers, is a must to increase the movement of the money. Acknowledging the fact, the government should open up avenue for outward FDI, said Dr Chiranjibi Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Pragmatic Approach</strong></span></div>
	<div>
		Some experts suggest the government to allow Nepalis to invest abroad but only in competitive sectors. According to economist and former finance secretary Rameshore Khanal, the government should identify competitive sectors and should allow businessmen to invest only in those sectors. Some of these sectors, according to him, are:</div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Tourism (eco-tourism, home stay)</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Adventurous sector (climbing, rafting)</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Hospitality sectors: Hotel and restaurant (antique hotels like Dwarika)</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Banking/insurance</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Construction</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Way Forward</strong></span></div>
	<div>
		The government should carry out empirical studies on the effect of outward FDI on domestic economic activities. Before formulating laws, the government should assess some aspects of outward FDI including whether it will have a positive and significant impact on economic growth, and potential adverse impacts on various sectors.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		On the part of the government, it is not appropriate to remain literally idle on the issue of outbound FDI. The government should not see policies as a screening device to restrict the outflow of capital from the country. Rather it should formulate policies that will facilitate it. The Nepali private sector&rsquo;s long wait to go around the globe to invest should take a positive turn soon.</div>
</div>
<p>
	&nbsp;</p>',
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			'created' => '2014-07-30',
			'modified' => '2014-09-12',
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			'description' => 'It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.',
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		'Article' => array(
			'id' => '2776',
			'article_category_id' => '40',
			'title' => 'Business Click By Click',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<em><span style="font-size: 14px;">The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.&nbsp;</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Compared to the developed countries, Nepal&rsquo;s e-commerce is still in its infancy. Its share in the national GDP is negligible at present but it has been growing,&rdquo; says Amrit Man Tuladhar, CEO of Muncha.com, one of the country&rsquo;s leading e-commerce websites which has been in operation since 2000. According to Tuladhar, the past couple of years have been particularly encouraging for e-commerce in the country. &ldquo;Some unique websites have come up over the past couple of years,&rdquo; he observes.</div>
	<div>
		&nbsp;</div>
	<div>
		Thamel.com is perhaps the first e-commerce site in the country. It started online business in 1999 and today it is one of the major players. &ldquo;We are probably the first company in Nepal to start online business with a dot com company name registered as Thamel Dot Com Pvt Ltd,&rdquo; claims Rajesh Lal Joshi, CEO of Thamel.com. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		E-commerce in Nepal started through gift-sending and bill payment services through online portals. Today, it&rsquo;s possible to buy almost everything online - new clothes, books, mobile phones, laptops, second-hand goods, jewelleries, home appliances, fresh vegetables and what not. One can even order one&rsquo;s lunch online from home or office, thanks to the latest developments in e-commerce activities. There are a number of e-commerce companies offering these services. Airlines have started selling air-tickets online through these services. Banks are handling online transactions because people have started paying and receiving online, though the trend is low.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;In 2000, there were a couple of websites doing e-commerce. Today there are more than a hundred. Of them, over a dozen are active in the business,&rdquo; says Tuladhar. &nbsp;&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs4(1).JPG" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 316px;" />Growing Popularity &amp; New Trends</strong></span></div>
	<div>
		Today, the online market has expanded due to the increasing purchasing power of Nepali consumers. The trend is also on the rise because of the rise in the number of Internet users. &ldquo;Online business is on a progressive path and the trend is evolving high with many players coming in the arena with their unique business models,&rdquo; says Joshi.</div>
	<div>
		&nbsp;</div>
	<div>
		The domestic e-commerce market has now expanded into various segments such as online shopping, e-banking, mobile commerce, electronic cash transfers and e-ticketing. Online markets are attracting buyers (and sellers too!) because they are time- and money-saving and are hassle free.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Lately, Nepal has graphed a swerving online presence. The proliferation of various online business portals in recent years is enough to valibate the claim that &nbsp;the presence of e-commerce is encouraging in Nepal,&rdquo; says Asgar Ali, CEO of eSewa Fonepay.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Annual online transactions in Nepal are estimated to be around Rs 10 billion, although an official figure is not available. Dozens of online shopping websites have emerged since the inception of e-commerce in Nepal. Muncha.com, Thamel.com, Harilo.com, YesKantipur.com, Metrotarkari.com, Foodmandu.com, Bhatbhatenionline.com, etc. are some of the popular websites among Nepali online shoppers (see Box). Some of them sell their own products whereas others deliver from global sites such as eBay and Amazon.</div>
	<div>
		&nbsp;</div>
	<div>
		According to industry insiders, Nepalis of the middle- and upper-middle class who have access to faster Internet have started enjoying shopping online. &nbsp;They find it easy because on the one hand it saves time, on the other, it&rsquo;s easy and reliable. &ldquo;You don&rsquo;t need to hang around shopping stores and malls wondering where a particular product is. With online shopping, all you need to do is find a product online, fill-in payment details and submit. That&rsquo;s all to get your stuffs delivered at your home,&rdquo; says Manish Shrestha, portal chief of Bhatbhatenionline.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-banking</strong></span></div>
	<div>
		Lately, electronic banking or e-banking, as it is more popularly known, is getting popular in Nepal. According to the stakeholders, the use of e-banking has been increasing with the rising competition among the banks and financial institutions. &ldquo;The trend of e-banking is growing,&rdquo; says NRB Spokesperson Bhaskar Mani Gyawali, &ldquo;The situation of e-banking in the country is satisfactory at present.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Instead of opening a new branch, banks have started focusing on e-banking which is a cost-effective way to expand their services. For this, banks have adopted modern banking technologies such as branch-less banking, mobile banking etc. According to NRB, all 32 commercial banks in the country have started branch-less banking and mobile banking by mid-January 2014.</div>
	<div>
		&nbsp;</div>
	<div>
		Banks&rsquo; customers are, however, yet to adopt online payment for the goods or services they buy on the Internet. Most online shoppers still prefer cash on delivery (COD) though all commercial banks provide e-banking services. &ldquo;There is a lack of awareness among Nepalis about e-banking. An overwhelming majority still prefers COD though they have bank accounts,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1.JPG" style="width: 550px; height: 412px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-ticketing</strong></span></div>
	<div>
		Nepali air travelers are gradually getting used to e-ticketing, a good evidence of growing e-commerce in the country. Today, all private sector airlines currently operational in Nepal are selling their tickets online. According to the Airline Operators Association of Nepal (AOAN), all air travellers who have access to the Internet have started buying tickets online. &ldquo;E-ticketing has become popular because it saves time,&rdquo; says AOAN Spokesperson Ghanashyam Acharya, &ldquo;Very few people reach the airline&rsquo;s office to buy tickets these days.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Agrees Prajwal Thapa, marketing director at Simrik Air. &ldquo;Both foreigners and Nepali travellers buy tickets online for domestic flights.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepal Airlines Corporation (NAC), the state-owned airline which is the only airline in Nepal that doesn&rsquo;t offer e-ticketing has started preparations to start providing the service within 2071 BS (by mid-April 2015), according to an NAC official. &ldquo;E-ticketing is one of NAC priorities for the new year,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs5(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 281px;" />Payment Options&nbsp;</strong></span></div>
	<div>
		In the past, Nepali online shoppers were dependent on international payment mechanisms and merchants to purchase online. However, today there are few, but enough for the time being, online payment processing companies in Nepal, which allow online shoppers to pay their bills online, without any processing fees, in most of the cases.</div>
	<div>
		Most of these companies allow the customers to send and receive money online, buy air tickets, pay utility bills, purchase mobile recharge cards, pay school college bills, Internet bills, subscribe to newspapers and magazines online; Some of these companies are eSewa and PayWay.</div>
	<div>
		&nbsp;</div>
	<div>
		People can also pay for the goods they buy online through e-banking and debit cards. This trend has started but it is negligible at present. A majority of online shoppers still prefer paying cash on delivery.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;The online payment structure in Nepal is still being developed so we still do a lot of cash business. &nbsp;We encourage our customers to pay online as much as possible given the options in Nepal which are basically bank to bank transfers or payment gateways who are tied to your bank account,&rdquo; says Akshay Sthapit, CEO of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Problems &amp; Limitations</strong></span></div>
	<div>
		Though an Internet-based business, e-commerce in Nepal seems to be limited to the Capital valley. Some online business activities have been reported in places like Pokhara and Dharan but such activities are few and far between.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;There are e-commerce websites which provide their services across the country. But may be because of the lack of awareness, the online customers are mainly from the Kathmandu valley, mainly Kathmandu and Lalitpur. However, we do have customers from a few other cities as well,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a clear policy is another problem and according to people in the online business, it is hindering the growth of online markets in the country. &ldquo;There is no clear policy. The government has neither helped the domestic e-commerce market nor obstructed it,&rdquo; says Joshi of Thamel.com. We don&#39;t have any act, law or regulation or government directives which allows conducting legal online financial transactions. Critics say that the Electronic Transaction Act without a single word on online payment is only half done.</div>
	<div>
		&nbsp;</div>
	<div>
		According to Tuladhar of Muncha.com, Nepal&rsquo;s e-commerce market is facing problems in the bill payment system. &ldquo;The government can facilitate by establishing a central payment gateway. The central bank and concerned authorities should look into this issue,&rdquo; he advises.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a regulator is another problem. At present, all one needs to do to run an e-commerce site is register a company at the Company Registrar&rsquo;s Office. Once the company is registered, one can start the business. No one knows which agency is responsible for regulating the e-commerce business &ndash; Ministry of Finance, Nepal Rastra Bank, Ministry of Science and Technology, High level Commission for Information Technology or National Information Technology Centre?&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs2.JPG" style="width: 550px; height: 337px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The Issue of Digital Signature</strong></span></div>
	<div>
		Although online transactions are on the rise in the country, the trend of acquiring authorized digital signature, which is essential for the business, has not started. According to Electronic Transaction Act 2008, all companies, which carry out electronic transactions must acquire digital signature from the Certified Authority (CA) licensed by the Office of the Controller of Certification (OCC). &ldquo;Banks and financial institutions, remittance companies, and e-commerce companies among others are the kind of companies which should acquire a digital signature from a CA licensed by the OCC,&rdquo; said Manish Bhattarai, deputy controller of the OCC, an agency under the Ministry of Science, Technology and Environment (MoSTE).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		So far, only one company, Nepal Certifying Authority (NCA), has acquired the license for CA from the OCC. &ldquo;Though one company has been issued the license of CA, no company or individual has acquired a digital signature so far in Nepal from the CA licensed by the OCC. Electronic transactions carried out without a digital signature from a CA licensed by the OCC do not have legal validity,&rdquo; claims Bhattarai. He also informed NewBiz that the OCC has drawn the attention of Nepal Rastra Bank regarding the issue of the BFIs not acquiring authorized digital signature.</div>
	<div>
		&nbsp;</div>
	<div>
		Biplav Man Singh of NCA, however, claims that the issuance of digital signature has not started in Nepal because of the government&rsquo;s negligence. &ldquo;The government has issued the CA license to NCA but it has not provided the Root Certificate to us. Therefore, we have not been able to issue any digital signature. It has been a year since we have been issued the license,&rdquo; laments Singh.</div>
	<div>
		&nbsp;</div>
	<div>
		Digital signature is like an electronic locking system, which facilitates and regulate the authenticity of electronic transactions. It cannot be stolen or copied by any fraud, authenticates the identity of the sender of a message or signatory of a document and ensures that the document is unchanged. Nepal government introduced digital signature in financial transactions from February 2012. The MoSTE established the OCC to manage electronic transactions and use technology to reduce electronic crimes.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Online transactions have been getting popular lately, but the question of security has always been there. A digital signature ensures secured, authentic and non-repudiation electronic transactions such as e-mail, e-commerce, e-banking and e-governance,&rdquo; shares Bhattarai.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Bhattarai informed NewBiz that OCC has already drawn the attention of the NRB to take action against BFIs for using digital signatures from unauthorized firms. At present, companies based in India and America are issuing digital signatures to local online transaction service providers, which is against the Electronic Transaction Act 2008. &ldquo;Sadly, all BFIs providing internet banking service are using digital signatures issued by unauthorized licensors,&rdquo; said Bhattarai.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs6(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 566px;" />Digital Agencies</strong></span></div>
	<div>
		With living standards and costs going up in developed nations, digital agencies and online business marketers from there gradually made headways into third world countries including Nepal looking for avenues to establish their offshore units. Today, there are many digital agencies or IT companies, as they are known in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		While outsourcing their software to clients from developed nations, many of these digital agencies also tried to educate Nepali entrepreneurs for taking their businesses online. &ldquo;It was very hard to find business persons who were willing to take their businesses online. My team struggled for a couple of years but our continuous efforts in educating entrepreneurs for going online bore fruits,&rdquo; says Deepak Bhandari, Founder of Radiant Infotech Nepal&mdash;a digital agency that has been in the software production business for more than a decade now.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		With the operational costs relatively lower and prospects much brighter, Bhandari shares that small investment, consistency in work quality coupled with good communicative and technical skills and a willingness to adapt and upgrade to technological advances is all that is needed to thrive in the digital agency business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Along with taking Nepali businesses online, Nepali digital agencies compete in the global freelance market. &ldquo;Competing in the global market is not an easy task unless you are ready to deliver outstanding products at relatively modest prices,&rdquo; says Sanjeev Singh, Co-founder of Catmandu- a startup Nepali digital agency that mostly outsources its products.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		It&rsquo;s not just Nepalis who are materializing their dreams via the Silicon Valley revolution offshoot; many digital agencies with foreign roots and international foot prints have established their offshore production in Nepal. India has been a major destination for software outsourcing in South Asia, but still Nepal has its own attributes to win over some share of it.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;I took a fortunate trip just over a decade ago to India and other countries, looking for ways to reduce my growing software development requirements for clients in Melbourne. Even though it was a challenging time in Nepal, with the UN assisting in the path to a new democracy, I felt Nepal offered a unique opportunity. It was not saturating like India&rsquo;s IT industry,&rdquo; says Michael Simonetti, founder of AndMine, an Australian digital agency that has its offshore production unit in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Though the growing inflation and corresponding increase in the operational and other costs have been testing the offshore model, Simonetti still sees future in the model. Complimenting his view, Bhandari says that Nepal has bright scope in the digital agency business. He quotes an online report: &ldquo;Over the coming years, outsourcers are expected to expand their operations quite substantially. Different survey reports have claimed that the growth of outsourcing will remain strong. Like India and other nations there is huge potential for Nepal also to grow in IT service outsourcing business&rdquo;.</div>
	<div>
		&nbsp;</div>
	<div>
		While Internet connectivity, working hours, political instability and power cut are the concerns of this sector, Deepak finds lack of any state mechanism to bring all financial transactions made by freelancer software manufacturer as a major problem for the growth of IT service outsourcing business. &ldquo;Many freelancers are involved in this business without any legal registration. The government should seriously implement the plans it has made so far for the development of this sector along with bringing freelancers within the boundary of taxation.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs3(3).jpg" style="width: 550px; height: 375px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Brighter Prospects</strong></span></div>
	<div>
		E-commerce has brighter prospects in the country, according to industry insiders. The access of Nepalis to the Internet has been increasing. The new generation is very keen about online activities. &ldquo;It seems the stage has been set for a rapid growth in online shopping as people find less and less time for physical shopping,&rdquo; observes Tuladhar.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;We will soon see a Cambrian moment with online shopping and services once proper payment systems and delivery infrastructures are in place which is already happening. &nbsp;When that happens, the change will be swift just like it was with mobile phones in Nepal,&rdquo; concludes Akshay Sthapit, CEO, Harilo.com.</div>
	<div>
		(With inputs from Chitra Raj Bhandari)</div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-05-07',
			'modified' => '2014-09-08',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '2784',
			'article_category_id' => '40',
			'title' => 'Rising Stars Of The Economy',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	--By Akhilesh Tripathi and Sanjeev Sharma</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We all know that all is not well with the Nepali economy. Insecurity, much-aggravated industrial atmosphere, power shortage, transport obstacles, strikes and closures and labour unrest stand as barriers in the path to Republic Nepal&rsquo;s economic progress. The country&rsquo;s economic growth rate, according to official government estimate is below four per cent at present as there is lack of political commitment on a common economic agenda, investment-friendly environment, energy and physical infrastructure in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But despite these obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector. The entry of the Nepali private sector into these areas, especially after the liberalization of the economy post 1990, has resulted in significant growth in these sectors.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the continuity of the economic liberalization policy in republican Nepal has produced a significant group of entrepreneurs and businesspersons who are now successful in these areas. This breed of entrepreneurs and business persons thinks that if there is political will and stability, adequate power supply, supportive policy and peaceful industrial environment, then these rising stars will rise even higher.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;However, political stability is the first condition for economic development. Political parties do have their respective ideologies and differences too, but there needs to be a minimum understanding on common issues of economic development, which would help build atmosphere conducive to investment and trust. This would help the rising stars of the economy to attain newer heights.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Construction Materials: Market Picking Up&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Construction Material" src="/userfiles/images/cs(2).jpg" style="width: 550px; height: 266px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The construction industry is a growing industry in Nepal. It contributes around 10 &nbsp;to 12 per cent to the national GDP and uses around 35 per cent of the government&rsquo;s annual budget. As the country plans to invest more in infrastructure such as roads, railways, airports, bridges, and irrigation and hydropower projects and as the housing sector shows sign of improvement, the prospects for the construction industry in the country look brighter.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector has created employment opportunities to more than one million people in the country. When it comes to development of any physical infrastructure, construction materials are the major components. With the growth in the construction industry, the demand for construction materials too has risen.</div>
<div>
	&nbsp;</div>
<div>
	In the last one decade, over 150 construction material factories from cement, paint and bricks to steel factories have been established with an eye on the realty sector and the government&rsquo;s infrastructure development projects. These factories have helped reduce import of construction materials. The country has also become almost self-reliant in bricks, steel and paint; cement production is also on an encouraging trend. The price of construction materials is growing by 20 to 22 per cent every year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The realty sector, which is one of the major buyers of construction materials in the country, has shown some signs of improvement. According to Ichchha Raj Tamang, president of Nepal Land and Housing Developers&rsquo; Association, the sector has started taking a turn for the better. &ldquo;In the recent couple of years, the realty sector has been improving by over 30 per cent annually,&rdquo; claims Tamang.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Lately, according to construction material dealers, the demand from housing developers and the general public that had slowed down a couple of years ago, has shown some progress. &ldquo;A couple of years ago, the demand went down by around 50 percent due to the government&rsquo;s failure to release the budget on time,&rdquo; said Manik Tuladhar of the Kathmandu Construction Materials&rsquo; Dealers Association. With the situation in the housing sector showing indications of improvement, developers have been speeding up work at their projects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, construction material dealers said that with demand for construction materials slowly picking up, prices too have increased. Shil Ratna Tamrakar, proprietor of Shristina Traders, which deals in paints, said that the demand had increased remarkably compared to last year and that prices had risen by up to 10 percent depending on the brand.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that around 90 percent of the country&rsquo;s requirement of paints is fulfilled by domestic products. Along with a growth in housing activities in the past one decade, the number of paint factories too has gone up. There are 32 paint factories in the country with a combined investment of around Rs 6.5 billion.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Steel Rolling Mills&rsquo; Association said that local steel factories had been able to exist mainly due to the demand from housing developers. There are around three dozen steel plants in the country, and of them, 12 are run in full-fledged operation. All these factories produce 400,000 tonnes of iron rods annually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are more than 70 cement factories that have obtained operating permits from the Department of Industry. The cement industry already has an investment of around Rs 30 billion. Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that even though the number of companies receiving government permits has gone up, only around 40 plants are in regular operation.</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s annual requirement of cement amounts to 3 million tonnes, of which nearly 80 percent is being met by local products. &ldquo;There are no authentic records, however, most of the production is going for construction of private houses and commercial buildings of housing developers,&rdquo; said Murarka. He added that if construction of physical infrastructure receives a boost, the country would be self-reliant in cement too.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector is creating employment opportunities to about one million people. That means it generates employment next to the agriculture sector in the country. Similarly, about 60 percent of the nation&#39;s development budget is spent through the use of contractors. From this, it is clearly seen that construction is a major sector and any productivity enhancement activity in this sector will have a positive impact on the overall improvement of the national economy.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Realizing the need for enhancement of the construction industry, Construction Business Act 2055 was promulgated and came into force from April 14, 1999. This is an effort made to institutionalize and systematize the construction sector. The Act has defined the procedures and requirements relating to issues and renewal of license and classification of and obligations of construction entrepreneurs. The law has established Construction Business Development Council (CBDC) under the chairpersonship of the Minister for Physical Planning and Works, and Construction Business Development &amp; Implementation Committee (CBDIC) under the chairpersonship of Joint Secretary (technical) designated by the Ministry for Physical Planning and Works. These both are regarded as the apex institutions to develop the Nepali construction industry. Establishment of the CBDC and CBDIC is the important step taken by the government to promote the country&rsquo;s construction industry.</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Education: On Private Sector Shoulders</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Education" src="/userfiles/images/cs1(3).jpg" style="width: 550px; height: 381px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	With private investment standing at nearly Rs29 billion at present, the education sector is well on the path of evolving into a lucrative service sector business in Nepal. Nobody needs to frown at the idea of education being compared with business. It has done much more good than bad. Even big business houses have started to invest in education.</div>
<div>
	&nbsp;</div>
<div>
	Private investment in the education sector has grown consistently over the past few years. It now stands at more than Rs29billion, including the investments in schools, colleges, educational consultancies and training institutes. Out of this investment, nearly Rs25 billion is in private schools and colleges, according to the statistics maintained by the Company Registrar&rsquo;s Office (CRO).</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs7(1).jpg" style="width: 550px; height: 130px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Statistics also reveal that the investment has been increasing since 2006, the year when the government decided to register privately-owned educational institutions as companies. New private investment in schools and colleges stood at more than five billion rupees and six billion rupees in 2010 and 2011, respectively. Similarly, private investors have committed an investment of Rs 2.53 billion in the first three months of 2014.</div>
<div>
	&nbsp;</div>
<p>
	<img alt="" src="/userfiles/images/cs8(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 200px; height: 345px;" />According to Umesh Shrestha, president of the Higher Secondary School Association Nepal (HISSAN), private investment in the education sector has increased because it provides good return. &ldquo;This is why even big business houses have pitched into the sector lately,&rdquo; he explains &ldquo;Leading Nepali industrialists and entrepreneurs have launched huge education projects. There will be more such projects in the future.&rdquo; Population growth and increasing demand for quality education are the other major factors behind the increase in private investment in education, he adds.</p>
<div>
	&nbsp;</div>
<div>
	Educational expert Mana Prasad Wagle credits it to the hype of the phasing out of the Proficiency Certificate Level (PCL) in the year 2010 that invited high investment in &lsquo;Plus Two&rsquo; colleges. In 2009, five new colleges with an authorized capital of more than Rs 100 million each were established. Since then, on an average, more than half a dozen such colleges have been established every year. In the eyes of education experts, an investment of Rs 100 million should be more than enough to ensure quality education.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The number of private educational institutions with massive investment is also increasing every year in the major cities, especially in Kathmandu. &ldquo;The number of students leaving the country after SLC for higher studies has drastically decreased now. This is because they find quality education within the country, thanks to a number of good private colleges. This has also prevented millions of rupees from going abroad,&rdquo; says Shrestha.</div>
<div>
	&nbsp;</div>
<div>
	It would not be an exaggeration to say that higher secondary (HS) education rests (and grows) on the strong shoulders of the private sector. Let&rsquo;s consider the following numbers: more than 60 per cent of the nearly a million HS students in the country get their education from private institutions; more than 80 per cent of the students who pass the HS level every year are from private institutions.</div>
<div>
	&nbsp;</div>
<div>
	There are around 3600 HS schools in Nepal at present. Out of them 291 are 0+2 colleges, which run classes for only the 11th and 12th grades. The remaining are 10+2 colleges, which run classes from grade 1 to 12.</div>
<div>
	&nbsp;</div>
<div>
	Private sector institutions have not only played a vital role in boosting Nepal&rsquo;s educational capacity but have also brought along a whole new market dimension. Consider these facts: The annual business transaction of private educational institutions amounts to Rs 22 billion &ndash; Rs 11 billion at school level, five billion rupees at HS level and six billion rupees at university level education.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector has been helping the government by a great deal by making such a huge investment in the education sector,&rdquo; says Rajendra Baral, Chief Executive Officer at Caspian Valley College.</div>
<div>
	&nbsp;</div>
<div>
	On the other hand, HISSAN chief Shrestha sees an immense possibility of educational tourism in the country. &ldquo;Nepal&rsquo;s naturally air-conditioned climate makes it a good educational destination for international students, if we can establish schools and colleges of international standard or open affiliates of internationally recognized universities here,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<div>
							The government&rsquo;s efforts in education are mainly focused on primary and secondary level education. The government has been increasing the budget allocated for the education sector year on year. The government has earmarked Rs 80.95 billion to this sector for the current fiscal year - up by Rs 60.13 billion of current fiscal year&rsquo;s revised allocation. Similarly, Nepal&rsquo;s education budget increased by more than double in just four years reaching Rs 63.91 billion in fiscal year 2011/12 from Rs 27.06 billion in 2007/08.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Nepal allocates 3.4 percent of its GDP and almost 17 percent of the national budget to the education sector. The country, however, does not meet the global standard of allocating at least 5 percent of GDP and 20 percent of the total budget to the education sector. Only 9.92 percent of the total education budget has been allocated for higher education, and merely 7.85 percent for university education.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Government investment in higher secondary education is even less&mdash;two percent of the total education budget&mdash;despite having around one million enrolments a year. Education expert Dr Tirtha Khaniya observes that there is scope for private sector investment and growth in higher study institutions. &ldquo;The government&rsquo;s negligence to the higher secondary level education provided an opportunity for the private sector which cashed in on the opportunity. A similar opportunity lies there for the private sector in university level education too. We will gradually see more private sector investment in this category,&rdquo; he says.</div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Banking sector: Time for Consolidation</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs2(3).jpg" style="width: 550px; height: 350px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Starting from the government-owned Nepal Bank in 1937, the banking industry in Nepal has come a long way. The industry grew tremendously, especially after the entry of the private sector after 1990. It is one of the sectors of the economy that have grown significantly over the past one decade. &nbsp;The sector has immense growth prospects as nearly 60 per cent of the population is still out of the range of formal financial channels. Today, the banking sector is more liberalized and modernized, systematic and managed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are various types of banks and financial institutions (BFIs) working under the modern banking system in Nepal. It includes central (1), commercial (30), development (87), finance companies (59), co-operatives (15), NGOs (30) and others (3). Technology is changing day by day. And the use of new technologies has affected the traditional method of the service of banks. Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc., services are available in banking system in Nepal. Nepal&rsquo;s banking sector has flourished over the years despite numerous challenges and is trying to be at par with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Today, there are ample opportunities for the banking sector to explore the small and medium enterprises and rural markets in Nepal via innovative products such as microfinance, mobile banking etc.,&rdquo; says Anil Shah, CEO of Mega Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs10.JPG" style="width: 550px; height: 348px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Nepal is an agro-based economy with nearly 84 percent of the population in the rural areas. The BFIs need to develop ingenious products and adopt new technologies to cater to the rural sector. By reaching remote locations, BFIs could contribute towards poverty alleviation as well,&rdquo; observes Nepal Rastra Bank Spokesperson Bhaskar Mani Gyawali.</div>
<div>
	&nbsp;</div>
<div>
	The public is gradually turning to the organized financial service providers i.e. the BFIs. At present, only 15.1 percent of the total households in Nepal borrow from local money-lenders, while 10 years ago some 40 per cent households were indebted to money lenders, according to the latest Nepal Living Standard Survey (NLSS) released by the Central Bureau of Statistics (CBS).</div>
<div>
	&nbsp;</div>
<div>
	Today, nearly 40 per cent households have access to commercial banks&rsquo; branch within 30 minutes walking distance. This was merely 22 percent a decade ago. Similarly, the presence of co-operatives within 30 minute walk radius has also increased from 25.9 per cent to 53.9 per cent during the same period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Though the growing number of financial intermediaries is not as successful as expected in increasing the financial accessibility, the expansion has definitely helped in general population&rsquo;s access to finance,&rdquo; says Gyanwali.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Going through the trends seen over the past few years, the country&rsquo;s financial sector seems heading for consolidation through mergers and acquisitions. According to experts, the number of banking and financial institutions (BFIs) will reduce by half over the next one decade. Statistics support this fact. Forty-three BFIs have merged with each other to become 18 over the past three years. According to NRB, another 25 BFIs are in the final stage of merger to become 10. NRB sources say that the central bank will continue with its merger campaign in the new Nepali Year.</div>
<div>
	&nbsp;</div>
<div>
	As a part of this campaign, the NRB is soon going to introduce the Acquisition Bylaws and there are signs that the minimum capital required to run banks could be increased significantly.</div>
<div>
	&nbsp;</div>
<div>
	Apart from banking, other financial sectors, too, are coming up. Credit rating, portfolio management, mutual funds and central depository system companies have already come into operation. This has opened new opportunities for investment.</div>
<div>
	&nbsp;</div>
<div>
	Due to stiff competition, banks are trying to provide specialized services such as investing in hydropower, infrastructure and agriculture. The trend is low at present but it has started. Similarly, expansion of branches of BFIs, especially in the urban areas, has reached almost a saturation stage. Now the banks are looking at cheaper ways to increase their outreach; so they are attracted towards branch-less banking, e-banking and mobile banking.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs11.JPG" style="width: 550px; height: 258px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The last one decade has been significant for the banking sector. Many good things happened. As a result, financial access increased by five times over the past one decade, according to statistics maintained by the CBS. Similarly, the statistics maintained by NRB reveal that 40 per cent of Nepalis have access to formal banking channels. These statistics incorporate only the A, B, C and D class BFIs licensed by the NRB. There are nearly 20,000 Savings and Credit Cooperatives operating throughout the country. Similarly, there is a large number of women&rsquo;s groups, farmers&rsquo; groups etc., which also provide banking services. If we consider these institutions, the number of Nepalis having access to financial services will increase significantly. This doesn&rsquo;t mean that the situation of financial access is great in Nepal; what it means is what has been achieved over the past one decade is more than satisfactory.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Increasing access to finance is one of the main roles of the central bank so that central bank is also encouraging the BFIs to venture into unbanked areas through its policy measures,&rdquo; informs Gyawali. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The achievement made by the banking sector over the past one decade can be broadly categorized into three parts: growth in financial access, expansion of loans and development of corporate culture. The rate of financial access increase is high for this period. Similarly, new areas for investment have been discovered. Today, banks have started investing in specialized long-term projects such as hydropower. Likewise, there has been development of corporate culture in the banking sector over this period. This has made the banking sector more transparent, credible and professional. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#E5E4E2">
						<div>
							<span style="font-size: 14px;"><strong>Weaker Side:</strong></span></div>
						<div>
							- All kinds of BFIs are allowed to mobilize deposits</div>
						<div>
							- Lack of adequate financial literacy</div>
						<div>
							- Increasing operational risks of BFIs</div>
						<div>
							- Failure to identify new areas for investment</div>
						<div>
							- Inadequate supervision capacity of NRB</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hotels: More Room for Growth</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs3(4).jpg" style="width: 550px; height: 397px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Nepali hotel industry is rapidly heading towards booming growth. After sluggishness for about a decade, during the conflict years, the country&#39;s hospitality sector is now looking more and more lucrative with hoteliers- both domestic and foreign- investing into multi-billion projects. Surge in visitor numbers with Nepal becoming a prime destination for international, regional and domestic tourists is leaving the country&#39;s hotels sector without much room. Recent tourism rankings published by reputed institutions points out that the country is gaining significant attention from travelers and visitors across the globe.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Industry leaders estimate the size of Nepali hotel sector- ranging from five star hotels to lodges- has reached about Rs 300 billion. &quot;It is one of the fastest growing sector which is providing considerable number of employment,&quot; says Madhav Om Shrestha, executive director of Hotel Association of Nepal (HAN). According to him, the sector is providing direct employment to over 3, 00,000 people and indirectly benefitting around one million. &quot;With big international hotel chains entering Nepal, the industry is treading on to track to healthy revival.&quot;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal, which has witnessed the departure of some big hotel chains in the past, is again set to become a rewarding market for renowned international hoteliers. Last year saw the US-based multinational hotel chains Marriott and Sheraton announce their entry into the Nepali market. In May 2013, Nepal Hospitality Group (NHG), a company under Nepal&#39;s leading conglomerate Maliram Shivakumar (MS) Group, signed an agreement with Marriott International to open a four-star hotel with an investment of around Rs 650 million. Dubbed as &quot;Fairfield by Marriott Kathmandu&quot;, the 10-storey business hotel with 108 rooms is under-construction at Thamel, a prime tourist and commercial location in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The hotel targeted towards mid-income guests will start its commercial service by the beginning of 2016. Fairfield is a brand of hotels franchised by Marriott International. NHG is also constructing a 250-room, four-star luxury hotel in Naxal, as a joint venture with the Marriot International.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In this foray, Sheraton Hotels and Resorts announced its re-entry into Nepal. Shesh Ghale, the Nepal born Australian millionaire businessman, has come up with a joint venture with Sheraton to operate a five-star hotel in Kathmandu. In April 2013, Ghale&#39;s investment company, MIT Group Holding Nepal set the project rolling by signing an agreement with Sheraton&#39;s owner Starwood Hotels and Resort Worldwide Inc.</div>
<div>
	&nbsp;</div>
<div>
	Slated to open in February 2018, the cost of 225-room Sheraton Kathmandu project is expected to be around Rs 7 billion. Sheraton, the largest brand of Starwood Hotels and Resorts Worldwide has history of managing five-star hotel in Nepal. The chain in 1980s&#39; and 90s&#39; managed the Hotel Everest Sheraton in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Indian hotel chain Lord Hotels and Resorts has already started its operation in Nepal. The company opened its first international hotel in Kathmandu, the Mirage Lords Inn at Battisputali with an investment of Rs 200 million. The 40-room budget hotel is targeted to serve domestic and international guests ranging from religious visitors to adventure seekers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs12.JPG" style="width: 550px; height: 398px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:12px;"><strong>Investment Hotspot</strong></span></div>
<div>
	The hotel investment frenzy has also wrapped Nepali business community. Many have announced to open new hotels while some have already opened doors to welcome guests into their newly built auberge. The Hotel Shambala, a 65-room, four-star Tibetan- styled boutique hotel, located at Bansbari started its operations few months ago. Similarly, construction of the Chhaya Center at Thamel is in full swing. The structure upon its completion will accommodate a 200-room four-star hotel along with an exclusive shopping mall. Likewise, The Centurion Group has been constructing a 120-room hotel in Biratnagar.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Muktishree Group, Vaidya&#39;s Organization, Non-Resident Nepalese Association (NRNA) and Civil Aviation Authority of Nepal (CAAN) have made their announcements to establish five-star hotels. &nbsp;In the meantime, other major tourist destinations such as Pokhara, Lumbini, Biratnagarand Nepalgunj are also experiencing rising investments in the sector.</div>
<div>
	&nbsp;</div>
<div>
	This sector is becoming a center of attraction for Nepali banks and financial institutions (BFIs) as well. According to recent Nepal Rastra Bank (NRB) data, total investment of BFIs in the sector reached an estimated amount of Rs 21 billion by the end of April. The central bank also notes that in the first nine months of current fiscal year (FY), the sector welcomed an investment of Rs 3.16 billion, up by 20.8 percent from last FY&#39;s 2.30 billion.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div>
						<span style="font-size: 14px;"><strong>Time to be Cautious</strong></span></div>
					<div>
						Despite the significantly increasing activities in the hotel sector there are also cautionary calls arising within the industry itself. &quot;The overall trend in investment and the growth in infrastructure is satisfactory, but marketing of Nepal in international arena is lacking,&quot; opines Binayak Shah, vice president of Summit Group of Hotels. Shah, who is also the Managing Director of Airport Hotel, said that as the sector will have more than enough infrastructures amid the rise in number of international hotel chains coming to Nepal and growing domestic investments. &quot;In addition, unsold apartments are also being converted in to hotels. If we cannot market our resources innovatively, in a few years time, we will have more supply than demand,&quot; he says. &quot;This has to be balanced.&quot;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 14px;">ICT: Explosive Growth</strong></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).JPG" style="width: 550px; height: 271px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The Information, Communication and Technology (ICT) sector has grown in a geometric proportion over the last few years bringing speedy transformation. The explosive growth and rapid infrastructure developments led the sector, nascent only some years ago, to around Rs 50 billion worth strong sector in a year.</div>
<div>
	Nepal has been enjoying remarkable growth in ICT sector due to expanding telecom sector, increasing use of email/internet, emerging social media and steady growth in the use of state-of-art gadgets.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs121.jpg" style="width: 550px; height: 656px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The pace of mobile phone adoption in the country was surprising in the last couple of years as nearly two third households have access to telephone facility. The overall teledensity has increased to 87.20 per cent by mid-March, according to the telecom regulator Nepal Telecommunications Authority.</div>
<div>
	&nbsp;</div>
<div>
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 30.99 per cent till mid- March, and the rise of Internet users will have a direct impact on the trade of computers, claims Computer Association of Nepal (CAN).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	High competition among world class brands including HP, Samsung, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.</div>
<div>
	&nbsp;</div>
<div>
	Along with hardware parts, the software market is also experiencing a steady growth in the country. Experts and professionals involved in this business are taking this growth as a positive aspect of developing awareness related to information technology.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;The overall trade of software has increased in the domestic market though there is not actual data available from concerned authority. Amrit Kumar Pant, General Secretary of CAN, said, the market and activities related to this business have been increasing as the people have been using software and application as necessity while it was used in the form of luxury till some years ago.</div>
<div>
	&nbsp;</div>
<div>
	ICT has provided enormous opportunities from various aspects, according to the regulator Nepal Telecommunications Authority (NTA). Nepal&rsquo;s telecom sector has created employment opportunities for at least 50,000 people and contributed more than Rs 20 billion as revenues every year to the national coffer.</div>
<div>
	&nbsp;</div>
<div>
	Even the government has come up with some ambitious plan including that of connecting east and west via Optical Fibre network. For the purpose, the government has planned to utilise the Rural Telecom Development Fund (RTDF), the fund collected by Nepal Telecommunications Authority from telcos.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, the sector is not without problem. According to telcos, there are many problems in the policy front. The telecom sector has been witnessing government&rsquo;s dillydally in bringing relevant laws and policies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are still room to improve in terms of quality. On the one hand, telcos and internet service providers need to ensure quality of service. On the other, Nepal should not become trading hub for low quality ICT goods. In such situation, the government need to bring policies ensuring consumers&rsquo; rights. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	ICT is still an untapped market in Nepal, an expert told New Business Age. &ldquo;All concerned stakeholders need to put sincere effort to take this sector to the next level.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hydropower: From Deficit to Export Considerations</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs6.JPG" style="width: 550px; height: 342px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Forced to live under electricity cut averaging 10 hours a day during dry seasons, Nepal is gradually developing its hydropower projects to escape the long-standing power crisis. Things have changed positively in the recent years as the dust of political uncertainty is finally showing signs of settling down. 87 hydel projects totalling 2,345 megawatts are under construction. Both the government and private sector have ramped up their investments in these projects. The projects, upon completion, are expected to add electricity into the national power grid within the next seven years. Similarly, the Investment Board Nepal (IBN) has also taken initiatives to construct five mega-hydel projects of 3,750 MWs. IBN, which was formed four years ago to fast-track mega projects, is said to be involved with promoters for power development agreement (PDA). The promoters have assured to start the construction of projects immediately after the finalization of PDAs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This indicates the increasing involvement of private sector in the country&#39;s hydropower development. Nepali private sector has thus far managed to produce 232 MWs electricity after the electricity act of 1992 came into effect. According to Independent Power Producers Association, Nepal (IPPAN), the private sector has invested Rs 55 billion in 25 hydro projects till date since the establishment of the first private power plant in 2000.</div>
<div>
	&nbsp;</div>
<div>
	Increasingly positive tones of bilateral donors have also raised hopes in this sector. The World Bank and Asian Development Bank (ADB) are planning to raise their stakes in Nepal&#39;s hydropower development. The World Bank (WB),which has already provided development related financial assistance worth Rs 200 billion to Nepal is further adding investments in hydropower projects. The International Finance Corporation (IFC) of the World Bank Group has recently agreed to provide USD 84.6 million for the 37 MW Kabeli-&#39;A&#39; project. The electricity output from the run-of-river project situated in Panchthar district will be then connected to the national grid through the 132 KVA Kabeli Corridor Transmission line. The transmission line, which is jointly financed by the WB and Nepal Electricity Authority (NEA) is in the construction phase. Likewise, IFC has also expressed readiness in Arun III (900 MW), Upper Marsyangdi (600 MW), Upper Karnali (900 MW) and Upper Trishuli (213 MW). During his visit to a WB program in US and Mexico in April, Finance Minister Ram Sharan Mahat received commitment from the IFC for investing for Rs 600 billion in developing hydropower projects of 3,000 MWs. Similarly, ADB is also stepping up to invest in the country&#39;s big hydel projects. Last year the bank agreed to provide soft loan of Rs 13 billion for 140 MW Tanahu Hydropower Project. Likewise, the European Investment Bank (EIB) which also agreed to loan Rs 1.5 billion for the above mentioned project has also committed to provide Rs 12 billion to build the Kaligandaki and Marsyangdi Transmission line along with another Rs 3 billion to build the Trishuli Corridor Transmission Line.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The sector is also grabbing significant attention from foreign investors. Official data shows that hydropower sector has attracted highest FDI commitments in the recent months. According to data published by Department of Industry (DoI), foreign investors pledged Rs 11.8 billion worth FDI commitments in the first nine months of the current fiscal year against Rs 2.65 billion during the same period, last year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Rising Export Potential</strong></span></div>
<div>
	<img alt="" src="/userfiles/images/cs13.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 250px; height: 435px;" />Few years back it was almost unimaginable for power crisis marred Nepal to even think of supplying electricity to neighbouring countries. The scenario, however, is looking more and more real for Nepal to make its way forward to become a net power exporter. Nepal after producing 2,345 MW by 2018-19, will have surplus energy after consuming its annual demand of estimated 1,700 MW by that time. In this circumstance, India will be the most likely market of Nepali electricity as the energy hungry southern neighbour is increasingly looking to import power from its himalayan proximate.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The construction and installation of countrywide and cross-border high capacity transmission lines indicates the rising power trade potential between India and Nepal. The tower installations in Nepal section of 400 KVA Dhalkebar-Muzzafarpur Cross-Border Transmission line has started earlier this year. The construction of the project, which started in January is scheduled to be completed within 16 months of its commencement. Similarly, feasibility study of 400 KVA Bardaghat-Gorakhpur Transmission Line has also begun. The high capacity cross-border transmission lines would facilitate power transmission between the two countries. A secretary-level agreement between Nepal and India has already paved way to build the framework for power trading.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Private power producers say that both countries should look into effective modalities of power trading. &quot;Energy banking agreement model is the best option,&quot; says Er Gyanendra Lal Pradhan, Chairman of FNCCI&#39;s Energy Committee. According to Pradhan, if the model is adopted, Nepal can send surplus power to India in rainy season and bring back the same amount of electricity in dry seasons. He said that countries across the world are adopting this model owing to its flexibility and practical approach. &quot;The model is being effectively practiced by New York Electricity Exchange of United States and Hydro Quebec of Canada, they do banking up to 90 per cent of electricity they trade and remaining 10 per cent is priced.&quot; Pradhan stressed the need for building strong network of nationwide transmission lines as it would further help if Nepal and India engage in energy banking.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, absence of clear policies and other problems such as inefficient bureaucracy, rampant corruption, lack of nationwide transmission grid, issues related to infrastructure and land compensation are regarded as the bottlenecks in Nepal&#39;s hydropower development efforts. For instance, the draft of electricity bill, 2065 introduced in the parliament has seen little or no progress over the past five years. Similarly, issues related to power purchase agreement (PPA), higher bank lending rates in hydropower projects, value added tax (VAT) levied to private producers and low allocation of national budget are also seen as problems hindering the sector&#39;s overall development.</div>',
			'published' => true,
			'created' => '2014-06-09',
			'modified' => '2014-07-30',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the “rising stars” of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '2773',
			'article_category_id' => '40',
			'title' => 'The Business For Social Benefit',
			'sub_title' => '',
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			'content' => '<div>
	<em><span style="font-size:16px;">Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society. &quot;Fortune at the bottom of the pyramid&quot;, a phrase coined by the late Indian academic CK Prahalad, has become popular among social entrepreneurs. But the question is: are we heading towards ensuring benefit to the bottom billions or not? In this issue, we focus on scope, opportunities and motivation for social entrepreneurs and the way forward.&nbsp;</span></em></div>
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	<strong>--By Siromani Dhungana</strong></div>
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	Those at the &#39;bottom of the pyramid&rsquo; have been neglected since decades and it is time to change perceptions through which they are perceived. They should not be perceived only as recipients of aid.They are agents of development and they can be partner in entrepreneurship, says Catrin Frohlich, co-founder of Hidden Journeys who is involved in promotion of social entrepreneurship in Nepal for the last couple of years. She opines that acceptance of bottom billion as business partner opens avenue to set up social enterprises.&nbsp;</div>
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	Social entrepreneurship embraces market-based approach as social enterprise is about innovation and making profit along with makingimpact on development of the society, she argues. It is not the rejection of profit but rather is about sharing of profit with target groups and there by helping them in enhancing their living standards, Frohlich adds.</div>
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	Nepal needs to create jobs and job creation is not possible without enterprises. Social entrepreneurship is all about leading country towards prosperity through sustainable approaches.</div>
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	<span style="font-size:14px;"><strong><img alt="Catrin Frohlich" src="/userfiles/images/cs1(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Scenario of Social Entrepreneurship</strong></span></div>
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	A large number of population is reeling under acute poverty despite the fact that massive resources at the local level remain unused.In such a scenario, Nepal can be a very appropriate country for venturing into social enterprises.&nbsp;</div>
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	However, it is again not an easy task to venture into social enterprises, especially in a country with relative absence of entrepreneurial aptitude. Social entrepreneurship is comparatively new phenomenon but it is gaining momentum, says Vidhan Rana of Biruwa Ventures. We have good understanding of the word social but less understanding of the word entrepreneurship, he opines. &ldquo;Social entrepreneurshipis not about establishing NGOs and distributing aid money to people in need,&rdquo; he says, adding, &ldquo;Innovative ideas to venture into business is a must to start enterprise.&rdquo;</div>
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	Many people perceive the term social enterprise as a connotation of not-for-profit organization. The not-for-profit mantra is out-dated now, says Rana adding, &ldquo;Make profit but involve the bottom billions in business and share the profit with them. This is the philosophy behind the concept of social entrepreneurship.&rdquo; Social entrepreneurship has become a buzz word and Rana fears that this hypemight be misused by not genuine social enterprises.&nbsp;</div>
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	This is a new domain and there is a corresponding dilemma at the policy level. While a debate on what is genuine social entrepreneurship has started, Sadhana Shrestha, executive director at TEWA and former Country Representative, in Nepal at Ashoka, accepts the prevalence of dilemma about the termamong businessmen also. While attempting to correct the prevailing notion that perceives both types of organizations synonymously, she says that NGOs and social enterprises are different. Nepal does not have laws specific to social entrepreneurship but it certainly has a category in the Company Act, which describes such companies as those that do not distribute profits (though they makes profits).&nbsp;</div>
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	The most encouraging part in this is the increasing involvement of young generation. Youth led organizations such as Biruwa Ventures, Entrepreneurs for Nepal (E4N), Udhyami Nepali, Hidden Journeys and ChangeFusion Nepal have been working to promote entrepreneurship including that of social entrepreneurship.&nbsp;</div>
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	<span style="font-size:14px;"><strong><img alt="Sadhana Shrestha" src="/userfiles/images/cs2(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Fight Poverty with Profitability</strong></span></div>
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	&ldquo;The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits,&rdquo; by C.K. Prahalad, professor of corporate strategy at the Ross School of Business of the University of Michigan is considered as a seminal work on social entrepreneurship. The concept of &lsquo;The Fortune at the Bottom of the Pyramid&rsquo; provided new business models targeted at providing goods and services to the poorest people in the world. Prahalad&rsquo;s concept seeks to solve global poverty by turning the bottom of the socioeconomic pyramid from victims of globalization into its beneficiaries through consumerism.&nbsp;</div>
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	The book combined a pragmatic framework with inspirational case studies to show companies how they could develop innovative business models and find new profits by serving the world&rsquo;s five billion poorest people at the bottom of the economic pyramid (or BOP).</div>
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	Prof Prahalad was in favour of private-sector led social enterprises. Responding to a question &ldquo;What are the big lessons learned since the book was first published?&rdquo; by Triple Pundit, a new-media company for highly conscious business leaders, Prahalad said:&nbsp;</div>
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	First, the thesis of the book that the private sector is an integral part of the poverty alleviation process is well accepted by multilaterals, aid agencies, many NGOs and large private sector firms as well. &nbsp;Second, there is now a growing belief that the bottom of the pyramid provides an opportunity for business to &ldquo;do good and do well.&rdquo; Third, we recognize that the BOP is more than micro-consumers. &nbsp;It also represents micro producers and micro investors who can be connected to national and global markets. And the BOP can also be the source of major innovations that affect us all. &nbsp;These ideas were in the original book but have been confirmed and amplified.</div>
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	Reviewing the book, Bill Gates, Chairman and Chief Software Architect, Microsoft says: &quot;C. K. Prahalad argues that companies must revolutionize how they do business in developing countries if both sides of that economic equation are to prosper. Drawing on a wealth of case studies, his compelling new book offers an intriguing blueprint for how to fight poverty with profitability.&quot; This book is considered a hallmark in introducing discourse and practices of private sector led social enterprises.&nbsp;</div>
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	<span style="font-size:14px;"><strong><img alt="Vidhan Rana" src="/userfiles/images/cs3(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Evolution of the Concept &amp; Growing Concern&nbsp;</strong></span></div>
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	Many believe that business philanthropy and social involvement of business community is linked with long rooted concept of &ldquo;Sewa Hi Paramo Dharma&rdquo; [Social Service is the Ultimate Religion]. Historical evidences suggest that not all business leaders have been content in simply performing a commercial role in society. Numerous businesspersons, industrialists and entrepreneurs have made significant contributions to their local communities.</div>
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	Earlier, there were notable efforts to engage business in society via charity or social welfare activities. These were mainly inspired by religious affiliation and cultural inspirations. From mid-1970s onwards general interest in corporate social responsibility grew and this is reflected in the involvement of Nepali corporate sector in CSR activities. &nbsp;This interest was consolidated in the 1980s. As part of the general redefinition of state functions in this period, the role of business in addressing social problems became more prominent. Such political and policy developments, it is argued, have made a significant contribution towards enhancing social roles of businesses.</div>
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	<span style="font-size:14px;"><strong>Social Enterprises: Sustainable Approach of Development&nbsp;</strong></span></div>
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	Sadhana Shrestha, while stating that NGO workers should not be considered as social entrepreneurs, claims that social entrepreneurship should have some basic qualities: innovation, breakthrough ideas, sustainable and replicable model and system changing ideas.&nbsp;</div>
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	Social entrepreneurs should give enough attention to the sustainability of their business and generally do not distribute dividend rather inject it in the business to ensure sustainability of the enterprise, she claims.&nbsp;</div>
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	Social enterprises are businesses whose primary purpose is the common good. The main characteristics that distinguish a social enterprise from other types of businesses, non-profits and the government agencies is its sustainable approach, opines Mahabir Pun, the winner of the Ramon Magsaysay Award 2007 for his project that brought wireless Internet to rural Nepal.</div>
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	Social enterprise directly addresses a difficult social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.</div>
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	<span style="font-size:14px;"><strong>Challenges in Social Entrepreneurship&nbsp;</strong></span></div>
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	The social enterprise movement was connected mainly with non-profits that used business models and earned income strategies to pursue their mission in the early days of social entrepreneurship. The understanding has become clearer now. Enterprises, whose sole purpose is to make social impact, are now considered as social enterprises. The sector, however, is not out of challenges.&nbsp;</div>
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	<strong>Identification of business model:</strong> Business is often linked with profit in Nepal. And even the image of non-profits is not very positive. In such a situation, building positive image for social enterprises is a challenging task, says Catrin Frohlich.&nbsp;</div>
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	<strong>Capacity building: </strong>Building capacity of aspirant social entrepreneurs is another challenge for Nepal&rsquo;s social entrepreneurial world. Capacity building initiatives should not be limited to launch of businesses, but should be continued when it comes at scaling up level, addsFrohlich.</div>
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	<strong>Financing:</strong> A real social entrepreneurship is about innovation but traditional financing institutions do not always believe in innovative ideas and may deny lending money, opines Frohlich while pointing to the challenge of acquiring financial assistance for social enterprises.&nbsp;</div>
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	<strong>Legal provision:</strong> Policy and regulatory frameworks have many grey areas. In such a context, it is feared that the word social entrepreneurship could be easily misused by non-profits and others institutions to gain undeserving reputation, says VidhanRana.&nbsp;</div>
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	<span style="font-size:14px;"><strong>Opportunities&nbsp;</strong></span></div>
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	The concept of social entrepreneurship is an outcome of the realization that aid recipients cannot make tremendous progress in their life compared to entrepreneurs, says Vidhan Rana. In the same vein, Frohlich also opines that despite some good works, NGO-model of development is not always in favour of the bottom billion. Despite challenges, social entrepreneurship field in Nepal is recently witnessing positive trends and receiving new opportunities as it is the best model for optimum and sustainable use of resources.&nbsp;</div>
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	If analysed from the perspective of national development, social entrepreneurship does not put the national economy at risk. It is a beautiful aspect of social entrepreneurship that while an individual takes all the risk of innovation, all members of the target community share the benefit.Similarly, social entrepreneurship is even more inclusiveforwomen entrepreneurs and adopting this approach can assist in making the entire development process more inclusive. Considering the present trend, it is obvious that in the coming years we&rsquo;ll see social entrepreneurship woven into the very fabric of existing disciplines and become an integral lens through which we will understand all sectors and fields of study.</div>
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	<span style="font-size:14px;"><strong>Corporate Houses for Social Cause&nbsp;</strong></span></div>
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	Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that will have positive impact in the society. Generally, CSR activities are carried out using profit amount. CSR is a process with the aim to embrace responsibility for the company&#39;s actions and encourage a positive impact through its activities on the environment, consumers, employees and communities.</div>
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	Though companies are not directly involved in social entrepreneurship, their involvement in social issues has been increasing in one or another form. In Nepal, many companies have been involved in many social activities such as Coke for water conservation, Unilever for hand washing promotion, Yeti Air tree plantation etc.</div>
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	Involvement of business community in social activities is not new phenomenon. Some renowned business houses have been involved in some traditional CSR activities. Operation of eye hospital from Golchha and donation to Briddhashram (old age home) from some business families can be taken as examples to this end.&nbsp;</div>
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	Further, some business houses have been involved in special CSR initiatives as annual events such as Asha Awards, Sports Tourism promotion, and health awareness program being carried out by Surya Nepal. There also are some companies such as NCELL that provide direct charity (e.g. school building, sukumbasi house roofing etc.) that is linked directly with their business promotion. Chaudhary Group has established a separate unit Yunus Centre to promote social entrepreneurship though it is yet to start work effectively.&nbsp;</div>
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	Besides, recruitment of deaf staffs in the Nanglo restaurant can be taken as a good example of social entrepreneurship business. Dabur is also involved in social business as it provides help to farmers in herbal cultivation.</div>
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	<span style="font-size:14px;"><strong>Future Outlook</strong></span></div>
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	Positive impact made by existing social enterprises on target communities and in making profit has triggered enthusiasm in aspiring entrepreneurs. Numbers of aspirant social entrepreneurs are increasing and their conviction show that they can make money and can do things differently in the entrepreneurial world. &nbsp;Social enterprises will prove that enterprises can be financially sustainable, even profitable.&nbsp;</div>
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	<img alt="" src="/userfiles/images/cs4(2).jpg" style="width: 550px; height: 512px; margin-left: 10px; margin-right: 10px;" /></div>',
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			'created' => '2014-04-10',
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			'description' => 'Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society.',
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			'id' => '2723',
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			'title' => 'Nepali Women As Entrepreneurs',
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			'content' => '<div>
	&nbsp;</div>
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	<strong>--By Siromani Dhungana</strong></div>
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	Nepali women entrepreneurs have not broken the glass ceiling, says Pramila Rijal, president of SAARC Chamber Women Entrepreneurs Council (SCWEC). &ldquo;But they have already made the first cracks.&rdquo;</div>
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	Rijal&rsquo;s idea rightly summarizes the present conditions of women in business in Nepal. Alka Rajouria Rijal, executive director at Federation of Women Entrepreneurs&rsquo; Association of Nepal is also of the same opinion. Women entrepreneurs have come far but they still have a long way to go, she opines.&nbsp;</div>
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	According to her, there are many issues that still need to be improved: access to finance, gender-responsive policies, family barriers and deconstructing stereotypes about women entrepreneurs.</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs6(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 410px;" />Business: It was Men&#39;s Domain&nbsp;</strong></span></div>
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	Hajuri Bista, one of the forerunners in the arena of women entrepreneurship says, &ldquo;I had never seen men and women work together. It was really challenging to get out of the dogma that women should take care of household chores and not venture into the business world.&rdquo;</div>
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	In 1990, the country adopted a &nbsp;democratic political system but women entrepreneurs still finding not an easy path at that time, she recalls. Late Yangzi Sherpa, Ambica Shrestha, Rita Thapa, Maggie Shah, Renchin Yonjan, Shyam Badan Shrestha, Shanti Chadha, Nilam Pande, Mohini Lama, Brinda Rana and some other faces were managed to shine in this period as entreprenuers. They were the trailblazers at that time, Bista recalls.&nbsp;</div>
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	&quot;Even after democracy, I have seen many times aspiring women entrepreneurs breaking into tears in meetings due to unexpected hurdles and apathy from their family and the society,&quot; she said reflecting on her experience. &ldquo;Why should be women engaged in business?&quot; &nbsp;was a common mindset at that time, she adds.&nbsp;</div>
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	Fortunately, times have changed now. There are host ofefforts underway to boost women&rsquo;s participation in business and women are in the condition to get guidance &nbsp;in all phasesof entreprise development &nbsp;-- from training on leadership, to new forms of financing.&nbsp;</div>
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	Entrepreneurship has been traditionally seen a male preserve and idea of women taking up entrepreneurial activities considered as a distant dream, she says. But the mindset has been changing, she adds. &ldquo;It takes time to change all the established social norms but we have achieved tremendous success in the field of women entrepreneurship.&rdquo;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs1(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 204px;" />Has a Long Way to Go</strong></span></div>
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	There are umpteen problems even now. Women face problem from their initial commencement of enterprise, says Barsha Shrestha, deputy chief executive officer at Clean Energy Development Bank.&nbsp;</div>
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	The society still does not believe in their capacity and it is an uphill task for women to face such conflicts and cope with such challenges, she adds. Obtaining the support of bankers, managing the working capital, difficulty in getting credit are the problems to solve which male family member&#39;s support is still needed, she informs.&nbsp;</div>
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	Now women are empowered enough and can lead big corporations too, says Ambica Shrestha, women entrepreneur and president of The Dwarika&rsquo;s Hotel. &ldquo;All they need is chance of working as freely as their male counterparts.&rdquo;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs2(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 188px;" />Absence of Entrepreneurial Aptitude</strong></span></div>
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	If you have innovative idea to venture into business that is what we call entrepreneurship, says Renchin Yonjan. But male businessmen in Nepal lack entrepreneurial aptitude, she claims. Most of the women who are aspiring in entrepreneurs are involved either in their family business or in service sector that still does not have talents (male or female) with the basic ingredients of entrepreneurship. &nbsp;&nbsp;</div>
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	Parents want their daughter to be involved in jobs rather than entrepreneurship, shares Barsha Shrestha. The reason is clear. They do not want their daughters to take risk and put their money at risk.&nbsp;</div>
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	Besides, even majority of women in the country lack entrepreneurial aptitude. Women have no entrepreneurial bent of mind, informs Pramila Rijal. &ldquo;But this problem does not prevail only among women but also among men too.&rdquo; &ldquo;Yes, women are more inclined towards household chores and existing social structure does not allow them to think broadly,&rdquo; she adds.&nbsp;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs3(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 187px;" />Expand Access to Finance&nbsp;</strong></span></div>
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	Women in the country have been facing many problems to get going with their business ideas. Finance shortage is one of them. Women entrepreneurs always suffer from inadequate financial recourses and working capital, says Rita Bhandary, president of Federation of Woman Entrepreneurs Associations of Nepal (FWEAN). They are not able to afford external finance due to absence of tangible assets as security. Women have very less property and bank balance in their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in the women&#39;s ability to run a venture successfully.</div>
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	Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities, according to Shrestha. Marketing and financial problems are such obstacles where even training doesn&#39;t significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs. &nbsp;</div>
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	Bankers often deny women credit on the ground of lack of collateral security, Shrestha says. Therefore, their access to risk capital is limited. Women cannot start big business ventures unless equal access of finance is ensured, Shrestha claims.&nbsp;</div>
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	<span style="font-size: 16px;"><strong>A Wave of Progress in SME</strong></span></div>
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	Small and Medium Enterprises (SMEs) are possibly one of the best and most cost-effective avenues for furthering economic development. Slowly but gradually, women have been expanding their foothold in this SME field. Currently, women own about 14,300 small and medium enterprises in Nepal, accounting for 2 percent of GDP (registered formal sector) and employing over 200,000 workers. A study commissioned by IFC, private sector lending arm of the World Bank Group, suggests that meeting their current credit requirements of US$ 106 million can increase their contribution to the economy, according to SAARC Chamber Women Entrepreneurs Council (SCWEC).</div>
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	Throughout the country, women have been setting up small and medium enterprises after acquiring the skills, resources, and support necessary to grow and sustain their businesses, says Alka Rajouria Rijal.&nbsp;</div>
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	It is very positive aspect of women in entrepreneurship that they are creating jobs at a time when the country is reeling under massive unemployment problem.&nbsp;</div>
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	Similarly, women&rsquo;s involvement in entrepreneurship will not only contribute to create jobs but also to change the stereotyped role of women which is largely limited to household chores. All should motivate women entrepreneurs to give them the moral support for their business ideas.</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs4(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 166px;" />Networking: Key to Success&nbsp;</strong></span></div>
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	The equation is very simple: you have to expand your business once you start it, you have to develop a network to expand business and you have to have a free-society to develop a network, says Barsha Shrestha who believes that Nepali women are struggling to this end.&nbsp;</div>
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	Women should have a very strong network at three levels: in the sector concerned, with all entrepreneurs and national and international level, according to women entrepreneur Renchin Yonjan.</div>
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	Women have tremendous potential for networking as they are polite and soft compared to their male counterparts, she opines. In business, exposure gives knowledge. Exposure is key that will help women to materialize their dreams. Women entrepreneurs should get out from social restrictions, expand their contacts and start business ventures. Women entrepreneurs should not hesitate to create their brand.&nbsp;</div>
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	Full-time entrepreneurs should have the broadest networks. Long-held belief is, however, that women have weaker networks and rely excessively on family and friends to build their business. This logic is directly linked with the perception that women cannot handle business independently and they are reliant on family and friends for networking, says Yonjan. &nbsp;</div>
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	<span style="font-size: 16px;"><strong>Dream Big&nbsp;</strong></span></div>
<div>
	The number of women-owned business has been growing over the past decade or so. However, evidences show that most of these businesses don&#39;t scale up. Further, women entrepreneurs are still considered suitable only in small and medium enterprises.&nbsp;</div>
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	Over the last few years, it is found that women entrepreneurs often seem to be pigeonholed into the &lsquo;lifestyle business&rsquo; category or education sector in Nepal. This is obviously good but not enough, says Ambica Shrestha. Women entrepreneurs are still missing out on the chance of a bigger slice of the pie.</div>
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	Women-owned businesses are still a drop in the ocean of commerce, according to Pramila Rijal. She suggests women entrepreneurs to dream high. &ldquo;It is time that women entrepreneurs start dreaming of setting up big corporations and running big businesses.&rdquo; We have to dream and we have to work to full our dreams, opines Rita Bhandary.&nbsp;</div>
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	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs5(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 168px;" />Changing Scenario</strong></span></div>
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	Picture a woman and you might imagine a women busy in domestic chores and childcare. Further, if someone speaks about a female entrepreneur and you might imagine a woman at the helm of a small business, perhaps in a cosmetic outlet or childcare centre.&nbsp;</div>
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	For decades the symbol of women entrepreneurship has been, to many, the pickle, fashion or childcare. They were considered shadow of their male counterparts. Time has come now to break the stereotypes and women should take the baton.&nbsp;</div>
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	On the one hand, the mindset of society has been changing, Yonjan opines. &ldquo;But challenges have also increased and women have to compete in the highly competitive world.&rdquo; Access to Information and Communication Technology (ICT), and better exposure to the rest of the world have provided unique opportunities to the women entrepreneurs to expand their footholds,&rdquo; she claims.&nbsp;</div>
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	Our aim is not to steal the profit pie, which male entrepreneurs have been enjoying but to seek new chances of generating new and innovative sectors where women can see their future, says Yonjan. However, these sectors should not be limited to the small and medium industries.&nbsp;</div>
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	&ldquo;I am definitely seeing more women enter the entrepreneurship sector,&rdquo; Shrestha says. Is entrepreneurship a man&rsquo;s world? No not at all, she firmly believes. We need to break all the stereotypes prevailing regarding women in business.&nbsp;</div>
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	<span style="font-size: 16px;"><strong>Conclusion</strong></span></div>
<div>
	Women across the country have started several business ventures at their own initiatives. It is time to taking bigger steps towards providing flexible workplaces for women to get in the entrepreneurship. &quot;We know that where women are venturing now had been a male bastion. But that should not deter them. Women are equal partners in business,&rdquo; says Yonjan. All section of the society should encourage their effort of entering into the entrepreneurship because people&rsquo;s dream of peace and prosperity is directly related to the economic growth. Women&rsquo;s involvement in entrepreneurship should be encouraged because it will not only create more opportunities but also ensure inclusive growth. It will be imperative in achieving highest sustainable economic growth and employment and in raising living standard.</div>
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	<img alt="" src="/userfiles/images/cs1b.jpg" style="width: 550px; height: 611px; margin-left: 10px; margin-right: 10px;" /></div>
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						<span style="font-size:18px;"><strong>World&rsquo;s Top 10 Influential Female Entrepreneurs&nbsp;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Wu Yajun" src="/userfiles/images/1%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Wu Yajun</strong></span></div>
					<div>
						Wu Yajun holds the title of229th richest person in the world. The journalist-turned Chinese businesswoman is the Chairwoman of Longfor Properties, an investment holding company, which manages several businesses including real estate and property investment, development and management across China. Born to an ordinary family in 1965, she and her former husband founded Chongqing Zhongjianke Real Estate Co Ltd in 1995, which was later renamed as Longfor Properties. &nbsp;Her net worth as of 2013 is estimated at USD 4.4 billion. Wu is also serving as the member of China&#39;s National People&#39;s Congress. She is among the top 50 in Forbes&#39; Power-Women list.&nbsp;</div>
					<div>
						&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Zhang Yin" src="/userfiles/images/2%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Zhang Yin</strong></span></div>
					<div>
						Zhang Yin is the founder and director of China&#39;s biggest paper maker- Nine Dragons Paper Holdings Limited. The company buys scraps from US and other parts of the world and turns them into cardboard boxes to export Chinese goods. At the age of 49 in 2006, she became the first woman to top the list of richest Chinese businesspersons, according to the Huron Report. Zhang Yin&#39;s net worth is estimated at USD 3.9 billion as of 2012.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Rosalia Mera" src="/userfiles/images/3%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Rosalia Mera</strong></span></div>
					<div>
						Rosalia Mera is the co-founder of Inditex, a worldwide fashion retailer, which owns famous brands such as Zara, Massimo Dutti, Pull and Bear and Bershka among others. At the age of 11 Mera dropped out of school and began to work as a sales person in a clothing store. With her former husband, she co-founded the Zara clothing chain in 1975, which later became the world&#39;s largest fashion retailer. Mera died on 15th August 2013 after suffering a stroke at the age of 69. At the time of her death she was the richest woman in Spain and the world&#39;s richest self-made woman. Before her death, Rosalia&#39;s net worth was estimated at USD 6.1 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Oprah Winfrey" src="/userfiles/images/4%20(Copy)(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Oprah Winfrey</strong></span></div>
					<div>
						Oprah Winfrey has been ranked as the richest African-American of the 20th century who is currently North America&#39;s only black billionaire. The 60- year old celebrity entrepreneur and philanthropist is best known for her talk show &quot;The Oprah Winfrey Show&quot;, which was considered as the highest-rated program of its kind in history from 1986 to its ending in 2011. She was also the world&#39;s only black billionaire in between 2004-2006. Winfrey is the founder of Harpo Productions, the Oprah Winfrey Network (OWN) television channel and Oprah Winfrey Leadership Academy for Girls. Oprah received the Presidential Medal of Freedom in 2013, the highest civilian award of the United States. Her net worth is estimated at USD 2.9 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
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						<span style="font-size:16px;"><strong><img alt="Arianna Huffington" src="/userfiles/images/5%20(Copy)(3).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Arianna Huffington</strong></span></div>
					<div>
						Arianna Huffington is the creator of the Pulitzer-prize winning news website and blog &quot;The Huffington Post.&quot; She started the website in 2005. In 2009, she ranked 12 in Forbes&#39; list of the Most Influential Women in Media. The 63-year old Greek-American author and syndicated columnist has an estimated net worth of USD 35 million. In 2011, after the sale of The Huffington Post to AOL for USD 315 million, she became the President and editor-in-chief of The Huffington Post Media Group. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Kiran Mazumdar-Shaw" src="/userfiles/images/6%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Kiran Mazumdar-Shaw</strong></span></div>
					<div>
						Kiran Mazumdar-Shaw is the chairman and managing director of Biocon Limited, a biotech company based in Bangalore. Partnering with an Irish firm to make industrial enzymes, she founded the company in 1978 when she was just 25 with a seed capital of Rs 10,000. She is regarded as India&rsquo;s first biotech entrepreneur. The 60-year old businesswoman is also the Chairman of Indian Institute of Management (IIM-Banglore). She is in the Forbes&#39; list of the world&#39;s 100 most powerful women and the Financial Times&rsquo; top 50 women in business list. As of 2010, her net worth is estimated at USD 900 million.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yelena Baturina" src="/userfiles/images/7%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 115px;" />Yelena Baturina</strong></span></div>
					<div>
						Regarded as the richest Russian woman and the Russia&#39;s only woman with net worth more than USD one billion, Yelena Baturina is the founder of construction and infrastructure investment company Inteco. She founded the company in 1991 as a plastic manufacturer but later changed its business. Baturina witnessed her net worth fell dramatically during the height of the financial crisis of 2008/09. The 50-year old entrepreneur also owns a hotel chain and is the founder of BE OPEN, a cultural and philanthropic foundation.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Giuliana Benetton" src="/userfiles/images/8%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 116px;" />Giuliana Benetton</strong></span></div>
					<div>
						Giuliana Benetton is the founder of Benetton Group, a worldwide fashion brand, which operates a network of more than 6,500 stores and outlets across 120 countries. The Italian company, which is fully owned by the Benetton family, owns famous clothing line-up brands such as United Colors of Benetton, Undercolors of Benetton, Playlife and Sisley. Giuliana started the family business in 1965 by knitting sweaters. At the age of 76, Giuliana is currently serving asdirector of Benetton Group and Edizione S.R.L, a financial holding company of the Benetton family. Her net worth is estimated at USD 2 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Mary Perkins" src="/userfiles/images/9%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Mary Perkins</strong></span></div>
					<div>
						Mary Perkins is the richest self-made British businesswoman. Alongside with her husband Douglas Perkins, she co-founded Specsavers in 1984, a leading global retail chain of optics (eyeglasses and contact lenses), hearing equipment and optician services. Born in 1944, Mary was the daughter of an optician who studied optometry at Cardiff University where she met Douglas.</div>
					<div>
						&nbsp;</div>
					<div>
						Specsavers Optical Group Ltd which is fully owned and by Perkins family operates 1,650 stores across the globe. Mary became the first female optician in the UK to receive the title of &quot;Dame Commander of the Most Excellent Order of the British Empire&quot; (DBE) in 2007. She was also included in the list of BBC Radio 4&#39;s 100 most powerful women in the UK. As of 2011, her net worth is estimated at USD 1.15 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yoshiko Shinohara" src="/userfiles/images/10%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Yoshiko Shinohara</strong></span></div>
					<div>
						Yoshiko Shinihora is considered as the most influential Japanese female entrepreneur. At the age of 77, she is currently the chairman and CEO of Tempstaff Co. Ltd, a human resource management and consulting firm that specializes in contingent hiring, job placement along with childcare services. The company operates and provides services to its 59,000 clients across the world including Japan,United States, China, Singapore, India, Indonesia and South Korea. Shinohara started the company as a temporary job recruitment agency with a seed capital of USD 9,000 in 1973 in her apartment after divorcing at the age of 38. At first, she struggled to find clients as she had to lobby against Japan government&#39;s stiff opposition to temporary job placements. Her business flourished in the 1990s as economic downturn coupled with rising deflation forced Japanese companies to abandon long-term job guarantees to their employees. Tempstaff now has 5,000 staffs and earns USD 2.9 billion annually.&nbsp;</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
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			'created' => '2014-03-07',
			'modified' => '2014-05-07',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Women entrepreneurship is gaining importance in Nepal as well. In this issue, NewBiz focuses on the problems, issues, challenges faced by Nepali women entrepreneurs, and ways to overcome them.',
			'sortorder' => '2616',
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	(int) 10 => array(
		'Article' => array(
			'id' => '2583',
			'article_category_id' => '40',
			'title' => 'New Nepal Government Setting The Economic Agenda',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali economy counts on post-election confidence. With the elections for the Constituent Assembly (CA) and the legislature parliament just concluded, general public and business leaders want one thing for certain &ndash; political stability and economic prosperity.</div>
<div>
	&nbsp;</div>
<div>
	Nepali business and consumers have been on a decade-long roller-coaster ride of unstable government with changes in leadership, epic legislative struggles and policy reversals culminating in what has amounted to a mess.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now there are rays of hopes. The return of political stability is expected everywhere. Business community is upbeat by the successful second CA election. As the liberal forces are going to take the helm of the government, all are waiting for a decisive outcome that can provide real relief to people. And, it is the business community which has been waiting for a favourable situation for their business and investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Decoding the Election Result</strong></span></div>
<div>
	People expressed their aspirations and exercised their power during this election to set the progressive course for issues that matter them the most. Interestingly, people filtered those parties who often take to the street to fulfill their demands but fail to deliver when they lead the government.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The victory of Nepali Congress in the urban areas clearly indicates that urban voters favour liberal economy. Similarly, the fact that majority of votes were secured by Nepali Congress reflects people&rsquo;s will to be led by a political party which is in favour of social harmony and cohesion.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say that the business community was terrorized due to the hotpotch federal agenda put forth by UCPN (Maoist) and other ultra-leftist groups in a belligent manner. The recent poll results might have relieved the entire business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Business goes beyond the ethnicity. An entrepreneur from Madhesh has to do business in the hilly region and vice versa,&rdquo; says former finance secretary Rameshore Khanal. &ldquo;Political parties now should raise the issue of &lsquo;economic nationalism&rsquo; instead of creating tensions among various castes and classes,&rdquo; he remarks. In his words, policy stability and policy consistency is more important than caste and regional issues for development and prosperity.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Long Journey&nbsp;</strong></span></div>
<div>
	Nepal became the 147th member of the World Trade Organization (WTO) in 2004. It is now over two decades since the government adopted liberalization and a development model based on private enterprise and foreign investment, with the market forces as a major driver of the economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Yet, the government&rsquo;s initiatives for strengthening the private sector have been illusive over the last decade. With over decade-long experience, it is perhaps time to evaluate the advantages Nepal took from the WTO membership and way forward to get maximum advantages as a WTO member.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is now time to seriously revisit the deep trade deficit Nepal has continued to run, says Bhawani Rana, vice president of FNCCI, one of the private sector umbrella organizations. The new government needs to make an overview of our foreign investment trends and identify policy bottlenecks, she emphasizes.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>We Can, If We Want</strong></span></div>
<div>
	In the early 1990s, the entire business environment was affected due to the people&rsquo;s movement. Democracy was recently restored. The country was in a state of euphoria as all had much expectation from the new democratic government. But the country&rsquo;s economic situation was not good as the overall economic indicators were in the red. Foreign reserve was depleted. In such a situation, Nepali Congress formed the government and was successful to bring economy back on track.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	That was thanks to the fact that one of the proponents of free market economy, Dr Ram Sharan Mahat took charge of the finance ministry. Though opponents blamed him for favouring economic giants, he despite criticism firmly advocated free market economy and that has proved to be the right decision. The country achieved a record high growth of 8.60 percent in the GDP in 1994.</div>
<div>
	&nbsp;</div>
<div>
	The situation after the 2013 election could hardly differ, hope the businessman and ordinary people. The situation is similar and so are the people&rsquo;s expectations. The early 1990s have proved that the economy can revive if the political leadership is committed for that, says economist Dr Jagadish Chandra Pokharel. A revival in confidence is sorely needed if the country is to deal with the slowdown in economic growth, he adds. The new government should facilitate the business environment. Stable policies and investment friendly mechanism help to make a recovery in business confidence, according to him. But, as NC this time is most likely to form the government with CPN-UML as almost equal partner, doubts are high wether the post-1990 miracle can be repeated. When CPN-UML came to power replacing NC during post-1990 period, it had reversed some crucial policies adopted by NC.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Fear Side</strong></span></div>
<div>
	Moreover, the country&rsquo;s economic sector is not completely terror-free. The Baidya-led ultra-left communist party may create troubles for the sake of making its presence feel. Given Nepal&rsquo;s immediate past, communal and caste issues may resonate strongly in the country&rsquo;s psyche, across the wide-ranging social and economic strata. Understandably, left-extremism (including UCPN-Maoist) may try to create trouble given the humiliating loss experienced by them in the latest polls. Though their presence has significantly reduced in the national politics, left-extremism may try to fuel labour issues to create trouble in the industrial relations.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists, however, argue that the economy and its development, and distribution of benefits, are at least as important as the emotional issue about communities, castes and class politics.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s clear that uncertainty over policy regime and regulations has been a hindrance to foster investment climate in the country,&rdquo; says businessman Pashupati Murarka.</div>
<div>
	&nbsp;</div>
<div>
	The only way out from the existing chaotic situation is to create more and more jobs in the country, Murarka reiterates. The country cannot get rid of political instability until the youths are left jobless, he claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Silver Lining&nbsp;</strong></span></div>
<div>
	What are the elements that shape the country&rsquo;s transition from volatile politics to stable democracy? All too often, policy analysts focus on the political process, while neglecting the vital role of economic reform in determining democratic success&nbsp;</div>
<div>
	or failure.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, high unemployment and lack of entrepreneurial opportunities posed serious challenges to Nepal&rsquo;s transition. On the other hand, the country faced growing unresolved grievances caused by issues such as misappropriation of private property, rampant corruption and widening inequality.</div>
<div>
	&nbsp;</div>
<div>
	Yet, there is silver lining. Despite a decade-long political turmoil and armed conflict, the country&rsquo;s economy was good enough to maintain its basic economic indicators in the positive direction. It is for sure that the country will go through a long and complex journey before the current political transition will settle to form a stable democracy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s micro as well as macroeconomic indicators are positive. &ldquo;We have sufficient foreign currency reserves,&rdquo; says joint secretary at the finance ministry Madhu Kumar Marasini. He underlines the need for utilizing the remittance inflow in the productive sector. &ldquo;All we need is proper management of our own resources to open new avenues of development,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;Despite political instability, Nepal has witnessed a noticeable growth in all sectors during the last decade. And, it is sure that the country can improve its economic indicators if we get visionary leadership, claims former finance secretary Rameshore Khanal.</div>
<div>
	&nbsp;</div>
<div>
	Nepal has made significant progress in various sectors including health, education, drinking water and telecommunication which clearly shows that the country&rsquo;s economy is ready to take off and all it needs is a runway to move on.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>The Issue of New Constitution&nbsp;</strong></span></div>
<div>
	Drafting the new constitution is going to be an uphill task. There are many differences among political parties. But, the country cannot bear perennial transition. It is the need of the hour to fulfill the aspirations and dreams of the people in a positive manner.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Underdevelopment creates multiple problems. It fuels the frustration and pessimism among people which is not good for country&rsquo;s economic health. And, politicians often blame the political transition for the dysfunction of development. In order to end the culture of blame game, we need the constitution which can end the existing political fiasco.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The business community wants this government to draft the constitution on time, opines Rajan Singh Bhandari. The economy cannot go ahead in an ad-hoc basis forever. This fact should be realized by all political parties and they need to draft the new constitution and promulgate it within the stipulated time, he adds.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion&nbsp;</strong></span></div>
<div>
	Many leaders often express the hopes of transforming Nepal into another Switzerland. And, it is not a far cry if we try. Can economic prosperity be achieved in a country that reels under perennial political problems? Entrepreneur Hari Bhakta Sharma says, &ldquo;Yes, we can achieve economic prosperity.&rdquo; We can achieve every success if there is collective effort from the government and the private sector and positive vibes for development among people, he claims.&nbsp;</div>
<div>
	It is widely believed that the new government will be successful to take a decisive role to make our collective dream of becoming rich and prosperous a reality. And, we all need to be clear that the economic prosperity is not meant only for business community but for all of us. Let us make a collective dream and start the journey of becoming a prosperous nation. It is a fact: &ldquo;United we stand and divided we fall.&rdquo; Let&rsquo;s make a collective effort to be the citizens of a prosperous country.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Cover Story" src="/userfiles/images/cs1%20(Copy)(3).jpg" style="width: 575px; height: 570px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2014-02-12',
			'modified' => '2014-02-17',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The results of the second Constituent Assembly (CA) election show that parties contesting on very radical economic ideologies have been rejected by the voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in the urban areas across the nation.',
			'sortorder' => '2429',
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	(int) 11 => array(
		'Article' => array(
			'id' => '2443',
			'article_category_id' => '40',
			'title' => 'Partners In Economic Growth',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;">Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? <strong>Achyut Wagle </strong>analyses the challenges and opportunities.</span></div>
<div>
	&nbsp;</div>
<div>
	When we say &#39;engaging development actors&#39; we are talking about hierarchical operational levels like local, district, sub-regional, regional, national, international and global, where each of these levels &nbsp;form a complex matrix of actual actors primarily from five sectors -- the public or government, private or business, civil society, actual beneficiaries or common people and, development partners (donors).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The economic growth is only possible through multidimensional interactions among these different groups of actors that are defined by the recent development literature as multi-stakeholder approach of development. The scope and limitation of the roles of each of these and conflicts and/or complementarities of the interests of these actors, singly or jointly, determines both the scale and the speed of the economic growth of any country, including Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, there is a problem in the definitional level, that is, whether all players in Nepal could be covered by these five categories of development actors mentioned above. Take for example Nepal&#39;s political parties who on their own right want to be the development actors, whereas their role and influence in development domain should either come through the public sector (for those who win the election and form the government) or only as the common people or the beneficiary (until they win the next election). The face of the civil society, if it has any, is not different from that of the political parties. In international practice, donors do not figure out with separate identities, who in Nepal&#39;s case appear even more quintessential actors. These distortions have serious implications both in engaging the development actors in their due roles and also attaining the ultimate results of our development endeavours.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Actors</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. The Government</strong></span></div>
<div>
	It is obvious that we need government for governance, hopefully a good governance. Although Nepal is not an exception among the least developed nations that face the crisis of governance, but one additional dimension in our case is we persistently face deficiency of democracy, perhaps more acutely at present. Nepal&#39;s politics during the last six decades of modern history has invariably been dominated by the dictatorial forces of some form that didn&#39;t believe in pluralistic, competitive democracy. This has been the main source of crisis of governance in general, manifested in the form of rule of force than rule of law, poor growth of institutions and their effectiveness, haphazardly conceived and weakly implemented policies, misuse of the state power by the powerfuls, strong nexus between the crime and law enforcement, utter lack of transparency and rampant corruption in public expenditure, rise of business syndicates and, worst of all, pervasive and persistent impunity. And, the list can on, and on.</div>
<div>
	&nbsp;</div>
<div>
	We don&#39;t have elected local governments at the local and district levels for last one decade, for no tangible reason for this vacuum, except for the height of irresponsibility and imperviousness of the political actors of the country. It should have in fact been the first priority of all particularly after the signing of Comprehensive Peace Treaty seven years ago; as the local governments would have been the best channels to deliver the much touted about peace dividend, many of the economic rights and delivery of the public services at the grassroots. Above all, it would have provided the people at the grassroots with direct access to the state mechanism. One can only imagine at this point, how many of new generation of leaders this process would have produced and how much would it have facilitated the process of proposed federalization of Nepal.</div>
<div>
	Nepal never created democratic government institutions at sub-regional or regional levels. We have bureaucratic arrangements like regional administrators who virtually have no role in economic planning and development except for that of official messengers.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="The Engagement Matrix" src="/userfiles/images/CS2%20(Copy).jpg" style="width: 550px; height: 307px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	At the national level, we have Himalayan scale of policy confusions at development governance. We still have National Planning Commission (NPC) located inside the high walls of Sigha Durbar, that mercifully distributes development to the people of far and wide corners of Nepal. We still believe that the people who live in NPC as if have divine senses to understand the exact development needs of the people living at Tinker and Olangchung Gola and ability to address them from here. The duplication of the roles between the finance ministry and NPC, the constant squabbles and ego-clashes of the mandarins in them is staple national drama. The independence of central bank has always been a mirage, as we saw ten governors in Nepal Rastra Bank in as many years. We never had and, nor will have the possibility of implementing &nbsp;an independent monetary policy of our own in foreseeable future due to &#39;pegging&#39; of Nepali currency with the Indian Rupee.</div>
<div>
	&nbsp;</div>
<div>
	At the international level, Nepal is gradually losing its credibility as a viable economy. We have not been able to organize the Nepal Development Forum, to interact with our international development partners, for the last one decade. Our ability to communicate about our needs with them and prioritize development areas to streamline their support has substantially reduced. &nbsp;The torch-bearers of our economic diplomacy are the political nominees typified, for example, by the recently sacked Nepali ambassador to Qatar. We may talk about FDI, but it has even stopped trickling in. We have also failed to introduce a functional mechanism to make sure that all official foreign assistance is spent through our budget, despite the fact that many of the donors are in favour of such a system.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. The Private Sector</strong></span></div>
<div>
	The post-1990 marked an era that tried to put the private sector in the driving seat of economic growth. The policies of liberalization, privatization and legal as well as institutional reforms initiated by the first elected government after reinstatement of democracy brought about substantial positive changes, the impact of which has withstood violent conflict of a decade. Private airlines, large private sector banks, private hospitals, multiple universities, private investment in communication, information technology and hydropower, and private participation in building infrastructures like roads and irrigation facilities are some of the exemplary outcomes of these policies.</div>
<div>
	&nbsp;</div>
<div>
	But this encouraging trend was abruptly truncated by the armed conflict waged by the Maoists and, after seven long years after cessation of hostilities too, there is no certain sign of putting the policy of private-sector-led growth back on track. The political mayhem we are witnessing even after the second Constituent Assembly elections last month is even more disgusting to say the least.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say, three preconditions for private sector actors to come forward to contribute to economic growth are: ensured private property rights, an appropriate business climate that encourages investment and a predictable policy regime that provides &nbsp;a reasonable time horizon for conceptualizing, executing, operating and if needed closing of the businesses without being unnecessarily anxious about the safety of, as well as, return from the investment.</div>
<div>
	&nbsp;</div>
<div>
	But, the greatest challenge to all of these aspects not only comes at the operational level but at the level of the very philosophy of the strongest of the political forces of Nepal. Confiscation of the private property, politically patronized trade unions disturbing the industrial atmosphere, politically sponsored extortions and sheer unpredictability of the public policies are true bottlenecks for the private sector investment, both foreign and domestic. Consequently, economy suffers from low level of investment and job creation, low level of private sector confidence and, as the result, massive amount of capital flight from the country.</div>
<div>
	&nbsp;</div>
<div>
	Despite all these odds, we must acknowledge the fact that the private sector has constantly been instrumental in the delivery of goods and services at the lowest possible price levels when the presence of government apparatus is as good as non-existent, and even when the armed conflict was at its height.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Civil Society and NGOs</strong></span></div>
<div>
	Nepal&#39;s civil society and the media don&#39;t believe in a long but natural process of the outcome of their activities. The natural role of the civil society or media is to cater the common people with factual information, on the basis of which people form their opinion, and that opinion gets reflected through the ballots. Then comes change through the policies of the mandated government. But, instead, in Nepal they want to be seen as activists and instant impact makers. The NGOs and INGOs strive deliberately to slip-out from the bracket of civil society and claim themselves to be real, grassroots development partners.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The media outlets in general have grown in terms of quantity, quality and reach, whereas NGO activities have become more suspicious and slanted. A large number of INGOs are deeply engaged in spreading this or that religion. . We probably need to re-examine the extent of real contribution of many of such NGOs to the economic growth, development and social harmony of our country.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. The Beneficiaries&nbsp;</strong></span></div>
<div>
	The common people both as actors and true beneficiaries of the economic growth and development efforts are at complete loss of direction. First, the people who are so far completely deprived of any form of meaningful development are not capable of even to identify and articulate their developmental needs. Let me directly quote from a woman whom I had met at Dehimandu of &nbsp;Baitadi, a year ago. In her early thirties, she looked like of fifties, who on top of a heavy load of fodder was carrying two malnourished kids and a pitcherful of water in her arms.</div>
<div>
	&nbsp;</div>
<div>
	When I asked her what did she looked for to ameliorate her sufferings, she first vehemently denied that she had had any suffering and then explained -- she was a happy woman as she could fetch drinking water walking just for 45 minutes whereas she had to spend some one hour in her parental home before marriage, collect fodder from the grassland half an hour away, her two kids out of six she gave birth have, fortunately, survived, her husband who worked in the Indian town of Pithoragarh visits twice a year, her mother-in-law beats her only once or twice a month, she had four cattle and enough land to feed her family for eight months in a year and rest is managed by her husband and his brother. She has plans for sending her kids to nearby school, just two hours of walk, for few years, and then they will follow their father to work in some Indian city. &#39;I am a happy woman and want nothing more,&quot; she emphasized.</div>
<div>
	&nbsp;</div>
<div>
	I don&#39;t think this story needs any further illustration.</div>
<div>
	&nbsp;</div>
<div>
	Second, who know what they want, they too don&#39;t have access to the authorities or knowledge on how to communicate their demands and concerns. Even if some managed to communicate, the end result may just be the same as being idle, ab initio.</div>
<div>
	&nbsp;</div>
<div>
	There is another extreme, where people lately have begun to obstruct the development projects claiming to have absolute ownership of the entire natural resources of their area. The process of participatory development is impeded either way.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. The Donors</strong></span></div>
<div>
	Unlike in other countries, donors for Nepal&#39;s case are imperatively very crucial development actors. It is but natural that the donors, particularly the bilateral ones, have their own interest or agenda in providing the financial assistance to Nepal. The nature of such interest, though, may vary from presenting a mere philanthropic face of the donor in question, influencing in certain policies, providing business to their home companies to increasing diplomatic clout.</div>
<div>
	&nbsp;</div>
<div>
	It is the responsibility of Nepal as a nation-state to identify our needs, prioritize them and explore the areas of possible engagements for the donors where their interest may be served without jeopardizing or compromising our own interests. We often degrade ourselves claiming that we cannot afford to be selective or, to say no. May be true. But we definitely can streamline the support and make them to agree to spend in our projects and programmes chosen by the national budget system.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Foreign Employment" src="/userfiles/images/CS3%20(Copy).jpg" style="width: 550px; height: 330px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	For years, we have tried to formulate a functional foreign aid policy but failed to conclusively frame and effectively implement it. Our absorption capacity of foreign assistance has often been below the &#39;fair&#39; mark and donors seem reluctant to increase and diversify the support mainly due to prolonged political transition and uncertainty coupled with administrative inefficiency. We have often failed to meet the capital expenditure earmarked by our own system that hardly gives incentive to major donors to augment their grant or loan portfolios.</div>
<div>
	&nbsp;</div>
<div>
	We often hear not only engagement but of overengaement of the donors in our development process. They are often alleged of directly interfering in policy making, selection and implementation of the projects etc. Many countries bring in their own experts and repatriate larger chunk of their support back home. Discrimination in pay for the same work between the Nepali staff of same qualification and caliber against their consultants is whopping. Probably Nepal has left more vacuum, not doing proper homework in time to make their engagement more fruitful yet unintrusive.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Dynamics and Correlations</strong></span></div>
<div>
	Let&rsquo;snow dwell briefly on a few key dynamics of Nepali economy. I will touch upon only those areas which appear to be inconsistent in pattern, look paradoxical or needed fresh looks and comparisons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Dynamics of the Human Resource and Migration</strong></span></div>
<div>
	Nepal&#39;s population growth rate now stands at 1.4 percent per annum according to census 2011. Without going into the boring details of numbers, &nbsp;we can say that some of the development indicators certainly show that we have made very impressive progress in terms of increasing the primary school enrollment, literacy and life expectancy, reducing child and maternal mortality rates, increasing access to health and transport services etc.</div>
<div>
	&nbsp;</div>
<div>
	But with regard to human resource development, we are caught in a very awkward position. About one third of the working age population (or about twelve percent of the total population) has out-migrated to foreign employment, mainly in menial jobs. Better educated too, have migrated to developed countries, majority of them with a set mind to permanently settle in the destination countries.</div>
<div>
	&nbsp;</div>
<div>
	It is an interesting paradox that migrated unskilled and uneducated youths are sending their entire earning back to Nepal and the remittances thus received have saved Nepali economy for at least a decade now from potentially falling into acute balance of payment crisis. On the contrary, the educated lot is not only migrating but also taking a hefty sum, on an average forex equivalent of about 35 billion rupees every year, from the national coffers towards tuition, travel and accommodation costs.</div>
<div>
	&nbsp;</div>
<div>
	In a rough calculation, to create a university graduate with sixteen years of education in private institution at present prices costs the nation between 5 to 6 million rupees. And, the return to the nation is clearly zero when one migrates never to come back. It is another paradox that the poor country like Nepal is investing so heavily in human resource to be used solely by the developed countries. The cost-benefit comparison shows that after such a big investment in education, it is unfeasible for them to stay in Nepal and get the cost returned given the lack of opportunities and relatively unattractive pays here.</div>
<div>
	&nbsp;</div>
<div>
	Then, left here in Nepal are true mediocres, who have spent less, studying in community schools, compelled to be contended with low rate of return and perform far below than the average. Nepali civil service is the true mirror of this phenomenon. If the trend of migration is not reversed, very soon Nepal will lack the required human resource of both low and high end skills. This is likely to have serious repercussion in national output. A trend is already visible in sectors like metal and construction works.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Direction of Foreign Trade" src="/userfiles/images/CS4%20(Copy).jpg" style="width: 550px; height: 429px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Dynamics of Foreign Trade and Remittances</strong></span></div>
<div>
	Nepal&#39;s trade deficit stood at scary level of 500 billion rupees in the last fiscal year (2012/13). Official figures show that export to import ratio was 1:6, whereas unofficial estimates suggest that such ratio should stand at 1:10. The accompanying table is self explanatory.</div>
<div>
	&nbsp;</div>
<div>
	In the last FY, Nepal received about 435 billion equivalent of remittances from the migrant workers. This definitely has put Nepal in comfortable level of forex reserve. But, a comparison of trade and remittance data suggests that our economy is heading to a very dangerous trend of the Dutch Disease like effect. Our consumption has been fueled by the remittance income of the households, which in turn is widening the export-import gap. Our productive sector is paralyzed for lack of power, human resource and investment. Our imports are largely consumables, perishables but hardly the production inputs. This apparently is unsustainable, dangerous trend. We need to re-identify Nepali goods that can have comparative and competitive advantage in the export market. At the same time, we must be able to diversify both export and import trade.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Dynamics of Growth and Poverty</strong></span></div>
<div>
	Nepal&#39;s average annual GDP growth rate during the last fifteen years has remained barely at 3.5 &nbsp;percent level. But, in the same period, the headcount poverty, the percentage of the population living below $1 dollar a day poverty line at PPP has unbelievably reduced from 58 percent in 1996 to 25 percent in 2011. What we are effectively saying here is that the poverty can be reduced without growth. In other words, we are challenging the existing theories that correlate growth and poverty and suggesting a completely new economic paradigm on both growth and poverty reduction. This is impossible. The government&#39;s development literature attributes this as the effect of the increased inflow of the remittances. Again, if that is the case too, we are saying that the remittances do not contribute to the economic growth but reduce poverty. This is equivalent to proposing an absolutely new economic theory.</div>
<div>
	&nbsp;</div>
<div>
	In countries like India and Argentina some 30 percent people still live under the poverty line. Mexico has 28 percent people under this magic line. It appears that we are very fast approaching to the United States which still has 15.1 percent people living under the poverty line, according to the World Bank data of 2011. All these are impossible and counter-intuitive arguments and one single conclusion of this is: what we are saying is not credible. On the one hand, we are saying that graduating a country from the least developed to a developing one is a highly ambitious enterprise, on the other our poverty data shows that we are already in far higher position than many of G-20 countries.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Investment and Infrastructure</strong></span></div>
<div>
	The private sector investment both domestic and FDI are in declining trend. The foreign direct investment of Rs. 9.08 billion was recorded in FY 2012/13compared to Rs. 9.20 billion in the previous year. The intent of investing about Rs. 39 billion was proposed by domestic entrepreneurs in the same year, which is less by some seven percent than the previous year. Apart from this, an investment of Rs 100 billion has been proposed for the hydel projects expected to be completed in next five years.</div>
<div>
	&nbsp;</div>
<div>
	One of the very encouraging developments is that the private sector has more aggressively come forward to invest in infrastructure than ever, not only in power but also in the telecommunications, surface transportation and airports. There are a number of large J-V projects in hydropower like Upper Karnali, Upper Seti and Arun III, at different stages of development. Yet, they have constantly been victim of political bickerings and protracted decision making process in the bureaucracy.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/CS1%20(Copy)(1).jpg" style="width: 550px; height: 367px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Very shaky political climate is main distraction to investment, both domestic and foreign.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. Agriculture and Manufacturing</strong></span></div>
<div>
	Our experience suggests that Nepal is not faring well in the manufacturing. Many products we tried could not compete with Indian and Chinese goods that are in instant supply and cheaper for the reasons of mass production and use mostly of their own raw materials. But on the contrary, Nepal has fared well in our niche products like hand-spun dhaaka and pashmina, handicrafts and herbs where there is our backward link in production and possibility of substantive value addition.</div>
<div>
	&nbsp;</div>
<div>
	The manufacturing industries that use Nepali agricultural products have seemingly given better returns to investment. The commercialization of agriculture itself presents real prospects for investment, perhaps in a scale thus far not even imagined of. Off-season farming of cash-crops and commercial farming of valuable herbs can open new avenues in the agriculture sector. Added road links to provide market access should be able to attract new investment for processing, phyto-sanitation and storage facilities. But, we often get carried away by the documentary camouflages like Agriculture Perspective Plan (APP), which presented every possible good plan for agricultural growth without any mention about the land where farming would be done. This was truly a plan made to farm in the air. Just an example.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>6. The Service Sector &amp; Growth Linkage</strong></span></div>
<div>
	Two sectors, financial services and tourism have exhibited very promising trend both in terms of attracting substantial amount of investment and promising good rate of returns. The financial sector now mobilizes about Rs 1.1 trillion of deposits and Rs. 0.9 trillion as loans and investments. The growth in the sub-sectors of insurance, stocks and commodities has also been impressive. But the hard fact is, Nepal&#39;s entire banking sector even jointly doesn&#39;t have liquidity enough to finance a medium-scale hydro project of say of 200 MW. Similar is the situation of insurance companies to provide insurance cover to these projects if they opted to insure. We don&#39;t have a domestic reinsurer, yet.</div>
<div>
	&nbsp;</div>
<div>
	Areas like transportation services have also expanded, along with the increased road networks. The tourism infrastructure is growing steadily. Health and education services by now have national reach due to private sector investment. But the issue here is: how do we make the expansion of these sectors contributory to the overall economic growth of the country? Anomalies like in these sectors have rather added new problems. For example, the over exposure of the banking credit in the real-estate has fueled inflation, created large portfolio of NPA in the industry and put &nbsp;the balance-sheet of a number of banks in a very bad shape for a number of years.</div>
<div>
	&nbsp;</div>
<div>
	The transportation facilities can contribute more if they provided easier market access to the products and supported supply of inputs to increase the production and add value to them. But, largely, the scenario is just opposite.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>7. Choice between Improved Subsistence &amp; Prosperity</strong></span></div>
<div>
	There has been virtual explosion in small scale development initiatives like solar and micro hydro for rural electrification, NGO-led rights based development and awareness campaigns, literacy classes, skill development and self-employment schemes, community or gender-focused empowerment programmes etc. Policies of reservation, inclusion and positive discrimination are now widely debated. These definitely are good things.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But we need to link these activities with our main objective. If our prime aim is a little improvement in the bare subsistence life-style and help reduce abject poverty, these are definitely the ways we should invest and focus on. But if our aim is tangible economic growth that can also compensate to the lost opportunity of decades, we need higher degree of commitment, massive investment and multi-stakeholder engagement at all possible levels, as we discussed about. By now, it is apparent that these small things may be beautiful in facilitating poorest of the poor to live relatively a better life, but seldom enough to effectively speed-up the economic growth and overall prosperity and well-being of the entire population. When we can uplift the living standard of every citizen, universally ensure education and employment, issues of inclusion and reservations automatically become redundant.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Choice" src="/userfiles/images/CD2%20(Copy).jpg" style="width: 550px; height: 413px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Engagement: Process &amp; Paradigm</strong></span></div>
<div>
	&#39;Engaging Overall Partners&#39; is a great concept and also an absolute imperative. But engaging multi-stakeholders with varying, often conflicting, interests is an equally challenging proposition. It perhaps requires a different development culture than Nepal is practicing now. We need both formal and informal common forums, factual information and access to them, effective communication amongst all stakeholders in multitude of directions, &nbsp;reasonable level of credible independent research to ascertain what is working and what is not and, of course, a unity of purpose at the macro level of objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Some key components that can be instrumental in enhancing such engagement can be as follows:</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Discourse</strong></span></div>
<div>
	Nepal utterly lacks any form of meaningful discourse, at any level on economic, financial and developmental issues, except for some media reports and limited number of seminars that take place, here and there. Such discourses should have taken place at three different arenas -- the political parties, policy making units and the academia. And, they should.</div>
<div>
	&nbsp;</div>
<div>
	Since the political parties are the one who govern the country, the economic policy of each major one of them is important tool to make people understand their means and ends of the economic growth and development. Such policy of each party, ideally, should be framed through fully democratic debate at all levels of the respective party organizations; and reflected in their manifestoes. But, this is not at all the case. Except for a couple of leaders in each major party who understand economic issues, the entire outfits are virtually illiterate about the economy, its components and trends. Worst of all, none of these parties have understood the importance of such debate and need to initiate them sooner than later.</div>
<div>
	&nbsp;</div>
<div>
	At the policy making level, trained economists are rare species. A couple of recent finance ministers, for example, were undergrads in subjects other than economics. Bureaucrats have more incentive in appeasing their bosses in any possible way but professionalism. They lack refreshment trainings, more so in economic issues. The redundancy of their rusted ideas gets amply reflected in the so-called new but essentially archaic policies. It is one of the main reasons that our economic policies seldom work.</div>
<div>
	&nbsp;</div>
<div>
	Both of the deficiencies in political and bureaucratic levels should have been bridged by the discourse at academic level. But, unfortunately, in Nepal such discourse is completely absent. A few academics who have made some name as economists have limited themselves in the role of consultants to INGOs and impartial viewpoints about national economy are non-existent. The reluctance of newer universities to institute the department of economics is indicative enough to explain the predicament.</div>
<div>
	&nbsp;</div>
<div>
	Discourses at stakeholders&#39; level, on the topics suitably designed to them are another striking need. At the donors&#39; level, they seem to have instituted a loose network, but its effectiveness as a debate forum on the core economic issues is still beyond the public knowledge.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Research</strong></span></div>
<div>
	For meaningful engagement at any level, credible data are the primary need. The factual information only can ascertain the scope of participation for each stakeholder. But, whenever we try to talk about any aspect of Nepali economy, we immediately loose thread for lack of proper data and absence of conclusions drawn out by properly analyzing them. As mentioned above, we have contradictory and unbelievable or just tentative figures even on cardinal data like GDP, inflation, unemployment and trade. All comparison and correlation conclusions, like I made above, are largely heuristic. We have no option citing whatever the government agencies like the National Planning Commission, Nepal Rastra Bank or Finance Ministry cook in the name of research and analysis. The nation hardly invests anything in research. There are not independent, credible and well-equipped institutions to carryout research in multi-dimensional aspects of the economy and its trends. Such large scale researches need substantial resources and experts right from the stage of research design to econometric analysis and interpretation of those results. There must be somebody to invest on them.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Reform</strong></span></div>
<div>
	The policy and institutional reforms are other important areas that ensure participatory engagement among the development actors. The continuous process of policy reforms provide opportunity to accommodate the emerging needs, practically realized in the development processes at different levels. The institutional reforms increase the functionality of the actors and replicability of the good practices. Nepal also greatly lags behind in undertaking reforms that are due for long time. Some multi-donor sectoral approaches (SAps) in education and health sectors have delivered impressive results. If similar policy as well as institutional frameworks can be extended to include other possible actors in more sectors, that is likely to increase the portfolio efficiency.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Streamlining</strong></span></div>
<div>
	It is important to understand, when we engage multiple stakeholders, it is natural to have varying interests, priorities, methodologies and objectives to come to fore. Without streamlining them, the national objective of economic prosperity is impossible to achieve. Extensive exercises of benchmarking, clustering, grading and ranking are the necessary part of this process. This can greatly reduce the duplication or omission of many of development endeavours; thereby increase the allocative efficiency of resources. A national focal point, a functional unit, not a generic large structure like a ministry, is internationally adopted practice. At times, when the government agencies try to do it, there are instances of conflicts between the different actors. Therefore, such tasks could be outsourced to some independent professional entity with established, proven credibility.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. &nbsp;Good Faith</strong></span></div>
<div>
	All forms of engagements are only possible if the actors are committed to support in good faith on single objectives of economic growth and development of Nepal. The source of good faith is the spirit of democracy that respects the plurality of views, culture of agreeing to disagree and readiness to be partner in the process than to be a savior or ruler. We all have our interests. Sacrifice of a small portion of it by each actor might create a large space for engagement and cooperation and also help serve our own interests better while helping others to serve their own.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em>&nbsp;(Based on paper presented by the author, in IVAAN seminar, 7th Dec 2013 in Kathmandu.)</em></div>',
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			'description' => 'Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? Achyut Wagle analyses the challenges and opportunities.',
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			'id' => '2310',
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			'title' => 'New Nepali ‘Laissez Faire’ How Strong? How Long?',
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			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.</div>
<div>
	&nbsp;</div>
<div>
	There is hope in the air. Seven out of every ten Nepalis on the voters&rsquo; list of Nepal have exercised their franchise. And, six out of every ten Nepalis who have voted have gone for centrist and liberal left political forces (Nepali Congress &amp; CPN UML), while virtually rejecting the far left polls-boycotting so-called 33-party alliance, the radical left Maoists led by Prachanda, and the rightist regional forces of Madheshis and far right RPP forces.</div>
<div>
	&nbsp;</div>
<div>
	The message is clear. Enough of politicking, now make the polity firm and economy firmer. Create a business environment that is conducive to entrepreneurs, to foreign direct investment and to rapid employment generation.</div>
<div>
	&nbsp;</div>
<div>
	New Business Age interacted with several experts and noted people from various walks of life to ascertain the mood of the nation with regards to the economy of tomorrow.</div>
<div>
	&nbsp;</div>
<div>
	There is surely a high hope that the newly elected CA-Parliament will draft the new constitution that would introduce new economic policies that would propel the country toward the positive direction and we could witness the inevitable growth and development of the country coming with a stable economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Eminent economist Rameshore &nbsp;Khanal, the former Finance Secretary sums up the spirit rightly, &ldquo;The Constituent Assembly election results show parties contesting on conservative economic ideologies have been rejected by voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in urban areas across the nation. People expressed their aspirations and exercised their power during this election so as to set the progressive course for issues that matter them the most.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The defeat of the Maoists and the regional forces is also seen as the defeat of the federalist agenda. Khanal further notes, &ldquo;In fact, business community was terrorized due to ethnicity-based federal agenda put forth by UCPN Maoist,&rdquo; he said, adding that the recent poll results might have relieved the entire business community. More than 90 per cent businessmen do not want federalism based on ethnicity because they cannot do good business amid ethnic tensions. The entire business environment would be more volatile if political parties that favour regional and ethnic agenda had won the election&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Kamlesh Kumar Agrawal, the General Secretary of Nepal Chamber of Commerce, observe, &ldquo;Clear mandate for the centrist parties is a good sign indeed, and a major difference from the last CA election result. Now is the time for them to fulfill their promises of economic revolution or rapid development&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Shekhar Golchha, the President of Nepal Automobile Dealers&rsquo; Association, is visibly happy with the turnout, the peaceful polls and the results emerging out of the process. He is satisfied that while issues of federalism, sub-national identity etc found limited mention in election manifestos of most parties, the focus has rightly been on economic aspects and stability of the polity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bhaskar Raj Rajkarnikar, the Senior Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), is confident that the new Constitution shall finally be put in place in Nepal now. And the government shall now work firmly towards creating investment-friendly environment in the country. However, he also strongly espouses the need to have local governance bodies as well.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election " src="/userfiles/images/cs1%20(Copy)(2).jpg" style="width: 550px; height: 209px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Common Minimum Economic Agenda</strong></span></div>
<div>
	It would be pertinent to mention here that the five recent former Prime Ministers of Nepal (Madhav Nepal and Jhalanath Khanal of CPN UML, Sher Bahadur Deuba of Nepali Congress, and Pushpa Kamal Dahal and Dr Baburam Bhattarai of UCPN Maoist) came on the same platform of Nepal Leadership Summit created in Birgunj by the Birgunj Chamber of Commerce and Industry and New Business Age group, and at the end of their deliberations on Economic Growth Roadmap of Nepal for the next one decade, they had signed a 12-point Common Minimum Economic Agenda, which included several fundamental issues.</div>
<div>
	&nbsp;</div>
<div>
	The Declaration noted that the ratifying five leaders commit to give priority to the national economic agenda rather than their respective party agenda in national interests, and also to end the current uneasy industrial relations in favour of productivity, and bring in a new labour and industrial policy conducive to overall economic development. The leaders firmly were committed to individual property rights, the important role of the private sector in the economy, and to an environment to attract rapid FDI in Nepali industries.</div>
<div>
	&nbsp;</div>
<div>
	A sampling of the core issues taken up in the talks by these leaders: &ldquo;Unhindered power supply is the pre-condition for economic development, in which the government should not run businesses, but just be the regulator,&rdquo; Sher Bahadur Deuba; &ldquo;Green economy the focus of economic development,&rdquo; Madhav Nepal; &ldquo;Agriculture, regional market and infrastructure development for economic prosperity,&rdquo; Jhala Nath Khanal; &ldquo;Foreign investment urgently required, and economic revolution with justifiable distribution must,&rdquo; Dr Baburam Bhattarai; &ldquo;Time for economic revolution, in which agriculture is the base, and production, construction and development going hand in hand,&rdquo; Pushpa Kamal Dahal.</div>
<div>
	&nbsp;</div>
<div>
	Today, since three of these former PMs are the top leaders of the top two parties, Nepali Congress and CPN UML, getting support of above 50% of the voters who exercised their franchise, this itself can be the first corner-stone of economic policy-making of Nepal next.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election Nepal" src="/userfiles/images/cs2%20(Copy)(1).jpg" style="width: 550px; height: 355px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Securing Private Property</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Narottam Aryal, Educationist" src="/userfiles/images/cs3%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 259px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Narottam Aryal</strong></div>
						<div>
							<em>Educationist</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	The first and the biggest concern is of security of private property and business.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The new constitution MUST acknowledge the role of private sector in the national development and ensure the property rights and should guarantee its security,&rdquo; notes Narottam Aryal, an educationist leading the forum of Nepali colleges affiliated to foreign universities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similar voice is echoed by the Manager (Business Development), Chaudhary Group, Roshee Lamichhane, &ldquo;There is an urgent need to espouse and introduce economic reforms in Nepal with their principal focus on Private Property holding, freedom for entrepreneurial innovation, and abolishing cartel systems.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Employment Generation</strong></span></div>
<div>
	Property rights apart, the next big concern is naturally of employment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to Central Bureau of Statistics, the unemployment rate stands at an alarming 46 percent. The only ambition that most young people have is to leave Nepal and a couple of thousands of young people get on planes every day and fly to the Middle East, South East Asia, Europe and beyond to find jobs. However, there is a huge potential of jobs within the country itself. &ldquo;To address this issue to a larger extent I believe private sectors should be promoted to play a vital role in the growth of national economy and in creating new employment opportunities as it is the only sector that remains the single largest employer,&rdquo; notes Amit Giri, CEO of International Centre of Academics focused on the task of taking higher education through distance and online learning mode to working people of Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Limiting Government Role in Business</strong></span></div>
<div>
	A well-known axiom states that the business of government is not to do business. The government has to define in a very clear and precise terms the roles and responsibilities and limit of the state and roles of the private sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Educationist Narottam Aryal of King&rsquo;s College notes in this context, &ldquo;I think that there is still a huge confusion on this front in Nepal. I think that the Government should limit itself to building infrastructure, creating maintaining legal institutions, maintain law and order and peace, and education and health. For the rest of the things the Government must create an enabling environment for the private sector. The new government must bring the programs to promote youth entrepreneurship with a special focus on agriculture and tourism.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Agriculture: the Mainstay of the Economy</strong></span></div>
<div>
	Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Amit Giri calls for policies that allow agrarian credit, market forces to help develop agri-business and conducive environment ensured by the government for the same.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Infra-structure Leap: Backbone for Industrialization to follow</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Bijay Rajbhandary, Managing Director CE Construction Pvt Ltd" src="/userfiles/images/cs4%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 223px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Bijay Rajbhandary</strong></div>
						<div>
							<em>Managing Director</em></div>
						<div>
							<em>CE Construction Pvt Ltd</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;Infrastructure development is a basic tool to upgrade the country&rsquo;s economic activities, hence there has to be special policies to accelerate the development activities. Real Estate sector, despite its significant contribution in country&rsquo;s economy is highly fragmented and disorganized. Hence, in order to strengthen this sector, it should be treated as an industry and proper norms and policies should be formulated protecting the interest of this industry, Policies need to be introduced for allowing the foreigners to buy apartments in Nepal with $ 100,000 ceiling but through foreign currency to help boost foreign currency reserves in Nepal,&rdquo; notes Bijay Rajbhandary, the Managing Director of CE Constructions, a leading realtor of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is worthwhile to note that though more than 10,000 kms of roads have been blacktopped, at least another 10,000 kms need to be done so out of the 40,000 kms of graveled roads to help push business through ground transport.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Power Surplus Nepal</strong></span></div>
<div>
	Former Finance Secretary, Rameshore Khanal, is bang on, when he says, &ldquo;New government should focus on power generation to boost the production since the overall productivity of the country has been affected due to the condition of power deficit. &nbsp;Also, new government should immediately forward some laws related to economy including banking, electricity, industries among others and it should bring special measures to attract more foreign direct investment.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Bijay Rajbhandary echoes the same spirit when he says, &ldquo;Needless to mention, our country is reeling under the acute energy crisis, and in the light of the fact that Nepal has the capacity to generate hydropower sufficient to export, apart from internal consumption, there has to be some special arrangement from the government side to ensure that such projects are protected from any kind of hindrances, be that political or social.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	A nation with more than 80,000 MW of hydel power producing capacity, and with immense solar and biomass power resources, has less than 1000 MW of installed capacity. Nothing can be a larger wastage of resources than this, indeed.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Power Surplus Nepal movement, engulfing enabling policy-making by the government, active domestic and foreign direct investment in this sector, a pro-active media influencing public opinion towards it and a dynamic bureaucracy, has to be the primary national mission today,&rdquo; notes journalist Janardan Baral.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Investments: Domestic and Foreign</strong></span></div>
<div>
	&ldquo;There are lots of investments currently held up with the hope of much anticipated stability. The election result clearly embraces free market economy and has rejected federalism based on ethnic provinces (showing inclination towards economic development). Militant workers&rsquo; union affiliation is assumed weakened that gives hope for local industries that have suffered over a decade. I have reasons to hope these foundations will be addressed in the Constitution. I hope the government will vigorously implement promises, focus on stability, invest in infrastructure and recoup the lost decade of dark era. All this will boost investor confidence that will take the country to a much awaited, rather needed, growth trajectory,&rdquo; notes Managing Partner of Mathema + Partners, an architectural firm Ajaya Mathema.</div>
<div>
	&nbsp;</div>
<div>
	Taking the discourse to the policy level, Bijay Rajbhandary says, &ldquo; We need clear-cut policy for Foreign Direct Investment in Nepal that would allow a good influx of foreign capital along with their expertise that would create a good development as well as job opportunities within Nepal. Likewise, we also need a policy allowing Nepali investment in foreign land in order to explore and exploit the growth opportunities present in those countries.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Educated, Trained Nepal</strong></span></div>
<div>
	&ldquo;A major focus in the new Nepal should be on providing free and quality primary and secondary public education to all as the research shows that access to secondary education (grades 9-12) remains a major challenge, as evidenced by the disturbingly low net enrollment rate of 24 percent at this level. More than half of primary students do not enter secondary schools, and only one-half of them complete secondary schooling. In addition, fewer girls than boys join secondary schools and, among those who do join, fewer complete the 10th grade. Girls should be encouraged more to study as I believe that when a girl gets educated a family gets educated and when a family gets educated the society gets educated. Hence, the country gets educated. Alongside, to make higher education accessible at every Nepali, liberalization of the education sector leading to more and private Universities and even Distance and Open Learning Universities need to be allowed by the government changing the current policy regime in this context,&rdquo; notes Amit Giri.</div>
<div>
	&nbsp;</div>
<div>
	Focusing on systemic changes within the sphere of public education in Nepal, Bijay Rajbhandary notes, &ldquo;Education sector must be secluded from any kind of political interference at all levels. Besides, teaching methodologies also need to be amended giving more emphasize on general and practical knowledge and skill development rather than making it exam focused&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Media &amp; Entertainment Sector</strong></span></div>
<div>
	Narayan Puri, noted film-maker and the CEO of Himalaya TV, speaking on expectations of the entertainment sector, says, &ldquo;We&rsquo;ve been waiting for development in our industry as well. There must be given soft loan for this industry in low interest, which can happen if this sector is recognized formally as an industry by the government. We need electricity facilities as other normal industries. Further, the owners of entertainment enterprises are often been made hostage by the workers on minor issues and no security is provided for the investors. There has to be strict policy in this regard. This is largely a non-profit business as well as social awareness and information providing business. And, hence, the government should provide subsidy for this business. Different new technical equipments are required in this business so government must tax rebates in this sector. Any kind of media which gives awareness and information to the public about education, public health, etc must be encouraged by the government.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Tourism Promises</strong></span></div>
<div>
	&ldquo;With Nepal having abundant scenic beauty is already attracting many tourists from across the world but there could be an added milestone in this line with some development in tourism sector by adding Health tourism and Religious Tourism in the existing portfolio,&rsquo; Bijay Rajbhandary notes.</div>
<div>
	&nbsp;</div>
<div>
	With airborne tourists still less than a million in Nepal, and per capita spending of tourists coming below USD 40 a day, there is a long way to go indeed. Power supply, better infra-structure, better hygiene, new destinations, integrated promotion of Nepal tourism in select markets with focus on digital communication, along with enabling policy encouraging FDI in tourism as well from the government end will help make Nepal move higher from the current 112th position in world tourism revenues of nations.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Ashok Pokharel, the President of Nepal Association of Tour Operators, say, &ldquo;Peace, security and physical infra-structure are the hall-marks of rapid tourism growth.&rdquo; Buddhist centre of Lumbini and leading Himalayan destination Pokhara surely need international air connectivity, while Kathmandu needs faster upgradation of road infrastructure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>The Last Word</strong></span></div>
<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Roshee Lamichhane, Manager, CG" src="/userfiles/images/cs5%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 224px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Roshee Lamichhane</strong></div>
						<div>
							Manager, CG</div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;I favour national consensus government should be formed for stability in the political arena&rdquo;, says Rameshore Khanal. And the national consensus government can be created only by bringing the top two largely centrist parties closer, rather together, in their mission, Nepali Congress and CPN UML, he adds.</div>
<div>
	&nbsp;</div>
<div>
	CG Manager Roshee Lamichhane, a representative young voice, notes, &ldquo;New government should therefore ensure that the benefits of economic growth and development are not going to be cornered away by few influential people and businessmen or politicians but are going to be conferred among the masses and the new political regime operates the economy to make it become and remain vibrant with employment opportunities and marketable surplus. I can only envision an ever growing economy wherein the government can satisfy the Nepal&rsquo;s appetite for good food, well served, at a price that even common man can afford.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Taking the discussion to another level, Ajaya Ghimire, Chairman, Ace Institute of Management, says, &ldquo;I do hope however that a constitution will be written within two years. It will embrace periodic elections allowing people to choose who will govern the state. It will also embrace freedom of expressions and freedom of economic activity and constitutional right of the individual against state oppressions. &nbsp;But for people to truly experience those rights and freedom, we will have to wait for our society to evolve from its present feudal mindset.&rdquo; Prophetic, quintessential aspiration of the moment.</div>',
			'published' => true,
			'created' => '2013-12-20',
			'modified' => '2014-01-19',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.',
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		'Article' => array(
			'id' => '2178',
			'article_category_id' => '40',
			'title' => 'Tourism Next In Nepal Vision Ahead',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Premium positioning for higher revenues, advanced infra-structure &amp; larger domestic and foreign direct investment are the mainstay of Nepali Tourism Next, whereas Nepal already excels in authentic and ethnic route to tourism, notes <strong>Prof. Ujjwal K Chowdhury.</strong></span></em></div>
<div>
	&nbsp;</div>
<div>
	The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion. One out of every seven persons travelled to another nation in 2012 and 1 out of every 11 adults of the world is engaged in tourism industry. Emergence of new travel destinations and innovative approaches for catering to the needs of the industry, provides it with the potential to be an important component of the national economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In light of these facts, the New Business Age reviewed the present standing and potential sectors of Nepali Tourism industry and the lessons that the industry could learn from countries including India, Malaysia, Bhutan, Middle East, et al.</div>
<div>
	&nbsp;</div>
<div>
	An international symposium entitled &ldquo;Understanding Tourism and Aviation Next in Nepal&rdquo;, participated by niche experts from India, Malaysia and Nepal itself, was organized in Kathmandu in September this year. This symposium jointly organized by New Business age and Hotel Del&rsquo; Annapurna and sponsored by Qatar Airways and Ace Travels, &nbsp;focused on: raising service standards; creating premium brand of experiential tourism apart from the existing largely value-for-money backpackers&rsquo; tourism; positioning of exotic Nepal; upgrading the tourism and hospitality infra-structure: adding new international airport, additional terminals and new air-routes; and increasing domestic and foreign investments in tourism services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Tourism Next Inaugration" src="/userfiles/images/cs1%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 336px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<div style="text-align: center;">
							<strong>Secretary of the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire,inaugurating Tourism and Aviation Next 2013. (From left) New Business Age Pvt Ltd Chairman Madan Lamsal, Incredible India pioneer Amitabh Kant and South Asia Director of Tourism Malaysia Amran Abdul Rahman.</strong></div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Goal: 5% of GDP by 2080 BS</strong></span></div>
<div>
	As the opening speaker, Secretary at the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire elaborated on how Nepal aims to achieve tourism turnover equal to 5% of the GDP by 2080 BS. Presently the turnover is less than 2%. Secondly, Ghimire focused on strengthening the capacity of national flag bearer, Nepal Airlines and claimed that the ministry is working towards that end. &nbsp;He laid stress on accessing all major stake-holders&rsquo; views while preparing a long-term future course for a private sector driven domain like that of tourism &amp; aviation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Following Ghimire, key participants from India and Malaysia shared their experience and case studies on how their respective nations took their tourism industry to next level. Key giveaways of their presentations follow:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Case-studies: India &amp; Malaysia</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>INDIA</strong></span></div>
<div>
	The former Tourism Secretary of India and of Kerala state, and the man behind &ldquo;Incredible India&rdquo; and &ldquo;God&rsquo;s Own Country Kerala&rdquo; branding, Amitabh Kant, lamented that the positioning, branding and pricing of an otherwise high-end premium exotic destination like Nepal has been actually very low. He rued that the focus has been on low-end mass tourism in Nepal (however the arrival number has not yet touched a million), while it now needs to be on niche high-end tourism promotion with a clear positioning.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Noting that more than 1 billion people are travelling and almost 9% of the global GDP has been in tourism across the world, he said, Nepal needs to catch up with this burgeoning industry. Moving from sun-sand-sea focused tourism, globally travelers are looking at authentic experience now and Nepal has a huge advantage in it. Referring to the lessons learned from &ldquo;Incredible India&rdquo; campaign, he noted that to take Nepal to the next level in this sector, unique positioning and integrated marketing communication strategy and plan are a must.</div>
<div>
	&nbsp;</div>
<div>
	Kant ended expounding 6Cs for a holistic tourism development approach: civic governance, capacity building, communication strategy, convergence, community participation, and civil aviation.</div>
<div>
	&nbsp;</div>
<div>
	He expanded the concept that in every crisis there is an opportunity. During the onset of the &ldquo;Incredible India&rdquo; campaign, there were several crises going through India and the world. The 9/11 attack on the World Trade Centre (WTC), the Gujarat earthquake, the coalition force war in Afghanistan, attack on the Indian Parliament, etc, were the stories of the day. India was then very low in several aspects of the travel trade competitive index.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite these setbacks, the unique positioning of &ldquo;Incredible India&rdquo; was taken up, and international consumers were reached directly through exhaustive campaigns, consistent communication, public relations in travel media, and documentaries in television channels. The results started showing up. During this phase, India strategically positioned tourism as a major engine of economic growth, harnessed the direct and multiplier effects of tourism for employment generation, focused on domestic tourism as a major driver of tourism growth (India being a large nation), positioned India as a global brand, acknowledged the critical role of the private sector, and, finally, created and developed integrated tourism circuits based on India&rsquo;s unique civilization (like the Golden Triangle of Delhi-Jaipur-Agra, the Buddhist circuit of Gaya-Ajanta-Ellora, the sun-sand-sea tourism of Goa-Pondicherry, etc).</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Kerala, India" src="/userfiles/images/cs2%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Kerala, India</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	Some key strategies and actions taken during the last ten years for increasing the expansion and impact of the &ldquo;Incredible India&rdquo; campaign are:</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Integrated communication strategy with the aim of promoting India as a destination of choice for travelling from 2002.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Showcasing different aspects of Indian culture and history like yoga, spirituality, etc.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2008, the Ministry of Tourism launched a campaign targeted at the local population. Aamir Khan endorsed the campaign &lsquo;Atithidevo Bhava&lsquo; (Guests are like God).&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2009, Minister of Tourism, Kumari Selja further extended the &ldquo;Incredible India&rdquo; campaign at the domestic level. Of the total USD 200 million budget, USD 12 million was allocated for promoting domestic tourism that year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Result</strong></span></div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2000 India&rsquo;s share of the world&rsquo;s tourism income was 0.5% but by March 2013 the share soared to 1.7%.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>MALAYSIA</strong></span></div>
<div>
	The South Asia Director of Tourism Malaysia, Amran Abdul Rahman, elaborated on how Malaysia moved away from &lsquo;Coca-Cola tourism&rsquo; and how it became a major tourist destination from an &lsquo;add-on&rsquo; tourist destination for Singaporean tourists, two decades earlier.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation received 13 million visitors in 2003 and 25 million visitors in 2012. The target of 2014, declared as the Visit Malaysia Year, is now 36 million visitors with USD 44 billion income.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Elaborating on the key factors that assisted in gaining such results, Rahman said, Malaysia could achieve this success due to infrastructure growth including the remarkable makeover of Kuala Lumpur Airport, changing mindset of the people and government with tourism coming under direct special supervision of the Prime Minister, heavy promotion of rural Malaysia while ensuring ethnic amity, and focusing on MICE (Meetings, Incentives, Convention and Exhibitions) tourism events heavily.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Malaysia" src="/userfiles/images/cs3%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Malaysia</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Next: Branding&nbsp;and Capacity-building are Key Drivers</strong></span></div>
<div>
	The Tourism Next panel, a panel comprising some key stakeholders and industry experts on different facets from the private sector, elaborated on key areas where the private and public sector should focus to alleviate the existing condition of the industry. &nbsp;Moderator of the panel, Upaul Majumdar, CEO of Hotel Del&rsquo; Annapurna laid focus on developing a &lsquo;can-do&rsquo; attitude, instead of just talking about challenges.</div>
<div>
	&nbsp;</div>
<div>
	Nalin Mandiratta, General Manager of Soaltee Crowne Plaza, focused on the need of constructing a large Convention Centre for MICE activities to grow; organizing more sports tournaments in Nepal, preparing and implementing dynamic and integrated destination marketing, preparing an integrated One Nepal concept by uniting efforts of various sections of the industry, and focusing on China and India more.</div>
<div>
	&nbsp;</div>
<div>
	Madhusudan Acharya, the Vice President of the Nepal Association of Tours and Travel Agents, explained the benefits of unique positioning by referring to the success of Apple and said that to establish Nepal as a unique tourism destination, it needs similar positioning based on green initiatives and its ethnicity. He emphatically noted that tourism is both a cause and an effect of more holistic socio-economic growth. He noted that Nepal-China roads and Kathmandu&rsquo;s direct air connectivity with Chennai and Bengaluru are much needed pending measures.</div>
<div>
	&nbsp;</div>
<div>
	Nandini Lahe Thapa, the Senior Director of the Nepal Tourism Board and International Marketing In Charge, noted relative maturity of Nepal as a tourism destination However, she noted that it has been quite low at the high-end of the price-service spectrum. &ldquo;We have lowered our rates for other tourism services, but the cost of travel to and from Nepal has been exponentially costly. Hotels have already set the bar higher, but travel trade still needs to come together and raise the standards with rational pricing,&rdquo; she noted. Promotion of new destinations is possible, she told, if concrete proposals come to NTB from entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	Sumit Baral, the Senior Consultant with the International Finance Corporation of The World Bank Group, working for its investment climate programmes, with key focus on tourism programmes, recalled how Lufthansa dropped Kathmandu sector to protest the rampant child labor in the carpet industry and how it adversely affected German tourists&rsquo; travel to Nepal. Also, a diagnostic study categorically has shown that service standards decline has been the major factor behind lower per day spending by tourists. Noting that Nepal does not feature in luxury travel, he illustrated how Peru since 2000 has positioned itself as high-end destination, and how Maldives with almost same number of tourists like Nepal (little less than a million a year), actually has been earning double the income that Nepal has been earning from this sector.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Talking from the tourism technology perspective, Prerna Mimani, the Country Head of Amadeus (a global leader in travel trade distribution and marketing), noted that the e-commerce route to promote Nepal is must while stating that presently it is still at a rudimentary level. Mimani elaborated on the potential of collaborating with global travel portals with ethnicity focus for Nepal through efficient use of e-commerce.</div>
<div>
	&nbsp;</div>
<div>
	Suman Pandey , Chairman of PATA Nepal and an entrepreneur, defended budget tourism noting it as an important part of the Nepali tourism eco-system and saying that it is different a way of travelling to experience the country. He poignantly noted, &ldquo;The seven days Golden Triangle plan is over-done and new tourism products are now necessary, as seen in the case of trekking tours being re-packaged as photography tours.&rdquo; Next to that Pandey suggested on organizing events replete with potentials to gain global media visibility, as seen in the case of the earlier Nepali cabinet meeting at Everest base-camp.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Aviation Next: Start Small, But Act in Unison</strong></span></div>
<div>
	Civil aviation has an important role in tourism industry. A separate discussion panel, &ldquo;Aviation Next&rdquo;, forwarded areas in which Nepal has to improvise in the days ahead to gain its tourism promotion objectives. Valentino Bagatsing, the Country Head of International Finance Corporation (IFC) of The World Bank group and moderator of the session, raised the issue air safety standards in Nepal. He noted, that there have been 70 accidents in 60 years, 3 of them being in the last two years and informed that IFC is presently tasked with safety management systems research and planning.</div>
<div>
	&nbsp;</div>
<div>
	Bhola Bikram Thapa, the MD of President Travels, emphasized that the &ldquo;Government should make stronger policies and facilitate processes, and not do business directly.&rdquo; &nbsp;He lamented that the government has been unable to add more aircrafts to the existing fleet of the national carrier, Nepal Airlines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ghanshyam Acharya, Chief of Corporate Affairs, Simrik Airlines, noted that three out of every four international traveler to Nepal is airborne and said IATA&rsquo;s Outlook for 2013 that looks forward positively at $711 billion global tourism turnover, has huge potential for Nepal&rsquo;s tourism sector too. Adding to it, he said that blacktopping of many airports in Nepal has increased air safety and air-travel is now available to middle class as well. However, he pointed the need for better regulatory support from policy-makers and rued that no domestic carrier has flown new aircraft since 1998.</div>
<div>
	&nbsp;</div>
<div>
	Representing the government voice, Buddhisagar Lamichchane, the Joint Secretary of Civil Aviation, and Roshan Chitrakar, the Deputy Director General of the Air Navigation Services of CAAN, shared the government&rsquo;s initiatives in addressing the needs of the industry. Chitrakar informed that blacktopping and expansion of airports is going on in a high speed and the hurdles in fleet expansion of the national airlines are now almost removed. He also informed that one year compulsory Air Traffic Controllers&rsquo; training is now split into two parts - six-months in the first phase and then after some work experience another six months of second phase. This will address the problem of human resource crunch in the industry, he added.</div>
<div>
	&nbsp;</div>
<div>
	Lamichchane shed light on the installation of navigational safety equipment, and emphasized that the air safety standards in Nepal is reasonably strong by global standards. Further, he said, &ldquo;Nepali air-routes integration with more global air-routes is underway. And the construction of a second international airport at Bara which will create an East-West air corridor, is also taking off soon. Lamichhane further informed that &ldquo;the regulator and service provider functions of government with regards to aviation are being separated soon and a global consultancy is looking into this.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The Air India Country Head, TK Saha, defended the pricing strategy of his carrier noting that only 10-15 percent seats go vacant. He advocated for new small aircraft routes and services for various potential sectors like Gaya-Lumbini, Patna-Kathmandu, and Varanasi-Pokhara.</div>
<div>
	&nbsp;</div>
<div>
	Ramdas Shivram, the Qatar Airways Country Head, brought in a basic issue and presented with emphasis. &ldquo;Garbage management is poor in Kathmandu airport&rdquo; he said calling for &ldquo;a blended approach that includes raising awareness in passengers, training airport staff, and implementing strong punitive regulation.&rdquo; &nbsp;He also advocated for more efficient and faster immigration services, quest for quality tourism instead of stressing only on volume-based tourism, and focus on finding and investing in new markets to expand Nepal&rsquo;s tourism and aviation base.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Bhutan Tourism Info" src="/userfiles/images/cs4%20(Copy).jpg" style="width: 550px; height: 426px; margin-left: 15px; margin-right: 15px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Smaller Cases: Bhutan and Sikkim</strong></span></div>
<div>
	BHUTAN has positioned itself as a &lsquo;high-value, low-impact&rsquo; tourism, with USD 250 as average on season spending per day by a tourist, and minimum of USD 200 any time of the year. Bhutan claims to have the Highest Gross National Happiness, and the slogan of Bhutan Tourism is &ldquo;Happiness is a Place&rdquo;.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Tiger’s Nest Monastery, Bhutan" src="/userfiles/images/cs5%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 395px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Tiger&rsquo;s Nest Monastery, Bhutan</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>SIKKIM</strong></span></div>
<div>
	What should be the agenda for Sikkim in 2013 if it plans to be anywhere close to Switzerland? It&rsquo;s the oomph factor, about Switzerland, Dubai, and even backdoor ASEAN countries like Singapore and to some extent Thailand, Malaysia and Indonesia that make them a most sought after destination. Switzerland received more than 10 million tourists in 2010. Even Goa received nearly 3 million tourists in 2010. The highest number of foreign tourists who visit Sikkim never crossed the 5000 mark in a month ever till now.</div>
<div>
	&nbsp;</div>
<div>
	Sikkim would need to emerge as a shopping and fun destination; a destination which film makers and market executives like. Sikkim hence, has introduced para-gliding, trekking, and bike riding in recent years, a few world class universities, a few niche products with enviable reputation, a highly educated libertarian civil society.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s empowering every Sikkimese to figure out where Sikkim should need to focus on rather than a top to bottom approach&rdquo; has been Chief Minister Pawan Kumar Chamling&rsquo;s Approach in developing the Indian state.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Sikkim came out with an integrated vision that brought together and synergized Nature &amp; Trekking Tourism, Eco-tourism &amp; Wilderness Tourism, Village/Rural &amp; Home stay Tourism, Adventure Tourism, Wellness Tourism: Meditation, Yoga, Spa &amp; Herbal medicine etc, Pilgrimage &amp; Buddhist Tourism, Culture &amp; Heritage Tourism, Conference Tourism (MICE destination), Tea Tourism, and Snow Travel and Hydro Tourism.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, Sikkim has also pro-actively developed these niche aspects of tourism industry there: Flori-Tourism, Geo-Tourism (fossil study), Fairs-Festivals Tourism, Wedding/Honeymoon Tourism, Peace /Health Rejuvenation Tourism, Heli Tourism, Monsoon Tourism, Cave Tourism, Ekant Vas &amp; Agyat Van Vas, Developments of lakes and wetlands, Wayside Amenities- at every 10 Kms distance, Arts Crafts and Souvenir and some premium destinations.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Sikkim" src="/userfiles/images/cs6%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 413px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Sikkim</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong><img alt="Nepal Vs Switzerland" src="/userfiles/images/nepalvzswitz%20(Copy).jpg" style="
float: right; margin: 0px 0px 0px 10px;width: 300px; height: 378px;" />Premium Positioning for Nepal&rsquo;s Tourism: Possible Road-map</strong></span></div>
<div>
	Nepal, the 36th largest nation of the world by land-area, and enriched with most of the world&rsquo;s tallest mountain peaks, huge fresh water-resource and glaciers, &nbsp;home to some of the best lakes and forests in South Asia, and a nation rich in centuries-old civilization heritages and cultures, has often been under-valued in tourism. The recent Travel &amp; Tourism Competitiveness Index 2013 places Nepal at 112th position out of 140 nations surveyed, while Switzerland retained its position at the top of the chart.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Situation Analysis:</strong></span></div>
<div>
	While Nepal is the preferred Himalayan destination globally, it is one of the cheapest travel destinations. Ministry of Culture, Tourism and Civil Aviation study shows that the average daily spending of an airborne tourist in Nepal skidded down to USD 35 from USD 79 in 2003. Some 700,000 foreign tourists (including some 530,000 by air) came to Nepal in 2012 (as per Nepal Tourism Board estimates). But the image of Nepal has been that of the backpackers&rsquo; paradise, value-for-money tourism, and often a glorious destination for the run-away tourists. The image of Nepal&rsquo;s Tourism has been further tarnished in the last decade by the insurgency followed by political instability.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, things can take turn for the better. This piece throws open the discussion on the paradigm shift in Nepal Tourism. Without harming the current flow of tourists to Nepal every year with an average per head daily spending of USD 48, we can still look at creating a new crop of premium tourists who will hopefully spend a fortnight minimum in this Himalayan nation with a daily expense of at least USD 200 (four times higher than the current average). Even if there are 5,000 such tourists in a year to begin with, the national average and the total income of all stake-holders of tourism economy will have a qualitative leap ahead.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Mt Everest" src="/userfiles/images/cs7%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Mt Everest</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Positioning of the Premium Tourism Product</strong></span></div>
<div>
	Let us look at what the premium tourists look for and what &lsquo;tourism product&rsquo; can be dovetailed for them. Then, we can look at what channels and process of marketing communications should be taken to ensure that 5,000 or more such premium tourists actually come for their date with the Himalayas and spend a daily average of USD 200 or stay in Nepal for more than 14 days.</div>
<div>
	&nbsp;</div>
<div>
	The possible product must have a distinct positioning with a clear and creative packaging. The positioning that can be suggested is &lsquo;Pristine, Priceless &amp; Personal&rsquo;. The pristine beauty of nature and culture of Nepal needs no further elucidation. The experience of the &lsquo;product&rsquo; has to be made priceless incorporating a wide variety of the best expectations fulfilled - the Wow-effect of which should out-price the costs. And, surely, the entire experience has to be very personal, to be treasured for long, with an immense nostalgia-value.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Lumbimi" src="/userfiles/images/cs8%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 321px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<strong>Lumbimi</strong></div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size:16px;"><strong>Premium Tourism Product Defined</strong></span></div>
	<div>
		Keeping these parameters in mind, it is suggested that the proposed product should be for couples only, of any age, to make it truly experiential and personal, and should be an all-planned well-packaged fortnight-long visit incorporating the best elements of Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		For example, a very personal aspect is ensured the moment the visiting couple immediately after landing at Kathmandu airport or on reaching the pre-chosen five-star or boutique hotel is traditionally welcomed and given a set of traditional Nepali wear (based on personal information given while booking the trip). The visit to the five most known heritage points of Kathmandu-- blending heritage, royalty and spiritualism in good measures-- must surely be done along with a broad understanding of the valley over the next two full days in the country, land-travel served with the best of tourist cars available.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The visit in Kathmandu on the fourth day can be customized to each couple&rsquo;s needs: cuisine, shopping, social entrepreneurship or educational initiative, any theatre or cultural activity, the NTB archaeological museum or any other specific spot. Hour-long flight above Mt Everest and Mt Kanchenjunga can be another sure winner on the morning of this day.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Nagarkot" src="/userfiles/images/cs10%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Nagarkot</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		The fifth day can be at Nagarkot with the sunset and sunrise covered soaking in the beauty of natural landscapes. Subsequent two days can be spent at Chitwan, with lake, park, rural life, festivities (season specific),etc., all planned well.</div>
	<div>
		&nbsp;</div>
	<div>
		Eighth to tenth days can be at Pokhara, ensuring all aspects of the valued hill-destination rated among top ten by Lonely Planet - a bit of trekking, rafting and para-gliding, depending on the couple&rsquo;s interest, age and health. Celebrations like anniversary or birthday or even the marriage of the couple in a few cases could be another &lsquo;personal&rsquo; winner either in Kathmandu or Chitwan or Pokhara depending upon the date.</div>
	<div>
		&nbsp;</div>
	<div>
		Eleventh and twelfth days could be a visit to busy Terai city of business: Birganj or Nepalgunj to bring home other aspects of Nepali life and economy, with shopping, handicrafts, etc., thrown in.</div>
	<div>
		&nbsp;</div>
	<div>
		Last two days can be used for a visit to Lumbini and Buddhist heritage sites or, for those who want it otherwise, to Muktinath and more lakes, hills and forests.</div>
	<div>
		&nbsp;</div>
	<div>
		And, as each couple bids adieu, they should be given an exquisitely packaged album of best moments of their visit, their blogs and comments taken for social media use, and take-away souvenirs also given for their closest family members based on the information shared while booking the trip.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Patan Durbar Square" src="/userfiles/images/cs9%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Patan Durbar Square</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Integrated Marketing Communications:</strong></span></div>
	<div>
		For such a concept to click at the market there has to be a focused high-decibel concerted IMC campaign integrating all four channels of communication: online, offline, on-air and on-ground and across ten to twelve selected markets of the world from where most tourists come to Nepal, as understood through research conducted by professionals.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 12px;">An experiential tourism product needs an experiential video that documents actual experience of say, three distinctly different couples -an Indian, a Chinese/Japanese, and an European/American- who go through the entire &lsquo;product&rsquo; and share their views online and on camera. Such a video needs to be used in every marketing meet, aired in selected channels across the globe in the target nations, and clippings promoted through YouTube. Such experiential videos without any explicit marketing commentary, speak volumes more than guided narrative documentaries of hills and rivers made usually from the government stable.</span></div>
	<div>
		&nbsp;</div>
	<div>
		Social Media and the internet make the most powerful channel to reach to an audience scattered across the globe. Hence, a very high-end interactive portal, ideally on third generation internet platform that&rsquo;s &nbsp;being customized to each individual user, on the concept and product of Premium Nepal, incorporating blogs, photo albums, do&rsquo;s and don&rsquo;ts at every level of the experience will also serve the purpose well. Along with the portal, intense and creative use of Facebook, MySpace, Google+, Dig, Youtube, Twitter, Blogs in e-groups, and other social media platforms need to be used with the single-minded purpose of creating a premium positioning of the said high-end tourism product of Nepal. Online booking of this product should also be facilitated through the right mix of technology options.</div>
	<div>
		&nbsp;</div>
	<div>
		A Premium Nepal Tour Plan Book can be an effective offline (printed) tool of communication. The book will interestingly present possible experiences and options for each day of the visit on one side and provide space for documenting personal experiences, cuisine, culture, visits, and people befriended in the process and small anecdotes on the other side. Still pictures of various events can also be placed and preserved. This book will eventually have an immense personal nostalgia value and will also serve to market the &lsquo;product&rsquo; to future customers spreading a positive buzz or word of mouth. Each customer in the process becomes an advocate realizing thus the life-time value of the premium customers.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PR &amp; Sales Driven High Decibel Road-Shows</strong></span></div>
	<div>
		However, closing the deal will largely happen through an intensive PR driven high-end road-show in at least ten to twelve of the leading sources of tourism to Nepal. This road-show must combine the said film, tour plan-book, and interactive session by the organizing partners and must lead to a plethora of writing on Nepal and on this uniquely positioned tourism product. The road-show must bring together the premier tour operators to South Asian destinations, adventure or heritage tourism operators, leadership of selected chambers of commerce, entertainment industry and travel journalism biggies, including the lead travel writers. The cities where the road-shows can be held may be selected from Delhi, Mumbai, Kolkata, London, New York, Shanghai, Hong Kong, Singapore, Dubai, among others. These road-shows must ensure immediate or follow-up bookings of couples coming to Nepal in the subsequent season.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PPP Model with a Consortium Approach:</strong></span></div>
	<div>
		&nbsp;This project can only succeed if it is done on private-public-partnership in which Nepal Tourism Board representing the government and a consortium of private tourism players join hands to first build a brand of Premium Nepal and then execute the product immaculately (execution largely being in private hands). The Consortium can be of a few five star and boutique or heritage hotels with properties in all the places covered in the tour, domestic airlines, premium road transport providers, adventure tourism organizers and may be helicopter-services providers, apart from selected handicrafts-cuisine-apparel-souvenir providers.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Revenue Output</strong></span></div>
	<div>
		Even if 3,000 couples, with per couple investment within Nepal being USD 5,000 for a fortnight of Premium Nepal tourism experience, come in a year, Nepali Tourism industry stands to gain a minimum of 15 million USD minus the marketing communications expenses and tour operator commission of a maximum of 20 percent. Some 12 million USD means an additional Rs. 10,000 million infused into the economy by just one new concept implemented creatively and aggressively! Are the government and the industry listening?</div>
	<div>
		&nbsp;</div>
	<div>
		<em>(The author, the Consulting Editor of the NBA, is the former Dean of Symbiosis International University, Pune, Mumbai, and Whistling Woods International, Mumbai.)</em></div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-11-27',
			'modified' => '2013-12-22',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '2066',
			'article_category_id' => '40',
			'title' => 'Nepal Leadership Summit: Nepal @ 2080 BS, 12 - Point Economic Growth Roadmap',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	It was an uphill task, but the gathering of influential leaders and high-level representatives succeeded in adopting a document of a 12-point declaration that renewed their political commitment to lead the country on a path of prosperity and development.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Leadership Summit 2013 was to bring five former Prime Ministers -- Sher Bahadur Deuba, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, Madhav Kumar Nepal, Jhalanath Khanal and Dr Baburam Bhattarai &ndash; in a common platform. The outcome of the event was a 12-point Birgunj Declaration in which the leaders agreed that the path to prosperity is only possible through a private sector-led economic growth.</div>
<div>
	&nbsp;</div>
<div>
	Due to political instability and resultant fragile environment for investment, the dream of prosperity and development continued to be elusive and leaders in the past displayed weak political will to fulfill their commitments for economic development. But it seems they have now realized that the country is desparate for development. And the 12-point Birgunj Declaration was historic in forging a common agenda on economic issues.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of UCPN Maoist and former PM, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, said that the time has now come to be engaged in production, construction and development of the country. &ldquo;In fact, our party has come to a conclusion that political stability is not possible without economic revolution,&rdquo; he informed. &ldquo;We can break the vicious cycle of poverty in the country only by promoting economic activities and adopting the approach of inclusive growth.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Former PM and Nepali Congress (NC) senior leader Sher Bahadur Deuba argued that the government should not engage in trade or operate industries. &ldquo;The government treasury was almost empty when NC formed the government in 1990,&rdquo; he said. &ldquo;The situation has now changed as we have enough money. The problem, however, is that we have been unable to invest due to lack of infrastructure and the energy crisis.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Deuba stressed on the need for common commitment to end the existing energy crisis. The country will head in the direction of economic prosperity if we will be able to address the problem of infrastructure, industrial security and energy, he added.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal should attract Indian investment and should promote exports to reduce trade deficit, he opined. &ldquo;The government should reduce all bureaucratic hassles. We should provide tax rebate to companies that create 100 or more jobs.&rdquo; he said.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s economy remains in a state of confusion, with an expanding budget, energy crisis, trade deficit, inflation, unemployment problem and lack of resources, said former Prime Minister and CPN UML leader Madhav Kumar Nepal. He blamed the revenue-oriented government, the short-term profit oriented private sector and rebellious labour for the slow economic growth. &ldquo;We need to improve our educational system and ensure that we have the skills to pursue the available opportunities,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Clarity in policy, investment friendly environment and investment in service and production sector will ensure the country&rsquo;s development, he claimed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of CPN-UML and former PM Jhalanath Khanal emphasized the need for policy stability for economic growth. Modernisation of the agriculture sector will have positive impact for development, he said, adding that the banking sector should increase investment in the agricultural sector.</div>
<div>
	&nbsp;</div>
<div>
	Absolute poverty and backwardness are the main problems in the country at present, UCPN Maoist leader and former PM Dr Baburam Bhattarai said. &ldquo;The country can achieve the target of 10 per cent growth by increasing investment in productive sectors,&rdquo; he argued. &ldquo;Key factors that are having negative effect in all sectors of the economy are poor governance and corruption. Another important factor is the decline in investment to GDP ratio, which is one of the root causes of the slowdown in GDP growth,&rdquo; Bhattarai said. &ldquo;At least 40 per cent of the GDP should be invested in productive sectors to achieve a double digit growth.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	As of now, the government should ensure that at least Rs 700 billion should be utilized in productive sectors to achieve 10 per cent growth since the GDP now stands at nearly Rs 1,700 billion.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We need to build capacity at all levels to deliver as per the policies,&rdquo; he further said, adding that the first question is whether the country&rsquo;s economic boom will allow it to break the cycle of poverty.</div>
<div>
	&nbsp;</div>
<div>
	Nepal must focus on developing its skills and human resources, especially by harnessing the talents of Nepali people from around the world, he advised. &ldquo;We need to make the building of robust private sectors an urgent priority and promote true entrepreneurship because that is how jobs are created.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	He also suggested all political parties to balance between China and India to get maximum benefit from neighbouring economic giants.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of BiCCI Ashok Baid said that political commitment is a must to create an environment of wealth creation through investment, to alleviate poverty, increase the annual GDP growth rate, contain inflation, promote entrepreneurship and generate employment.</div>
<div>
	In the programme, editor-in-chief and chairman of New Biz Madan Lamsal asked politicians to address economic concerns and map out a strategy with the business community and international support to address the country&rsquo;s economic problems.</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 16px;">Former PMs&rsquo; Common Points:</strong></div>
<div>
	&bull;Nepal is in dire need of economic revolution as it has suffered much during the various political changes of the past</div>
<div>
	&bull;Energy, agriculture and tourism sectors should be prioritized&nbsp;</div>
<div>
	&bull;The private sector should lead the country&rsquo;s development</div>
<div>
	&bull;The government should play the role of a catalyst for the development of the country&nbsp;</div>
<div>
	&bull;Nepal should focus on turning the optimism on the country&rsquo;s future into real action</div>
<div>
	&bull;Inclusive growth must be the main goal for Nepal&rsquo;s development</div>
<div>
	&bull;The mood should be changed from thinking Nepal as a poor country to a country that holds hope</div>
<div>
	&nbsp;</div>
<div>
	<img alt="NEPAL LEADERSHIP SUMMIT" src="/userfiles/images/DECLN%20(Copy).jpg" style="width: 550px; height: 727px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-12-09',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'One may call it an ambitious plan, but it is not impossible. In the fi rst week of September, the country’s five former prime ministers came together in a common platform to share their vision to revolutionize the local economy. The Nepal Leadership Summit which was organised jointly by the Birgunj Chamber of Commerce and Industry (BiCCI) and New Business Age (NBA) with the slogan: ‘Roadmap of Economic Revolution: Vision 2080 BS’ cae up with 12-point Birgunj Declaration  pledging, among others, to give priority to national economic agenda and to honour individual property rights.',
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			'title' => 'Growing And Growing Cement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><em>Cement production in Nepal has been growing sharply over the past few years. The industry is among the country&#39;s most flourishing business sectors as the demand of cement is constantly rising. &nbsp;The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors. &nbsp;</em></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi and Sanjeev Sharma</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepal&rsquo;s cement industry has been flourishing despite all sorts of problems. The industry has seen significant growth over the last few years. According to Dhruba Thapa, President of the Cement Manufacturers Association of Nepal (CMAN), the country&rsquo;s cement industry has been steadily growing at 8-10 per cent annually for the past several years. &ldquo;The cement industry has seen growing steadily. Its future looks bright,&rdquo; says Thapa when asked to comment on the current situation of the Nepali cement industry. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The annual demand of cement in Nepal is about four million metric tonnes of which some 3.2 million metric tonnes is met through domestic production while the rest is imported,&rdquo; he adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s import of cement has been dropping year after year because of the rising domestic production. According to the Trade and Export Promotion Centre (TEPC), the rate of growth in cement imports has declined in the last fiscal year. Nepal imported OPC cement worth Rs 2.99 billion in fiscal 2013-14. In the previous fiscal year i.e. 2012-13, cement imports stood at Rs 3.75 billion. The decline in the import of both cement and clinker reflects Nepal&rsquo;s progress towards self-sufficiency in cement production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to CMAN, the domestic cement industry has an installed production capacity of about 6 million tonnes annually which is higher than the annual demand of four million metric tonnes. But the cement factories currently operational have been able to utilize only about 50 per cent of their total production capacity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, this hasn&rsquo;t stopped the private sector from entering this sector in a big way. Currently, according to the data provided by CMAN, there are 45 cement factories in operation producing 3.2 million metric tonnes of cement annually. Local production fulfils about 80 percent of the requirement and the rest is met by imports from India. Nepal produces OPC, PPC and PSC cement, of which OPC is preferred these days.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Out of the 45 factories, only 12 also produce clinker, a major raw material used in cement production. As early as a decade ago, Nepal used to depend on India for 95 per cent of its clinker requirement. However, with more factories now setting up clinker production units after acquiring limestone quarries, import from India has been declining year after year. Today, almost 60 percent of the clinker demand is met through domestic supply. &ldquo;The remaining is imported from India. A few factories will start producing own clinker in 2015. That will bring down the import to 20-25 per cent. Nepal will be self-reliant in clinker over the next three years,&rdquo; says Thapa.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn4.jpg" style="width: 550px; height: 205px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Problems</strong></div>
<div>
	Power shortage because of long hours of load-shedding is the biggest challenge being faced by cement manufacturers in the country. The power crisis has forced them to use diesel power which makes each cement sack costlier by Rs 25. The high import duty levied on raw material, mainly clinker, is another problem, according to cement manufacturers. It has weakened the competitiveness of Nepali cement in terms of price. &ldquo;The government has been continuously increasing the customs duty on clinker ignoring its effects on domestic cement manufacturers,&rdquo; complain cement manufacturers. Thapa says all this makes the Nepali cement costlier than cement in any other SAARC country. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The syndicate system in transportation is another big problem for the domestic cement industry. &ldquo;We are not getting sufficient number of trucks to supply our finished goods to the targeted location,&rdquo; says Anil Kumar Agrawal, Managing Director of Shree Cement Industries. &ldquo;The cost associated with transportation is high as well.&rdquo; Manufacturers complain that even with enough production and demand, they are unable to supply their products to the market due to unavailability of transportation. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Every commodity has a lifespan; and in the case of cement, it is 30 days,&rdquo; said Tej Bom, Head of Sales and Marketing at Ambe Cement, &ldquo;If the finished product is not used within 30 days, the desirable outcome is not achieved.&rdquo; The need of the hour, according to him, is to effectively end the syndicate system so that Nepali products remain competitive with Indian brands.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cn3.jpg" style="width: 300px; height: 313px; float: right;" />Declining Import</strong></div>
<div>
	With the rise in domestic production, import of foreign cement in Nepal has come down significantly over the past few years. The data compiled by the Trade and Export Promotion Center (TEPC) clearly points to this. The country which imported portland class cement (OPC and PPC) worth Rs 4.31 billion in FY 2090/10 saw the import decrease 30 per cent to Rs 2.99 billion in 2013/14. The rising production has also led to the increase in the import of gypsum, one of the major ingredients of cement. Nepal imported gypsum worth Rs 754 million in FY 2013/14, up 133 per cent from Rs 322 million in FY 2010. But the import of clinker, another key component is seen gradually declining. Import of clinker, which was recorded at Rs 8.03 billion in FY 2009/10, decreased to Rs 5.99 billion in 2012/13 before rising to Rs 6.54 billion in the last FY. The increase is due to the government provision made mandatory for the cement manufacturers to produce clinker they need by 2073. However, producers are seen dissatisfied by the government announcement. &quot;Clinker production means more investment. More than 70 per cent of the investment goes for clinker production. So, mere announcements are not enough. We need a supporting strategy as well,&quot; says Anil Kumar Agrawal , Managing Director of Shree Cement Industries. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite the fact that use of Indian cement has lessened in recent years, policy hurdles still remain in place to stop the use of Nepali cement in large constructions of national importance. &nbsp;&quot;General consumers are not importing cement from India. It&rsquo;s the big infrastructure projects run through the international competitive bidding (ICB) process that are importing cement from India,&quot; mentions Thapa,. Thapa, who is also the Executive Director of Cosmos Cement Industries, says that a provision in the ICB contract, which exempts the imported construction materials from taxes, is hampering the competitiveness of Nepali cement. &quot;The imported cement gets an exemption of Rs 185 per sack in customs duty. That is why it is cheaper. It has affected the Nepali cement market,&quot; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn1.jpg" style="width: 550px; height: 261px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Export Prospects</strong></div>
<div>
	With the increase in production, export of Nepali cement has also risen in the past few years. Though the size of the export is negligible compared to the import, the increasing trend indicates to the possibility of Nepali cement becoming a product of comparative advantage to the country&#39;s export. Nepal exported cement worth Rs 3.16 million in FY 2013/14 after starting the export in FY 2012/13 which was logged at Rs 148,700. Nevertheless, it will take time for Nepal to become a net exporter of cement, according to producers. &quot;As we are not being able to fulfill the domestic demand, there is no possibility of export currently. Most factories are selling their products within the country. We can think of exports once we meet the domestic demand,&quot; opines Tej Bom, Head of Sales and Marketing at Ambe Cement.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn2.jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Foreign Direct Investment</strong></div>
<div>
	Nepali cement industry has turned lucrative to foreign investors in recent years. Big international producers, namely, Dangote of Nigeria, China&#39;s Hongshi and Reliance of India are in the process to establish production facilities in Nepal. Lured by the infrastructure boom in Northern India and Western China, the companies are eying to tap Nepal&#39;s vast limestone reserves. Their products are expected to be export-oriented while also fulfilling the domestic demand in Nepal. Dangote Group, one of the largest industrial conglomerates of West Africa, is said to be starting the construction of cement factory in the next one year. The company which was granted a USD 500 million FDI approval in November 2013 by the Investment Board of Nepal (IBN) is currently looking for a local partner, according to an informed source.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, the top Chinese manufacturer Hongshi Holding Group has partnered with the Nepali company Shivam Cement to kickstart its business in Nepal. The company in March, 2015 signed a joint venture (JV) agreement with Shivam Holdings Nepal to set up a Rs 30 billion production facility. According to the agreement, Hongshi will have 70 per cent share (Rs 21 billion) and the rest (Rs 9 billion) will be invested by Shivam. The JV which will be named Hongshi-Shivam Cement Pvt Ltd aims to produce 120,000 sacks or 6,000 tonnes of cement per day and has plans to start production in three years. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, Reliance Cement Industries of India has also received endorsement from the IBN to establish a cement factory in the country. Though much is not known about the progress after the approval of its investment proposal last year, the company has pledge Rs 40 billion in FDI and aims to produce 2.3 million tonnes of cement annually. Collectively, the three foreign companies have received project approvals worth USD 1.2 billion which has been marked among the largest FDI commitments in the Nepali industrial sector for the time being. Likewise, two other foreign companies have also recently expressed their interests to invest in the country&#39;s cement industry, according to a source close to the matter.&nbsp;</div>',
			'published' => true,
			'created' => '2015-06-01',
			'modified' => '2015-06-01',
			'keywords' => '',
			'description' => 'Cement production in Nepal has been growing sharply over the past few years. The industry is among the country's most flourishing business sectors as the demand of cement is constantly rising.  The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors.',
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	(int) 1 => array(
		'Article' => array(
			'id' => '2806',
			'article_category_id' => '40',
			'title' => 'The Story Of Nepali Startups',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	The startup scene in Nepal has changed significantly over the last five&ndash;seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The Nepali startup scene is heading slowly but surely in a good direction,&rdquo; thinks Mark Sears, CEO of CloudFactory, one of the most successful Nepali startups. Bidhyabaridhi Sigdel, Investment Director at Dolma Impact Fund, shares similar views. &ldquo;Now we are seeing new and unique businesses, which involve a brilliant choice of timing and products,&rdquo; he says. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s not just startups like CloudFactory and F1Soft which are doing quite well, nationally as well as internationally. There are others too. For example, Grepsr, a company specializing in web crawling service. The company has international clients such as The Boston Consulting Group, GE Capital, and Target, and is doing very well in their third year. Subrat Basnet, one of the co-founders of the company emphasizes on the massive opportunity for tech entrepreneurs in Nepal to make an impact on a global scale. &ldquo;With the growth of local talent, low risk investment and low operational cost, among other things, Nepali tech entrepreneurs can really compete in the global market if they have great ideas and the right marketing,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	11Beep is another up-and-coming startup from Nepal. It has been trying to build an anonymous mobile social network. It&rsquo;s CEO Bimal Maharjan who is an active participant at startup events around Kathmandu and has even has flown to Italy for a four-month bootcamp called TechPeaks&mdash;The People Accelerator, feels the excitement and challenges of working on an idea alongside other entrepreneurs, designers and hackers.</div>
<div>
	&nbsp;</div>
<div>
	Another idea which was developed in Nepal and has gained some ground locally with aggressive plans to expand internationally is CashOnAd, a mobile advertising platform that is working to revolutionize the advertising world. The fact that CashOnAd&rsquo;s android app on Google Play has already been installed in more than 100,000 devices shows their success in a comparatively short period. With the mobilization of local talent and the right growth strategy, CashOnAd has the potential to be very scalable and profitable in a short period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Innovative companies such as Grepsr, 11Beep and CashOnAd are pioneering a new era of tech entrepreneurship in Nepal. They are dreaming big and thinking of conducting business beyond the borders of Nepal and competing globally. There are also other tech companies making their presence felt in the domestic market as well as chasing the international market.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Many more innovative ideas are surfacing at events like StartupWeekend, GDG Meetups, Hackathons, Mobile Social Networking, Tedx , BarCamp, Mapthaons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Even Incubators like Biruwa Ventures and communities for open source and developers is growing,&rdquo; says Amit Agrawal of Janaki Technologies, &ldquo;Now the vision is crossing the borders and soon we will see kickass startups from the Himalayas, that will rock the world.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#84F2AE">
					<div>
						<span style="font-size: 14px;"><strong>Government&rsquo;s Startup Fund</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Lately, it seems that the government has understood the importance of promoting entrepreneurship in the country. The latest national budget has announced a Startup Fund of Rs 500 million. While making his budget speech, Finance Minister Dr Ram Sharan Mahat said that this Fund, which is yet to take shape, will help cultivate the culture of entrepreneurship and promote fresh ideas by bankrolling promising startups. The government expects the private sector and NRNs, too, to contribute to this seed fund, according to officials at the Department of Industry.</div>
					<div>
						&nbsp;</div>
					<div>
						Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), thinks that the criteria and working procedure of the Fund should be established at the earliest possible to make the allotted resources useful. &ldquo;Though the seed amount is not large, the initiative is good. The government now needs to work out an implementation plan as soon as possible,&rdquo; said Murarka, adding that the private sector can decide how to support the programme once there is clarity about the working modality.</div>
					<div>
						&nbsp;</div>
					<div>
						&ldquo;It has already been four months since the government announced the Startup Fund through the national budget. Now, the government should focus on the implementation aspect of the Fund without any delay,&rdquo; advises Hari Bhakta Sharma, senior vice president of the Confederation of Nepalese Industries (CNI).</div>
					<div>
						&nbsp;</div>
					<div>
						Besides the Startup Fund, the government has been running a Business Incubation Programme (BIP) under the Department of Cottage and Small Industries (DoCSI). The BIP which has been running for the last eight years is targeted at supporting startup enterprises. &ldquo;BIP has been trying to create a favourable environment for innovative and aspiring entrepreneurs. This includes providing physical facilities and mentorship services on various aspects of management and production such as productivity enhancement, quality management, accounting, marketing and intellectual property rights,&rdquo; says Pawan Kumar Timalsena, director at DoCSI. &nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Incomplete ecosystem&nbsp;</strong></div>
<div>
	Startups in Nepal face some common challenges in terms of taking their products international and growing the brand. The most obvious challenge is financial. Startups don&rsquo;t get loans without collaterals from the banks. Likewise, angel investors are very few and far between. So, most startups are forced to survive on bootstrapping. Thus, finance is the most difficult problem that people face in Nepal to start a startup. There are no investors willing to invest in startups, according to industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If an idea or product solves a problem and provides value, the target customers need to be aware of the product or service. International customers can be reached through Google AdWords, Facebook ads, advertisements in relevant platforms, among other ways. But all this needs funding. Financial leverage is necessary for this, and the company should have adequate capital to properly market the product or service. This is one area where most of the Nepali startups are lagging behind.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In most cases, finding investors for ideas or early stage ventures is extremely challenging. Therefore, we recommend that entrepreneurs build some sort of track record before approaching investors,&rdquo; says Vidhan Rana, founder-managing partner of Biruwa Ventures.</div>
<div>
	&nbsp;</div>
<div>
	The risk-averse culture in Nepal has led to less competition among the startups than in other parts of the world. This lack of overall competition has hurt the start up ecosystem in terms of quality, valuations, and market-building. But the industry is growing, though slowly, say the industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Other Challenges</strong></div>
<div>
	Another challenge is talent. Nepal has many colleges from where thousands of students are graduating every year. However, tech companies have a hard time finding the right talent when necessary. &ldquo;While there are many young talented people in Nepal, there are few senior, experienced engineers and managers,&rdquo; shares Sears.</div>
<div>
	&nbsp;</div>
<div>
	Publicity is another challenge for the Nepali startups. To expand globally, Nepali startups need a network or presence outside of Nepal. Getting covered by popular tech blogs, websites, international media etc. could help create awareness of Nepal-based companies. In this context, events like Startup Weekend Kathmandu platform is a good one. At such events, innovative ideas can get some initial traction through its wide network and reach.</div>
<div>
	&nbsp;</div>
<div>
	Starting up a startup is another major challenge. Though some initiatives have been taken to provide funding for startups which have survived at least for a couple of years or more, startups do not get financial help from banks or other similar institutions at their initial stage. In simple words, there are no institutions to provide seed capital to startups.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The ecosystem here carries a general feeling that the startups do not know anything about business. Whereas, in advanced markets, startups are received in a positive connotation,&rdquo; observes Bibhusan Bista, CEO of Young Innovations, a Nepali tech startup, which has been helping new startups by organizing startup events like &ldquo;Hackathon&rdquo; among others.</div>
<div>
	&nbsp;</div>
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					<div>
						<span style="font-size: 14px;"><strong>IFC&rsquo;s Business Oxygen (BO2)</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						BO2 is a USD 14 million SME venture fund established in partnership with International Finance Corporation (IFC), Bank of Kathmandu and Beed Management. It was established in 2012 to provide risk capital to Small and Medium Enterprises in Nepal through structured equity and quasi-equity investments. It specializes in providing finance to SMEs that might be ignored by BFIs, or cannot access finance from BFIs due to a lack of collateral. BO2 looks for promising entrepreneurs who have worked on good business ideas and show a flair for entrepreneurship.</div>
					<div>
						&nbsp;</div>
					<div>
						Companies may qualify for BO2 if they satisfy any two of the three criteria, namely: less than 50 staff, total assets below Rs 250 million and total annual turnover below Rs 250 million. In addition to funding, BO2 provides advisory services to build the capacities of small and medium enterprises to reach the next level.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Who can qualify for investment?</strong></div>
					<div>
						BO2 concentrates on small entrepreneurs who want to take the step up to the next level. We are looking for SMEs in the growth stage with a history of profitable performance and potential for creating value for investors in the time period of the investment. Entrepreneurs should keep in mind the following points when considering funding from BO2:</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; This is not &#39;free&#39; or &#39;subsidized&#39; money.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The business or its owners should not be blacklisted. Preferably the company should not have bank loans, or if it does, then it should be repayable with the investment amount.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The company should be registered in the CRO as a public limited or a private limited company.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull;Since BO2 is looking at growth stage companies for investment, the company should have been in business for at least 2 years. If under 2 years then the owners should have been involved in the same sector for more than 2 years.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; BO2&#39;s investment will be utilized for the purpose of increasing top or bottom line.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Investment Period</strong></div>
					<div>
						BO2 investment is only for a period of four years, which may be extended by a maximum of one year. At the end of the investment period BO2 will exit the investment by selling its shares in the company, back to the original owners at a predetermined value. BO2provides investment in nine sectors: Manufacturing, Energy Based, Agro and Forest Based, Tourism, Trading, IT and Communication, service industries, construction and infrastructure, and realty.&nbsp;</div>
					<div style="text-align: right;">
						<em>(Source: IFC)&nbsp;</em></div>
				</td>
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	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Focus on the Global Tech Map</strong></div>
<div>
	&ldquo;Tech entrepreneurs are becoming more ambitious, focused on putting Nepal on the tech map, despite the challenges in taking their product into the global market. Soon, it would not be surprising to hear of big ideas from Nepal making a global impact,&rdquo; says Rana. He advises those who want to start a startup to focus on doing branding well, having a unique offering, scalable business model, global thinking, flat hierarchy with a good working culture, and getting inspired by what&rsquo;s happening globally.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	With quality product and right expansion strategy, a handful of tech companies from Nepal are venturing into the global stage and starting to make an impact. Though challenges come with the territory, Nepal&rsquo;s tech companies have a remarkable opportunity to take a bite out of the global tech scene.</div>
<div>
	&nbsp;</div>
<div>
	Subrat of Grespr believes that Nepal can be put on the tech map. &ldquo;But to put Nepal on the global tech map, we need more companies from Nepal like CloudFactory, F1Soft, Janaki Technologies and Grepsr, and an ecosystem that builds and nurtures quality startups,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Sustainability Issue</strong></div>
<div>
	Industry insiders believe that Nepalis are very capable of innovative work. But the reality on the ground is that Nepal doesn&#39;t seem to have good homegrown startups. There is foreign involvement in most of the leading startups from Nepal. Most of the tech startups that do exist are happy doing outsourcing jobs which might not be a sustainable solution for development of IT in Nepal. What could be the reason?</div>
<div>
	&nbsp;</div>
<div>
	Niranjan Bom Malla, founder of Vidinterest.com says, &ldquo;Based on my experience, there are two big problems that we have in our country right now. One, the Nepali culture of investment, very few angel investors - for most of them, IT startup is not the 1st choice. They think they have better places to invest in other sectors. Two, most of the foreign investors are not comfortable investing in our country, because of our political and financial situation. Trust me, I had talks with more than 100 angel investors over the last two years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Experts also believe that startup businesses should always focus on creating a strong team to sustain their growth. &ldquo;Without a strong team, even businesses with strong potential are at the risk of failure,&rdquo; observes Rana.</div>
<div>
	&nbsp;</div>
<div>
	Bista of Young Innovations believes that Nepali startups should come up with new ideas of business rather than copying successful global products and trends for sustainability in the long run.</div>
<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Janaki Technology: Building Acclaimed Software</strong></span></div>
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					&nbsp;</div>
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								<img alt="Amit Agrawal, CEO,  Janaki Technology" src="/userfiles/images/cs1(3).JPG" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
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								<div align="center">
									<div>
										<strong>Amit Agrawal</strong></div>
									<div>
										CEO&nbsp;</div>
									<div>
										Janaki Technology</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					Janaki Technology is a software product company well known for its SMS based service, Sparrow SMS and it&rsquo;s much acclaimed application Picovico. Founded in 2007 as a normal web application and outsourcing company, it entered the Nepal SMS Value Added Service (VAS) Market in 2010. It harnessed its experience of catering to the software needs of its national and multinational clients and built &lsquo;Sparrow SMS&rsquo;in 2010 as a platform to facilitatevarious SMS based services.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					SMS services and VAS was not a new thing in Nepal by then, &ldquo;however, we were unique in our implementation and use of latest technology. Our strong technical team worked hard to make it better than other existing SMS services,&rdquo; Amit Agrawal, CEO of the company says while elaborating on the success mantra of the service.</div>
				<div>
					&nbsp;</div>
				<div>
					The company served multinational clients inside and outside the country and Sparrow SMS has received national and international awards. &ldquo;We are still focusing on innovating our products and there is a long way to go,&rdquo; Agrawal said.</div>
				<div>
					&nbsp;</div>
				<div>
					In 2011 the company rolled out Picovico, an application to convert photos into video. The product was selected for seed funding in 2011 by &lsquo;the Morpheus Ventures&rsquo; India. A year later, the Chile Government selected it for &quot;StartupChile&quot; programme awarding it equity free funding of 40,000 USD.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					Agrawal shares that the company focused on research and development for making the products and therefore remained in loss during its initial years. But since than the company has been in profit and presently its annual growth rate has been between 15 to 20%.</div>
				<div>
					&nbsp;</div>
				<div>
					Reflecting on challenges that the company faced as a startup, Agrawal shares that they also went through common problems faced other businesses in Nepal like load-shedding, delayed and multi-layered government processes, shortage of talented workforce and unfriendly business policies. &ldquo;Not having proper startup-ecosystem in the country was another big problem, when we started,&rdquo; he said. &nbsp;&ldquo;Lack of industry support from government, angel investors and startup accelerators along with unclear laws about IT industry and small market size are other major problems especially for Nepali tech companies,&rdquo; he shared. The company has gained substantial popularity among local clients and is presently doing market research to expand its reach beyond Nepal, Agrawal said adding that the company is working on pushing Picovico in the global market, especiallyin Europe and America. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<strong>&nbsp;(By Upashana Neupane)</strong></div>
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	&nbsp;</div>
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								<img alt="Ujjwal Chapagain, Managing Director, Himalayan Rabbit Farm" src="/userfiles/images/cs2(7).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 238px;" /></td>
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								<div align="center">
									<div>
										<strong>Ujjwal Chapagain</strong></div>
									<div>
										Managing Director</div>
									<div>
										Himalayan Rabbit Farm</div>
								</div>
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				<div>
					<div>
						<span style="font-size: 14px;"><strong>Himalayan Rabbit Farm: A Social Start-up</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Ujjwal Chapagain, managing director of The Himalayan Rabbit Farm took up the risk of leaving a secure job and entering into an unchartered business terrain of commercial rabbit meat production. Such a business is still little known about across the country. When Chapagain thought of it as a business venture, he was questioned more than assured to take the risk. But he succeeded.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						He thought that a small risk taken could help in the sectorial as well as his personal growth. In the very beginning, he had decided his business venture will be a social enterprise rather than a purely commercial. Established in 2012, the venture has provided 100 small farmers with an extra source of income in the form ofrabbit farming.Along with that six farmers have been producing rabbits on a larger scale, following the footsteps and guidelines of Chapagain.</div>
					<div>
						&nbsp;</div>
					<div>
						Chapagain was a jobholder in the non-governmental sector. He left the job and invested all his savings in starting up an organic vegetable shop at Jhamsikhel and an integrated farm in Bhaktapur in partnership with some friends. Unfortunately, the project did not succeed, the cause of which he alludes to lack of teamwork with his business partners. After this, he found himself at the crossroads forced to choose between doing business and reverting to being a jobholder. He decided to stay.</div>
					<div>
						&nbsp;</div>
					<div>
						He explored various business prospects and finally decided to start rabbit farming. He took the decision after figuring out that rabbit meat had high demand in the market, as it had remained unnoticed as a livestock farming option and therefore had no substantial competitors. Besides that, another major reason, which attracted his attention, was the fact that rabbit meat is considered to be healthy food and as people were being oriented towards healthy meat options, he thought that he could cater to this consumer sentiment.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						After finalizing his new business idea, Chapagain faced the problem of capital shortage. As he had spent all his savings in the previous venture, the only option left to him was borrowing from a bank. Considering the failure of his earlier business venture, it was hard to convince family members to put up family land as collateral for acquiring bank loan for his new venture. He convinced them and he acquired a bank loan and started rabbit farming in partnership.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has around 500 rabbits at its rabbit farm in Balambu, Kathmandu. For breeding, there are around 100 females. It is planning to upgrade the existing breeding centre into a modern one for breeding high yielding rabbit breeds. Presently, it procures 300 to 400 kilograms of rabbit meat every month from farmers situated in different parts of the country. Chapagain says that this quantity is consumed in the market, which primarily consists of hotels and restaurants.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs3(7).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						Within two years, Himalayan Rabbit Farm has succeeded to put rabbit meat as an option on menus. The success stems from the fact that people, who have tasted it, have loved it. Chapagain feels that interest towards the meat has been growing and he has been continuously working to boost it. To increase customer attraction and establish rabbit meat eating culture, the company had provided free tasting samples to visitors of Food, Drinks and Hospitality Exhibition held in September this year.The company has been working on innovating rabbit meat dishes in association with Nepal Academy of Tourism and Hotel Management (NATHM), so that hotels and restaurants could replicate them.</div>
					<div>
						&nbsp;</div>
					<div>
						On the social side, Chapagain has been constantly working with local farmers to help them in rearing rabbits and thereby generating additional household income. The company provides training on rabbit keeping, managing and shade building for rabbit farming to farmer, among other support.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						As of now, farmers in Mayagdi, Rasuwa, Sindhuli, Dolakha, Nawalparas and Kathmandu have taken up rabbit farming. He says that famers from other areas have been also showing interests.</div>
					<div>
						&nbsp;</div>
					<div>
						In the past two years, Chapagain has made a huge leap in introducing a totally new area to livestock farming in Nepal and now he wishes to establish rabbit farming as a national programme, similar to that of pig, goat and poultry farming. Along with this he wishes to make rabbit meat easily available in the market for purchase. To this end he has plans up his sleeves to set up outlets for selling rabbit meat products in places with higher market volume.</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
					<div>
						&nbsp;</div>
				</div>
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					<span style="font-size: 14px;"><strong>Selling the Innovation</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Madhukar KC, Founder, Matribhumi Urja Pvt Ltd" src="/userfiles/images/cs4(6).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Madhukar KC</strong></div>
									<div>
										Founder</div>
									<div>
										Matribhumi Urja Pvt Ltd</div>
								</div>
							</td>
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				<div>
					<div>
						Madhukar KC, founder of Matribhumi Urja Pvt Ltd invented a fuel-efficient wood fire stove that is being commercially developed. Recently, he has designed eight different burners and presented them to the Alternative Energy Promotion Centre, as requested. These designs include skewer stove, high-altitude stove, portable stove and bio-gas stove among others for household and commercial use.</div>
					<div>
						&nbsp;</div>
					<div>
						CB Urja Pvt Ltd has been granted the production and marketing rights for the wood fireportable stovesKC innovated. It started production since mid-May 2014 from its Balaju Industrial Estate based factory.</div>
					<div>
						&nbsp;</div>
					<div>
						The government has recently decided to provide five ropanis of land in Chitwan to set up a factory produce burners at a larger scale, KC informed. He is optimistic that the decision would help to develop his venture. His journey so far has been challenging, especially during the research stage, as he had to personally finance his research and development works. Sharing his experience, KC complains of banks and financial institution&rsquo;s unwillingness to take intellectual property as collateral for providing loans. In lack of loans, he has been managing investments with the profit earned by selling the products.</div>
					<div>
						&nbsp;</div>
					<div>
						KC, originally a resident of Pyuthan had moved to Chitwan and it is where he first introduced the product to the public. The first prototype of woodfire stove was developed after a long series of trial and errors on coal stove. A successful prototype was developed in the 33rd attempt. For over 13 years he has been devoting all his time in developing the product. Coming now, he has improvised his products to use bio-mass. KC says that the performance of his stoves is higher than the government benchmark claiming that his stoves scored 29 in the benchmark against the official benchmark of 25. KC plans to develop products that can score around 33 to 35 in terms of performance and fuel efficiency. &nbsp;Presently he has been working fuel-efficient stoves to be used with bio-gas and liquefiedpetroleum gas (LPG).</div>
					<div>
						&nbsp;</div>
					<div>
						KC&rsquo;s stove, besides firewood, can use biomass such as pine leaves, seeds of Schima Wallichi (Chilaune) tree, seeds of Hog Plum (Lapsi) and other bio wastages, which generally remain unused, as fuel source. A candy factory in Parbat entirely uses Hog Plum seeds to fuel the stove. This unique portable stove uses two watt computer fan for air supply. The insulated version of the stove does not heat the room as it is covered by mud, specially designed for the Terai region. The fixed stoves installed in rural households also have similar mechanism and provide better flames while emitting lower smoke. KC says that these stoves can be customised to fit in the requirements of an individual household. This mechanism makes it fuel-efficient, environment and user friendly while ensuring smoke free kitchen.Along with that stove uses parts made of recycled metals supplied by the Butwal based Metal Craft Pvt Ltd.</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs5(5).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;KC is the first to incubate at the Business Incubation Programme of the Department of Cottage and Small Industries (DoCSI). In 2009, KC was recognised by National Academy for Science and Technology (NAST) with an award for developing efficient stoves. He was also awarded with Surya Nepal Asha Social Entrepreneurship Award in 2013. After being awarded with the awards, KC realized the buzz that his business had created in the market. He has registered patent rights for his innovations. Presently he has been trying to acquire international patent rights for his LPG and bio-gas burners and the DoCSI has pledged assistance in this endeavour.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
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					<span style="font-size: 14px;"><strong>CloudFactory: A Crowd-sourcing Powerhub</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Mark Sears, CEO, CloudFactory" src="/userfiles/images/cs6(5).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 218px;" /></td>
						</tr>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Mark Sears</strong></div>
									<div>
										CEO, CloudFactory</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						As crowd-sourcing and cloud-working are becoming the next big things in the global outsourcing market, new companies are flocking into this lucrative business. CloudFactory, a Kathmandu-based startup has emerged among the frontrunners in the global crowd-sourcing market. The company, founded in 2010 by a Canadian tech entrepreneur, Mark Sears, is rapidly expanding its foothold in Nepal and beyond. CloudFactory came into existence when Sears came to Nepal on a vacation with his wife in 2008. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The company basically is a web-based outsourcing platform that hires cloud-workers who can work from their internet enabled locations. CloudFactory&#39;s clients are those who need big data services such as data entry, data processing, data collection along with audio/video transcription, categorization, web research and image tagging. The tasks are broken down into sets of &quot;microtasks&quot; which are then distributed to its pool of online workers who complete their work in the &quot;virtual assembly lines&quot;. CloudFactory currently employs 3,200 workers from Nepal and across the world, who process over a million tasks per day.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Nepali startup scene is heading slowly but surely in a good direction&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did the idea of CloudFactory germinate?</strong></div>
					<div>
						In 2008, we were a software development company building web and mobile applications for North American and European clients. Many of them started needing data entry related work and kept asking if we could hire people in Nepal and do it. We kept saying no because we were a high-end software boutique and not a data entry company. At the same time we had been living in Nepal for a year and only hiring talented computer engineering fresher. &nbsp;During the period we met many other talented Nepalis looking for an opportunity. The major existing solution was Amazon&#39;s Mechanical Turk (AMT) - a crowd sourcing internet marketplace. But its enterprise-grade was not enough for our clients and we faced many quality related problems. So we started CloudFactory on January 1, 2010 as a technology platform to cater to the big demand and supply of online workers and haven&#39;t looked back since then.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the turning points for your company?</strong></div>
					<div>
						&nbsp;The shift from a software development company to a product company back in Jan 2010 was a major turning point. Another major turning point was in May 2012 when we hired our first 25 cloud workers in Nepal. Up until then we were a tech/engineering company building a platform and now we had to learn how to recruit, train and manage large numbers of data operators.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						While there are many young, talented people in Nepal there are less senior, experienced engineers and managers. We are a young team and in many ways I think that has been a good thing, we have learned a lot and grown together. I am so proud of the things we have accomplished to get to this point and I look around and see that I am surrounded by some of the finest young leaders in Nepal - it is amazing to see the growth and maturity that comes from being part of a growing international startup like this.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did you manage the investments?</strong></div>
					<div>
						Our team, technology and traction are the keys to us for raising investments. This latest round was definitely related to our participation in a business accelerator in the US where I got to meet and pitch to a lot of great investors at the end of the 7-month program.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the major projects of CloudFactory? What are its main focuses?&nbsp;</strong></div>
					<div>
						Large-scale data entry, audio/video transcription, web research, image tagging and categorization are our major projects. Companies come to us with large amounts of routine and repetitive work that we can break down in small tasks that can be partially automated but require people as well to complete many of them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						&nbsp;While we have not received any formal help from the government we have very much appreciated informal support from people like Radhesh Pant at Nepal Investment Board. While their focus is mostly on the top hydropower investments in Nepal but he understands and appreciates the opportunity for companies like CloudFactory to provide job creation in Nepal. As a landlocked country we need to be thinking more about how we can accelerate the shift to a knowledge economy. For that ICT should be higher on the priority of the government. Even so, the most important thing the government could do is stay out of the way of ICT growth in Nepal and focus on not being a hindrance and let entrepreneurs continue to innovate from their internet-enabled residences across the Kathmandu valley.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the challenges being faced by the Nepali tech startups?</strong></div>
					<div>
						Tech startups in Nepal are mostly just freelancers working together in small teams of 2-20 people. They work on the early development side of web and mobile applications but rarely get the opportunity to build a full business by bringing products to market themselves. We need some more product startups to go through the full lifecycle to see some wins on the international stage. We will then have the capital and experience to start the second wave of tech startups in Nepal. I see this happening in the next 3-5 years. Until then many will continue to get experience on the engineering/product development side by building other people&#39;s products. The future is bright, Nepali startup scene is heading slowly but surely in a good direction.</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
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	&nbsp;</div>
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					<span style="font-size: 14px;"><strong>&ldquo;Lack of human resource to work on our ventures is the major problem&rdquo;</strong></span></div>
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					&nbsp;</div>
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								<img alt="Anil Basnet, Chief Operating Officer  Metro Vibes" src="/userfiles/images/cs7(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
						</tr>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Anil Basnet</strong></div>
									<div>
										Chief Operating Officer&nbsp;</div>
									<div>
										Metro Vibes</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Metro Vibes, is a startup company that specializes in web design, development and hosting, email services, graphic design, domain registration, and providing IT consultancy and internet marketing services. After working for over five years with other tech companies, Anil Basnet, Chief Operating Officer of Metro Vibes, felt the need to establish his own IT company. He shared the idea with his three friends and they conceived Metro Vibes.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						Company&rsquo;s growth curve has been pretty stable and has improved substantially since its establishment. Presently 22 employees are working with company and Basnet said more would be joining in the near future. &ldquo;We work hard to meet projects deadline. We get up at 4 in the morning for our venture Metro Tarkari and ensure that the delivery is made within the set time frame,&rdquo; Basnet said while elaborating on the growth factors.</div>
					<div>
						&nbsp;</div>
					<div>
						Though the venture faced financial crisis in its initial days, lack of skilled manpower was and remains the major problem. &ldquo;We have unique concepts, required finance and latest technological equipments, but there is scarcity of skilled manpower who can translate our venture ideas into actions,&rdquo; stated Basnet. Another problem is the absence of government policy on ecommerce. &ldquo;We are confused about the method of handling online transactions,&rdquo; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						Starting the Merotarkari.com, an online vegetable ecommerce system, was one of the most prominent turning points for the company. This venture boosted the company&rsquo;s working style and contributed in its expansion. The concept of virtual receptionist was another unique idea in office automation that became a major turning point for the company.</div>
					<div>
						&nbsp;</div>
					<div>
						The company started with five clients in the initial phase and coming now it is serving more than 120 trustable clients that range from national to international boundaries. Its core products are mterotarkari.com, metrofever.com, metro bulk email service, and metro biometric attendance system.&nbsp;<strong>(By Angila Sharma)</strong></div>
					<div>
						&nbsp;</div>
				</div>
			</td>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&lsquo;&lsquo;The company has been working hard to extend its reach to every field&rsquo;&rsquo;</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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								<img alt="Shraddha Timilsina, CEO, Sastra Creations Pvt Ltd" src="/userfiles/images/cs8(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Shraddha Timilsina</strong></div>
									<div>
										CEO</div>
									<div>
										Sastra Creations Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sastra Creations Pvt Ltd is an IT startup company that provides wide range of services including web design and development, hosting, graphics designing, mobile app and software development. The company was founded in 2012 by two IT students Shraddha Timilsina and Binamra Dhakal in their pursuit of utilising their IT skills. &quot;We perceived that IT sector has great opportunities and possibilities in Nepal and hence decided to work and build our own IT business,&rdquo; Timilsina, who presently acts as the CEO of the company, said.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						In the two years of its establishment, the company had several major turning points. Launching the Nation Wide Web Competition 2013in partnership with the Computer Association of Nepal (CAN), on 2nd January, 2013 provided it with much needed publicity and helped gain reputation as an authority in the IT sector. &quot;It helped talented and skilled participants in acquiring better knowledge about opportunities in web design and development. It helped us to grow at the national level,&rdquo; Timilsina said. Next to it, the company provided IT support for conducting online election of Nepal Medical Council online. Launching its own range of software &ndash; school software and Catreen management software &ndash; in September 2014 provided it much impetus for being included in the top 20 IT startup companies by the ICT magazine.</div>
					<div>
						&nbsp;</div>
					<div>
						Software and websites sales has been major source of the company&rsquo;s income and investment. It claims that its annual income has grown about three times from 2012 to 2014 with current annual turnover resting at Rs 12 lakh. It has provided employment opportunities to more than 10 youths in 2 years.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The Company has been able to sustain and grow on its own due to the total dedication of its founders and employees. The success, however, was not easy. It has faced its share of financial and operational obstacles and challenges in the first few months of establishment. Timilsina thinks that lack of proper system and knowledge about IT and load shedding are the major problems faced by them. Reflecting on her experience, Timilsina said that it is hard to acquire big projects or partnership with bigger organizations in lack of personal links with them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						For any business, Timilsina thinks that market is important. She claims that taking business online just provides any business with the market. It is not possible to promote business without going online and it is time efficient if you are using digital marketing tools including software to run a business, she claims. The company perceives each and every sector including agriculture, entertainment, ecommerce, restaurants and hotels, travel agencies and any other business to be its potential client.<strong>&nbsp;(By Rashika Pokharel)</strong></div>
				</div>
			</td>
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	&nbsp;</div>
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					<strong><span style="font-size: 16px;">&ldquo;We are working on making our technology strong and making it securer&rdquo;</span></strong></div>
				<div>
					&nbsp;</div>
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								<img alt=" Bimal Maharjan, CEO, 11Beep" src="/userfiles/images/cs9(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Bimal Maharjan</strong></div>
									<div>
										CEO, 11Beep</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						11Beep is startup company, which since recently have been gaining popularity as a social network that provides platform to individuals to enjoy unrestrained personal freedom of expression.11Beep is a network built specially for mobilephones that doesn&rsquo;t keep any digital history. It lets you share freely what is on your mind with your friends without worrying about any digital footprint.</div>
					<div>
						&nbsp;</div>
					<div>
						11Beep came into operation on November 2013 following Bimal Maharjan&rsquo;s, the CEO of the company, competitive analysis of the market to find the company&rsquo;s startup idea. Maharjan had conceived the idea after analysing various posts on different social networking sites.</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;People only share trendy thoughts on social networking sites but hesitate to share thoughts that might be considered or taken in negative light by their social networking peers. 11Beep provides anonymity to individuals and emancipates them from the fear of being identified thereby enabling them to share their thoughts spontaneously without any restraints, says Maharjan, CEO of 11Beep. Thus this network paves way for individuals to share their thoughts, whatever their nature, whenever it strikes to their mind. Besides anonymity, this network has another cool feature of deleting all the post after certain time frame. This feature enables that the individual does not leave digital footprint behind for others to trace. Fundamentally, it is a social network with quite higher levelof security.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has been running by five-member team &ndash; with only CEO committing his full time to it and others helping him out on part time basis. 11Beep is preparing to launch another product in the market but before launching it, its been focusing on making the existing product more user friendly and winning user confidence.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;Our startup is based on the idea of a loosing algorithm and is designed for maintaining anonymity. We don&#39;t want to go wrong anywhere. We are working on making our technology strong and making it securer. We have required technical competencies and expertise and are very happy with our work and knowing that we are on the track of gaining our objective,&quot; says Maharjan.</div>
					<div>
						&nbsp;</div>
					<div>
						The company is sustaining through its own resources and has not got any support from government. &quot;Fortunately I don&#39;t have to pay my team so that is a relief .We don&#39;t require huge investment and our biggest need at the moment is human capital, we are investing on our own so right now we don&#39;t feel the need for funding but in the next phase, we will need huge investment,&quot; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						As a part of its aim, Beep11 believes in building something which people can make good use of. But being a start up it has its own woes too. &quot;Our society in not built to encourage tech entrepreneurs and as in the initial phase they don&rsquo;t earn much to sustain, it is very difficult for startups to establish in Nepal,&rdquo; Maharjan said.&nbsp;</div>
					<div>
						<strong>(By Rashika Pokharel)</strong></div>
				</div>
			</td>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Sasto Deal: Providing the Best Deals</strong></span></div>
				<div>
					&nbsp;</div>
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							<td>
								<img alt="Amun Thapa, CEO, Sasto Deal" src="/userfiles/images/cs0(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amun Thapa</strong></div>
									<div>
										CEO, Sasto Deal</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sasto Deal (SD) is one of the prominent rising stars of online retail shops in Nepal. The company was started almost 3 years ago with the aim of switching offline Nepali market to online and providing best deals. Upon returning from the US, Amun Thapa, SD&rsquo;s CEO, decided to do some business and began to search for ideas that would sell. It did not take long to Amun to realize that Nepali people had been wasting some really useful hours in shopping. &ldquo;I found people lingering to different places in search of different items. I asked myself if everyone was doing the same and the answer was yes. I was compelled to seek for a solution and I knew there was one. However, the sad part was that no one was doing anything about it,&rdquo; says Thapa. He realized that he could save people this hours by taking it online and making it available on their desktop or mobile phones. The idea was simple but he needed people who could translate his vision into reality. This brought him in touch with his schoolmates who were pursuing their degree in the IT field. They worked around the idea and gave birth to Sasto Deal. The initial phase was a bumpy ride as they had problems in making deals. It was difficult for them to make people believe in online business. &ldquo;People laughed at our ideas and we had to go out to the market begging for deals. But now, the same people are begging us to feature their products,&rdquo; says Thapa proudly. The company believes that the initial phase was difficult because online business was a new term to this part of the world and also because the rulers find it difficult to trust the new comers. The company believes that they are grown large.&ldquo;I would probably say the growth rate is over 100% right now, this is not only due to the fact that the company is outperforming but also due to the fact that we are in the e-commerce business and with every single product, our chances for growth increases,&rdquo; Avash K.C, CO-CEO of Sasto Deal, said.</div>
					<div style="text-align: right;">
						<strong>(By Angila Sharma)</strong></div>
				</div>
			</td>
		</tr>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Himalayan Wonders: A Travel Startup with a Difference</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Nishes Thapa, Operations Manager, Himalayan Wonders" src="/userfiles/images/cs01.jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 206px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Nishes Thapa</strong></div>
									<div>
										Operations Manager</div>
									<div>
										Himalayan Wonders</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						The Internet has changed the way companies do their business and tourism sector is no exception to it. Himalayan Wonders, a Nepali travel startup, also harnessed the latest developments made in the field of online technology and took all its business online. Founded in 2013, the company provides affordable tours and trekking packages to Nepal. This online portal is packed with informative contents and pictures and travellers can choose and book any tour package online through any Internet enabled device such as smartphone and tablet from anywhere in the world.Himalayan Wonders came into existence when an American geologist Dr David Urmann and his Brazilian friend Pablo Souto Maior suggested Nishes Thapato start his own company. Dr Urmann has been visiting Nepal since the mid-90s&#39; for research on climate change and in credited for establishing the company. Dr. Urmann and another Co-founder, Maior, promote the startup in the global market while Thapa heads the Nepal operations of the company. The company has been receiving overwhelming response from travellers and trekkers around the globe. Within a year it has received five-star rating from Trip Advisor and many positive reviews from its satisfied customers. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Ever since the inception of the company, we never looked back&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did your business idea germinate?</strong></div>
					<div>
						I was born in Tripureshwor VDC of Dhading and tourists visiting Ganesh Himal pass through it. Those tourists always fascinated me and it is during these days that my interest of doing something in tourism industry developed. In 1998 I came to Kathmandu and started working in the tourism sector. I worked for different people and gained industry experience that one must have in order to thrive in this booming industry. Dr David Urmann, an American friend of mine, suggested me to establish my own travel company. With his and his Brazilian friend Pablo Souto Maior constant help, we established the company in 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What is the growth rate of your company?</strong></div>
					<div>
						Since its inception, we have never looked back. Our business is growing every year. With the end of the decade long insurgency, the tourism and hospitality industry has been prospering. If this continues, I am hopeful of maintaining the existing healthy growth rate.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						We have not faced major problems till date. Our business so far has been smooth with tremendous support from staffs, friends and families. However, events such as general strikes and political instability in the country, have always posed to be a big threat. In the past, we have suffered financial losses due to such condition.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How are you managing investments?</strong></div>
					<div>
						We received bank loans to meet our initial investment requirements. In due course of time as the company started to grow, I borrowed money from friends and even used my personal savings to make further investment. We keep track of every penny that goes out as expenditure and comes in as earning. We keep our books up-to-date and this has become the success mantra of the company.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						We have not received any help from the government. &nbsp;If government agencies show interest in us, we would be glad to work together for the growth of this industry. Trekking Agencies Association of Nepal (TAAN) has provided us substantial help in promoting our business at the international level.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
				<div>
					&nbsp;</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-12-23',
			'modified' => '2015-06-01',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The startup scene in Nepal has changed significantly over the last five–seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.',
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		'Article' => array(
			'id' => '2800',
			'article_category_id' => '40',
			'title' => 'Unlocking Nepal's Growth Prospect',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&nbsp;--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	&lsquo;Nepal does have natural resources. They are of course our growth potentials but not necessarily the key element needed for our future economic growth. The key element is human resource; the brainpower, creativity of the people, entrepreneurship and innovation. If we can unlock our human potential, if we can unlock entrepreneurship and innovation which will make use of the natural resources that Nepal has, then our growth potential will be unlocked; we will become a rich country.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Thus spoke Finance Minister Dr Ram Sharan Mahat, the chief guest of the second edition of the Asian Paints NewBiz Business Conclave &amp; Awards, organized by New Business Age Pvt Ltd at Hotel Soaltee Crowne Plaza on September 11.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(5).jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(2).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 397px;" />Investing in Human Resource</strong></div>
<div>
	The remarks of Dr Mahat, a six-time finance minister, are a clear departure from the traditional belief that natural resources are a must for the economic growth of any country. The appropriate use of the available natural resources is necessary, the Finance Minister said, adding, however, that the country&rsquo;s economic development is possible through the use of brainpower, creativity, entrepreneurship and innovation. He cited examples of Japan, Hong Kong, Taiwan and South Korea which have achieved fast economic growth despite having practically very little natural resource.</div>
<div>
	&nbsp;</div>
<div>
	Deependra Bahadur Kshetry, former vice-chairman of the National Planning Commission (NPC), who too attended the Conclave, agrees with the finance minister. &ldquo;We need more skilled and trained human resource, creativity and innovation in business and entrepreneurship to exploit our abundant natural resource, which gives us a comparative advantage. However, the endowment of natural resource alone is not enough. This is what the finance minister means. And this is true as well,&rdquo; said Kshetry, while talking to New Business Age after the conclusion of the Conclave.</div>
<div>
	&nbsp;</div>
<div>
	Kshetry says the government should invest more in developing the country&rsquo;s human resources because it will help build the national capacity. &ldquo;In simpler terms, it means investing more in education and skill-oriented training. Investment in human resource will help unlock our growth prospects,&rdquo; he added.</div>
<div>
	&nbsp;</div>
<div>
	To invest in human resource development is to compete with investment in infrastructure and other social sectors. Here, the government has harder choices to make as it cannot choose one sector over the other as almost all sectors in Nepal need investment, and huge ones, for the matter. So, according to economists and development experts, the government will do well to have a well-designed national development plan, which will clearly spell out our national priorities. &ldquo;It will help attract international support as well. Then it will be easier for the government to decide in which areas to use domestic resources and in which areas external resources,&rdquo; say Kshetri.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Managing Director of Jade Consult, Bkesh Pradhanga, another speaker of the Conclave, echoed similar sentiments. &ldquo;The government should mobilize our human resource properly. For this, the government should invest in higher education of the country&rsquo;s workforce and this should be the primary focus,&rdquo; he opined. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 604px;" />Focus on Three &lsquo;I&rsquo;s</strong></div>
<div>
	Our development priorities should not miss the three &lsquo;I&rsquo;s &ndash; infrastructure, investment and inclusion &ndash; according to Johannes Zutt, World Bank country director for Nepal and Bangladesh. Zutt, who was also one of the speakers of the Conclave, clearly said that the three &lsquo;I&rsquo;s should be Nepal&rsquo;s top priority for now if the country is to achieve fast economic growth.</div>
<div>
	&nbsp;</div>
<div>
	On the investment front, the level of foreign investment has been low. According to the Investment Board, the total amount of foreign investment in 2012 which was declared the Investment Year was USD 62 million. It went up in 2013 to USD 208 million. In 2014 so far, it is USD 130 million. Domestic investment, too, hasn&rsquo;t been growing at the expected rate. &ldquo;Nepal is investing below the rate of investment needed to achieve a double digit growth. There is actually money available in Nepal for higher investment, but it isn&rsquo;t happening. The business community complains about access to finance, regulatory burdens and labour costs. These are the problems existent is South Asia but it is debilitating in Nepal,&rdquo; observed Zutt.</div>
<div>
	&nbsp;</div>
<div>
	But why has large scale investment not come to Nepal? Pradhananga answers, &ldquo;It is because of political instability, lack of policy predictability, and industrial disputes that have caused the closure of companies like Surya Nepal in the recent past.&rdquo; He added that Nepal immediately needs an investment of USD 15 billion for various projects that are ready for implementation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;For private investment to come, we need to create more enabling environment. This is why we have initiated some new incentives to lure private investment from this year&rsquo;s budget, Dr Mahat said, &ldquo;In the hydropower sector, for example, we have announced income tax exemption for the next ten years and fifty percent tax rebate for another five years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Zutt opined that Nepal is caught in a vicious cycle of investment and infrastructure. &ldquo;Nepal doesn&rsquo;t have high enough levels of investment in infrastructure that is necessary for businesses to succeed and because it doesn&rsquo;t have that infrastructure, it is not getting the investment,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Pradhananga suggested to the government to focus on infrastructure development for the next one decade. He also advised to change old laws and policies and introduce new ones to attract private investment. &ldquo;The Hydropower Policy 2001 and Foreign Investment and Technology Transfer Act 1992, to give a few examples, are quite old. The aim of these laws and policies is to attract FDI in the country. But we haven&rsquo;t been able to make them timely and updated. This has negatively affected our development efforts,&rdquo; said Pradhananga. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Hydro Hopes</strong></div>
<div>
	All the speakers of the Conclave agreed that hydropower has great potential in Nepal. &ldquo;We are rich in water resource. We have huge hydropower potential. We can be the power house of clean energy in South Asia,&rdquo; said Dr Mahat.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But the reality is different from the rhetoric. Nepal has hardly tapped one percent of its total hydropower potential. So far, the country has been able to produce only about 750 MW of hydroelectricity though the total hydropower potential of the country is said to be over 80,000 MW. That means one of the sectors where Nepal&rsquo;s growth prospects lie is the hydropower sector. Over half a dozen projects that are together expected to produce more than 5,000 MW of hydroelectricity are in advanced stage of development (see box). The government&rsquo;s claim to do away with load-shedding over the next three-four years is based on these projects.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In Nepal, hydropower is one such sector of investment which can bring about a positive change in the entire econom</div>
<div>
	&ldquo;If the PDA [project development agreement] with the Upper Karnali hydropower project is signed over the next few days or weeks, then it will be a game changer. It will lead to the signing of PDA with half a dozen other major hydropower projects,&rdquo; said Dr Mahat.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs4(4).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 231px;" />Nepal&rsquo;s Strategic Location</strong></div>
<div>
	The speakers of the Conclave also said that Nepal&rsquo;s geographic location between China and India, two rapidly growing economies of the world, provides the Himalayan nation a great opportunity for economic growth. &ldquo;Nepal&rsquo;s growth prospects also lie in the fact that it is located between China and India, two of the fastest growing economies of the world. If Nepal can establish itself a trading partner between China and India, it will greatly help Nepal&rsquo;s economic growth,&rdquo; said Zutt.</div>
<div>
	&nbsp;</div>
<div>
	It is worth mentioning here that the annual trade volume between India and China has already crossed USD 70 billion and the two countries have planned to increase it to USD 100 billion by 2015. If Nepal can build roads, highways and rail links to connect its northern border with southern border, then it can effectively work as a trading partner between the two Asian giants, according to economists and development experts. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&lsquo;2015: Nepal&rsquo;s critical juncture&rsquo;</strong></div>
<div>
	Addressing the Conclave, Dr Swarnim Wagle, member of National Planning Commission said that the year 2015 will be very crucial for Nepal as the country&rsquo;s new constitution is expected to be promulgated in 2015. Once, the constitution is ready, Dr Wagle said, Nepal&rsquo;s political transition would be complete and then the country&rsquo;s economy can take off. &nbsp;&ldquo;We are few centuries behind other countries but I think that we can really make the year 2015 our critical juncture and really expedite our path into modernity,&rdquo; said Wagle.</div>',
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			'description' => 'Nepal needs to invest in its human resource and exploit its natural resource to the fullest to unlock its growth prospects.',
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			'title' => '2nd Newbiz Business Conclave & Awards 2014',
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			'content' => '<p>
	&nbsp;</p>
<p>
	<span style="font-size:14px;"><a href="http://www.abhiyan.com.np/article-conclav_27bhadau2071_presentation">Presentations of some speakers in the conclave</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_25bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड वितरण शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड कार्यक्रम शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_conclave">न्यूबिज कन्क्लेभ एण्ड अवार्डको दोस्रो संस्करण आज</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-BSchoolAward2014">न्यू विज् विजनेश स्कूल अवार्ड २०१४</a></span></p>',
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			'created' => '2014-09-12',
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			'description' => '2nd Newbiz Business Conclave & Awards 2014',
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		'Article' => array(
			'id' => '2790',
			'article_category_id' => '40',
			'title' => 'Nepal Strives For DC Degree: What Is In Store For Private Sector?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	If everything goes as planned by the government, Nepal will graduate from the Least Developed Country (LDC) status over the next eight years (i.e. by 2022) to a Developing Country (DC) status. Even if that target is not achieved by the specified time, the process that has been initiated already with the start of the current three-year plan (FY 2014 to FY 2016) has a lot in store for the private sector as opportunities, say analysts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Foremost among such analysts is Dr Govind Raj Pokharel, Vice Chairman of National Planning Commission (NPC). He says, &ldquo;Graduation from the LDC status is a Herculean task but it is achievable if the government and the private sector work together and there is strong support of the donor community. We have pinned a lot of hope on the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Dr Pokharel claims that the next eight years over which Nepal will try its best to graduate from the LDC status to DC status will be full of business opportunities for the private sector. &ldquo;We have expected a huge investment from the private sector. We know that the private sector will not invest without seeing opportunities first. Still, we hope that such investment will come from the private sector because there will indeed be opportunities,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 485px;" />According to economists as well as the country&rsquo;s graduation strategists, there will be business opportunities in all major sectors - agriculture, manufacturing, services, hydropower, tourism, infrastructure development etc. &ldquo;These are the major areas where the private sector will find ample business opportunities provided that the government creates an enabling environment. But there will be opportunities in other sectors as well if there is an enabling environment,&rdquo; shares Dr Hemanta Dawadi, Director General of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).</div>
<div>
	&nbsp;</div>
<div>
	It seems the government is keen about creating those opportunities for the private sector through change in policy in line with the development targets which will have to be achieved over the next eight years for Nepal to become a developing country. The good thing is this has started with the recently announced budget for the new fiscal year. &ldquo;The budget is also poised to graduate Nepal from a Least Developed Country status as defined by the UN,&rdquo; said Finance Minister Dr Ram Sharan Mahat while presenting the budget on July 13.</div>
<div>
	&nbsp;</div>
<div>
	In his budget speech, Dr Mahat said that the country needs to invest minimum 30 percent of GDP in fixed capital formation to earn the identity of a developing country in the next eight years. &ldquo;However, the average investment of past three years has been only 22 percent,&rdquo; he noted, &ldquo;To bridge this gap of eight percentage point in fixed capital formation, additional Rs 160.00 billion should be invested in the coming Fiscal Year alone.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Finance Minister proclaimed that various reform measures will be carried out in this fiscal year in order to increase domestic and external investment and facilitation. He said additional reforms and revisions will be carried out by evaluating the practices and experiences of policies, regulations and laws regarding industry, trade, energy, banking and financial sector that were started back in 1990&#39;s decade, adding that the next (14th) Periodic Plan will have a clear roadmap for transforming the country into developing country status within coming eight years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	To create the right opportunities for the private sector, the budget has also stated to amend the Companies Act, Competition Promotion and Market Protection Act and Insolvency Act. This will simplify the process of company establishment, renewal and liquidation. Similarly, the budget talks about amending the provisions of existing Debt and Guarantee Act in order to attract foreign investment in mega projects and viable sectors, where the domestic investment is insufficient.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;New laws regarding industrial enterprise and foreign investment and technology transfer will be formulated. Foreign Investment Policy and Industrial and Intellectual Property Policy will be formulated. Bill regarding Special Economic Zone will be tabled in Parliament. Procedures regarding the establishment of large industries under foreign investment will be simplified,&rdquo; said the Finance Minister.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 468px;" />Opportunities in Energy Sector</strong></div>
<div>
	The government plans to end load-shedding over the next three years. In this period, four major public sector-funded projects namely Upper Tamakoshi, Kulekhani II, Chameliya and Upper Trishuli hydroelectric projects will enter production phase and will together generate 560 MW of electricity. Similarly, 42 private sector-funded hydroelectric projects will generate 628 MW of electricity in this period. Similarly, the government will start the construction of other projects such as Tamakoshi V, Madi Khola, Maiwa Khola hydroelectric projects including Tanahu and Rahughat projects. Similarly, according to the budget, the construction of Kabeli Hydroelectric Project will be started in Public-Private-Partnership model.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector will be invited to carry out various works related to these energy projects. That clearly means business opportunity,&rdquo; explains Dr Arjun Karki, International Coordinator of LDC Watch, &ldquo;Several other bigger projects will be initiated over the next eight years which means there will be good business opportunities for the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	In order to complete the projects on time, the budget has announced to provide full exemption on income tax for the first ten years and 50 percent exemption for additional five years to those producers who generate and connect electricity to national grid and export it within FY 2022/23. &ldquo;I have made an arrangement to provide a lump sum grant of Rs 5 million per MW of electricity to those producers who generate and connect the generated electricity to national grid. I have also made provision of an additional 10 percent of such grant to those producers who generate and connect the generated electricity to national grid within FY 2017/18,&rdquo; says Dr Mahat. &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Agriculture</strong></div>
<div>
	The government plans to modernise, diversify and commercialize the agriculture sector over the next one decade. This is reflected in the newly announced budget as well. The budget targets to keep interest rate on six percent on loans to be provided by the commercial banks for modern farming, livestock and poultry farming, medicinal plants, vegetables and horticulture, dairy business, aquaculture, agro storage, cold storage, slaughter house and meat-related business. This provision, the government thinks, will also help address the problem of unemployment and youth migration from rural areas.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the budget has provisioned up to 50 percent subsidy in the loan interest taken in order to develop land and mechanize farming for private groups which are involved in the commercialization and mechanization of farming by integrating 10 hectares land in mountain and 20 hectares land in Terai and up to 75 percent interest grant for the cooperatives of marginalized and landless farmers.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the construction of the main as well as branch canals of major irrigation projects such as Sikta, Babai, Mahakali and Rani Jamara Kulariya etc will be given continuity. It is the private sector that will be awarded contracts to carry out these works which clearly means good business opportunities for the private sector. Similarly, the tunnel construction work of Bheri Babai Multipurpose Diversion Project will also be initiated in this fiscal year.&nbsp;</div>
<div>
	&ldquo;The government wants significant private sector investment in agriculture. For this it is ready to create the environment,&rdquo; remarks Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(6).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 434px;" />Opportunities in Tourism</strong></div>
<div>
	Tourism is going to be another sector of good business opportunities for the private sector. The government, through the latest national budget, has already announced to provide income tax exemption for five years to the industries established with an investment of more than Rs 2 billion in the tourism sector. Similarly, aviation companies, too, will get such income tax exemption. They will further get 50 percent income tax exemption for subsequent three years, according to the budget.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;This income tax exemption is aimed at promoting the establishment of good hotels and resorts at the major tourist destinations and other places of the country. This is a clear opportunity for the private sector,&rdquo; explains Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Infrastructure Development</strong></div>
<div>
	Nepal has to do a lot in infrastructure development so as to increase accessibility, facilitate service delivery and enhance cost effectiveness. For example, the government wants to construct at least one road on multi-year contract basis in each electoral constituency where there is no year-round transportation. Similarly, the construction work of the Kathmandu-Terai Fast Track will be started in this fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The government plans to open the track of several new roads, black-top and expand several existing roads and build hundreds of bridges across the country. The government has allocated more than Rs 14.3 billion for this purpose in the current fiscal year alone. Similarly, the new budget has allocated Rs 4.5 billion for the maintenance of 16,788 kilometres of strategic and local roads including their regular maintenance, routine maintenance, periodic maintenance, and rehabilitation and urgent maintenance.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, according to the new budget, the government will carry out urban infrastructure development programmes in cities like Biratnagar, Birgunj, Butwal, Dharan, Janakpur and Nepalgunj including the development of 10 Urban Corridors with eight ongoing and two new.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The national budgets to be announced in the fiscal years to come will have to continue such infrastructure development programmes, if Nepal is to achieve the DC status by 2022. So, there is no dearth of business opportunities for the private sector,&rdquo; says Dr Pokharel. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;&nbsp;</div>
<div>
	<strong>Investment Requirement</strong></div>
<div>
	According to NPC&rsquo;s estimates, the government or the public sector will have to invest Rs 3,300 billion and the private sector will have to invest double the amount &ndash; a whopping Rs 6,600 billion -by 2022 if Nepal is to achieve the status of a developing country by then. But will such a huge investment really come from the private sector?</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We hope it will because the country is now headed towards political stability and legal and economic reforms are in the pipeline. That means the next eight years are going to be a wonderful business opportunity for the private sector,&rdquo; assures Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	According to NPC&rsquo;s investment plan, Nepal will need a total investment of Rs 1013.91 billion in the agriculture sector by FY 2021/22 to achieve the graduation target. Two-thirds of this investment, i.e. around Rs 675.94 billion is expected from the private sector. The agriculture sector includes forestry and fishing as its subsectors.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector is expected to invest in the modernization of agriculture and increase productivity, replace agricultural imports and promote exports. The government is expected to make this easier through policy and legal reforms, if necessary,&rdquo; says Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the industrial sector which includes mining and quarrying, manufacturing; electricity, gas and water, and construction will require a total investment of Rs 1807.87 billion. Of this amount, Rs 1205.24 is expected from the private sector. &ldquo;So there is a huge opportunity for the private sector in the industrial sector as well,&rdquo; thinks former NPC Vice Chairman Prithvi Raj Ligal.</div>
<div>
	&nbsp;</div>
<div>
	Likewise, according to the NPC plan, the service sector which comprises wholesale and retail trade; hotels and restaurants; transport, storage and communications; financial intermediation; real estate, renting and business activities; public administration and defence; education; health and social work; and other community, social and personal service activities will require a total investment of Rs 6874.98 billion &ndash; Rs 4583.32 billion from the private sector and Rs 2291.66 billion from the public sector.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(4).jpg" style="width: 550px; height: 110px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Criteria for Graduation&nbsp;</strong></div>
<div>
	There are basically three criteria to graduate from the LDC status &ndash; Human Assets Index (HAI), Economic Vulnerability Index (EVI) and GNI per capita. HAI is about the stock of the human capital of the country and comprises the nutrition status of the population, mortality rate of children aged five or under, and gross secondary school enrolment ratio and adult literacy rate. EVI reflects the country&rsquo;s vulnerability to exogenous shocks and comprises of population size; remoteness; merchandise export concentration; share of agriculture, forestry and fisheries in GDP; share of population living in low elevated coastal zones; instability in export of goods and services; victims of natural disasters; and instability in agricultural production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Likewise, GNI per capita is related with the country&rsquo;s income-generating capacity and is based on a three-year average estimate of the country&rsquo;s per capita GNI (World Bank Atlas Method). After determining threshold level for each of the criteria every three years, the United Nations Committee for Development Policy (CDP) reviews the progress made by LDCs and if the country has been eligible at two successive triennial reviews, it recommends a country for graduation from the LDC category. At least two of the three criteria or GNI per capita twice higher than the threshold should be met in order to be eligible for graduation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Among the three criteria for LDC assessment, Nepal has already met the EVI threshold level and is very close to meeting the HAI criteria; however, there is a huge gap between the GNI threshold level and Nepal&rsquo;s present status. The role of the private sector is going to be very important to meet this criterion,&rdquo; observes Dr Karki.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Increasing Productive Capacity</strong></div>
<div>
	Karki is of the opinion that Nepal will have to start working seriously to enhance its productive capacity significantly to achieve the GNI per capita threshold. &ldquo;The country is facing problems like huge trade deficits, high underemployment rate, income inequality and low quality of life,&rdquo; says Dr Karki, &ldquo;Factors including subsistence agriculture, deteriorated industrial environment, power shortage etc., have led to a low level of economic growth and development. Therefore, there exists a great challenge to sustain the achievements and narrow down the gaps between GNI threshold level and the current status.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our GNI per capita has improved over the past few years but we still need to accelerate it, he adds. Karki&rsquo;s observation points to two important areas where private sector can come forward &ndash; commercial agriculture and power generation. Fortunately, these are the two major areas of emphasis in the budget presented at the parliament recently. If the government really implements the policies and budget allocations announced in the budget speech, the privates sector can make good money while contributing to this graduation of the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ligal lists more areas where the private sector has such opportunities. &ldquo;Productive capacity has basically four components &ndash; infrastructure; energy; science, technology and innovation; and private sector development,&rdquo; says Ligal, adding &ldquo;The role of the private sector is very important in increasing the country&rsquo;s productive capacity by investing in infrastructure development, energy exploitation and by making technological innovations.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Although Nepal has already met the EVI criterion, it still has to either increase its GNI per capita by US$ 770 or the HAI score by 6.17 before 2015 to be eligible for consideration for graduation. This is because eligibility conditions should be fulfilled during two successive triennial reviews, and the CDP will now review the progress only in 2015,&rdquo; Chandan Sapkota, an economist with the Asian Development Bank, Nepal, says, &ldquo;After the review, Nepal will have to sustain the progress through 2018, the next triennial review, only after which the CDP will recommend for graduation.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	This means Nepal has good length of time to fulfil the criteria. But effective intervention from the government is a must. And the NPC has recognised this clearly. &nbsp;&ldquo;If the past trend is of any guide to future, it will be difficult for Nepal to meet the projected threshold of US$ 1,502 even by 2021, unless effective policy interventions are in place. Vigorous efforts are needed to achieve the projected GNI per capita of US $ 2,094 in 2021 so that the economy is on the way to achieve the estimated threshold by 2021,&rdquo; reads NPC&rsquo;s Approach Paper to Graduation from LDC by 2022.</div>
<div>
	&nbsp;</div>
<div>
	According to Ligal, the private sector &ndash; both domestic and foreign &ndash; will have to invest heavily in sectors like physical infrastructure, hydropower, tourism and agriculture over the next eight years. &ldquo;But the private sector will not make such a huge investment under the present circumstances. For private sector investment to come, the government will have to create conducive environment through legal, administrative and policy reforms. If this happens, private sector will come forward as the Graduation process would offer lucrative business opportunities,&rdquo; he says, adding that Nepal needs more aggressive economic reforms in the near future.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs5.JPG" style="width: 550px; height: 430px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Partnership with Private Sector</strong></div>
<div>
	The Istanbul Programme of Action, which aims to at least halve the number of LDCsby 2020, too, has laid great emphasis on public-private partnership. It says, &ldquo;Partnerships with the private sector play an important role for promoting entrepreneurship, generating employment and investment, increasing the revenue potential, developing new technologies and enabling high, sustained, inclusive and equitable economic growth in least developed countries.&rdquo; In the present circumstances, when the private sector is complaining of lack of enough conducive environment for investment, PPP model can be a good alternative so that the private sector can feel secure as the government too will have stake in such projects. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists say that investment in the industrial sector is a must to increase the economic productivity. &ldquo;Productivity and job opportunities in the service sector have remained low. And it consists of more informal sectors,&rdquo; observes Shanker Sharma, former vice-chairman of NPC, &ldquo;We need more manufacturing industries. If there is political stability, right policies in place and adequate legal reforms, then investment in the manufacturing sector will come.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Karki, too, stresses on the need for public-private partnership (PPP) model of development. &ldquo;The PPP model is going to be very helpful in those areas of investment where the private sector alone is a bit hesitant to enter,&rdquo; he says. If the government comes forward to invest in such sectors, the private sector will follow suit, he adds.</div>
<div>
	&nbsp;</div>
<div>
	Dr Dawadi is also of the opinion that the government alone cannot take the country out of the LDC status to the developing country status. &ldquo;To be successful, the graduation strategy will require a full and uninterrupted understanding, support and cooperation from the private sector,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	True that both economists and development activists are right in their view that this target spelt out in the &nbsp;approach paper to the latest three-year plan (FY 2014 to FY 2016), is highly ambitious. But the government has its own basis for its optimism.</div>
<div>
	&nbsp;</div>
<div>
	The doubt of the economists and activists is based on the fact that the previous three-year plan (FY 2010 to FY 2013) had aimed such graduation by 2030. But the government officials say they pre-poned the target by eight years looking at the rapid progress in the recent years. They particularly cite increase in the country&rsquo;s per capita gross national income (GNI), decreased poverty level, and significant progress on major social indicators such as mortality rates, school enrolment rates, life expectancy etc. Since the LDC category was brought in practice in the international development parlance in 1970, only four LDCs &nbsp;have graduated to DC status so far &ndash; Botswana (1994), Cape Verde (2007), Maldives (2011) and Samoa (January 2014). But the number of LDCs has almost doubled since then. It means graduation from the LDC status is not so easy. But development experts think that the goal is achievable if the public and private sectors of the country work together.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	When the economy grows and businesses thrive, the sky is the limit for the individual private sector operator. It means a large pool of resources, a larger market and a higher level of operation,&rdquo; Dr Dabwdi concludes, &ldquo;The opportunity will be for both new business creation as well as horizontal growth of existing businesses.&rdquo;</div>',
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			'description' => 'The role of the Nepali private sector is going to be very crucial if Nepal is to become a developing country by 2022, as planned by the government. It means large business opportunities await the private sector over the next eight years.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '2786',
			'article_category_id' => '40',
			'title' => 'Outbound FDI : Can Nepali Businesses Go Global?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>--By Siromani Dhungana</strong></div>
	<div>
		&nbsp;</div>
	<div>
		<em><span style="font-size: 16px;">A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still in force in Nepal which stops Nepali citizens from investing in a foreign country. The existing fear is that the country&rsquo;s economy will suffer if Nepal allows outbound FDI. But many evidences suggest that despite this law, Nepali people are investing in different other countries through one channel or other. And such evidences are becoming more visible. Policymakers are in dilemma while the business community is also largely divided on the issue. However, the debate on legitimatizing outbound FDI is heating up in recent times. What impact will it have on a country like Nepal where the national economy is not strong? Will it create BoP deficit as many fear? What happens if all businessmen start to set up industries in foreign countries which have better policy stability and lesser labour problem? New Business Age tries to analyse some of these major concerns:</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.</div>
	<div>
		&nbsp;</div>
	<div>
		However, zero capital mobility in and out of a country cannot be expected. Many evidences suggest that the investment is going abroad through one channel or the other. Any state should allow aspiring businessmen to invest anywhere globally because this will help the currency get its true value recognized, Dr Chiranjibi Nepal, Economic Advisor to the Prime Minister claims. &ldquo;Investment is a must to increase the value of the money. The government should open up avenue for outward FDI to acknowledge this fact.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Evidences also show that the flow of money cannot be barricaded by any laws or policies. For instance, Nepal, according to a report of Global Financial Integrity (GFI), lost a total of $ 8.01 billion between 2001 and 2010 due to illicit capital flight. It means that on an average, $ 801.4 million (Rs 70.39 billion) went out of Nepal annually during that period of almost a decade.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1(4).jpg" style="width: 550px; height: 163px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		GFI&rsquo;s another report entitled &lsquo;Illicit Financial Flows from the Least Developed Countries: 1990-2008&rsquo; had put Nepal&rsquo;s annual capital flight at $ 480.4 million. Based on the amount of capital flight, Nepal has been ranked 58th among 143 countries surveyed and sixth among the Least Developed Countries (LDCs) for exporting funds illegally.</div>
	<div>
		&nbsp;</div>
	<div>
		The report clearly points to the huge illegal financial flows from Nepal and it is high time that the government addresses this problem without making any further delays, Nepal opined. &ldquo;The government should legalize outward FDI to keep the record of outflow of financial transaction in the formal system,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Existing Laws Related to FDI</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Foreign Investment and Technology Transfer Act &ndash; 1992</strong></div>
						<div>
							Foreign Investment and Technology Transfer Act (FITTA) &ndash; 1992 &amp; Industrial Enterprises Act - 1992 are the two most important laws for the promotion of industries in Nepal. These two acts are highly encouraging acts for attracting FDI or Joint venture investments in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA includes provisions related to facilities and concessions. This Act treats foreign investors as equals to local investors and provides them same incentives and facilities.</div>
						<div>
							&nbsp;</div>
						<div>
							The Act is also very positive on providing visa to foreign nationals. The Act has ensures 6 months non-tourist visa to a foreign national if he/she want to conduct survey, study or research with the objective of making investment in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							After that if he or she makes investment or establishes an industry, the investor (along with the dependant family members) is granted business visa until the investment is retained. Similarly, residential visa is granted to a foreign investor and his family if s/he makes an investment of one hundred thousand US dollars in one business. All these are highly encouraging statements. However in actual practice, the investors face various problems, time and again.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA and IEA also offer some fiscal incentives including income tax relief. But the amended Finance Act and New Income Tax Act have withdrawn all such incentives, which is considered a controversial decision. Several amendments to FITTA through the Finance Act of 2001 and the progress made in this regard helped the nation in its efforts to gain membership of WTO, SAFTA, and BIMSTEC, but these amendments too are not enough, say investors.</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Industrial Enterprises Act - 1992</strong></div>
						<div>
							The IEA has &nbsp;one-window committee (OWC) provision, which is coordinated by the director general (DG) of Department of Industry (DoI) and has DGs of Customs, Inland Revenue, Value Added Tax (VAT) and Commerce as well as representatives from central bank, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the government.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<strong style="font-size: 14px;"><img alt="Dr Chiranjivi Nepal" src="/userfiles/images/cs2(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need: A Positive Beginning</strong></div>
	<div>
		Nepal&#39;s legal system begins from the word restriction, which, according to many, rightly articulates the government&rsquo;s mind-set. A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still effective in the country. The law was introduced to restrict Nepalis from investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		We need a fresh and positive beginning, economist and former chief secretary Dr Bimal Koirala told New Business Age. &ldquo;The government should reform existing laws to facilitate businessmen to invest in foreign countries instead of imposing restriction.&rdquo; The fear among policymakers is that what happens if businessmen do not bring back money to the country. And, the answer to this fear is to set up effective monitoring bodies that will keep record of every businessman who invests abroad, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Given the low trade volume of the country and frequent fluctuation in the Balance of Payment (BoP), some experts advise against allowing Nepali businessmen to invest abroad. Koirala slams such opinion claiming it to be an out-dated concept.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Times have changed and the government has to realize this fact. The government should understand and accept the new liberalized and globalized world and business scenario, Koirala opines.</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Act Restricting Investment Abroad, 2021BS (1964)</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							Article 3 Restriction on making investment abroad:&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							(1)<span class="Apple-tab-span" style="white-space: pre;"> </span>No one shall make any kind of investment abroad after the commencement of this Act.</div>
						<div>
							&nbsp;</div>
						<div>
							(2)<span class="Apple-tab-span" style="white-space: pre;"> </span>Notwithstanding anything contained in sub-section (1), in relation to any specific kind of investment, the Government of Nepal may, by a notification in the Nepal Gazette, grant exemption from the restriction set forth in that sub-section, and specify the kind, extent, period of the investment so exempted and other necessary terms pertaining thereto.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Past Initiatives</strong></span></div>
	<div>
		Nepal started systematic initiative of attracting FDI in 1981. The Sixth National Plan (1980/81-1984/85), for the first time, incorporated a policy for utilizing foreign capital and technology as a useful supplement. The Plan mentioned that foreign investment and technology was primarily required in large-scale industries and mineral industries. Since then, the government continued revising policies related to inward FDI. Foreign Investment and Technology Transfer Act was introduced in 1992 and amended in 1996 in line with open and liberal economic policies. But outward FDI-related provisions remained unchanged.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Recently, the government has started fresh initiative to review the policy. Foreign Investment Policy 2014 has been prepared and consultations with stakeholders are underway on it, according to Ministry of Industry. &nbsp;However, business community blames the government for not being proactive to introduce new policy. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Policies that Restrict Outward FDI</strong></span></div>
	<div>
		<strong>Act Restricting Investment Abroad, 2021(1964):</strong>&nbsp;This law, as its name suggests, restricts any Nepali citizen from investing outside of Nepal. While this may be an old Act, it is still valid in the country. It defines restricted investments as foreign securities, partnership with foreigners, foreign bank accounts, owning house and land in a foreign country and any foreign investment in cash or kind except as prescribed by the government. This law has severely affected outward FDI as Nepali citizens cannot freely invest outside the country. Despite a provision within the Act that leaves a space for aspirant businessmen to invest abroad by taking approval from the government, nobody has received such approval.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Foreign Exchange Regulation Act:&nbsp;</strong>This act does not allow Nepalis to open bank accounts in foreign countries if the money is earned in Nepal. Nepalis can open bank account abroad only if they earn money outside Nepal. But the account holder should inform Nepal Rastra Bank about the account.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Changing Times but Unchanged Laws</strong></span></div>
	<div>
		The existing laws were formulated at a time when entrepreneurship in Nepal was at a primitive stage and Nepali businessmen did not have sufficient capital and expertise to invest abroad, said Basudev Adhikari, Director of Nepal Rastra Bank.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepali business community has come a long way since 1964. &ldquo;For instance, now we have a Forbes-listed billionaire that shows that our businessmen have enough capital to invest in various sectors,&rdquo; said Adhikari. Competitiveness of Nepali business sector has tremendously increased over the last few years. Lawmakers should reform existing laws considering the changed scenario, he added. The prevailing laws have failed to prevent outflow of capital from Nepal anyway.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Anup Bahadur Malla" src="/userfiles/images/cs3(5).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need for Caution</strong></span></div>
	<div>
		Still the policy of allowing Nepalis to invest abroad cannot be introduced without caution. The most challenging job for the government is to set the ceiling for outward FDI, opined Anup Bahadur Malla, executive member of FNCCI. The government should not introduce any law haphazardly, he suggested. Meticulous studies are required even when formulating laws related to inward FDI, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		There are flaws in inward FDI policies as well which have created some adverse impact on the economy, according to him. Foreigners in Nepal are venturing into small businesses which have nominal contribution to the national economy, he argued. For instance, Chinese nationals, according to him, have been replacing Nepali small entrepreneurs from Thamel and other places but their contribution to the national economy and employment generation is negligible. From this, the government should learn that both inward and outward FDI can be harmful if laws are formulated without rigorous study, he claimed.</div>
	<div>
		&nbsp;</div>
	<div>
		Along with fixing ceiling, he claims identification of competitive sectors is the most challenging job for the government. It should initiate debate on maximum investment-ceiling limit on outward FDI, and identify the sectors where Nepalis can take competitive advantages, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#F6CEF5">
						<div>
							<span style="font-size: 14px;"><strong>Defining FDI</strong></span></div>
						<div>
							Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that the investor exerts a significant degree of influence on the management of the enterprise resident in the other economy.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates, both incorporated and unincorporated. FDI may be undertaken by individuals as well as business entities.</div>
						<div>
							&nbsp;</div>
						<div>
							Flows of FDI comprise capital provided (either directly or through other related enterprises) by a foreign direct investor to an FDI enterprise, or capital received from an FDI enterprise by a foreign direct investor. FDI has three components: equity capital, reinvested earnings and intra-company loans.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Equity capital is the foreign direct investor&rsquo;s purchase of shares of an enterprise in a country other than its own.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Reinvested earnings comprise the direct investor&rsquo;s share (in proportion to direct equity participation) of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor. Such retained profits by affiliates are reinvested.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Intra-company loans or intra-company debt transactions refer to short- or long-term borrowing and lending of funds between direct investors (parent enterprises) and affiliate enterprises.</div>
						<div>
							(Source: World Investment Report 2012, UNCTAD)</div>
						<div>
							&nbsp;</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Outbound FDI: An Open Secret&nbsp;</strong></span></div>
	<div>
		Policies on outward investment have been seen as a screening device to restrict the outflow of capital from the country. But it is an open secret that Nepalis have already started investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Chaudhary Group (CG), a company owned by Forbes-listed billionaire and renowned industrialist Binod Chaudhary who has invested abroad through Cinnovation Group, a multi-dimensional conglomerate established in 1990 headquartered in Singapore. The company was created to take CG&rsquo;s business interests global. Currently, it is expanding its footprint in global market.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Business leaders and government officials hesitate to give opinion regarding outflow of capital from Nepal in public. &nbsp;But they privately confide that there are many instances where the investment is going abroad through one channel or the other. India has been one of the easiest destinations for Nepali investors to invest, one businessman told New Business Age. &ldquo;Businessmen channel capital to India through their relatives and acquaintances living in India,&rdquo; he disclosed. More than a dozen of reputed Nepali business houses have invested in India in one or other way and even government officials are aware of this fact, he claimed. So, it is better to legalize outward FDI to control informal outflow of money.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Dr Bimal Koirala" src="/userfiles/images/cs4(3).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 169px;" />Drives of Outward FDI</strong></span></div>
	<div>
		A question worth asking is: what triggers outward FDI from Nepal? There is not an easy answer. Generally, two major drives can be analysed: market-seeking drive and resource-seeking one. Nepali businessmen want to go outside country for market-seeking purpose, said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Businessmen eye foreign market when their businesses are saturated in the home country, he said. It can thus be said that the drivers of outward FDI from Nepal are largely determined by market-seeking factors with little role played by policy measures.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Political instability, labour unrest and terror created by conflicting parties might have triggered businessmen to invest abroad during a decade-long conflict, he said. But the situation has changed now and businessmen do not want to go global if there is prospect of good business in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Anti Outward FDI Logics</strong></span></div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Positive Financial and Macro Economic Indicators: Experts say that the overall economic indicators including economic growth should be in positive direction and should be stable to allow Nepalis to invest in foreign country. Given Nepal&rsquo;s volatile economic situation, some economists advise not to allow outflow of the capital.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Investment Climate: Why do our businesses want to go outside though market in Nepal has been growing? An easy answer is that there is no investment climate in the country. It is not possible to open up outward FDI without ensuring investment climate in the country. Our own country is in dire need of investment in almost all sectors and it is a matter of concern as to why businessmen are lobbying to open up outward FDI, an economist questioned. Several structural bottlenecks and supply-side constraints are impacting the investment climate in Nepal. Tough reform measures have to be formulated before bringing policies related to outward FDI, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Trade Deficit: Nepal has been witnessing a whopping trade deficit year after year. Nepal imports essentials goods and services by drawing on its foreign currency reserves, which are primarily contributed by remittances. Many experts fear that foreign currency reserve may deplete if the country allows businessmen to invest aboard.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Distrust on Businessmen: Another crucial problem is trust deficit. The government is not certain that businessmen who invest abroad will sincerely send their profit back to the country. &ldquo;The country that does not trust its own businessmen cannot make progress. The environment of trust should be built between business community and the government that will facilitate the process of bringing policies related to outbound FDI,&rdquo; opined CNI vice president Haribhakta Sharma.</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Competitiveness: According to Global Competitiveness Report released by World Economic Forum, Nepal ranked 117 among 144 economies in 2013-14. In order to succeed in the global business, businessmen should be competitive. But, can Nepali businessmen be competitive when they have not been able to show their competitiveness in domestic front, questioned Dr Chiranjibi Nepal. He suggests that the government should provide competitive business environment.</div>
	<div>
		&nbsp;</div>
	<div>
		6.<span class="Apple-tab-span" style="white-space: pre;"> </span>Absence of Entrepreneurial Attitude: Entrepreneurship needs innovative ideas and risk taking skills. Given their low entrepreneurial activities in homeland, many argue that the business community in Nepal still lacks entrepreneurial attitude. Most of the businessmen are involved either in hereditary business or in service sector or trade activities. These traits are not sufficient to compete in global market and most of them do not have entrepreneurial bent of mind, claims an expert. &ldquo;This fact should be kept in mind while formulating policies.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		7.<span class="Apple-tab-span" style="white-space: pre;"> </span>Poor Performance of Manufacturing Sector: Nepal&rsquo;s manufacturing sector is in weak state. The country cannot create much employment in absence of manufacturing activities. &nbsp;On the other hand, the country relies heavily on imports to meet daily consumer needs. In such circumstance, opening up outward FDI without improving the performance of country&rsquo;s manufacturing sector might be suicidal, says a FNCCI member requesting anonymity.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		8.<span class="Apple-tab-span" style="white-space: pre;"> </span>Fluctuation in BoP: Generally, businessmen prefer to invest in a strong economy where their capital is safe. If allowed to invest abroad, Nepali businessmen may make majority of their investment in the countries which have strong economy. Currently, remittance has helped maintain Nepal&rsquo;s Balance of Payment (BoP). If in the future, inflows of remittance drops and at the same time businessmen take capital abroad, there will be severe BoP crisis. This is why the government is still reluctant to introduce outward FDI-related policies, an official at Finance Ministry said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Rhetorical Logics and Laxity of the Government&nbsp;</strong></span></div>
	<div>
		Some experts vocally criticize the government&rsquo;s laxity in creating business friendly environment and improve overall macroeconomic scenario. For how long can Nepal restrict businessmen from investing abroad, questioned economist Dr Posh Raj Pandey. The government and experts who do not favour the idea of opening outward FDI often repeat the same rhetorical logic but do nothing to improve the scenario, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The government is literally idle in terms of bringing any policy to foster an environment favourable for investment. Presently, the government is not taking any risks as the remittance influx has helped maintain economic stability. But the same situation cannot continue forever, according to him. He said that the government should not always repeat same logic to restrict outward FDI. If our government wants to promote economic prosperity, it should be ready to take risks and formulate smart policies, he suggested.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>FDI and Mobility of Money&nbsp;</strong></span></div>
	<div>
		Numerous positive aspects of outward FDI are overshadowed by a few negative ones, said Dr Bimal Koirala, economist and former chief secretary. Outflow of capital also helps create more opportunities to lure inward FDI and Nepali businessmen come back to the home country with more expertise and skills which will ultimately contribute to the domestic economy, according to him.</div>
	<div>
		&nbsp;</div>
	<div>
		The mobility of money in and out of a country does not stop simply by laws. A state should facilitate in the continuity of the mobility of money because if the movement of money slowsdown it will depreciate the value of currency. Investment, regardless of the frontiers, is a must to increase the movement of the money. Acknowledging the fact, the government should open up avenue for outward FDI, said Dr Chiranjibi Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Pragmatic Approach</strong></span></div>
	<div>
		Some experts suggest the government to allow Nepalis to invest abroad but only in competitive sectors. According to economist and former finance secretary Rameshore Khanal, the government should identify competitive sectors and should allow businessmen to invest only in those sectors. Some of these sectors, according to him, are:</div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Tourism (eco-tourism, home stay)</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Adventurous sector (climbing, rafting)</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Hospitality sectors: Hotel and restaurant (antique hotels like Dwarika)</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Banking/insurance</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Construction</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Way Forward</strong></span></div>
	<div>
		The government should carry out empirical studies on the effect of outward FDI on domestic economic activities. Before formulating laws, the government should assess some aspects of outward FDI including whether it will have a positive and significant impact on economic growth, and potential adverse impacts on various sectors.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		On the part of the government, it is not appropriate to remain literally idle on the issue of outbound FDI. The government should not see policies as a screening device to restrict the outflow of capital from the country. Rather it should formulate policies that will facilitate it. The Nepali private sector&rsquo;s long wait to go around the globe to invest should take a positive turn soon.</div>
</div>
<p>
	&nbsp;</p>',
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			'created' => '2014-07-30',
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			'description' => 'It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.',
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			'id' => '2776',
			'article_category_id' => '40',
			'title' => 'Business Click By Click',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<em><span style="font-size: 14px;">The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.&nbsp;</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Compared to the developed countries, Nepal&rsquo;s e-commerce is still in its infancy. Its share in the national GDP is negligible at present but it has been growing,&rdquo; says Amrit Man Tuladhar, CEO of Muncha.com, one of the country&rsquo;s leading e-commerce websites which has been in operation since 2000. According to Tuladhar, the past couple of years have been particularly encouraging for e-commerce in the country. &ldquo;Some unique websites have come up over the past couple of years,&rdquo; he observes.</div>
	<div>
		&nbsp;</div>
	<div>
		Thamel.com is perhaps the first e-commerce site in the country. It started online business in 1999 and today it is one of the major players. &ldquo;We are probably the first company in Nepal to start online business with a dot com company name registered as Thamel Dot Com Pvt Ltd,&rdquo; claims Rajesh Lal Joshi, CEO of Thamel.com. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		E-commerce in Nepal started through gift-sending and bill payment services through online portals. Today, it&rsquo;s possible to buy almost everything online - new clothes, books, mobile phones, laptops, second-hand goods, jewelleries, home appliances, fresh vegetables and what not. One can even order one&rsquo;s lunch online from home or office, thanks to the latest developments in e-commerce activities. There are a number of e-commerce companies offering these services. Airlines have started selling air-tickets online through these services. Banks are handling online transactions because people have started paying and receiving online, though the trend is low.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;In 2000, there were a couple of websites doing e-commerce. Today there are more than a hundred. Of them, over a dozen are active in the business,&rdquo; says Tuladhar. &nbsp;&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs4(1).JPG" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 316px;" />Growing Popularity &amp; New Trends</strong></span></div>
	<div>
		Today, the online market has expanded due to the increasing purchasing power of Nepali consumers. The trend is also on the rise because of the rise in the number of Internet users. &ldquo;Online business is on a progressive path and the trend is evolving high with many players coming in the arena with their unique business models,&rdquo; says Joshi.</div>
	<div>
		&nbsp;</div>
	<div>
		The domestic e-commerce market has now expanded into various segments such as online shopping, e-banking, mobile commerce, electronic cash transfers and e-ticketing. Online markets are attracting buyers (and sellers too!) because they are time- and money-saving and are hassle free.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Lately, Nepal has graphed a swerving online presence. The proliferation of various online business portals in recent years is enough to valibate the claim that &nbsp;the presence of e-commerce is encouraging in Nepal,&rdquo; says Asgar Ali, CEO of eSewa Fonepay.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Annual online transactions in Nepal are estimated to be around Rs 10 billion, although an official figure is not available. Dozens of online shopping websites have emerged since the inception of e-commerce in Nepal. Muncha.com, Thamel.com, Harilo.com, YesKantipur.com, Metrotarkari.com, Foodmandu.com, Bhatbhatenionline.com, etc. are some of the popular websites among Nepali online shoppers (see Box). Some of them sell their own products whereas others deliver from global sites such as eBay and Amazon.</div>
	<div>
		&nbsp;</div>
	<div>
		According to industry insiders, Nepalis of the middle- and upper-middle class who have access to faster Internet have started enjoying shopping online. &nbsp;They find it easy because on the one hand it saves time, on the other, it&rsquo;s easy and reliable. &ldquo;You don&rsquo;t need to hang around shopping stores and malls wondering where a particular product is. With online shopping, all you need to do is find a product online, fill-in payment details and submit. That&rsquo;s all to get your stuffs delivered at your home,&rdquo; says Manish Shrestha, portal chief of Bhatbhatenionline.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-banking</strong></span></div>
	<div>
		Lately, electronic banking or e-banking, as it is more popularly known, is getting popular in Nepal. According to the stakeholders, the use of e-banking has been increasing with the rising competition among the banks and financial institutions. &ldquo;The trend of e-banking is growing,&rdquo; says NRB Spokesperson Bhaskar Mani Gyawali, &ldquo;The situation of e-banking in the country is satisfactory at present.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Instead of opening a new branch, banks have started focusing on e-banking which is a cost-effective way to expand their services. For this, banks have adopted modern banking technologies such as branch-less banking, mobile banking etc. According to NRB, all 32 commercial banks in the country have started branch-less banking and mobile banking by mid-January 2014.</div>
	<div>
		&nbsp;</div>
	<div>
		Banks&rsquo; customers are, however, yet to adopt online payment for the goods or services they buy on the Internet. Most online shoppers still prefer cash on delivery (COD) though all commercial banks provide e-banking services. &ldquo;There is a lack of awareness among Nepalis about e-banking. An overwhelming majority still prefers COD though they have bank accounts,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1.JPG" style="width: 550px; height: 412px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-ticketing</strong></span></div>
	<div>
		Nepali air travelers are gradually getting used to e-ticketing, a good evidence of growing e-commerce in the country. Today, all private sector airlines currently operational in Nepal are selling their tickets online. According to the Airline Operators Association of Nepal (AOAN), all air travellers who have access to the Internet have started buying tickets online. &ldquo;E-ticketing has become popular because it saves time,&rdquo; says AOAN Spokesperson Ghanashyam Acharya, &ldquo;Very few people reach the airline&rsquo;s office to buy tickets these days.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Agrees Prajwal Thapa, marketing director at Simrik Air. &ldquo;Both foreigners and Nepali travellers buy tickets online for domestic flights.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepal Airlines Corporation (NAC), the state-owned airline which is the only airline in Nepal that doesn&rsquo;t offer e-ticketing has started preparations to start providing the service within 2071 BS (by mid-April 2015), according to an NAC official. &ldquo;E-ticketing is one of NAC priorities for the new year,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs5(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 281px;" />Payment Options&nbsp;</strong></span></div>
	<div>
		In the past, Nepali online shoppers were dependent on international payment mechanisms and merchants to purchase online. However, today there are few, but enough for the time being, online payment processing companies in Nepal, which allow online shoppers to pay their bills online, without any processing fees, in most of the cases.</div>
	<div>
		Most of these companies allow the customers to send and receive money online, buy air tickets, pay utility bills, purchase mobile recharge cards, pay school college bills, Internet bills, subscribe to newspapers and magazines online; Some of these companies are eSewa and PayWay.</div>
	<div>
		&nbsp;</div>
	<div>
		People can also pay for the goods they buy online through e-banking and debit cards. This trend has started but it is negligible at present. A majority of online shoppers still prefer paying cash on delivery.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;The online payment structure in Nepal is still being developed so we still do a lot of cash business. &nbsp;We encourage our customers to pay online as much as possible given the options in Nepal which are basically bank to bank transfers or payment gateways who are tied to your bank account,&rdquo; says Akshay Sthapit, CEO of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Problems &amp; Limitations</strong></span></div>
	<div>
		Though an Internet-based business, e-commerce in Nepal seems to be limited to the Capital valley. Some online business activities have been reported in places like Pokhara and Dharan but such activities are few and far between.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;There are e-commerce websites which provide their services across the country. But may be because of the lack of awareness, the online customers are mainly from the Kathmandu valley, mainly Kathmandu and Lalitpur. However, we do have customers from a few other cities as well,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a clear policy is another problem and according to people in the online business, it is hindering the growth of online markets in the country. &ldquo;There is no clear policy. The government has neither helped the domestic e-commerce market nor obstructed it,&rdquo; says Joshi of Thamel.com. We don&#39;t have any act, law or regulation or government directives which allows conducting legal online financial transactions. Critics say that the Electronic Transaction Act without a single word on online payment is only half done.</div>
	<div>
		&nbsp;</div>
	<div>
		According to Tuladhar of Muncha.com, Nepal&rsquo;s e-commerce market is facing problems in the bill payment system. &ldquo;The government can facilitate by establishing a central payment gateway. The central bank and concerned authorities should look into this issue,&rdquo; he advises.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a regulator is another problem. At present, all one needs to do to run an e-commerce site is register a company at the Company Registrar&rsquo;s Office. Once the company is registered, one can start the business. No one knows which agency is responsible for regulating the e-commerce business &ndash; Ministry of Finance, Nepal Rastra Bank, Ministry of Science and Technology, High level Commission for Information Technology or National Information Technology Centre?&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs2.JPG" style="width: 550px; height: 337px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The Issue of Digital Signature</strong></span></div>
	<div>
		Although online transactions are on the rise in the country, the trend of acquiring authorized digital signature, which is essential for the business, has not started. According to Electronic Transaction Act 2008, all companies, which carry out electronic transactions must acquire digital signature from the Certified Authority (CA) licensed by the Office of the Controller of Certification (OCC). &ldquo;Banks and financial institutions, remittance companies, and e-commerce companies among others are the kind of companies which should acquire a digital signature from a CA licensed by the OCC,&rdquo; said Manish Bhattarai, deputy controller of the OCC, an agency under the Ministry of Science, Technology and Environment (MoSTE).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		So far, only one company, Nepal Certifying Authority (NCA), has acquired the license for CA from the OCC. &ldquo;Though one company has been issued the license of CA, no company or individual has acquired a digital signature so far in Nepal from the CA licensed by the OCC. Electronic transactions carried out without a digital signature from a CA licensed by the OCC do not have legal validity,&rdquo; claims Bhattarai. He also informed NewBiz that the OCC has drawn the attention of Nepal Rastra Bank regarding the issue of the BFIs not acquiring authorized digital signature.</div>
	<div>
		&nbsp;</div>
	<div>
		Biplav Man Singh of NCA, however, claims that the issuance of digital signature has not started in Nepal because of the government&rsquo;s negligence. &ldquo;The government has issued the CA license to NCA but it has not provided the Root Certificate to us. Therefore, we have not been able to issue any digital signature. It has been a year since we have been issued the license,&rdquo; laments Singh.</div>
	<div>
		&nbsp;</div>
	<div>
		Digital signature is like an electronic locking system, which facilitates and regulate the authenticity of electronic transactions. It cannot be stolen or copied by any fraud, authenticates the identity of the sender of a message or signatory of a document and ensures that the document is unchanged. Nepal government introduced digital signature in financial transactions from February 2012. The MoSTE established the OCC to manage electronic transactions and use technology to reduce electronic crimes.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Online transactions have been getting popular lately, but the question of security has always been there. A digital signature ensures secured, authentic and non-repudiation electronic transactions such as e-mail, e-commerce, e-banking and e-governance,&rdquo; shares Bhattarai.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Bhattarai informed NewBiz that OCC has already drawn the attention of the NRB to take action against BFIs for using digital signatures from unauthorized firms. At present, companies based in India and America are issuing digital signatures to local online transaction service providers, which is against the Electronic Transaction Act 2008. &ldquo;Sadly, all BFIs providing internet banking service are using digital signatures issued by unauthorized licensors,&rdquo; said Bhattarai.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs6(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 566px;" />Digital Agencies</strong></span></div>
	<div>
		With living standards and costs going up in developed nations, digital agencies and online business marketers from there gradually made headways into third world countries including Nepal looking for avenues to establish their offshore units. Today, there are many digital agencies or IT companies, as they are known in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		While outsourcing their software to clients from developed nations, many of these digital agencies also tried to educate Nepali entrepreneurs for taking their businesses online. &ldquo;It was very hard to find business persons who were willing to take their businesses online. My team struggled for a couple of years but our continuous efforts in educating entrepreneurs for going online bore fruits,&rdquo; says Deepak Bhandari, Founder of Radiant Infotech Nepal&mdash;a digital agency that has been in the software production business for more than a decade now.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		With the operational costs relatively lower and prospects much brighter, Bhandari shares that small investment, consistency in work quality coupled with good communicative and technical skills and a willingness to adapt and upgrade to technological advances is all that is needed to thrive in the digital agency business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Along with taking Nepali businesses online, Nepali digital agencies compete in the global freelance market. &ldquo;Competing in the global market is not an easy task unless you are ready to deliver outstanding products at relatively modest prices,&rdquo; says Sanjeev Singh, Co-founder of Catmandu- a startup Nepali digital agency that mostly outsources its products.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		It&rsquo;s not just Nepalis who are materializing their dreams via the Silicon Valley revolution offshoot; many digital agencies with foreign roots and international foot prints have established their offshore production in Nepal. India has been a major destination for software outsourcing in South Asia, but still Nepal has its own attributes to win over some share of it.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;I took a fortunate trip just over a decade ago to India and other countries, looking for ways to reduce my growing software development requirements for clients in Melbourne. Even though it was a challenging time in Nepal, with the UN assisting in the path to a new democracy, I felt Nepal offered a unique opportunity. It was not saturating like India&rsquo;s IT industry,&rdquo; says Michael Simonetti, founder of AndMine, an Australian digital agency that has its offshore production unit in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Though the growing inflation and corresponding increase in the operational and other costs have been testing the offshore model, Simonetti still sees future in the model. Complimenting his view, Bhandari says that Nepal has bright scope in the digital agency business. He quotes an online report: &ldquo;Over the coming years, outsourcers are expected to expand their operations quite substantially. Different survey reports have claimed that the growth of outsourcing will remain strong. Like India and other nations there is huge potential for Nepal also to grow in IT service outsourcing business&rdquo;.</div>
	<div>
		&nbsp;</div>
	<div>
		While Internet connectivity, working hours, political instability and power cut are the concerns of this sector, Deepak finds lack of any state mechanism to bring all financial transactions made by freelancer software manufacturer as a major problem for the growth of IT service outsourcing business. &ldquo;Many freelancers are involved in this business without any legal registration. The government should seriously implement the plans it has made so far for the development of this sector along with bringing freelancers within the boundary of taxation.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs3(3).jpg" style="width: 550px; height: 375px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Brighter Prospects</strong></span></div>
	<div>
		E-commerce has brighter prospects in the country, according to industry insiders. The access of Nepalis to the Internet has been increasing. The new generation is very keen about online activities. &ldquo;It seems the stage has been set for a rapid growth in online shopping as people find less and less time for physical shopping,&rdquo; observes Tuladhar.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;We will soon see a Cambrian moment with online shopping and services once proper payment systems and delivery infrastructures are in place which is already happening. &nbsp;When that happens, the change will be swift just like it was with mobile phones in Nepal,&rdquo; concludes Akshay Sthapit, CEO, Harilo.com.</div>
	<div>
		(With inputs from Chitra Raj Bhandari)</div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-05-07',
			'modified' => '2014-09-08',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.',
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			'title' => 'Rising Stars Of The Economy',
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			'content' => '<div>
	&nbsp;</div>
<div>
	--By Akhilesh Tripathi and Sanjeev Sharma</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We all know that all is not well with the Nepali economy. Insecurity, much-aggravated industrial atmosphere, power shortage, transport obstacles, strikes and closures and labour unrest stand as barriers in the path to Republic Nepal&rsquo;s economic progress. The country&rsquo;s economic growth rate, according to official government estimate is below four per cent at present as there is lack of political commitment on a common economic agenda, investment-friendly environment, energy and physical infrastructure in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But despite these obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector. The entry of the Nepali private sector into these areas, especially after the liberalization of the economy post 1990, has resulted in significant growth in these sectors.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the continuity of the economic liberalization policy in republican Nepal has produced a significant group of entrepreneurs and businesspersons who are now successful in these areas. This breed of entrepreneurs and business persons thinks that if there is political will and stability, adequate power supply, supportive policy and peaceful industrial environment, then these rising stars will rise even higher.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;However, political stability is the first condition for economic development. Political parties do have their respective ideologies and differences too, but there needs to be a minimum understanding on common issues of economic development, which would help build atmosphere conducive to investment and trust. This would help the rising stars of the economy to attain newer heights.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Construction Materials: Market Picking Up&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Construction Material" src="/userfiles/images/cs(2).jpg" style="width: 550px; height: 266px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The construction industry is a growing industry in Nepal. It contributes around 10 &nbsp;to 12 per cent to the national GDP and uses around 35 per cent of the government&rsquo;s annual budget. As the country plans to invest more in infrastructure such as roads, railways, airports, bridges, and irrigation and hydropower projects and as the housing sector shows sign of improvement, the prospects for the construction industry in the country look brighter.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector has created employment opportunities to more than one million people in the country. When it comes to development of any physical infrastructure, construction materials are the major components. With the growth in the construction industry, the demand for construction materials too has risen.</div>
<div>
	&nbsp;</div>
<div>
	In the last one decade, over 150 construction material factories from cement, paint and bricks to steel factories have been established with an eye on the realty sector and the government&rsquo;s infrastructure development projects. These factories have helped reduce import of construction materials. The country has also become almost self-reliant in bricks, steel and paint; cement production is also on an encouraging trend. The price of construction materials is growing by 20 to 22 per cent every year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The realty sector, which is one of the major buyers of construction materials in the country, has shown some signs of improvement. According to Ichchha Raj Tamang, president of Nepal Land and Housing Developers&rsquo; Association, the sector has started taking a turn for the better. &ldquo;In the recent couple of years, the realty sector has been improving by over 30 per cent annually,&rdquo; claims Tamang.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Lately, according to construction material dealers, the demand from housing developers and the general public that had slowed down a couple of years ago, has shown some progress. &ldquo;A couple of years ago, the demand went down by around 50 percent due to the government&rsquo;s failure to release the budget on time,&rdquo; said Manik Tuladhar of the Kathmandu Construction Materials&rsquo; Dealers Association. With the situation in the housing sector showing indications of improvement, developers have been speeding up work at their projects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, construction material dealers said that with demand for construction materials slowly picking up, prices too have increased. Shil Ratna Tamrakar, proprietor of Shristina Traders, which deals in paints, said that the demand had increased remarkably compared to last year and that prices had risen by up to 10 percent depending on the brand.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that around 90 percent of the country&rsquo;s requirement of paints is fulfilled by domestic products. Along with a growth in housing activities in the past one decade, the number of paint factories too has gone up. There are 32 paint factories in the country with a combined investment of around Rs 6.5 billion.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Steel Rolling Mills&rsquo; Association said that local steel factories had been able to exist mainly due to the demand from housing developers. There are around three dozen steel plants in the country, and of them, 12 are run in full-fledged operation. All these factories produce 400,000 tonnes of iron rods annually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are more than 70 cement factories that have obtained operating permits from the Department of Industry. The cement industry already has an investment of around Rs 30 billion. Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that even though the number of companies receiving government permits has gone up, only around 40 plants are in regular operation.</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s annual requirement of cement amounts to 3 million tonnes, of which nearly 80 percent is being met by local products. &ldquo;There are no authentic records, however, most of the production is going for construction of private houses and commercial buildings of housing developers,&rdquo; said Murarka. He added that if construction of physical infrastructure receives a boost, the country would be self-reliant in cement too.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector is creating employment opportunities to about one million people. That means it generates employment next to the agriculture sector in the country. Similarly, about 60 percent of the nation&#39;s development budget is spent through the use of contractors. From this, it is clearly seen that construction is a major sector and any productivity enhancement activity in this sector will have a positive impact on the overall improvement of the national economy.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Realizing the need for enhancement of the construction industry, Construction Business Act 2055 was promulgated and came into force from April 14, 1999. This is an effort made to institutionalize and systematize the construction sector. The Act has defined the procedures and requirements relating to issues and renewal of license and classification of and obligations of construction entrepreneurs. The law has established Construction Business Development Council (CBDC) under the chairpersonship of the Minister for Physical Planning and Works, and Construction Business Development &amp; Implementation Committee (CBDIC) under the chairpersonship of Joint Secretary (technical) designated by the Ministry for Physical Planning and Works. These both are regarded as the apex institutions to develop the Nepali construction industry. Establishment of the CBDC and CBDIC is the important step taken by the government to promote the country&rsquo;s construction industry.</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Education: On Private Sector Shoulders</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Education" src="/userfiles/images/cs1(3).jpg" style="width: 550px; height: 381px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	With private investment standing at nearly Rs29 billion at present, the education sector is well on the path of evolving into a lucrative service sector business in Nepal. Nobody needs to frown at the idea of education being compared with business. It has done much more good than bad. Even big business houses have started to invest in education.</div>
<div>
	&nbsp;</div>
<div>
	Private investment in the education sector has grown consistently over the past few years. It now stands at more than Rs29billion, including the investments in schools, colleges, educational consultancies and training institutes. Out of this investment, nearly Rs25 billion is in private schools and colleges, according to the statistics maintained by the Company Registrar&rsquo;s Office (CRO).</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs7(1).jpg" style="width: 550px; height: 130px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Statistics also reveal that the investment has been increasing since 2006, the year when the government decided to register privately-owned educational institutions as companies. New private investment in schools and colleges stood at more than five billion rupees and six billion rupees in 2010 and 2011, respectively. Similarly, private investors have committed an investment of Rs 2.53 billion in the first three months of 2014.</div>
<div>
	&nbsp;</div>
<p>
	<img alt="" src="/userfiles/images/cs8(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 200px; height: 345px;" />According to Umesh Shrestha, president of the Higher Secondary School Association Nepal (HISSAN), private investment in the education sector has increased because it provides good return. &ldquo;This is why even big business houses have pitched into the sector lately,&rdquo; he explains &ldquo;Leading Nepali industrialists and entrepreneurs have launched huge education projects. There will be more such projects in the future.&rdquo; Population growth and increasing demand for quality education are the other major factors behind the increase in private investment in education, he adds.</p>
<div>
	&nbsp;</div>
<div>
	Educational expert Mana Prasad Wagle credits it to the hype of the phasing out of the Proficiency Certificate Level (PCL) in the year 2010 that invited high investment in &lsquo;Plus Two&rsquo; colleges. In 2009, five new colleges with an authorized capital of more than Rs 100 million each were established. Since then, on an average, more than half a dozen such colleges have been established every year. In the eyes of education experts, an investment of Rs 100 million should be more than enough to ensure quality education.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The number of private educational institutions with massive investment is also increasing every year in the major cities, especially in Kathmandu. &ldquo;The number of students leaving the country after SLC for higher studies has drastically decreased now. This is because they find quality education within the country, thanks to a number of good private colleges. This has also prevented millions of rupees from going abroad,&rdquo; says Shrestha.</div>
<div>
	&nbsp;</div>
<div>
	It would not be an exaggeration to say that higher secondary (HS) education rests (and grows) on the strong shoulders of the private sector. Let&rsquo;s consider the following numbers: more than 60 per cent of the nearly a million HS students in the country get their education from private institutions; more than 80 per cent of the students who pass the HS level every year are from private institutions.</div>
<div>
	&nbsp;</div>
<div>
	There are around 3600 HS schools in Nepal at present. Out of them 291 are 0+2 colleges, which run classes for only the 11th and 12th grades. The remaining are 10+2 colleges, which run classes from grade 1 to 12.</div>
<div>
	&nbsp;</div>
<div>
	Private sector institutions have not only played a vital role in boosting Nepal&rsquo;s educational capacity but have also brought along a whole new market dimension. Consider these facts: The annual business transaction of private educational institutions amounts to Rs 22 billion &ndash; Rs 11 billion at school level, five billion rupees at HS level and six billion rupees at university level education.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector has been helping the government by a great deal by making such a huge investment in the education sector,&rdquo; says Rajendra Baral, Chief Executive Officer at Caspian Valley College.</div>
<div>
	&nbsp;</div>
<div>
	On the other hand, HISSAN chief Shrestha sees an immense possibility of educational tourism in the country. &ldquo;Nepal&rsquo;s naturally air-conditioned climate makes it a good educational destination for international students, if we can establish schools and colleges of international standard or open affiliates of internationally recognized universities here,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
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				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<div>
							The government&rsquo;s efforts in education are mainly focused on primary and secondary level education. The government has been increasing the budget allocated for the education sector year on year. The government has earmarked Rs 80.95 billion to this sector for the current fiscal year - up by Rs 60.13 billion of current fiscal year&rsquo;s revised allocation. Similarly, Nepal&rsquo;s education budget increased by more than double in just four years reaching Rs 63.91 billion in fiscal year 2011/12 from Rs 27.06 billion in 2007/08.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Nepal allocates 3.4 percent of its GDP and almost 17 percent of the national budget to the education sector. The country, however, does not meet the global standard of allocating at least 5 percent of GDP and 20 percent of the total budget to the education sector. Only 9.92 percent of the total education budget has been allocated for higher education, and merely 7.85 percent for university education.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Government investment in higher secondary education is even less&mdash;two percent of the total education budget&mdash;despite having around one million enrolments a year. Education expert Dr Tirtha Khaniya observes that there is scope for private sector investment and growth in higher study institutions. &ldquo;The government&rsquo;s negligence to the higher secondary level education provided an opportunity for the private sector which cashed in on the opportunity. A similar opportunity lies there for the private sector in university level education too. We will gradually see more private sector investment in this category,&rdquo; he says.</div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Banking sector: Time for Consolidation</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs2(3).jpg" style="width: 550px; height: 350px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Starting from the government-owned Nepal Bank in 1937, the banking industry in Nepal has come a long way. The industry grew tremendously, especially after the entry of the private sector after 1990. It is one of the sectors of the economy that have grown significantly over the past one decade. &nbsp;The sector has immense growth prospects as nearly 60 per cent of the population is still out of the range of formal financial channels. Today, the banking sector is more liberalized and modernized, systematic and managed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are various types of banks and financial institutions (BFIs) working under the modern banking system in Nepal. It includes central (1), commercial (30), development (87), finance companies (59), co-operatives (15), NGOs (30) and others (3). Technology is changing day by day. And the use of new technologies has affected the traditional method of the service of banks. Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc., services are available in banking system in Nepal. Nepal&rsquo;s banking sector has flourished over the years despite numerous challenges and is trying to be at par with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Today, there are ample opportunities for the banking sector to explore the small and medium enterprises and rural markets in Nepal via innovative products such as microfinance, mobile banking etc.,&rdquo; says Anil Shah, CEO of Mega Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs10.JPG" style="width: 550px; height: 348px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Nepal is an agro-based economy with nearly 84 percent of the population in the rural areas. The BFIs need to develop ingenious products and adopt new technologies to cater to the rural sector. By reaching remote locations, BFIs could contribute towards poverty alleviation as well,&rdquo; observes Nepal Rastra Bank Spokesperson Bhaskar Mani Gyawali.</div>
<div>
	&nbsp;</div>
<div>
	The public is gradually turning to the organized financial service providers i.e. the BFIs. At present, only 15.1 percent of the total households in Nepal borrow from local money-lenders, while 10 years ago some 40 per cent households were indebted to money lenders, according to the latest Nepal Living Standard Survey (NLSS) released by the Central Bureau of Statistics (CBS).</div>
<div>
	&nbsp;</div>
<div>
	Today, nearly 40 per cent households have access to commercial banks&rsquo; branch within 30 minutes walking distance. This was merely 22 percent a decade ago. Similarly, the presence of co-operatives within 30 minute walk radius has also increased from 25.9 per cent to 53.9 per cent during the same period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Though the growing number of financial intermediaries is not as successful as expected in increasing the financial accessibility, the expansion has definitely helped in general population&rsquo;s access to finance,&rdquo; says Gyanwali.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Going through the trends seen over the past few years, the country&rsquo;s financial sector seems heading for consolidation through mergers and acquisitions. According to experts, the number of banking and financial institutions (BFIs) will reduce by half over the next one decade. Statistics support this fact. Forty-three BFIs have merged with each other to become 18 over the past three years. According to NRB, another 25 BFIs are in the final stage of merger to become 10. NRB sources say that the central bank will continue with its merger campaign in the new Nepali Year.</div>
<div>
	&nbsp;</div>
<div>
	As a part of this campaign, the NRB is soon going to introduce the Acquisition Bylaws and there are signs that the minimum capital required to run banks could be increased significantly.</div>
<div>
	&nbsp;</div>
<div>
	Apart from banking, other financial sectors, too, are coming up. Credit rating, portfolio management, mutual funds and central depository system companies have already come into operation. This has opened new opportunities for investment.</div>
<div>
	&nbsp;</div>
<div>
	Due to stiff competition, banks are trying to provide specialized services such as investing in hydropower, infrastructure and agriculture. The trend is low at present but it has started. Similarly, expansion of branches of BFIs, especially in the urban areas, has reached almost a saturation stage. Now the banks are looking at cheaper ways to increase their outreach; so they are attracted towards branch-less banking, e-banking and mobile banking.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs11.JPG" style="width: 550px; height: 258px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The last one decade has been significant for the banking sector. Many good things happened. As a result, financial access increased by five times over the past one decade, according to statistics maintained by the CBS. Similarly, the statistics maintained by NRB reveal that 40 per cent of Nepalis have access to formal banking channels. These statistics incorporate only the A, B, C and D class BFIs licensed by the NRB. There are nearly 20,000 Savings and Credit Cooperatives operating throughout the country. Similarly, there is a large number of women&rsquo;s groups, farmers&rsquo; groups etc., which also provide banking services. If we consider these institutions, the number of Nepalis having access to financial services will increase significantly. This doesn&rsquo;t mean that the situation of financial access is great in Nepal; what it means is what has been achieved over the past one decade is more than satisfactory.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Increasing access to finance is one of the main roles of the central bank so that central bank is also encouraging the BFIs to venture into unbanked areas through its policy measures,&rdquo; informs Gyawali. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The achievement made by the banking sector over the past one decade can be broadly categorized into three parts: growth in financial access, expansion of loans and development of corporate culture. The rate of financial access increase is high for this period. Similarly, new areas for investment have been discovered. Today, banks have started investing in specialized long-term projects such as hydropower. Likewise, there has been development of corporate culture in the banking sector over this period. This has made the banking sector more transparent, credible and professional. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#E5E4E2">
						<div>
							<span style="font-size: 14px;"><strong>Weaker Side:</strong></span></div>
						<div>
							- All kinds of BFIs are allowed to mobilize deposits</div>
						<div>
							- Lack of adequate financial literacy</div>
						<div>
							- Increasing operational risks of BFIs</div>
						<div>
							- Failure to identify new areas for investment</div>
						<div>
							- Inadequate supervision capacity of NRB</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hotels: More Room for Growth</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs3(4).jpg" style="width: 550px; height: 397px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Nepali hotel industry is rapidly heading towards booming growth. After sluggishness for about a decade, during the conflict years, the country&#39;s hospitality sector is now looking more and more lucrative with hoteliers- both domestic and foreign- investing into multi-billion projects. Surge in visitor numbers with Nepal becoming a prime destination for international, regional and domestic tourists is leaving the country&#39;s hotels sector without much room. Recent tourism rankings published by reputed institutions points out that the country is gaining significant attention from travelers and visitors across the globe.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Industry leaders estimate the size of Nepali hotel sector- ranging from five star hotels to lodges- has reached about Rs 300 billion. &quot;It is one of the fastest growing sector which is providing considerable number of employment,&quot; says Madhav Om Shrestha, executive director of Hotel Association of Nepal (HAN). According to him, the sector is providing direct employment to over 3, 00,000 people and indirectly benefitting around one million. &quot;With big international hotel chains entering Nepal, the industry is treading on to track to healthy revival.&quot;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal, which has witnessed the departure of some big hotel chains in the past, is again set to become a rewarding market for renowned international hoteliers. Last year saw the US-based multinational hotel chains Marriott and Sheraton announce their entry into the Nepali market. In May 2013, Nepal Hospitality Group (NHG), a company under Nepal&#39;s leading conglomerate Maliram Shivakumar (MS) Group, signed an agreement with Marriott International to open a four-star hotel with an investment of around Rs 650 million. Dubbed as &quot;Fairfield by Marriott Kathmandu&quot;, the 10-storey business hotel with 108 rooms is under-construction at Thamel, a prime tourist and commercial location in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The hotel targeted towards mid-income guests will start its commercial service by the beginning of 2016. Fairfield is a brand of hotels franchised by Marriott International. NHG is also constructing a 250-room, four-star luxury hotel in Naxal, as a joint venture with the Marriot International.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In this foray, Sheraton Hotels and Resorts announced its re-entry into Nepal. Shesh Ghale, the Nepal born Australian millionaire businessman, has come up with a joint venture with Sheraton to operate a five-star hotel in Kathmandu. In April 2013, Ghale&#39;s investment company, MIT Group Holding Nepal set the project rolling by signing an agreement with Sheraton&#39;s owner Starwood Hotels and Resort Worldwide Inc.</div>
<div>
	&nbsp;</div>
<div>
	Slated to open in February 2018, the cost of 225-room Sheraton Kathmandu project is expected to be around Rs 7 billion. Sheraton, the largest brand of Starwood Hotels and Resorts Worldwide has history of managing five-star hotel in Nepal. The chain in 1980s&#39; and 90s&#39; managed the Hotel Everest Sheraton in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Indian hotel chain Lord Hotels and Resorts has already started its operation in Nepal. The company opened its first international hotel in Kathmandu, the Mirage Lords Inn at Battisputali with an investment of Rs 200 million. The 40-room budget hotel is targeted to serve domestic and international guests ranging from religious visitors to adventure seekers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs12.JPG" style="width: 550px; height: 398px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:12px;"><strong>Investment Hotspot</strong></span></div>
<div>
	The hotel investment frenzy has also wrapped Nepali business community. Many have announced to open new hotels while some have already opened doors to welcome guests into their newly built auberge. The Hotel Shambala, a 65-room, four-star Tibetan- styled boutique hotel, located at Bansbari started its operations few months ago. Similarly, construction of the Chhaya Center at Thamel is in full swing. The structure upon its completion will accommodate a 200-room four-star hotel along with an exclusive shopping mall. Likewise, The Centurion Group has been constructing a 120-room hotel in Biratnagar.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Muktishree Group, Vaidya&#39;s Organization, Non-Resident Nepalese Association (NRNA) and Civil Aviation Authority of Nepal (CAAN) have made their announcements to establish five-star hotels. &nbsp;In the meantime, other major tourist destinations such as Pokhara, Lumbini, Biratnagarand Nepalgunj are also experiencing rising investments in the sector.</div>
<div>
	&nbsp;</div>
<div>
	This sector is becoming a center of attraction for Nepali banks and financial institutions (BFIs) as well. According to recent Nepal Rastra Bank (NRB) data, total investment of BFIs in the sector reached an estimated amount of Rs 21 billion by the end of April. The central bank also notes that in the first nine months of current fiscal year (FY), the sector welcomed an investment of Rs 3.16 billion, up by 20.8 percent from last FY&#39;s 2.30 billion.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
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				<td bgcolor="#E5E4E2">
					<div>
						<span style="font-size: 14px;"><strong>Time to be Cautious</strong></span></div>
					<div>
						Despite the significantly increasing activities in the hotel sector there are also cautionary calls arising within the industry itself. &quot;The overall trend in investment and the growth in infrastructure is satisfactory, but marketing of Nepal in international arena is lacking,&quot; opines Binayak Shah, vice president of Summit Group of Hotels. Shah, who is also the Managing Director of Airport Hotel, said that as the sector will have more than enough infrastructures amid the rise in number of international hotel chains coming to Nepal and growing domestic investments. &quot;In addition, unsold apartments are also being converted in to hotels. If we cannot market our resources innovatively, in a few years time, we will have more supply than demand,&quot; he says. &quot;This has to be balanced.&quot;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 14px;">ICT: Explosive Growth</strong></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).JPG" style="width: 550px; height: 271px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The Information, Communication and Technology (ICT) sector has grown in a geometric proportion over the last few years bringing speedy transformation. The explosive growth and rapid infrastructure developments led the sector, nascent only some years ago, to around Rs 50 billion worth strong sector in a year.</div>
<div>
	Nepal has been enjoying remarkable growth in ICT sector due to expanding telecom sector, increasing use of email/internet, emerging social media and steady growth in the use of state-of-art gadgets.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs121.jpg" style="width: 550px; height: 656px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The pace of mobile phone adoption in the country was surprising in the last couple of years as nearly two third households have access to telephone facility. The overall teledensity has increased to 87.20 per cent by mid-March, according to the telecom regulator Nepal Telecommunications Authority.</div>
<div>
	&nbsp;</div>
<div>
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 30.99 per cent till mid- March, and the rise of Internet users will have a direct impact on the trade of computers, claims Computer Association of Nepal (CAN).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	High competition among world class brands including HP, Samsung, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.</div>
<div>
	&nbsp;</div>
<div>
	Along with hardware parts, the software market is also experiencing a steady growth in the country. Experts and professionals involved in this business are taking this growth as a positive aspect of developing awareness related to information technology.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;The overall trade of software has increased in the domestic market though there is not actual data available from concerned authority. Amrit Kumar Pant, General Secretary of CAN, said, the market and activities related to this business have been increasing as the people have been using software and application as necessity while it was used in the form of luxury till some years ago.</div>
<div>
	&nbsp;</div>
<div>
	ICT has provided enormous opportunities from various aspects, according to the regulator Nepal Telecommunications Authority (NTA). Nepal&rsquo;s telecom sector has created employment opportunities for at least 50,000 people and contributed more than Rs 20 billion as revenues every year to the national coffer.</div>
<div>
	&nbsp;</div>
<div>
	Even the government has come up with some ambitious plan including that of connecting east and west via Optical Fibre network. For the purpose, the government has planned to utilise the Rural Telecom Development Fund (RTDF), the fund collected by Nepal Telecommunications Authority from telcos.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, the sector is not without problem. According to telcos, there are many problems in the policy front. The telecom sector has been witnessing government&rsquo;s dillydally in bringing relevant laws and policies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are still room to improve in terms of quality. On the one hand, telcos and internet service providers need to ensure quality of service. On the other, Nepal should not become trading hub for low quality ICT goods. In such situation, the government need to bring policies ensuring consumers&rsquo; rights. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	ICT is still an untapped market in Nepal, an expert told New Business Age. &ldquo;All concerned stakeholders need to put sincere effort to take this sector to the next level.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hydropower: From Deficit to Export Considerations</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs6.JPG" style="width: 550px; height: 342px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Forced to live under electricity cut averaging 10 hours a day during dry seasons, Nepal is gradually developing its hydropower projects to escape the long-standing power crisis. Things have changed positively in the recent years as the dust of political uncertainty is finally showing signs of settling down. 87 hydel projects totalling 2,345 megawatts are under construction. Both the government and private sector have ramped up their investments in these projects. The projects, upon completion, are expected to add electricity into the national power grid within the next seven years. Similarly, the Investment Board Nepal (IBN) has also taken initiatives to construct five mega-hydel projects of 3,750 MWs. IBN, which was formed four years ago to fast-track mega projects, is said to be involved with promoters for power development agreement (PDA). The promoters have assured to start the construction of projects immediately after the finalization of PDAs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This indicates the increasing involvement of private sector in the country&#39;s hydropower development. Nepali private sector has thus far managed to produce 232 MWs electricity after the electricity act of 1992 came into effect. According to Independent Power Producers Association, Nepal (IPPAN), the private sector has invested Rs 55 billion in 25 hydro projects till date since the establishment of the first private power plant in 2000.</div>
<div>
	&nbsp;</div>
<div>
	Increasingly positive tones of bilateral donors have also raised hopes in this sector. The World Bank and Asian Development Bank (ADB) are planning to raise their stakes in Nepal&#39;s hydropower development. The World Bank (WB),which has already provided development related financial assistance worth Rs 200 billion to Nepal is further adding investments in hydropower projects. The International Finance Corporation (IFC) of the World Bank Group has recently agreed to provide USD 84.6 million for the 37 MW Kabeli-&#39;A&#39; project. The electricity output from the run-of-river project situated in Panchthar district will be then connected to the national grid through the 132 KVA Kabeli Corridor Transmission line. The transmission line, which is jointly financed by the WB and Nepal Electricity Authority (NEA) is in the construction phase. Likewise, IFC has also expressed readiness in Arun III (900 MW), Upper Marsyangdi (600 MW), Upper Karnali (900 MW) and Upper Trishuli (213 MW). During his visit to a WB program in US and Mexico in April, Finance Minister Ram Sharan Mahat received commitment from the IFC for investing for Rs 600 billion in developing hydropower projects of 3,000 MWs. Similarly, ADB is also stepping up to invest in the country&#39;s big hydel projects. Last year the bank agreed to provide soft loan of Rs 13 billion for 140 MW Tanahu Hydropower Project. Likewise, the European Investment Bank (EIB) which also agreed to loan Rs 1.5 billion for the above mentioned project has also committed to provide Rs 12 billion to build the Kaligandaki and Marsyangdi Transmission line along with another Rs 3 billion to build the Trishuli Corridor Transmission Line.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The sector is also grabbing significant attention from foreign investors. Official data shows that hydropower sector has attracted highest FDI commitments in the recent months. According to data published by Department of Industry (DoI), foreign investors pledged Rs 11.8 billion worth FDI commitments in the first nine months of the current fiscal year against Rs 2.65 billion during the same period, last year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Rising Export Potential</strong></span></div>
<div>
	<img alt="" src="/userfiles/images/cs13.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 250px; height: 435px;" />Few years back it was almost unimaginable for power crisis marred Nepal to even think of supplying electricity to neighbouring countries. The scenario, however, is looking more and more real for Nepal to make its way forward to become a net power exporter. Nepal after producing 2,345 MW by 2018-19, will have surplus energy after consuming its annual demand of estimated 1,700 MW by that time. In this circumstance, India will be the most likely market of Nepali electricity as the energy hungry southern neighbour is increasingly looking to import power from its himalayan proximate.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The construction and installation of countrywide and cross-border high capacity transmission lines indicates the rising power trade potential between India and Nepal. The tower installations in Nepal section of 400 KVA Dhalkebar-Muzzafarpur Cross-Border Transmission line has started earlier this year. The construction of the project, which started in January is scheduled to be completed within 16 months of its commencement. Similarly, feasibility study of 400 KVA Bardaghat-Gorakhpur Transmission Line has also begun. The high capacity cross-border transmission lines would facilitate power transmission between the two countries. A secretary-level agreement between Nepal and India has already paved way to build the framework for power trading.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Private power producers say that both countries should look into effective modalities of power trading. &quot;Energy banking agreement model is the best option,&quot; says Er Gyanendra Lal Pradhan, Chairman of FNCCI&#39;s Energy Committee. According to Pradhan, if the model is adopted, Nepal can send surplus power to India in rainy season and bring back the same amount of electricity in dry seasons. He said that countries across the world are adopting this model owing to its flexibility and practical approach. &quot;The model is being effectively practiced by New York Electricity Exchange of United States and Hydro Quebec of Canada, they do banking up to 90 per cent of electricity they trade and remaining 10 per cent is priced.&quot; Pradhan stressed the need for building strong network of nationwide transmission lines as it would further help if Nepal and India engage in energy banking.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, absence of clear policies and other problems such as inefficient bureaucracy, rampant corruption, lack of nationwide transmission grid, issues related to infrastructure and land compensation are regarded as the bottlenecks in Nepal&#39;s hydropower development efforts. For instance, the draft of electricity bill, 2065 introduced in the parliament has seen little or no progress over the past five years. Similarly, issues related to power purchase agreement (PPA), higher bank lending rates in hydropower projects, value added tax (VAT) levied to private producers and low allocation of national budget are also seen as problems hindering the sector&#39;s overall development.</div>',
			'published' => true,
			'created' => '2014-06-09',
			'modified' => '2014-07-30',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the “rising stars” of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.',
			'sortorder' => '2626',
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	),
	(int) 8 => array(
		'Article' => array(
			'id' => '2773',
			'article_category_id' => '40',
			'title' => 'The Business For Social Benefit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<em><span style="font-size:16px;">Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society. &quot;Fortune at the bottom of the pyramid&quot;, a phrase coined by the late Indian academic CK Prahalad, has become popular among social entrepreneurs. But the question is: are we heading towards ensuring benefit to the bottom billions or not? In this issue, we focus on scope, opportunities and motivation for social entrepreneurs and the way forward.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Those at the &#39;bottom of the pyramid&rsquo; have been neglected since decades and it is time to change perceptions through which they are perceived. They should not be perceived only as recipients of aid.They are agents of development and they can be partner in entrepreneurship, says Catrin Frohlich, co-founder of Hidden Journeys who is involved in promotion of social entrepreneurship in Nepal for the last couple of years. She opines that acceptance of bottom billion as business partner opens avenue to set up social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social entrepreneurship embraces market-based approach as social enterprise is about innovation and making profit along with makingimpact on development of the society, she argues. It is not the rejection of profit but rather is about sharing of profit with target groups and there by helping them in enhancing their living standards, Frohlich adds.</div>
<div>
	&nbsp;</div>
<div>
	Nepal needs to create jobs and job creation is not possible without enterprises. Social entrepreneurship is all about leading country towards prosperity through sustainable approaches.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Catrin Frohlich" src="/userfiles/images/cs1(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Scenario of Social Entrepreneurship</strong></span></div>
<div>
	A large number of population is reeling under acute poverty despite the fact that massive resources at the local level remain unused.In such a scenario, Nepal can be a very appropriate country for venturing into social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, it is again not an easy task to venture into social enterprises, especially in a country with relative absence of entrepreneurial aptitude. Social entrepreneurship is comparatively new phenomenon but it is gaining momentum, says Vidhan Rana of Biruwa Ventures. We have good understanding of the word social but less understanding of the word entrepreneurship, he opines. &ldquo;Social entrepreneurshipis not about establishing NGOs and distributing aid money to people in need,&rdquo; he says, adding, &ldquo;Innovative ideas to venture into business is a must to start enterprise.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Many people perceive the term social enterprise as a connotation of not-for-profit organization. The not-for-profit mantra is out-dated now, says Rana adding, &ldquo;Make profit but involve the bottom billions in business and share the profit with them. This is the philosophy behind the concept of social entrepreneurship.&rdquo; Social entrepreneurship has become a buzz word and Rana fears that this hypemight be misused by not genuine social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This is a new domain and there is a corresponding dilemma at the policy level. While a debate on what is genuine social entrepreneurship has started, Sadhana Shrestha, executive director at TEWA and former Country Representative, in Nepal at Ashoka, accepts the prevalence of dilemma about the termamong businessmen also. While attempting to correct the prevailing notion that perceives both types of organizations synonymously, she says that NGOs and social enterprises are different. Nepal does not have laws specific to social entrepreneurship but it certainly has a category in the Company Act, which describes such companies as those that do not distribute profits (though they makes profits).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The most encouraging part in this is the increasing involvement of young generation. Youth led organizations such as Biruwa Ventures, Entrepreneurs for Nepal (E4N), Udhyami Nepali, Hidden Journeys and ChangeFusion Nepal have been working to promote entrepreneurship including that of social entrepreneurship.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Sadhana Shrestha" src="/userfiles/images/cs2(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Fight Poverty with Profitability</strong></span></div>
<div>
	&ldquo;The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits,&rdquo; by C.K. Prahalad, professor of corporate strategy at the Ross School of Business of the University of Michigan is considered as a seminal work on social entrepreneurship. The concept of &lsquo;The Fortune at the Bottom of the Pyramid&rsquo; provided new business models targeted at providing goods and services to the poorest people in the world. Prahalad&rsquo;s concept seeks to solve global poverty by turning the bottom of the socioeconomic pyramid from victims of globalization into its beneficiaries through consumerism.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The book combined a pragmatic framework with inspirational case studies to show companies how they could develop innovative business models and find new profits by serving the world&rsquo;s five billion poorest people at the bottom of the economic pyramid (or BOP).</div>
<div>
	&nbsp;</div>
<div>
	Prof Prahalad was in favour of private-sector led social enterprises. Responding to a question &ldquo;What are the big lessons learned since the book was first published?&rdquo; by Triple Pundit, a new-media company for highly conscious business leaders, Prahalad said:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	First, the thesis of the book that the private sector is an integral part of the poverty alleviation process is well accepted by multilaterals, aid agencies, many NGOs and large private sector firms as well. &nbsp;Second, there is now a growing belief that the bottom of the pyramid provides an opportunity for business to &ldquo;do good and do well.&rdquo; Third, we recognize that the BOP is more than micro-consumers. &nbsp;It also represents micro producers and micro investors who can be connected to national and global markets. And the BOP can also be the source of major innovations that affect us all. &nbsp;These ideas were in the original book but have been confirmed and amplified.</div>
<div>
	&nbsp;</div>
<div>
	Reviewing the book, Bill Gates, Chairman and Chief Software Architect, Microsoft says: &quot;C. K. Prahalad argues that companies must revolutionize how they do business in developing countries if both sides of that economic equation are to prosper. Drawing on a wealth of case studies, his compelling new book offers an intriguing blueprint for how to fight poverty with profitability.&quot; This book is considered a hallmark in introducing discourse and practices of private sector led social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Vidhan Rana" src="/userfiles/images/cs3(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Evolution of the Concept &amp; Growing Concern&nbsp;</strong></span></div>
<div>
	Many believe that business philanthropy and social involvement of business community is linked with long rooted concept of &ldquo;Sewa Hi Paramo Dharma&rdquo; [Social Service is the Ultimate Religion]. Historical evidences suggest that not all business leaders have been content in simply performing a commercial role in society. Numerous businesspersons, industrialists and entrepreneurs have made significant contributions to their local communities.</div>
<div>
	&nbsp;</div>
<div>
	Earlier, there were notable efforts to engage business in society via charity or social welfare activities. These were mainly inspired by religious affiliation and cultural inspirations. From mid-1970s onwards general interest in corporate social responsibility grew and this is reflected in the involvement of Nepali corporate sector in CSR activities. &nbsp;This interest was consolidated in the 1980s. As part of the general redefinition of state functions in this period, the role of business in addressing social problems became more prominent. Such political and policy developments, it is argued, have made a significant contribution towards enhancing social roles of businesses.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Social Enterprises: Sustainable Approach of Development&nbsp;</strong></span></div>
<div>
	Sadhana Shrestha, while stating that NGO workers should not be considered as social entrepreneurs, claims that social entrepreneurship should have some basic qualities: innovation, breakthrough ideas, sustainable and replicable model and system changing ideas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social entrepreneurs should give enough attention to the sustainability of their business and generally do not distribute dividend rather inject it in the business to ensure sustainability of the enterprise, she claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social enterprises are businesses whose primary purpose is the common good. The main characteristics that distinguish a social enterprise from other types of businesses, non-profits and the government agencies is its sustainable approach, opines Mahabir Pun, the winner of the Ramon Magsaysay Award 2007 for his project that brought wireless Internet to rural Nepal.</div>
<div>
	&nbsp;</div>
<div>
	Social enterprise directly addresses a difficult social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Challenges in Social Entrepreneurship&nbsp;</strong></span></div>
<div>
	The social enterprise movement was connected mainly with non-profits that used business models and earned income strategies to pursue their mission in the early days of social entrepreneurship. The understanding has become clearer now. Enterprises, whose sole purpose is to make social impact, are now considered as social enterprises. The sector, however, is not out of challenges.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Identification of business model:</strong> Business is often linked with profit in Nepal. And even the image of non-profits is not very positive. In such a situation, building positive image for social enterprises is a challenging task, says Catrin Frohlich.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Capacity building: </strong>Building capacity of aspirant social entrepreneurs is another challenge for Nepal&rsquo;s social entrepreneurial world. Capacity building initiatives should not be limited to launch of businesses, but should be continued when it comes at scaling up level, addsFrohlich.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Financing:</strong> A real social entrepreneurship is about innovation but traditional financing institutions do not always believe in innovative ideas and may deny lending money, opines Frohlich while pointing to the challenge of acquiring financial assistance for social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Legal provision:</strong> Policy and regulatory frameworks have many grey areas. In such a context, it is feared that the word social entrepreneurship could be easily misused by non-profits and others institutions to gain undeserving reputation, says VidhanRana.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Opportunities&nbsp;</strong></span></div>
<div>
	The concept of social entrepreneurship is an outcome of the realization that aid recipients cannot make tremendous progress in their life compared to entrepreneurs, says Vidhan Rana. In the same vein, Frohlich also opines that despite some good works, NGO-model of development is not always in favour of the bottom billion. Despite challenges, social entrepreneurship field in Nepal is recently witnessing positive trends and receiving new opportunities as it is the best model for optimum and sustainable use of resources.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If analysed from the perspective of national development, social entrepreneurship does not put the national economy at risk. It is a beautiful aspect of social entrepreneurship that while an individual takes all the risk of innovation, all members of the target community share the benefit.Similarly, social entrepreneurship is even more inclusiveforwomen entrepreneurs and adopting this approach can assist in making the entire development process more inclusive. Considering the present trend, it is obvious that in the coming years we&rsquo;ll see social entrepreneurship woven into the very fabric of existing disciplines and become an integral lens through which we will understand all sectors and fields of study.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Corporate Houses for Social Cause&nbsp;</strong></span></div>
<div>
	Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that will have positive impact in the society. Generally, CSR activities are carried out using profit amount. CSR is a process with the aim to embrace responsibility for the company&#39;s actions and encourage a positive impact through its activities on the environment, consumers, employees and communities.</div>
<div>
	&nbsp;</div>
<div>
	Though companies are not directly involved in social entrepreneurship, their involvement in social issues has been increasing in one or another form. In Nepal, many companies have been involved in many social activities such as Coke for water conservation, Unilever for hand washing promotion, Yeti Air tree plantation etc.</div>
<div>
	&nbsp;</div>
<div>
	Involvement of business community in social activities is not new phenomenon. Some renowned business houses have been involved in some traditional CSR activities. Operation of eye hospital from Golchha and donation to Briddhashram (old age home) from some business families can be taken as examples to this end.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, some business houses have been involved in special CSR initiatives as annual events such as Asha Awards, Sports Tourism promotion, and health awareness program being carried out by Surya Nepal. There also are some companies such as NCELL that provide direct charity (e.g. school building, sukumbasi house roofing etc.) that is linked directly with their business promotion. Chaudhary Group has established a separate unit Yunus Centre to promote social entrepreneurship though it is yet to start work effectively.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides, recruitment of deaf staffs in the Nanglo restaurant can be taken as a good example of social entrepreneurship business. Dabur is also involved in social business as it provides help to farmers in herbal cultivation.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Future Outlook</strong></span></div>
<div>
	Positive impact made by existing social enterprises on target communities and in making profit has triggered enthusiasm in aspiring entrepreneurs. Numbers of aspirant social entrepreneurs are increasing and their conviction show that they can make money and can do things differently in the entrepreneurial world. &nbsp;Social enterprises will prove that enterprises can be financially sustainable, even profitable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).jpg" style="width: 550px; height: 512px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2014-04-10',
			'modified' => '2014-05-07',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society.',
			'sortorder' => '2620',
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	(int) 9 => array(
		'Article' => array(
			'id' => '2723',
			'article_category_id' => '40',
			'title' => 'Nepali Women As Entrepreneurs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali women entrepreneurs have not broken the glass ceiling, says Pramila Rijal, president of SAARC Chamber Women Entrepreneurs Council (SCWEC). &ldquo;But they have already made the first cracks.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Rijal&rsquo;s idea rightly summarizes the present conditions of women in business in Nepal. Alka Rajouria Rijal, executive director at Federation of Women Entrepreneurs&rsquo; Association of Nepal is also of the same opinion. Women entrepreneurs have come far but they still have a long way to go, she opines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to her, there are many issues that still need to be improved: access to finance, gender-responsive policies, family barriers and deconstructing stereotypes about women entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs6(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 410px;" />Business: It was Men&#39;s Domain&nbsp;</strong></span></div>
<div>
	Hajuri Bista, one of the forerunners in the arena of women entrepreneurship says, &ldquo;I had never seen men and women work together. It was really challenging to get out of the dogma that women should take care of household chores and not venture into the business world.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	In 1990, the country adopted a &nbsp;democratic political system but women entrepreneurs still finding not an easy path at that time, she recalls. Late Yangzi Sherpa, Ambica Shrestha, Rita Thapa, Maggie Shah, Renchin Yonjan, Shyam Badan Shrestha, Shanti Chadha, Nilam Pande, Mohini Lama, Brinda Rana and some other faces were managed to shine in this period as entreprenuers. They were the trailblazers at that time, Bista recalls.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&quot;Even after democracy, I have seen many times aspiring women entrepreneurs breaking into tears in meetings due to unexpected hurdles and apathy from their family and the society,&quot; she said reflecting on her experience. &ldquo;Why should be women engaged in business?&quot; &nbsp;was a common mindset at that time, she adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Fortunately, times have changed now. There are host ofefforts underway to boost women&rsquo;s participation in business and women are in the condition to get guidance &nbsp;in all phasesof entreprise development &nbsp;-- from training on leadership, to new forms of financing.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship has been traditionally seen a male preserve and idea of women taking up entrepreneurial activities considered as a distant dream, she says. But the mindset has been changing, she adds. &ldquo;It takes time to change all the established social norms but we have achieved tremendous success in the field of women entrepreneurship.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs1(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 204px;" />Has a Long Way to Go</strong></span></div>
<div>
	There are umpteen problems even now. Women face problem from their initial commencement of enterprise, says Barsha Shrestha, deputy chief executive officer at Clean Energy Development Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The society still does not believe in their capacity and it is an uphill task for women to face such conflicts and cope with such challenges, she adds. Obtaining the support of bankers, managing the working capital, difficulty in getting credit are the problems to solve which male family member&#39;s support is still needed, she informs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now women are empowered enough and can lead big corporations too, says Ambica Shrestha, women entrepreneur and president of The Dwarika&rsquo;s Hotel. &ldquo;All they need is chance of working as freely as their male counterparts.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs2(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 188px;" />Absence of Entrepreneurial Aptitude</strong></span></div>
<div>
	If you have innovative idea to venture into business that is what we call entrepreneurship, says Renchin Yonjan. But male businessmen in Nepal lack entrepreneurial aptitude, she claims. Most of the women who are aspiring in entrepreneurs are involved either in their family business or in service sector that still does not have talents (male or female) with the basic ingredients of entrepreneurship. &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Parents want their daughter to be involved in jobs rather than entrepreneurship, shares Barsha Shrestha. The reason is clear. They do not want their daughters to take risk and put their money at risk.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides, even majority of women in the country lack entrepreneurial aptitude. Women have no entrepreneurial bent of mind, informs Pramila Rijal. &ldquo;But this problem does not prevail only among women but also among men too.&rdquo; &ldquo;Yes, women are more inclined towards household chores and existing social structure does not allow them to think broadly,&rdquo; she adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs3(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 187px;" />Expand Access to Finance&nbsp;</strong></span></div>
<div>
	Women in the country have been facing many problems to get going with their business ideas. Finance shortage is one of them. Women entrepreneurs always suffer from inadequate financial recourses and working capital, says Rita Bhandary, president of Federation of Woman Entrepreneurs Associations of Nepal (FWEAN). They are not able to afford external finance due to absence of tangible assets as security. Women have very less property and bank balance in their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in the women&#39;s ability to run a venture successfully.</div>
<div>
	&nbsp;</div>
<div>
	Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities, according to Shrestha. Marketing and financial problems are such obstacles where even training doesn&#39;t significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bankers often deny women credit on the ground of lack of collateral security, Shrestha says. Therefore, their access to risk capital is limited. Women cannot start big business ventures unless equal access of finance is ensured, Shrestha claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>A Wave of Progress in SME</strong></span></div>
<div>
	Small and Medium Enterprises (SMEs) are possibly one of the best and most cost-effective avenues for furthering economic development. Slowly but gradually, women have been expanding their foothold in this SME field. Currently, women own about 14,300 small and medium enterprises in Nepal, accounting for 2 percent of GDP (registered formal sector) and employing over 200,000 workers. A study commissioned by IFC, private sector lending arm of the World Bank Group, suggests that meeting their current credit requirements of US$ 106 million can increase their contribution to the economy, according to SAARC Chamber Women Entrepreneurs Council (SCWEC).</div>
<div>
	&nbsp;</div>
<div>
	Throughout the country, women have been setting up small and medium enterprises after acquiring the skills, resources, and support necessary to grow and sustain their businesses, says Alka Rajouria Rijal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is very positive aspect of women in entrepreneurship that they are creating jobs at a time when the country is reeling under massive unemployment problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, women&rsquo;s involvement in entrepreneurship will not only contribute to create jobs but also to change the stereotyped role of women which is largely limited to household chores. All should motivate women entrepreneurs to give them the moral support for their business ideas.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs4(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 166px;" />Networking: Key to Success&nbsp;</strong></span></div>
<div>
	The equation is very simple: you have to expand your business once you start it, you have to develop a network to expand business and you have to have a free-society to develop a network, says Barsha Shrestha who believes that Nepali women are struggling to this end.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Women should have a very strong network at three levels: in the sector concerned, with all entrepreneurs and national and international level, according to women entrepreneur Renchin Yonjan.</div>
<div>
	&nbsp;</div>
<div>
	Women have tremendous potential for networking as they are polite and soft compared to their male counterparts, she opines. In business, exposure gives knowledge. Exposure is key that will help women to materialize their dreams. Women entrepreneurs should get out from social restrictions, expand their contacts and start business ventures. Women entrepreneurs should not hesitate to create their brand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Full-time entrepreneurs should have the broadest networks. Long-held belief is, however, that women have weaker networks and rely excessively on family and friends to build their business. This logic is directly linked with the perception that women cannot handle business independently and they are reliant on family and friends for networking, says Yonjan. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Dream Big&nbsp;</strong></span></div>
<div>
	The number of women-owned business has been growing over the past decade or so. However, evidences show that most of these businesses don&#39;t scale up. Further, women entrepreneurs are still considered suitable only in small and medium enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Over the last few years, it is found that women entrepreneurs often seem to be pigeonholed into the &lsquo;lifestyle business&rsquo; category or education sector in Nepal. This is obviously good but not enough, says Ambica Shrestha. Women entrepreneurs are still missing out on the chance of a bigger slice of the pie.</div>
<div>
	&nbsp;</div>
<div>
	Women-owned businesses are still a drop in the ocean of commerce, according to Pramila Rijal. She suggests women entrepreneurs to dream high. &ldquo;It is time that women entrepreneurs start dreaming of setting up big corporations and running big businesses.&rdquo; We have to dream and we have to work to full our dreams, opines Rita Bhandary.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs5(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 168px;" />Changing Scenario</strong></span></div>
<div>
	Picture a woman and you might imagine a women busy in domestic chores and childcare. Further, if someone speaks about a female entrepreneur and you might imagine a woman at the helm of a small business, perhaps in a cosmetic outlet or childcare centre.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	For decades the symbol of women entrepreneurship has been, to many, the pickle, fashion or childcare. They were considered shadow of their male counterparts. Time has come now to break the stereotypes and women should take the baton.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	On the one hand, the mindset of society has been changing, Yonjan opines. &ldquo;But challenges have also increased and women have to compete in the highly competitive world.&rdquo; Access to Information and Communication Technology (ICT), and better exposure to the rest of the world have provided unique opportunities to the women entrepreneurs to expand their footholds,&rdquo; she claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our aim is not to steal the profit pie, which male entrepreneurs have been enjoying but to seek new chances of generating new and innovative sectors where women can see their future, says Yonjan. However, these sectors should not be limited to the small and medium industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;I am definitely seeing more women enter the entrepreneurship sector,&rdquo; Shrestha says. Is entrepreneurship a man&rsquo;s world? No not at all, she firmly believes. We need to break all the stereotypes prevailing regarding women in business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion</strong></span></div>
<div>
	Women across the country have started several business ventures at their own initiatives. It is time to taking bigger steps towards providing flexible workplaces for women to get in the entrepreneurship. &quot;We know that where women are venturing now had been a male bastion. But that should not deter them. Women are equal partners in business,&rdquo; says Yonjan. All section of the society should encourage their effort of entering into the entrepreneurship because people&rsquo;s dream of peace and prosperity is directly related to the economic growth. Women&rsquo;s involvement in entrepreneurship should be encouraged because it will not only create more opportunities but also ensure inclusive growth. It will be imperative in achieving highest sustainable economic growth and employment and in raising living standard.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1b.jpg" style="width: 550px; height: 611px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="#E5E4E2">
				<div>
					<div style="text-align: center;">
						<span style="font-size:18px;"><strong>World&rsquo;s Top 10 Influential Female Entrepreneurs&nbsp;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Wu Yajun" src="/userfiles/images/1%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Wu Yajun</strong></span></div>
					<div>
						Wu Yajun holds the title of229th richest person in the world. The journalist-turned Chinese businesswoman is the Chairwoman of Longfor Properties, an investment holding company, which manages several businesses including real estate and property investment, development and management across China. Born to an ordinary family in 1965, she and her former husband founded Chongqing Zhongjianke Real Estate Co Ltd in 1995, which was later renamed as Longfor Properties. &nbsp;Her net worth as of 2013 is estimated at USD 4.4 billion. Wu is also serving as the member of China&#39;s National People&#39;s Congress. She is among the top 50 in Forbes&#39; Power-Women list.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Zhang Yin" src="/userfiles/images/2%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Zhang Yin</strong></span></div>
					<div>
						Zhang Yin is the founder and director of China&#39;s biggest paper maker- Nine Dragons Paper Holdings Limited. The company buys scraps from US and other parts of the world and turns them into cardboard boxes to export Chinese goods. At the age of 49 in 2006, she became the first woman to top the list of richest Chinese businesspersons, according to the Huron Report. Zhang Yin&#39;s net worth is estimated at USD 3.9 billion as of 2012.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Rosalia Mera" src="/userfiles/images/3%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Rosalia Mera</strong></span></div>
					<div>
						Rosalia Mera is the co-founder of Inditex, a worldwide fashion retailer, which owns famous brands such as Zara, Massimo Dutti, Pull and Bear and Bershka among others. At the age of 11 Mera dropped out of school and began to work as a sales person in a clothing store. With her former husband, she co-founded the Zara clothing chain in 1975, which later became the world&#39;s largest fashion retailer. Mera died on 15th August 2013 after suffering a stroke at the age of 69. At the time of her death she was the richest woman in Spain and the world&#39;s richest self-made woman. Before her death, Rosalia&#39;s net worth was estimated at USD 6.1 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Oprah Winfrey" src="/userfiles/images/4%20(Copy)(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Oprah Winfrey</strong></span></div>
					<div>
						Oprah Winfrey has been ranked as the richest African-American of the 20th century who is currently North America&#39;s only black billionaire. The 60- year old celebrity entrepreneur and philanthropist is best known for her talk show &quot;The Oprah Winfrey Show&quot;, which was considered as the highest-rated program of its kind in history from 1986 to its ending in 2011. She was also the world&#39;s only black billionaire in between 2004-2006. Winfrey is the founder of Harpo Productions, the Oprah Winfrey Network (OWN) television channel and Oprah Winfrey Leadership Academy for Girls. Oprah received the Presidential Medal of Freedom in 2013, the highest civilian award of the United States. Her net worth is estimated at USD 2.9 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Arianna Huffington" src="/userfiles/images/5%20(Copy)(3).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Arianna Huffington</strong></span></div>
					<div>
						Arianna Huffington is the creator of the Pulitzer-prize winning news website and blog &quot;The Huffington Post.&quot; She started the website in 2005. In 2009, she ranked 12 in Forbes&#39; list of the Most Influential Women in Media. The 63-year old Greek-American author and syndicated columnist has an estimated net worth of USD 35 million. In 2011, after the sale of The Huffington Post to AOL for USD 315 million, she became the President and editor-in-chief of The Huffington Post Media Group. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Kiran Mazumdar-Shaw" src="/userfiles/images/6%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Kiran Mazumdar-Shaw</strong></span></div>
					<div>
						Kiran Mazumdar-Shaw is the chairman and managing director of Biocon Limited, a biotech company based in Bangalore. Partnering with an Irish firm to make industrial enzymes, she founded the company in 1978 when she was just 25 with a seed capital of Rs 10,000. She is regarded as India&rsquo;s first biotech entrepreneur. The 60-year old businesswoman is also the Chairman of Indian Institute of Management (IIM-Banglore). She is in the Forbes&#39; list of the world&#39;s 100 most powerful women and the Financial Times&rsquo; top 50 women in business list. As of 2010, her net worth is estimated at USD 900 million.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yelena Baturina" src="/userfiles/images/7%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 115px;" />Yelena Baturina</strong></span></div>
					<div>
						Regarded as the richest Russian woman and the Russia&#39;s only woman with net worth more than USD one billion, Yelena Baturina is the founder of construction and infrastructure investment company Inteco. She founded the company in 1991 as a plastic manufacturer but later changed its business. Baturina witnessed her net worth fell dramatically during the height of the financial crisis of 2008/09. The 50-year old entrepreneur also owns a hotel chain and is the founder of BE OPEN, a cultural and philanthropic foundation.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Giuliana Benetton" src="/userfiles/images/8%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 116px;" />Giuliana Benetton</strong></span></div>
					<div>
						Giuliana Benetton is the founder of Benetton Group, a worldwide fashion brand, which operates a network of more than 6,500 stores and outlets across 120 countries. The Italian company, which is fully owned by the Benetton family, owns famous clothing line-up brands such as United Colors of Benetton, Undercolors of Benetton, Playlife and Sisley. Giuliana started the family business in 1965 by knitting sweaters. At the age of 76, Giuliana is currently serving asdirector of Benetton Group and Edizione S.R.L, a financial holding company of the Benetton family. Her net worth is estimated at USD 2 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Mary Perkins" src="/userfiles/images/9%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Mary Perkins</strong></span></div>
					<div>
						Mary Perkins is the richest self-made British businesswoman. Alongside with her husband Douglas Perkins, she co-founded Specsavers in 1984, a leading global retail chain of optics (eyeglasses and contact lenses), hearing equipment and optician services. Born in 1944, Mary was the daughter of an optician who studied optometry at Cardiff University where she met Douglas.</div>
					<div>
						&nbsp;</div>
					<div>
						Specsavers Optical Group Ltd which is fully owned and by Perkins family operates 1,650 stores across the globe. Mary became the first female optician in the UK to receive the title of &quot;Dame Commander of the Most Excellent Order of the British Empire&quot; (DBE) in 2007. She was also included in the list of BBC Radio 4&#39;s 100 most powerful women in the UK. As of 2011, her net worth is estimated at USD 1.15 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yoshiko Shinohara" src="/userfiles/images/10%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Yoshiko Shinohara</strong></span></div>
					<div>
						Yoshiko Shinihora is considered as the most influential Japanese female entrepreneur. At the age of 77, she is currently the chairman and CEO of Tempstaff Co. Ltd, a human resource management and consulting firm that specializes in contingent hiring, job placement along with childcare services. The company operates and provides services to its 59,000 clients across the world including Japan,United States, China, Singapore, India, Indonesia and South Korea. Shinohara started the company as a temporary job recruitment agency with a seed capital of USD 9,000 in 1973 in her apartment after divorcing at the age of 38. At first, she struggled to find clients as she had to lobby against Japan government&#39;s stiff opposition to temporary job placements. Her business flourished in the 1990s as economic downturn coupled with rising deflation forced Japanese companies to abandon long-term job guarantees to their employees. Tempstaff now has 5,000 staffs and earns USD 2.9 billion annually.&nbsp;</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-03-07',
			'modified' => '2014-05-07',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Women entrepreneurship is gaining importance in Nepal as well. In this issue, NewBiz focuses on the problems, issues, challenges faced by Nepali women entrepreneurs, and ways to overcome them.',
			'sortorder' => '2616',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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			'breaking_news' => false,
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	),
	(int) 10 => array(
		'Article' => array(
			'id' => '2583',
			'article_category_id' => '40',
			'title' => 'New Nepal Government Setting The Economic Agenda',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali economy counts on post-election confidence. With the elections for the Constituent Assembly (CA) and the legislature parliament just concluded, general public and business leaders want one thing for certain &ndash; political stability and economic prosperity.</div>
<div>
	&nbsp;</div>
<div>
	Nepali business and consumers have been on a decade-long roller-coaster ride of unstable government with changes in leadership, epic legislative struggles and policy reversals culminating in what has amounted to a mess.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now there are rays of hopes. The return of political stability is expected everywhere. Business community is upbeat by the successful second CA election. As the liberal forces are going to take the helm of the government, all are waiting for a decisive outcome that can provide real relief to people. And, it is the business community which has been waiting for a favourable situation for their business and investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Decoding the Election Result</strong></span></div>
<div>
	People expressed their aspirations and exercised their power during this election to set the progressive course for issues that matter them the most. Interestingly, people filtered those parties who often take to the street to fulfill their demands but fail to deliver when they lead the government.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The victory of Nepali Congress in the urban areas clearly indicates that urban voters favour liberal economy. Similarly, the fact that majority of votes were secured by Nepali Congress reflects people&rsquo;s will to be led by a political party which is in favour of social harmony and cohesion.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say that the business community was terrorized due to the hotpotch federal agenda put forth by UCPN (Maoist) and other ultra-leftist groups in a belligent manner. The recent poll results might have relieved the entire business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Business goes beyond the ethnicity. An entrepreneur from Madhesh has to do business in the hilly region and vice versa,&rdquo; says former finance secretary Rameshore Khanal. &ldquo;Political parties now should raise the issue of &lsquo;economic nationalism&rsquo; instead of creating tensions among various castes and classes,&rdquo; he remarks. In his words, policy stability and policy consistency is more important than caste and regional issues for development and prosperity.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Long Journey&nbsp;</strong></span></div>
<div>
	Nepal became the 147th member of the World Trade Organization (WTO) in 2004. It is now over two decades since the government adopted liberalization and a development model based on private enterprise and foreign investment, with the market forces as a major driver of the economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Yet, the government&rsquo;s initiatives for strengthening the private sector have been illusive over the last decade. With over decade-long experience, it is perhaps time to evaluate the advantages Nepal took from the WTO membership and way forward to get maximum advantages as a WTO member.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is now time to seriously revisit the deep trade deficit Nepal has continued to run, says Bhawani Rana, vice president of FNCCI, one of the private sector umbrella organizations. The new government needs to make an overview of our foreign investment trends and identify policy bottlenecks, she emphasizes.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>We Can, If We Want</strong></span></div>
<div>
	In the early 1990s, the entire business environment was affected due to the people&rsquo;s movement. Democracy was recently restored. The country was in a state of euphoria as all had much expectation from the new democratic government. But the country&rsquo;s economic situation was not good as the overall economic indicators were in the red. Foreign reserve was depleted. In such a situation, Nepali Congress formed the government and was successful to bring economy back on track.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	That was thanks to the fact that one of the proponents of free market economy, Dr Ram Sharan Mahat took charge of the finance ministry. Though opponents blamed him for favouring economic giants, he despite criticism firmly advocated free market economy and that has proved to be the right decision. The country achieved a record high growth of 8.60 percent in the GDP in 1994.</div>
<div>
	&nbsp;</div>
<div>
	The situation after the 2013 election could hardly differ, hope the businessman and ordinary people. The situation is similar and so are the people&rsquo;s expectations. The early 1990s have proved that the economy can revive if the political leadership is committed for that, says economist Dr Jagadish Chandra Pokharel. A revival in confidence is sorely needed if the country is to deal with the slowdown in economic growth, he adds. The new government should facilitate the business environment. Stable policies and investment friendly mechanism help to make a recovery in business confidence, according to him. But, as NC this time is most likely to form the government with CPN-UML as almost equal partner, doubts are high wether the post-1990 miracle can be repeated. When CPN-UML came to power replacing NC during post-1990 period, it had reversed some crucial policies adopted by NC.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Fear Side</strong></span></div>
<div>
	Moreover, the country&rsquo;s economic sector is not completely terror-free. The Baidya-led ultra-left communist party may create troubles for the sake of making its presence feel. Given Nepal&rsquo;s immediate past, communal and caste issues may resonate strongly in the country&rsquo;s psyche, across the wide-ranging social and economic strata. Understandably, left-extremism (including UCPN-Maoist) may try to create trouble given the humiliating loss experienced by them in the latest polls. Though their presence has significantly reduced in the national politics, left-extremism may try to fuel labour issues to create trouble in the industrial relations.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists, however, argue that the economy and its development, and distribution of benefits, are at least as important as the emotional issue about communities, castes and class politics.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s clear that uncertainty over policy regime and regulations has been a hindrance to foster investment climate in the country,&rdquo; says businessman Pashupati Murarka.</div>
<div>
	&nbsp;</div>
<div>
	The only way out from the existing chaotic situation is to create more and more jobs in the country, Murarka reiterates. The country cannot get rid of political instability until the youths are left jobless, he claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Silver Lining&nbsp;</strong></span></div>
<div>
	What are the elements that shape the country&rsquo;s transition from volatile politics to stable democracy? All too often, policy analysts focus on the political process, while neglecting the vital role of economic reform in determining democratic success&nbsp;</div>
<div>
	or failure.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, high unemployment and lack of entrepreneurial opportunities posed serious challenges to Nepal&rsquo;s transition. On the other hand, the country faced growing unresolved grievances caused by issues such as misappropriation of private property, rampant corruption and widening inequality.</div>
<div>
	&nbsp;</div>
<div>
	Yet, there is silver lining. Despite a decade-long political turmoil and armed conflict, the country&rsquo;s economy was good enough to maintain its basic economic indicators in the positive direction. It is for sure that the country will go through a long and complex journey before the current political transition will settle to form a stable democracy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s micro as well as macroeconomic indicators are positive. &ldquo;We have sufficient foreign currency reserves,&rdquo; says joint secretary at the finance ministry Madhu Kumar Marasini. He underlines the need for utilizing the remittance inflow in the productive sector. &ldquo;All we need is proper management of our own resources to open new avenues of development,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;Despite political instability, Nepal has witnessed a noticeable growth in all sectors during the last decade. And, it is sure that the country can improve its economic indicators if we get visionary leadership, claims former finance secretary Rameshore Khanal.</div>
<div>
	&nbsp;</div>
<div>
	Nepal has made significant progress in various sectors including health, education, drinking water and telecommunication which clearly shows that the country&rsquo;s economy is ready to take off and all it needs is a runway to move on.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>The Issue of New Constitution&nbsp;</strong></span></div>
<div>
	Drafting the new constitution is going to be an uphill task. There are many differences among political parties. But, the country cannot bear perennial transition. It is the need of the hour to fulfill the aspirations and dreams of the people in a positive manner.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Underdevelopment creates multiple problems. It fuels the frustration and pessimism among people which is not good for country&rsquo;s economic health. And, politicians often blame the political transition for the dysfunction of development. In order to end the culture of blame game, we need the constitution which can end the existing political fiasco.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The business community wants this government to draft the constitution on time, opines Rajan Singh Bhandari. The economy cannot go ahead in an ad-hoc basis forever. This fact should be realized by all political parties and they need to draft the new constitution and promulgate it within the stipulated time, he adds.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion&nbsp;</strong></span></div>
<div>
	Many leaders often express the hopes of transforming Nepal into another Switzerland. And, it is not a far cry if we try. Can economic prosperity be achieved in a country that reels under perennial political problems? Entrepreneur Hari Bhakta Sharma says, &ldquo;Yes, we can achieve economic prosperity.&rdquo; We can achieve every success if there is collective effort from the government and the private sector and positive vibes for development among people, he claims.&nbsp;</div>
<div>
	It is widely believed that the new government will be successful to take a decisive role to make our collective dream of becoming rich and prosperous a reality. And, we all need to be clear that the economic prosperity is not meant only for business community but for all of us. Let us make a collective dream and start the journey of becoming a prosperous nation. It is a fact: &ldquo;United we stand and divided we fall.&rdquo; Let&rsquo;s make a collective effort to be the citizens of a prosperous country.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Cover Story" src="/userfiles/images/cs1%20(Copy)(3).jpg" style="width: 575px; height: 570px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2014-02-12',
			'modified' => '2014-02-17',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The results of the second Constituent Assembly (CA) election show that parties contesting on very radical economic ideologies have been rejected by the voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in the urban areas across the nation.',
			'sortorder' => '2429',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	),
	(int) 11 => array(
		'Article' => array(
			'id' => '2443',
			'article_category_id' => '40',
			'title' => 'Partners In Economic Growth',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;">Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? <strong>Achyut Wagle </strong>analyses the challenges and opportunities.</span></div>
<div>
	&nbsp;</div>
<div>
	When we say &#39;engaging development actors&#39; we are talking about hierarchical operational levels like local, district, sub-regional, regional, national, international and global, where each of these levels &nbsp;form a complex matrix of actual actors primarily from five sectors -- the public or government, private or business, civil society, actual beneficiaries or common people and, development partners (donors).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The economic growth is only possible through multidimensional interactions among these different groups of actors that are defined by the recent development literature as multi-stakeholder approach of development. The scope and limitation of the roles of each of these and conflicts and/or complementarities of the interests of these actors, singly or jointly, determines both the scale and the speed of the economic growth of any country, including Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, there is a problem in the definitional level, that is, whether all players in Nepal could be covered by these five categories of development actors mentioned above. Take for example Nepal&#39;s political parties who on their own right want to be the development actors, whereas their role and influence in development domain should either come through the public sector (for those who win the election and form the government) or only as the common people or the beneficiary (until they win the next election). The face of the civil society, if it has any, is not different from that of the political parties. In international practice, donors do not figure out with separate identities, who in Nepal&#39;s case appear even more quintessential actors. These distortions have serious implications both in engaging the development actors in their due roles and also attaining the ultimate results of our development endeavours.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Actors</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. The Government</strong></span></div>
<div>
	It is obvious that we need government for governance, hopefully a good governance. Although Nepal is not an exception among the least developed nations that face the crisis of governance, but one additional dimension in our case is we persistently face deficiency of democracy, perhaps more acutely at present. Nepal&#39;s politics during the last six decades of modern history has invariably been dominated by the dictatorial forces of some form that didn&#39;t believe in pluralistic, competitive democracy. This has been the main source of crisis of governance in general, manifested in the form of rule of force than rule of law, poor growth of institutions and their effectiveness, haphazardly conceived and weakly implemented policies, misuse of the state power by the powerfuls, strong nexus between the crime and law enforcement, utter lack of transparency and rampant corruption in public expenditure, rise of business syndicates and, worst of all, pervasive and persistent impunity. And, the list can on, and on.</div>
<div>
	&nbsp;</div>
<div>
	We don&#39;t have elected local governments at the local and district levels for last one decade, for no tangible reason for this vacuum, except for the height of irresponsibility and imperviousness of the political actors of the country. It should have in fact been the first priority of all particularly after the signing of Comprehensive Peace Treaty seven years ago; as the local governments would have been the best channels to deliver the much touted about peace dividend, many of the economic rights and delivery of the public services at the grassroots. Above all, it would have provided the people at the grassroots with direct access to the state mechanism. One can only imagine at this point, how many of new generation of leaders this process would have produced and how much would it have facilitated the process of proposed federalization of Nepal.</div>
<div>
	Nepal never created democratic government institutions at sub-regional or regional levels. We have bureaucratic arrangements like regional administrators who virtually have no role in economic planning and development except for that of official messengers.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="The Engagement Matrix" src="/userfiles/images/CS2%20(Copy).jpg" style="width: 550px; height: 307px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	At the national level, we have Himalayan scale of policy confusions at development governance. We still have National Planning Commission (NPC) located inside the high walls of Sigha Durbar, that mercifully distributes development to the people of far and wide corners of Nepal. We still believe that the people who live in NPC as if have divine senses to understand the exact development needs of the people living at Tinker and Olangchung Gola and ability to address them from here. The duplication of the roles between the finance ministry and NPC, the constant squabbles and ego-clashes of the mandarins in them is staple national drama. The independence of central bank has always been a mirage, as we saw ten governors in Nepal Rastra Bank in as many years. We never had and, nor will have the possibility of implementing &nbsp;an independent monetary policy of our own in foreseeable future due to &#39;pegging&#39; of Nepali currency with the Indian Rupee.</div>
<div>
	&nbsp;</div>
<div>
	At the international level, Nepal is gradually losing its credibility as a viable economy. We have not been able to organize the Nepal Development Forum, to interact with our international development partners, for the last one decade. Our ability to communicate about our needs with them and prioritize development areas to streamline their support has substantially reduced. &nbsp;The torch-bearers of our economic diplomacy are the political nominees typified, for example, by the recently sacked Nepali ambassador to Qatar. We may talk about FDI, but it has even stopped trickling in. We have also failed to introduce a functional mechanism to make sure that all official foreign assistance is spent through our budget, despite the fact that many of the donors are in favour of such a system.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. The Private Sector</strong></span></div>
<div>
	The post-1990 marked an era that tried to put the private sector in the driving seat of economic growth. The policies of liberalization, privatization and legal as well as institutional reforms initiated by the first elected government after reinstatement of democracy brought about substantial positive changes, the impact of which has withstood violent conflict of a decade. Private airlines, large private sector banks, private hospitals, multiple universities, private investment in communication, information technology and hydropower, and private participation in building infrastructures like roads and irrigation facilities are some of the exemplary outcomes of these policies.</div>
<div>
	&nbsp;</div>
<div>
	But this encouraging trend was abruptly truncated by the armed conflict waged by the Maoists and, after seven long years after cessation of hostilities too, there is no certain sign of putting the policy of private-sector-led growth back on track. The political mayhem we are witnessing even after the second Constituent Assembly elections last month is even more disgusting to say the least.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say, three preconditions for private sector actors to come forward to contribute to economic growth are: ensured private property rights, an appropriate business climate that encourages investment and a predictable policy regime that provides &nbsp;a reasonable time horizon for conceptualizing, executing, operating and if needed closing of the businesses without being unnecessarily anxious about the safety of, as well as, return from the investment.</div>
<div>
	&nbsp;</div>
<div>
	But, the greatest challenge to all of these aspects not only comes at the operational level but at the level of the very philosophy of the strongest of the political forces of Nepal. Confiscation of the private property, politically patronized trade unions disturbing the industrial atmosphere, politically sponsored extortions and sheer unpredictability of the public policies are true bottlenecks for the private sector investment, both foreign and domestic. Consequently, economy suffers from low level of investment and job creation, low level of private sector confidence and, as the result, massive amount of capital flight from the country.</div>
<div>
	&nbsp;</div>
<div>
	Despite all these odds, we must acknowledge the fact that the private sector has constantly been instrumental in the delivery of goods and services at the lowest possible price levels when the presence of government apparatus is as good as non-existent, and even when the armed conflict was at its height.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Civil Society and NGOs</strong></span></div>
<div>
	Nepal&#39;s civil society and the media don&#39;t believe in a long but natural process of the outcome of their activities. The natural role of the civil society or media is to cater the common people with factual information, on the basis of which people form their opinion, and that opinion gets reflected through the ballots. Then comes change through the policies of the mandated government. But, instead, in Nepal they want to be seen as activists and instant impact makers. The NGOs and INGOs strive deliberately to slip-out from the bracket of civil society and claim themselves to be real, grassroots development partners.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The media outlets in general have grown in terms of quantity, quality and reach, whereas NGO activities have become more suspicious and slanted. A large number of INGOs are deeply engaged in spreading this or that religion. . We probably need to re-examine the extent of real contribution of many of such NGOs to the economic growth, development and social harmony of our country.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. The Beneficiaries&nbsp;</strong></span></div>
<div>
	The common people both as actors and true beneficiaries of the economic growth and development efforts are at complete loss of direction. First, the people who are so far completely deprived of any form of meaningful development are not capable of even to identify and articulate their developmental needs. Let me directly quote from a woman whom I had met at Dehimandu of &nbsp;Baitadi, a year ago. In her early thirties, she looked like of fifties, who on top of a heavy load of fodder was carrying two malnourished kids and a pitcherful of water in her arms.</div>
<div>
	&nbsp;</div>
<div>
	When I asked her what did she looked for to ameliorate her sufferings, she first vehemently denied that she had had any suffering and then explained -- she was a happy woman as she could fetch drinking water walking just for 45 minutes whereas she had to spend some one hour in her parental home before marriage, collect fodder from the grassland half an hour away, her two kids out of six she gave birth have, fortunately, survived, her husband who worked in the Indian town of Pithoragarh visits twice a year, her mother-in-law beats her only once or twice a month, she had four cattle and enough land to feed her family for eight months in a year and rest is managed by her husband and his brother. She has plans for sending her kids to nearby school, just two hours of walk, for few years, and then they will follow their father to work in some Indian city. &#39;I am a happy woman and want nothing more,&quot; she emphasized.</div>
<div>
	&nbsp;</div>
<div>
	I don&#39;t think this story needs any further illustration.</div>
<div>
	&nbsp;</div>
<div>
	Second, who know what they want, they too don&#39;t have access to the authorities or knowledge on how to communicate their demands and concerns. Even if some managed to communicate, the end result may just be the same as being idle, ab initio.</div>
<div>
	&nbsp;</div>
<div>
	There is another extreme, where people lately have begun to obstruct the development projects claiming to have absolute ownership of the entire natural resources of their area. The process of participatory development is impeded either way.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. The Donors</strong></span></div>
<div>
	Unlike in other countries, donors for Nepal&#39;s case are imperatively very crucial development actors. It is but natural that the donors, particularly the bilateral ones, have their own interest or agenda in providing the financial assistance to Nepal. The nature of such interest, though, may vary from presenting a mere philanthropic face of the donor in question, influencing in certain policies, providing business to their home companies to increasing diplomatic clout.</div>
<div>
	&nbsp;</div>
<div>
	It is the responsibility of Nepal as a nation-state to identify our needs, prioritize them and explore the areas of possible engagements for the donors where their interest may be served without jeopardizing or compromising our own interests. We often degrade ourselves claiming that we cannot afford to be selective or, to say no. May be true. But we definitely can streamline the support and make them to agree to spend in our projects and programmes chosen by the national budget system.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Foreign Employment" src="/userfiles/images/CS3%20(Copy).jpg" style="width: 550px; height: 330px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	For years, we have tried to formulate a functional foreign aid policy but failed to conclusively frame and effectively implement it. Our absorption capacity of foreign assistance has often been below the &#39;fair&#39; mark and donors seem reluctant to increase and diversify the support mainly due to prolonged political transition and uncertainty coupled with administrative inefficiency. We have often failed to meet the capital expenditure earmarked by our own system that hardly gives incentive to major donors to augment their grant or loan portfolios.</div>
<div>
	&nbsp;</div>
<div>
	We often hear not only engagement but of overengaement of the donors in our development process. They are often alleged of directly interfering in policy making, selection and implementation of the projects etc. Many countries bring in their own experts and repatriate larger chunk of their support back home. Discrimination in pay for the same work between the Nepali staff of same qualification and caliber against their consultants is whopping. Probably Nepal has left more vacuum, not doing proper homework in time to make their engagement more fruitful yet unintrusive.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Dynamics and Correlations</strong></span></div>
<div>
	Let&rsquo;snow dwell briefly on a few key dynamics of Nepali economy. I will touch upon only those areas which appear to be inconsistent in pattern, look paradoxical or needed fresh looks and comparisons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Dynamics of the Human Resource and Migration</strong></span></div>
<div>
	Nepal&#39;s population growth rate now stands at 1.4 percent per annum according to census 2011. Without going into the boring details of numbers, &nbsp;we can say that some of the development indicators certainly show that we have made very impressive progress in terms of increasing the primary school enrollment, literacy and life expectancy, reducing child and maternal mortality rates, increasing access to health and transport services etc.</div>
<div>
	&nbsp;</div>
<div>
	But with regard to human resource development, we are caught in a very awkward position. About one third of the working age population (or about twelve percent of the total population) has out-migrated to foreign employment, mainly in menial jobs. Better educated too, have migrated to developed countries, majority of them with a set mind to permanently settle in the destination countries.</div>
<div>
	&nbsp;</div>
<div>
	It is an interesting paradox that migrated unskilled and uneducated youths are sending their entire earning back to Nepal and the remittances thus received have saved Nepali economy for at least a decade now from potentially falling into acute balance of payment crisis. On the contrary, the educated lot is not only migrating but also taking a hefty sum, on an average forex equivalent of about 35 billion rupees every year, from the national coffers towards tuition, travel and accommodation costs.</div>
<div>
	&nbsp;</div>
<div>
	In a rough calculation, to create a university graduate with sixteen years of education in private institution at present prices costs the nation between 5 to 6 million rupees. And, the return to the nation is clearly zero when one migrates never to come back. It is another paradox that the poor country like Nepal is investing so heavily in human resource to be used solely by the developed countries. The cost-benefit comparison shows that after such a big investment in education, it is unfeasible for them to stay in Nepal and get the cost returned given the lack of opportunities and relatively unattractive pays here.</div>
<div>
	&nbsp;</div>
<div>
	Then, left here in Nepal are true mediocres, who have spent less, studying in community schools, compelled to be contended with low rate of return and perform far below than the average. Nepali civil service is the true mirror of this phenomenon. If the trend of migration is not reversed, very soon Nepal will lack the required human resource of both low and high end skills. This is likely to have serious repercussion in national output. A trend is already visible in sectors like metal and construction works.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Direction of Foreign Trade" src="/userfiles/images/CS4%20(Copy).jpg" style="width: 550px; height: 429px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Dynamics of Foreign Trade and Remittances</strong></span></div>
<div>
	Nepal&#39;s trade deficit stood at scary level of 500 billion rupees in the last fiscal year (2012/13). Official figures show that export to import ratio was 1:6, whereas unofficial estimates suggest that such ratio should stand at 1:10. The accompanying table is self explanatory.</div>
<div>
	&nbsp;</div>
<div>
	In the last FY, Nepal received about 435 billion equivalent of remittances from the migrant workers. This definitely has put Nepal in comfortable level of forex reserve. But, a comparison of trade and remittance data suggests that our economy is heading to a very dangerous trend of the Dutch Disease like effect. Our consumption has been fueled by the remittance income of the households, which in turn is widening the export-import gap. Our productive sector is paralyzed for lack of power, human resource and investment. Our imports are largely consumables, perishables but hardly the production inputs. This apparently is unsustainable, dangerous trend. We need to re-identify Nepali goods that can have comparative and competitive advantage in the export market. At the same time, we must be able to diversify both export and import trade.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Dynamics of Growth and Poverty</strong></span></div>
<div>
	Nepal&#39;s average annual GDP growth rate during the last fifteen years has remained barely at 3.5 &nbsp;percent level. But, in the same period, the headcount poverty, the percentage of the population living below $1 dollar a day poverty line at PPP has unbelievably reduced from 58 percent in 1996 to 25 percent in 2011. What we are effectively saying here is that the poverty can be reduced without growth. In other words, we are challenging the existing theories that correlate growth and poverty and suggesting a completely new economic paradigm on both growth and poverty reduction. This is impossible. The government&#39;s development literature attributes this as the effect of the increased inflow of the remittances. Again, if that is the case too, we are saying that the remittances do not contribute to the economic growth but reduce poverty. This is equivalent to proposing an absolutely new economic theory.</div>
<div>
	&nbsp;</div>
<div>
	In countries like India and Argentina some 30 percent people still live under the poverty line. Mexico has 28 percent people under this magic line. It appears that we are very fast approaching to the United States which still has 15.1 percent people living under the poverty line, according to the World Bank data of 2011. All these are impossible and counter-intuitive arguments and one single conclusion of this is: what we are saying is not credible. On the one hand, we are saying that graduating a country from the least developed to a developing one is a highly ambitious enterprise, on the other our poverty data shows that we are already in far higher position than many of G-20 countries.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Investment and Infrastructure</strong></span></div>
<div>
	The private sector investment both domestic and FDI are in declining trend. The foreign direct investment of Rs. 9.08 billion was recorded in FY 2012/13compared to Rs. 9.20 billion in the previous year. The intent of investing about Rs. 39 billion was proposed by domestic entrepreneurs in the same year, which is less by some seven percent than the previous year. Apart from this, an investment of Rs 100 billion has been proposed for the hydel projects expected to be completed in next five years.</div>
<div>
	&nbsp;</div>
<div>
	One of the very encouraging developments is that the private sector has more aggressively come forward to invest in infrastructure than ever, not only in power but also in the telecommunications, surface transportation and airports. There are a number of large J-V projects in hydropower like Upper Karnali, Upper Seti and Arun III, at different stages of development. Yet, they have constantly been victim of political bickerings and protracted decision making process in the bureaucracy.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/CS1%20(Copy)(1).jpg" style="width: 550px; height: 367px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Very shaky political climate is main distraction to investment, both domestic and foreign.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. Agriculture and Manufacturing</strong></span></div>
<div>
	Our experience suggests that Nepal is not faring well in the manufacturing. Many products we tried could not compete with Indian and Chinese goods that are in instant supply and cheaper for the reasons of mass production and use mostly of their own raw materials. But on the contrary, Nepal has fared well in our niche products like hand-spun dhaaka and pashmina, handicrafts and herbs where there is our backward link in production and possibility of substantive value addition.</div>
<div>
	&nbsp;</div>
<div>
	The manufacturing industries that use Nepali agricultural products have seemingly given better returns to investment. The commercialization of agriculture itself presents real prospects for investment, perhaps in a scale thus far not even imagined of. Off-season farming of cash-crops and commercial farming of valuable herbs can open new avenues in the agriculture sector. Added road links to provide market access should be able to attract new investment for processing, phyto-sanitation and storage facilities. But, we often get carried away by the documentary camouflages like Agriculture Perspective Plan (APP), which presented every possible good plan for agricultural growth without any mention about the land where farming would be done. This was truly a plan made to farm in the air. Just an example.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>6. The Service Sector &amp; Growth Linkage</strong></span></div>
<div>
	Two sectors, financial services and tourism have exhibited very promising trend both in terms of attracting substantial amount of investment and promising good rate of returns. The financial sector now mobilizes about Rs 1.1 trillion of deposits and Rs. 0.9 trillion as loans and investments. The growth in the sub-sectors of insurance, stocks and commodities has also been impressive. But the hard fact is, Nepal&#39;s entire banking sector even jointly doesn&#39;t have liquidity enough to finance a medium-scale hydro project of say of 200 MW. Similar is the situation of insurance companies to provide insurance cover to these projects if they opted to insure. We don&#39;t have a domestic reinsurer, yet.</div>
<div>
	&nbsp;</div>
<div>
	Areas like transportation services have also expanded, along with the increased road networks. The tourism infrastructure is growing steadily. Health and education services by now have national reach due to private sector investment. But the issue here is: how do we make the expansion of these sectors contributory to the overall economic growth of the country? Anomalies like in these sectors have rather added new problems. For example, the over exposure of the banking credit in the real-estate has fueled inflation, created large portfolio of NPA in the industry and put &nbsp;the balance-sheet of a number of banks in a very bad shape for a number of years.</div>
<div>
	&nbsp;</div>
<div>
	The transportation facilities can contribute more if they provided easier market access to the products and supported supply of inputs to increase the production and add value to them. But, largely, the scenario is just opposite.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>7. Choice between Improved Subsistence &amp; Prosperity</strong></span></div>
<div>
	There has been virtual explosion in small scale development initiatives like solar and micro hydro for rural electrification, NGO-led rights based development and awareness campaigns, literacy classes, skill development and self-employment schemes, community or gender-focused empowerment programmes etc. Policies of reservation, inclusion and positive discrimination are now widely debated. These definitely are good things.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But we need to link these activities with our main objective. If our prime aim is a little improvement in the bare subsistence life-style and help reduce abject poverty, these are definitely the ways we should invest and focus on. But if our aim is tangible economic growth that can also compensate to the lost opportunity of decades, we need higher degree of commitment, massive investment and multi-stakeholder engagement at all possible levels, as we discussed about. By now, it is apparent that these small things may be beautiful in facilitating poorest of the poor to live relatively a better life, but seldom enough to effectively speed-up the economic growth and overall prosperity and well-being of the entire population. When we can uplift the living standard of every citizen, universally ensure education and employment, issues of inclusion and reservations automatically become redundant.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Choice" src="/userfiles/images/CD2%20(Copy).jpg" style="width: 550px; height: 413px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Engagement: Process &amp; Paradigm</strong></span></div>
<div>
	&#39;Engaging Overall Partners&#39; is a great concept and also an absolute imperative. But engaging multi-stakeholders with varying, often conflicting, interests is an equally challenging proposition. It perhaps requires a different development culture than Nepal is practicing now. We need both formal and informal common forums, factual information and access to them, effective communication amongst all stakeholders in multitude of directions, &nbsp;reasonable level of credible independent research to ascertain what is working and what is not and, of course, a unity of purpose at the macro level of objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Some key components that can be instrumental in enhancing such engagement can be as follows:</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Discourse</strong></span></div>
<div>
	Nepal utterly lacks any form of meaningful discourse, at any level on economic, financial and developmental issues, except for some media reports and limited number of seminars that take place, here and there. Such discourses should have taken place at three different arenas -- the political parties, policy making units and the academia. And, they should.</div>
<div>
	&nbsp;</div>
<div>
	Since the political parties are the one who govern the country, the economic policy of each major one of them is important tool to make people understand their means and ends of the economic growth and development. Such policy of each party, ideally, should be framed through fully democratic debate at all levels of the respective party organizations; and reflected in their manifestoes. But, this is not at all the case. Except for a couple of leaders in each major party who understand economic issues, the entire outfits are virtually illiterate about the economy, its components and trends. Worst of all, none of these parties have understood the importance of such debate and need to initiate them sooner than later.</div>
<div>
	&nbsp;</div>
<div>
	At the policy making level, trained economists are rare species. A couple of recent finance ministers, for example, were undergrads in subjects other than economics. Bureaucrats have more incentive in appeasing their bosses in any possible way but professionalism. They lack refreshment trainings, more so in economic issues. The redundancy of their rusted ideas gets amply reflected in the so-called new but essentially archaic policies. It is one of the main reasons that our economic policies seldom work.</div>
<div>
	&nbsp;</div>
<div>
	Both of the deficiencies in political and bureaucratic levels should have been bridged by the discourse at academic level. But, unfortunately, in Nepal such discourse is completely absent. A few academics who have made some name as economists have limited themselves in the role of consultants to INGOs and impartial viewpoints about national economy are non-existent. The reluctance of newer universities to institute the department of economics is indicative enough to explain the predicament.</div>
<div>
	&nbsp;</div>
<div>
	Discourses at stakeholders&#39; level, on the topics suitably designed to them are another striking need. At the donors&#39; level, they seem to have instituted a loose network, but its effectiveness as a debate forum on the core economic issues is still beyond the public knowledge.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Research</strong></span></div>
<div>
	For meaningful engagement at any level, credible data are the primary need. The factual information only can ascertain the scope of participation for each stakeholder. But, whenever we try to talk about any aspect of Nepali economy, we immediately loose thread for lack of proper data and absence of conclusions drawn out by properly analyzing them. As mentioned above, we have contradictory and unbelievable or just tentative figures even on cardinal data like GDP, inflation, unemployment and trade. All comparison and correlation conclusions, like I made above, are largely heuristic. We have no option citing whatever the government agencies like the National Planning Commission, Nepal Rastra Bank or Finance Ministry cook in the name of research and analysis. The nation hardly invests anything in research. There are not independent, credible and well-equipped institutions to carryout research in multi-dimensional aspects of the economy and its trends. Such large scale researches need substantial resources and experts right from the stage of research design to econometric analysis and interpretation of those results. There must be somebody to invest on them.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Reform</strong></span></div>
<div>
	The policy and institutional reforms are other important areas that ensure participatory engagement among the development actors. The continuous process of policy reforms provide opportunity to accommodate the emerging needs, practically realized in the development processes at different levels. The institutional reforms increase the functionality of the actors and replicability of the good practices. Nepal also greatly lags behind in undertaking reforms that are due for long time. Some multi-donor sectoral approaches (SAps) in education and health sectors have delivered impressive results. If similar policy as well as institutional frameworks can be extended to include other possible actors in more sectors, that is likely to increase the portfolio efficiency.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Streamlining</strong></span></div>
<div>
	It is important to understand, when we engage multiple stakeholders, it is natural to have varying interests, priorities, methodologies and objectives to come to fore. Without streamlining them, the national objective of economic prosperity is impossible to achieve. Extensive exercises of benchmarking, clustering, grading and ranking are the necessary part of this process. This can greatly reduce the duplication or omission of many of development endeavours; thereby increase the allocative efficiency of resources. A national focal point, a functional unit, not a generic large structure like a ministry, is internationally adopted practice. At times, when the government agencies try to do it, there are instances of conflicts between the different actors. Therefore, such tasks could be outsourced to some independent professional entity with established, proven credibility.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. &nbsp;Good Faith</strong></span></div>
<div>
	All forms of engagements are only possible if the actors are committed to support in good faith on single objectives of economic growth and development of Nepal. The source of good faith is the spirit of democracy that respects the plurality of views, culture of agreeing to disagree and readiness to be partner in the process than to be a savior or ruler. We all have our interests. Sacrifice of a small portion of it by each actor might create a large space for engagement and cooperation and also help serve our own interests better while helping others to serve their own.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em>&nbsp;(Based on paper presented by the author, in IVAAN seminar, 7th Dec 2013 in Kathmandu.)</em></div>',
			'published' => true,
			'created' => '2014-01-11',
			'modified' => '2014-01-20',
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			'description' => 'Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? Achyut Wagle analyses the challenges and opportunities.',
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	(int) 12 => array(
		'Article' => array(
			'id' => '2310',
			'article_category_id' => '40',
			'title' => 'New Nepali ‘Laissez Faire’ How Strong? How Long?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.</div>
<div>
	&nbsp;</div>
<div>
	There is hope in the air. Seven out of every ten Nepalis on the voters&rsquo; list of Nepal have exercised their franchise. And, six out of every ten Nepalis who have voted have gone for centrist and liberal left political forces (Nepali Congress &amp; CPN UML), while virtually rejecting the far left polls-boycotting so-called 33-party alliance, the radical left Maoists led by Prachanda, and the rightist regional forces of Madheshis and far right RPP forces.</div>
<div>
	&nbsp;</div>
<div>
	The message is clear. Enough of politicking, now make the polity firm and economy firmer. Create a business environment that is conducive to entrepreneurs, to foreign direct investment and to rapid employment generation.</div>
<div>
	&nbsp;</div>
<div>
	New Business Age interacted with several experts and noted people from various walks of life to ascertain the mood of the nation with regards to the economy of tomorrow.</div>
<div>
	&nbsp;</div>
<div>
	There is surely a high hope that the newly elected CA-Parliament will draft the new constitution that would introduce new economic policies that would propel the country toward the positive direction and we could witness the inevitable growth and development of the country coming with a stable economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Eminent economist Rameshore &nbsp;Khanal, the former Finance Secretary sums up the spirit rightly, &ldquo;The Constituent Assembly election results show parties contesting on conservative economic ideologies have been rejected by voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in urban areas across the nation. People expressed their aspirations and exercised their power during this election so as to set the progressive course for issues that matter them the most.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The defeat of the Maoists and the regional forces is also seen as the defeat of the federalist agenda. Khanal further notes, &ldquo;In fact, business community was terrorized due to ethnicity-based federal agenda put forth by UCPN Maoist,&rdquo; he said, adding that the recent poll results might have relieved the entire business community. More than 90 per cent businessmen do not want federalism based on ethnicity because they cannot do good business amid ethnic tensions. The entire business environment would be more volatile if political parties that favour regional and ethnic agenda had won the election&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Kamlesh Kumar Agrawal, the General Secretary of Nepal Chamber of Commerce, observe, &ldquo;Clear mandate for the centrist parties is a good sign indeed, and a major difference from the last CA election result. Now is the time for them to fulfill their promises of economic revolution or rapid development&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Shekhar Golchha, the President of Nepal Automobile Dealers&rsquo; Association, is visibly happy with the turnout, the peaceful polls and the results emerging out of the process. He is satisfied that while issues of federalism, sub-national identity etc found limited mention in election manifestos of most parties, the focus has rightly been on economic aspects and stability of the polity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bhaskar Raj Rajkarnikar, the Senior Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), is confident that the new Constitution shall finally be put in place in Nepal now. And the government shall now work firmly towards creating investment-friendly environment in the country. However, he also strongly espouses the need to have local governance bodies as well.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election " src="/userfiles/images/cs1%20(Copy)(2).jpg" style="width: 550px; height: 209px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Common Minimum Economic Agenda</strong></span></div>
<div>
	It would be pertinent to mention here that the five recent former Prime Ministers of Nepal (Madhav Nepal and Jhalanath Khanal of CPN UML, Sher Bahadur Deuba of Nepali Congress, and Pushpa Kamal Dahal and Dr Baburam Bhattarai of UCPN Maoist) came on the same platform of Nepal Leadership Summit created in Birgunj by the Birgunj Chamber of Commerce and Industry and New Business Age group, and at the end of their deliberations on Economic Growth Roadmap of Nepal for the next one decade, they had signed a 12-point Common Minimum Economic Agenda, which included several fundamental issues.</div>
<div>
	&nbsp;</div>
<div>
	The Declaration noted that the ratifying five leaders commit to give priority to the national economic agenda rather than their respective party agenda in national interests, and also to end the current uneasy industrial relations in favour of productivity, and bring in a new labour and industrial policy conducive to overall economic development. The leaders firmly were committed to individual property rights, the important role of the private sector in the economy, and to an environment to attract rapid FDI in Nepali industries.</div>
<div>
	&nbsp;</div>
<div>
	A sampling of the core issues taken up in the talks by these leaders: &ldquo;Unhindered power supply is the pre-condition for economic development, in which the government should not run businesses, but just be the regulator,&rdquo; Sher Bahadur Deuba; &ldquo;Green economy the focus of economic development,&rdquo; Madhav Nepal; &ldquo;Agriculture, regional market and infrastructure development for economic prosperity,&rdquo; Jhala Nath Khanal; &ldquo;Foreign investment urgently required, and economic revolution with justifiable distribution must,&rdquo; Dr Baburam Bhattarai; &ldquo;Time for economic revolution, in which agriculture is the base, and production, construction and development going hand in hand,&rdquo; Pushpa Kamal Dahal.</div>
<div>
	&nbsp;</div>
<div>
	Today, since three of these former PMs are the top leaders of the top two parties, Nepali Congress and CPN UML, getting support of above 50% of the voters who exercised their franchise, this itself can be the first corner-stone of economic policy-making of Nepal next.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election Nepal" src="/userfiles/images/cs2%20(Copy)(1).jpg" style="width: 550px; height: 355px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Securing Private Property</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Narottam Aryal, Educationist" src="/userfiles/images/cs3%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 259px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Narottam Aryal</strong></div>
						<div>
							<em>Educationist</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	The first and the biggest concern is of security of private property and business.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The new constitution MUST acknowledge the role of private sector in the national development and ensure the property rights and should guarantee its security,&rdquo; notes Narottam Aryal, an educationist leading the forum of Nepali colleges affiliated to foreign universities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similar voice is echoed by the Manager (Business Development), Chaudhary Group, Roshee Lamichhane, &ldquo;There is an urgent need to espouse and introduce economic reforms in Nepal with their principal focus on Private Property holding, freedom for entrepreneurial innovation, and abolishing cartel systems.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Employment Generation</strong></span></div>
<div>
	Property rights apart, the next big concern is naturally of employment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to Central Bureau of Statistics, the unemployment rate stands at an alarming 46 percent. The only ambition that most young people have is to leave Nepal and a couple of thousands of young people get on planes every day and fly to the Middle East, South East Asia, Europe and beyond to find jobs. However, there is a huge potential of jobs within the country itself. &ldquo;To address this issue to a larger extent I believe private sectors should be promoted to play a vital role in the growth of national economy and in creating new employment opportunities as it is the only sector that remains the single largest employer,&rdquo; notes Amit Giri, CEO of International Centre of Academics focused on the task of taking higher education through distance and online learning mode to working people of Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Limiting Government Role in Business</strong></span></div>
<div>
	A well-known axiom states that the business of government is not to do business. The government has to define in a very clear and precise terms the roles and responsibilities and limit of the state and roles of the private sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Educationist Narottam Aryal of King&rsquo;s College notes in this context, &ldquo;I think that there is still a huge confusion on this front in Nepal. I think that the Government should limit itself to building infrastructure, creating maintaining legal institutions, maintain law and order and peace, and education and health. For the rest of the things the Government must create an enabling environment for the private sector. The new government must bring the programs to promote youth entrepreneurship with a special focus on agriculture and tourism.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Agriculture: the Mainstay of the Economy</strong></span></div>
<div>
	Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Amit Giri calls for policies that allow agrarian credit, market forces to help develop agri-business and conducive environment ensured by the government for the same.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Infra-structure Leap: Backbone for Industrialization to follow</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Bijay Rajbhandary, Managing Director CE Construction Pvt Ltd" src="/userfiles/images/cs4%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 223px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Bijay Rajbhandary</strong></div>
						<div>
							<em>Managing Director</em></div>
						<div>
							<em>CE Construction Pvt Ltd</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;Infrastructure development is a basic tool to upgrade the country&rsquo;s economic activities, hence there has to be special policies to accelerate the development activities. Real Estate sector, despite its significant contribution in country&rsquo;s economy is highly fragmented and disorganized. Hence, in order to strengthen this sector, it should be treated as an industry and proper norms and policies should be formulated protecting the interest of this industry, Policies need to be introduced for allowing the foreigners to buy apartments in Nepal with $ 100,000 ceiling but through foreign currency to help boost foreign currency reserves in Nepal,&rdquo; notes Bijay Rajbhandary, the Managing Director of CE Constructions, a leading realtor of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is worthwhile to note that though more than 10,000 kms of roads have been blacktopped, at least another 10,000 kms need to be done so out of the 40,000 kms of graveled roads to help push business through ground transport.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Power Surplus Nepal</strong></span></div>
<div>
	Former Finance Secretary, Rameshore Khanal, is bang on, when he says, &ldquo;New government should focus on power generation to boost the production since the overall productivity of the country has been affected due to the condition of power deficit. &nbsp;Also, new government should immediately forward some laws related to economy including banking, electricity, industries among others and it should bring special measures to attract more foreign direct investment.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Bijay Rajbhandary echoes the same spirit when he says, &ldquo;Needless to mention, our country is reeling under the acute energy crisis, and in the light of the fact that Nepal has the capacity to generate hydropower sufficient to export, apart from internal consumption, there has to be some special arrangement from the government side to ensure that such projects are protected from any kind of hindrances, be that political or social.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	A nation with more than 80,000 MW of hydel power producing capacity, and with immense solar and biomass power resources, has less than 1000 MW of installed capacity. Nothing can be a larger wastage of resources than this, indeed.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Power Surplus Nepal movement, engulfing enabling policy-making by the government, active domestic and foreign direct investment in this sector, a pro-active media influencing public opinion towards it and a dynamic bureaucracy, has to be the primary national mission today,&rdquo; notes journalist Janardan Baral.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Investments: Domestic and Foreign</strong></span></div>
<div>
	&ldquo;There are lots of investments currently held up with the hope of much anticipated stability. The election result clearly embraces free market economy and has rejected federalism based on ethnic provinces (showing inclination towards economic development). Militant workers&rsquo; union affiliation is assumed weakened that gives hope for local industries that have suffered over a decade. I have reasons to hope these foundations will be addressed in the Constitution. I hope the government will vigorously implement promises, focus on stability, invest in infrastructure and recoup the lost decade of dark era. All this will boost investor confidence that will take the country to a much awaited, rather needed, growth trajectory,&rdquo; notes Managing Partner of Mathema + Partners, an architectural firm Ajaya Mathema.</div>
<div>
	&nbsp;</div>
<div>
	Taking the discourse to the policy level, Bijay Rajbhandary says, &ldquo; We need clear-cut policy for Foreign Direct Investment in Nepal that would allow a good influx of foreign capital along with their expertise that would create a good development as well as job opportunities within Nepal. Likewise, we also need a policy allowing Nepali investment in foreign land in order to explore and exploit the growth opportunities present in those countries.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Educated, Trained Nepal</strong></span></div>
<div>
	&ldquo;A major focus in the new Nepal should be on providing free and quality primary and secondary public education to all as the research shows that access to secondary education (grades 9-12) remains a major challenge, as evidenced by the disturbingly low net enrollment rate of 24 percent at this level. More than half of primary students do not enter secondary schools, and only one-half of them complete secondary schooling. In addition, fewer girls than boys join secondary schools and, among those who do join, fewer complete the 10th grade. Girls should be encouraged more to study as I believe that when a girl gets educated a family gets educated and when a family gets educated the society gets educated. Hence, the country gets educated. Alongside, to make higher education accessible at every Nepali, liberalization of the education sector leading to more and private Universities and even Distance and Open Learning Universities need to be allowed by the government changing the current policy regime in this context,&rdquo; notes Amit Giri.</div>
<div>
	&nbsp;</div>
<div>
	Focusing on systemic changes within the sphere of public education in Nepal, Bijay Rajbhandary notes, &ldquo;Education sector must be secluded from any kind of political interference at all levels. Besides, teaching methodologies also need to be amended giving more emphasize on general and practical knowledge and skill development rather than making it exam focused&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Media &amp; Entertainment Sector</strong></span></div>
<div>
	Narayan Puri, noted film-maker and the CEO of Himalaya TV, speaking on expectations of the entertainment sector, says, &ldquo;We&rsquo;ve been waiting for development in our industry as well. There must be given soft loan for this industry in low interest, which can happen if this sector is recognized formally as an industry by the government. We need electricity facilities as other normal industries. Further, the owners of entertainment enterprises are often been made hostage by the workers on minor issues and no security is provided for the investors. There has to be strict policy in this regard. This is largely a non-profit business as well as social awareness and information providing business. And, hence, the government should provide subsidy for this business. Different new technical equipments are required in this business so government must tax rebates in this sector. Any kind of media which gives awareness and information to the public about education, public health, etc must be encouraged by the government.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Tourism Promises</strong></span></div>
<div>
	&ldquo;With Nepal having abundant scenic beauty is already attracting many tourists from across the world but there could be an added milestone in this line with some development in tourism sector by adding Health tourism and Religious Tourism in the existing portfolio,&rsquo; Bijay Rajbhandary notes.</div>
<div>
	&nbsp;</div>
<div>
	With airborne tourists still less than a million in Nepal, and per capita spending of tourists coming below USD 40 a day, there is a long way to go indeed. Power supply, better infra-structure, better hygiene, new destinations, integrated promotion of Nepal tourism in select markets with focus on digital communication, along with enabling policy encouraging FDI in tourism as well from the government end will help make Nepal move higher from the current 112th position in world tourism revenues of nations.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Ashok Pokharel, the President of Nepal Association of Tour Operators, say, &ldquo;Peace, security and physical infra-structure are the hall-marks of rapid tourism growth.&rdquo; Buddhist centre of Lumbini and leading Himalayan destination Pokhara surely need international air connectivity, while Kathmandu needs faster upgradation of road infrastructure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>The Last Word</strong></span></div>
<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Roshee Lamichhane, Manager, CG" src="/userfiles/images/cs5%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 224px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Roshee Lamichhane</strong></div>
						<div>
							Manager, CG</div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;I favour national consensus government should be formed for stability in the political arena&rdquo;, says Rameshore Khanal. And the national consensus government can be created only by bringing the top two largely centrist parties closer, rather together, in their mission, Nepali Congress and CPN UML, he adds.</div>
<div>
	&nbsp;</div>
<div>
	CG Manager Roshee Lamichhane, a representative young voice, notes, &ldquo;New government should therefore ensure that the benefits of economic growth and development are not going to be cornered away by few influential people and businessmen or politicians but are going to be conferred among the masses and the new political regime operates the economy to make it become and remain vibrant with employment opportunities and marketable surplus. I can only envision an ever growing economy wherein the government can satisfy the Nepal&rsquo;s appetite for good food, well served, at a price that even common man can afford.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Taking the discussion to another level, Ajaya Ghimire, Chairman, Ace Institute of Management, says, &ldquo;I do hope however that a constitution will be written within two years. It will embrace periodic elections allowing people to choose who will govern the state. It will also embrace freedom of expressions and freedom of economic activity and constitutional right of the individual against state oppressions. &nbsp;But for people to truly experience those rights and freedom, we will have to wait for our society to evolve from its present feudal mindset.&rdquo; Prophetic, quintessential aspiration of the moment.</div>',
			'published' => true,
			'created' => '2013-12-20',
			'modified' => '2014-01-19',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.',
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		'Article' => array(
			'id' => '2178',
			'article_category_id' => '40',
			'title' => 'Tourism Next In Nepal Vision Ahead',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Premium positioning for higher revenues, advanced infra-structure &amp; larger domestic and foreign direct investment are the mainstay of Nepali Tourism Next, whereas Nepal already excels in authentic and ethnic route to tourism, notes <strong>Prof. Ujjwal K Chowdhury.</strong></span></em></div>
<div>
	&nbsp;</div>
<div>
	The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion. One out of every seven persons travelled to another nation in 2012 and 1 out of every 11 adults of the world is engaged in tourism industry. Emergence of new travel destinations and innovative approaches for catering to the needs of the industry, provides it with the potential to be an important component of the national economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In light of these facts, the New Business Age reviewed the present standing and potential sectors of Nepali Tourism industry and the lessons that the industry could learn from countries including India, Malaysia, Bhutan, Middle East, et al.</div>
<div>
	&nbsp;</div>
<div>
	An international symposium entitled &ldquo;Understanding Tourism and Aviation Next in Nepal&rdquo;, participated by niche experts from India, Malaysia and Nepal itself, was organized in Kathmandu in September this year. This symposium jointly organized by New Business age and Hotel Del&rsquo; Annapurna and sponsored by Qatar Airways and Ace Travels, &nbsp;focused on: raising service standards; creating premium brand of experiential tourism apart from the existing largely value-for-money backpackers&rsquo; tourism; positioning of exotic Nepal; upgrading the tourism and hospitality infra-structure: adding new international airport, additional terminals and new air-routes; and increasing domestic and foreign investments in tourism services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Tourism Next Inaugration" src="/userfiles/images/cs1%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 336px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<div style="text-align: center;">
							<strong>Secretary of the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire,inaugurating Tourism and Aviation Next 2013. (From left) New Business Age Pvt Ltd Chairman Madan Lamsal, Incredible India pioneer Amitabh Kant and South Asia Director of Tourism Malaysia Amran Abdul Rahman.</strong></div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Goal: 5% of GDP by 2080 BS</strong></span></div>
<div>
	As the opening speaker, Secretary at the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire elaborated on how Nepal aims to achieve tourism turnover equal to 5% of the GDP by 2080 BS. Presently the turnover is less than 2%. Secondly, Ghimire focused on strengthening the capacity of national flag bearer, Nepal Airlines and claimed that the ministry is working towards that end. &nbsp;He laid stress on accessing all major stake-holders&rsquo; views while preparing a long-term future course for a private sector driven domain like that of tourism &amp; aviation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Following Ghimire, key participants from India and Malaysia shared their experience and case studies on how their respective nations took their tourism industry to next level. Key giveaways of their presentations follow:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Case-studies: India &amp; Malaysia</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>INDIA</strong></span></div>
<div>
	The former Tourism Secretary of India and of Kerala state, and the man behind &ldquo;Incredible India&rdquo; and &ldquo;God&rsquo;s Own Country Kerala&rdquo; branding, Amitabh Kant, lamented that the positioning, branding and pricing of an otherwise high-end premium exotic destination like Nepal has been actually very low. He rued that the focus has been on low-end mass tourism in Nepal (however the arrival number has not yet touched a million), while it now needs to be on niche high-end tourism promotion with a clear positioning.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Noting that more than 1 billion people are travelling and almost 9% of the global GDP has been in tourism across the world, he said, Nepal needs to catch up with this burgeoning industry. Moving from sun-sand-sea focused tourism, globally travelers are looking at authentic experience now and Nepal has a huge advantage in it. Referring to the lessons learned from &ldquo;Incredible India&rdquo; campaign, he noted that to take Nepal to the next level in this sector, unique positioning and integrated marketing communication strategy and plan are a must.</div>
<div>
	&nbsp;</div>
<div>
	Kant ended expounding 6Cs for a holistic tourism development approach: civic governance, capacity building, communication strategy, convergence, community participation, and civil aviation.</div>
<div>
	&nbsp;</div>
<div>
	He expanded the concept that in every crisis there is an opportunity. During the onset of the &ldquo;Incredible India&rdquo; campaign, there were several crises going through India and the world. The 9/11 attack on the World Trade Centre (WTC), the Gujarat earthquake, the coalition force war in Afghanistan, attack on the Indian Parliament, etc, were the stories of the day. India was then very low in several aspects of the travel trade competitive index.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite these setbacks, the unique positioning of &ldquo;Incredible India&rdquo; was taken up, and international consumers were reached directly through exhaustive campaigns, consistent communication, public relations in travel media, and documentaries in television channels. The results started showing up. During this phase, India strategically positioned tourism as a major engine of economic growth, harnessed the direct and multiplier effects of tourism for employment generation, focused on domestic tourism as a major driver of tourism growth (India being a large nation), positioned India as a global brand, acknowledged the critical role of the private sector, and, finally, created and developed integrated tourism circuits based on India&rsquo;s unique civilization (like the Golden Triangle of Delhi-Jaipur-Agra, the Buddhist circuit of Gaya-Ajanta-Ellora, the sun-sand-sea tourism of Goa-Pondicherry, etc).</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Kerala, India" src="/userfiles/images/cs2%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Kerala, India</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	Some key strategies and actions taken during the last ten years for increasing the expansion and impact of the &ldquo;Incredible India&rdquo; campaign are:</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Integrated communication strategy with the aim of promoting India as a destination of choice for travelling from 2002.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Showcasing different aspects of Indian culture and history like yoga, spirituality, etc.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2008, the Ministry of Tourism launched a campaign targeted at the local population. Aamir Khan endorsed the campaign &lsquo;Atithidevo Bhava&lsquo; (Guests are like God).&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2009, Minister of Tourism, Kumari Selja further extended the &ldquo;Incredible India&rdquo; campaign at the domestic level. Of the total USD 200 million budget, USD 12 million was allocated for promoting domestic tourism that year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Result</strong></span></div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2000 India&rsquo;s share of the world&rsquo;s tourism income was 0.5% but by March 2013 the share soared to 1.7%.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>MALAYSIA</strong></span></div>
<div>
	The South Asia Director of Tourism Malaysia, Amran Abdul Rahman, elaborated on how Malaysia moved away from &lsquo;Coca-Cola tourism&rsquo; and how it became a major tourist destination from an &lsquo;add-on&rsquo; tourist destination for Singaporean tourists, two decades earlier.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation received 13 million visitors in 2003 and 25 million visitors in 2012. The target of 2014, declared as the Visit Malaysia Year, is now 36 million visitors with USD 44 billion income.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Elaborating on the key factors that assisted in gaining such results, Rahman said, Malaysia could achieve this success due to infrastructure growth including the remarkable makeover of Kuala Lumpur Airport, changing mindset of the people and government with tourism coming under direct special supervision of the Prime Minister, heavy promotion of rural Malaysia while ensuring ethnic amity, and focusing on MICE (Meetings, Incentives, Convention and Exhibitions) tourism events heavily.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Malaysia" src="/userfiles/images/cs3%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Malaysia</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Next: Branding&nbsp;and Capacity-building are Key Drivers</strong></span></div>
<div>
	The Tourism Next panel, a panel comprising some key stakeholders and industry experts on different facets from the private sector, elaborated on key areas where the private and public sector should focus to alleviate the existing condition of the industry. &nbsp;Moderator of the panel, Upaul Majumdar, CEO of Hotel Del&rsquo; Annapurna laid focus on developing a &lsquo;can-do&rsquo; attitude, instead of just talking about challenges.</div>
<div>
	&nbsp;</div>
<div>
	Nalin Mandiratta, General Manager of Soaltee Crowne Plaza, focused on the need of constructing a large Convention Centre for MICE activities to grow; organizing more sports tournaments in Nepal, preparing and implementing dynamic and integrated destination marketing, preparing an integrated One Nepal concept by uniting efforts of various sections of the industry, and focusing on China and India more.</div>
<div>
	&nbsp;</div>
<div>
	Madhusudan Acharya, the Vice President of the Nepal Association of Tours and Travel Agents, explained the benefits of unique positioning by referring to the success of Apple and said that to establish Nepal as a unique tourism destination, it needs similar positioning based on green initiatives and its ethnicity. He emphatically noted that tourism is both a cause and an effect of more holistic socio-economic growth. He noted that Nepal-China roads and Kathmandu&rsquo;s direct air connectivity with Chennai and Bengaluru are much needed pending measures.</div>
<div>
	&nbsp;</div>
<div>
	Nandini Lahe Thapa, the Senior Director of the Nepal Tourism Board and International Marketing In Charge, noted relative maturity of Nepal as a tourism destination However, she noted that it has been quite low at the high-end of the price-service spectrum. &ldquo;We have lowered our rates for other tourism services, but the cost of travel to and from Nepal has been exponentially costly. Hotels have already set the bar higher, but travel trade still needs to come together and raise the standards with rational pricing,&rdquo; she noted. Promotion of new destinations is possible, she told, if concrete proposals come to NTB from entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	Sumit Baral, the Senior Consultant with the International Finance Corporation of The World Bank Group, working for its investment climate programmes, with key focus on tourism programmes, recalled how Lufthansa dropped Kathmandu sector to protest the rampant child labor in the carpet industry and how it adversely affected German tourists&rsquo; travel to Nepal. Also, a diagnostic study categorically has shown that service standards decline has been the major factor behind lower per day spending by tourists. Noting that Nepal does not feature in luxury travel, he illustrated how Peru since 2000 has positioned itself as high-end destination, and how Maldives with almost same number of tourists like Nepal (little less than a million a year), actually has been earning double the income that Nepal has been earning from this sector.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Talking from the tourism technology perspective, Prerna Mimani, the Country Head of Amadeus (a global leader in travel trade distribution and marketing), noted that the e-commerce route to promote Nepal is must while stating that presently it is still at a rudimentary level. Mimani elaborated on the potential of collaborating with global travel portals with ethnicity focus for Nepal through efficient use of e-commerce.</div>
<div>
	&nbsp;</div>
<div>
	Suman Pandey , Chairman of PATA Nepal and an entrepreneur, defended budget tourism noting it as an important part of the Nepali tourism eco-system and saying that it is different a way of travelling to experience the country. He poignantly noted, &ldquo;The seven days Golden Triangle plan is over-done and new tourism products are now necessary, as seen in the case of trekking tours being re-packaged as photography tours.&rdquo; Next to that Pandey suggested on organizing events replete with potentials to gain global media visibility, as seen in the case of the earlier Nepali cabinet meeting at Everest base-camp.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Aviation Next: Start Small, But Act in Unison</strong></span></div>
<div>
	Civil aviation has an important role in tourism industry. A separate discussion panel, &ldquo;Aviation Next&rdquo;, forwarded areas in which Nepal has to improvise in the days ahead to gain its tourism promotion objectives. Valentino Bagatsing, the Country Head of International Finance Corporation (IFC) of The World Bank group and moderator of the session, raised the issue air safety standards in Nepal. He noted, that there have been 70 accidents in 60 years, 3 of them being in the last two years and informed that IFC is presently tasked with safety management systems research and planning.</div>
<div>
	&nbsp;</div>
<div>
	Bhola Bikram Thapa, the MD of President Travels, emphasized that the &ldquo;Government should make stronger policies and facilitate processes, and not do business directly.&rdquo; &nbsp;He lamented that the government has been unable to add more aircrafts to the existing fleet of the national carrier, Nepal Airlines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ghanshyam Acharya, Chief of Corporate Affairs, Simrik Airlines, noted that three out of every four international traveler to Nepal is airborne and said IATA&rsquo;s Outlook for 2013 that looks forward positively at $711 billion global tourism turnover, has huge potential for Nepal&rsquo;s tourism sector too. Adding to it, he said that blacktopping of many airports in Nepal has increased air safety and air-travel is now available to middle class as well. However, he pointed the need for better regulatory support from policy-makers and rued that no domestic carrier has flown new aircraft since 1998.</div>
<div>
	&nbsp;</div>
<div>
	Representing the government voice, Buddhisagar Lamichchane, the Joint Secretary of Civil Aviation, and Roshan Chitrakar, the Deputy Director General of the Air Navigation Services of CAAN, shared the government&rsquo;s initiatives in addressing the needs of the industry. Chitrakar informed that blacktopping and expansion of airports is going on in a high speed and the hurdles in fleet expansion of the national airlines are now almost removed. He also informed that one year compulsory Air Traffic Controllers&rsquo; training is now split into two parts - six-months in the first phase and then after some work experience another six months of second phase. This will address the problem of human resource crunch in the industry, he added.</div>
<div>
	&nbsp;</div>
<div>
	Lamichchane shed light on the installation of navigational safety equipment, and emphasized that the air safety standards in Nepal is reasonably strong by global standards. Further, he said, &ldquo;Nepali air-routes integration with more global air-routes is underway. And the construction of a second international airport at Bara which will create an East-West air corridor, is also taking off soon. Lamichhane further informed that &ldquo;the regulator and service provider functions of government with regards to aviation are being separated soon and a global consultancy is looking into this.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The Air India Country Head, TK Saha, defended the pricing strategy of his carrier noting that only 10-15 percent seats go vacant. He advocated for new small aircraft routes and services for various potential sectors like Gaya-Lumbini, Patna-Kathmandu, and Varanasi-Pokhara.</div>
<div>
	&nbsp;</div>
<div>
	Ramdas Shivram, the Qatar Airways Country Head, brought in a basic issue and presented with emphasis. &ldquo;Garbage management is poor in Kathmandu airport&rdquo; he said calling for &ldquo;a blended approach that includes raising awareness in passengers, training airport staff, and implementing strong punitive regulation.&rdquo; &nbsp;He also advocated for more efficient and faster immigration services, quest for quality tourism instead of stressing only on volume-based tourism, and focus on finding and investing in new markets to expand Nepal&rsquo;s tourism and aviation base.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Bhutan Tourism Info" src="/userfiles/images/cs4%20(Copy).jpg" style="width: 550px; height: 426px; margin-left: 15px; margin-right: 15px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Smaller Cases: Bhutan and Sikkim</strong></span></div>
<div>
	BHUTAN has positioned itself as a &lsquo;high-value, low-impact&rsquo; tourism, with USD 250 as average on season spending per day by a tourist, and minimum of USD 200 any time of the year. Bhutan claims to have the Highest Gross National Happiness, and the slogan of Bhutan Tourism is &ldquo;Happiness is a Place&rdquo;.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Tiger’s Nest Monastery, Bhutan" src="/userfiles/images/cs5%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 395px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Tiger&rsquo;s Nest Monastery, Bhutan</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>SIKKIM</strong></span></div>
<div>
	What should be the agenda for Sikkim in 2013 if it plans to be anywhere close to Switzerland? It&rsquo;s the oomph factor, about Switzerland, Dubai, and even backdoor ASEAN countries like Singapore and to some extent Thailand, Malaysia and Indonesia that make them a most sought after destination. Switzerland received more than 10 million tourists in 2010. Even Goa received nearly 3 million tourists in 2010. The highest number of foreign tourists who visit Sikkim never crossed the 5000 mark in a month ever till now.</div>
<div>
	&nbsp;</div>
<div>
	Sikkim would need to emerge as a shopping and fun destination; a destination which film makers and market executives like. Sikkim hence, has introduced para-gliding, trekking, and bike riding in recent years, a few world class universities, a few niche products with enviable reputation, a highly educated libertarian civil society.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s empowering every Sikkimese to figure out where Sikkim should need to focus on rather than a top to bottom approach&rdquo; has been Chief Minister Pawan Kumar Chamling&rsquo;s Approach in developing the Indian state.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Sikkim came out with an integrated vision that brought together and synergized Nature &amp; Trekking Tourism, Eco-tourism &amp; Wilderness Tourism, Village/Rural &amp; Home stay Tourism, Adventure Tourism, Wellness Tourism: Meditation, Yoga, Spa &amp; Herbal medicine etc, Pilgrimage &amp; Buddhist Tourism, Culture &amp; Heritage Tourism, Conference Tourism (MICE destination), Tea Tourism, and Snow Travel and Hydro Tourism.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, Sikkim has also pro-actively developed these niche aspects of tourism industry there: Flori-Tourism, Geo-Tourism (fossil study), Fairs-Festivals Tourism, Wedding/Honeymoon Tourism, Peace /Health Rejuvenation Tourism, Heli Tourism, Monsoon Tourism, Cave Tourism, Ekant Vas &amp; Agyat Van Vas, Developments of lakes and wetlands, Wayside Amenities- at every 10 Kms distance, Arts Crafts and Souvenir and some premium destinations.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Sikkim" src="/userfiles/images/cs6%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 413px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Sikkim</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong><img alt="Nepal Vs Switzerland" src="/userfiles/images/nepalvzswitz%20(Copy).jpg" style="
float: right; margin: 0px 0px 0px 10px;width: 300px; height: 378px;" />Premium Positioning for Nepal&rsquo;s Tourism: Possible Road-map</strong></span></div>
<div>
	Nepal, the 36th largest nation of the world by land-area, and enriched with most of the world&rsquo;s tallest mountain peaks, huge fresh water-resource and glaciers, &nbsp;home to some of the best lakes and forests in South Asia, and a nation rich in centuries-old civilization heritages and cultures, has often been under-valued in tourism. The recent Travel &amp; Tourism Competitiveness Index 2013 places Nepal at 112th position out of 140 nations surveyed, while Switzerland retained its position at the top of the chart.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Situation Analysis:</strong></span></div>
<div>
	While Nepal is the preferred Himalayan destination globally, it is one of the cheapest travel destinations. Ministry of Culture, Tourism and Civil Aviation study shows that the average daily spending of an airborne tourist in Nepal skidded down to USD 35 from USD 79 in 2003. Some 700,000 foreign tourists (including some 530,000 by air) came to Nepal in 2012 (as per Nepal Tourism Board estimates). But the image of Nepal has been that of the backpackers&rsquo; paradise, value-for-money tourism, and often a glorious destination for the run-away tourists. The image of Nepal&rsquo;s Tourism has been further tarnished in the last decade by the insurgency followed by political instability.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, things can take turn for the better. This piece throws open the discussion on the paradigm shift in Nepal Tourism. Without harming the current flow of tourists to Nepal every year with an average per head daily spending of USD 48, we can still look at creating a new crop of premium tourists who will hopefully spend a fortnight minimum in this Himalayan nation with a daily expense of at least USD 200 (four times higher than the current average). Even if there are 5,000 such tourists in a year to begin with, the national average and the total income of all stake-holders of tourism economy will have a qualitative leap ahead.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Mt Everest" src="/userfiles/images/cs7%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Mt Everest</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Positioning of the Premium Tourism Product</strong></span></div>
<div>
	Let us look at what the premium tourists look for and what &lsquo;tourism product&rsquo; can be dovetailed for them. Then, we can look at what channels and process of marketing communications should be taken to ensure that 5,000 or more such premium tourists actually come for their date with the Himalayas and spend a daily average of USD 200 or stay in Nepal for more than 14 days.</div>
<div>
	&nbsp;</div>
<div>
	The possible product must have a distinct positioning with a clear and creative packaging. The positioning that can be suggested is &lsquo;Pristine, Priceless &amp; Personal&rsquo;. The pristine beauty of nature and culture of Nepal needs no further elucidation. The experience of the &lsquo;product&rsquo; has to be made priceless incorporating a wide variety of the best expectations fulfilled - the Wow-effect of which should out-price the costs. And, surely, the entire experience has to be very personal, to be treasured for long, with an immense nostalgia-value.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Lumbimi" src="/userfiles/images/cs8%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 321px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<strong>Lumbimi</strong></div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size:16px;"><strong>Premium Tourism Product Defined</strong></span></div>
	<div>
		Keeping these parameters in mind, it is suggested that the proposed product should be for couples only, of any age, to make it truly experiential and personal, and should be an all-planned well-packaged fortnight-long visit incorporating the best elements of Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		For example, a very personal aspect is ensured the moment the visiting couple immediately after landing at Kathmandu airport or on reaching the pre-chosen five-star or boutique hotel is traditionally welcomed and given a set of traditional Nepali wear (based on personal information given while booking the trip). The visit to the five most known heritage points of Kathmandu-- blending heritage, royalty and spiritualism in good measures-- must surely be done along with a broad understanding of the valley over the next two full days in the country, land-travel served with the best of tourist cars available.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The visit in Kathmandu on the fourth day can be customized to each couple&rsquo;s needs: cuisine, shopping, social entrepreneurship or educational initiative, any theatre or cultural activity, the NTB archaeological museum or any other specific spot. Hour-long flight above Mt Everest and Mt Kanchenjunga can be another sure winner on the morning of this day.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Nagarkot" src="/userfiles/images/cs10%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Nagarkot</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		The fifth day can be at Nagarkot with the sunset and sunrise covered soaking in the beauty of natural landscapes. Subsequent two days can be spent at Chitwan, with lake, park, rural life, festivities (season specific),etc., all planned well.</div>
	<div>
		&nbsp;</div>
	<div>
		Eighth to tenth days can be at Pokhara, ensuring all aspects of the valued hill-destination rated among top ten by Lonely Planet - a bit of trekking, rafting and para-gliding, depending on the couple&rsquo;s interest, age and health. Celebrations like anniversary or birthday or even the marriage of the couple in a few cases could be another &lsquo;personal&rsquo; winner either in Kathmandu or Chitwan or Pokhara depending upon the date.</div>
	<div>
		&nbsp;</div>
	<div>
		Eleventh and twelfth days could be a visit to busy Terai city of business: Birganj or Nepalgunj to bring home other aspects of Nepali life and economy, with shopping, handicrafts, etc., thrown in.</div>
	<div>
		&nbsp;</div>
	<div>
		Last two days can be used for a visit to Lumbini and Buddhist heritage sites or, for those who want it otherwise, to Muktinath and more lakes, hills and forests.</div>
	<div>
		&nbsp;</div>
	<div>
		And, as each couple bids adieu, they should be given an exquisitely packaged album of best moments of their visit, their blogs and comments taken for social media use, and take-away souvenirs also given for their closest family members based on the information shared while booking the trip.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Patan Durbar Square" src="/userfiles/images/cs9%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Patan Durbar Square</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Integrated Marketing Communications:</strong></span></div>
	<div>
		For such a concept to click at the market there has to be a focused high-decibel concerted IMC campaign integrating all four channels of communication: online, offline, on-air and on-ground and across ten to twelve selected markets of the world from where most tourists come to Nepal, as understood through research conducted by professionals.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 12px;">An experiential tourism product needs an experiential video that documents actual experience of say, three distinctly different couples -an Indian, a Chinese/Japanese, and an European/American- who go through the entire &lsquo;product&rsquo; and share their views online and on camera. Such a video needs to be used in every marketing meet, aired in selected channels across the globe in the target nations, and clippings promoted through YouTube. Such experiential videos without any explicit marketing commentary, speak volumes more than guided narrative documentaries of hills and rivers made usually from the government stable.</span></div>
	<div>
		&nbsp;</div>
	<div>
		Social Media and the internet make the most powerful channel to reach to an audience scattered across the globe. Hence, a very high-end interactive portal, ideally on third generation internet platform that&rsquo;s &nbsp;being customized to each individual user, on the concept and product of Premium Nepal, incorporating blogs, photo albums, do&rsquo;s and don&rsquo;ts at every level of the experience will also serve the purpose well. Along with the portal, intense and creative use of Facebook, MySpace, Google+, Dig, Youtube, Twitter, Blogs in e-groups, and other social media platforms need to be used with the single-minded purpose of creating a premium positioning of the said high-end tourism product of Nepal. Online booking of this product should also be facilitated through the right mix of technology options.</div>
	<div>
		&nbsp;</div>
	<div>
		A Premium Nepal Tour Plan Book can be an effective offline (printed) tool of communication. The book will interestingly present possible experiences and options for each day of the visit on one side and provide space for documenting personal experiences, cuisine, culture, visits, and people befriended in the process and small anecdotes on the other side. Still pictures of various events can also be placed and preserved. This book will eventually have an immense personal nostalgia value and will also serve to market the &lsquo;product&rsquo; to future customers spreading a positive buzz or word of mouth. Each customer in the process becomes an advocate realizing thus the life-time value of the premium customers.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PR &amp; Sales Driven High Decibel Road-Shows</strong></span></div>
	<div>
		However, closing the deal will largely happen through an intensive PR driven high-end road-show in at least ten to twelve of the leading sources of tourism to Nepal. This road-show must combine the said film, tour plan-book, and interactive session by the organizing partners and must lead to a plethora of writing on Nepal and on this uniquely positioned tourism product. The road-show must bring together the premier tour operators to South Asian destinations, adventure or heritage tourism operators, leadership of selected chambers of commerce, entertainment industry and travel journalism biggies, including the lead travel writers. The cities where the road-shows can be held may be selected from Delhi, Mumbai, Kolkata, London, New York, Shanghai, Hong Kong, Singapore, Dubai, among others. These road-shows must ensure immediate or follow-up bookings of couples coming to Nepal in the subsequent season.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PPP Model with a Consortium Approach:</strong></span></div>
	<div>
		&nbsp;This project can only succeed if it is done on private-public-partnership in which Nepal Tourism Board representing the government and a consortium of private tourism players join hands to first build a brand of Premium Nepal and then execute the product immaculately (execution largely being in private hands). The Consortium can be of a few five star and boutique or heritage hotels with properties in all the places covered in the tour, domestic airlines, premium road transport providers, adventure tourism organizers and may be helicopter-services providers, apart from selected handicrafts-cuisine-apparel-souvenir providers.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Revenue Output</strong></span></div>
	<div>
		Even if 3,000 couples, with per couple investment within Nepal being USD 5,000 for a fortnight of Premium Nepal tourism experience, come in a year, Nepali Tourism industry stands to gain a minimum of 15 million USD minus the marketing communications expenses and tour operator commission of a maximum of 20 percent. Some 12 million USD means an additional Rs. 10,000 million infused into the economy by just one new concept implemented creatively and aggressively! Are the government and the industry listening?</div>
	<div>
		&nbsp;</div>
	<div>
		<em>(The author, the Consulting Editor of the NBA, is the former Dean of Symbiosis International University, Pune, Mumbai, and Whistling Woods International, Mumbai.)</em></div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-11-27',
			'modified' => '2013-12-22',
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			'description' => 'The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion.',
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			'id' => '2066',
			'article_category_id' => '40',
			'title' => 'Nepal Leadership Summit: Nepal @ 2080 BS, 12 - Point Economic Growth Roadmap',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	It was an uphill task, but the gathering of influential leaders and high-level representatives succeeded in adopting a document of a 12-point declaration that renewed their political commitment to lead the country on a path of prosperity and development.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Leadership Summit 2013 was to bring five former Prime Ministers -- Sher Bahadur Deuba, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, Madhav Kumar Nepal, Jhalanath Khanal and Dr Baburam Bhattarai &ndash; in a common platform. The outcome of the event was a 12-point Birgunj Declaration in which the leaders agreed that the path to prosperity is only possible through a private sector-led economic growth.</div>
<div>
	&nbsp;</div>
<div>
	Due to political instability and resultant fragile environment for investment, the dream of prosperity and development continued to be elusive and leaders in the past displayed weak political will to fulfill their commitments for economic development. But it seems they have now realized that the country is desparate for development. And the 12-point Birgunj Declaration was historic in forging a common agenda on economic issues.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of UCPN Maoist and former PM, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, said that the time has now come to be engaged in production, construction and development of the country. &ldquo;In fact, our party has come to a conclusion that political stability is not possible without economic revolution,&rdquo; he informed. &ldquo;We can break the vicious cycle of poverty in the country only by promoting economic activities and adopting the approach of inclusive growth.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Former PM and Nepali Congress (NC) senior leader Sher Bahadur Deuba argued that the government should not engage in trade or operate industries. &ldquo;The government treasury was almost empty when NC formed the government in 1990,&rdquo; he said. &ldquo;The situation has now changed as we have enough money. The problem, however, is that we have been unable to invest due to lack of infrastructure and the energy crisis.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Deuba stressed on the need for common commitment to end the existing energy crisis. The country will head in the direction of economic prosperity if we will be able to address the problem of infrastructure, industrial security and energy, he added.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal should attract Indian investment and should promote exports to reduce trade deficit, he opined. &ldquo;The government should reduce all bureaucratic hassles. We should provide tax rebate to companies that create 100 or more jobs.&rdquo; he said.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s economy remains in a state of confusion, with an expanding budget, energy crisis, trade deficit, inflation, unemployment problem and lack of resources, said former Prime Minister and CPN UML leader Madhav Kumar Nepal. He blamed the revenue-oriented government, the short-term profit oriented private sector and rebellious labour for the slow economic growth. &ldquo;We need to improve our educational system and ensure that we have the skills to pursue the available opportunities,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Clarity in policy, investment friendly environment and investment in service and production sector will ensure the country&rsquo;s development, he claimed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of CPN-UML and former PM Jhalanath Khanal emphasized the need for policy stability for economic growth. Modernisation of the agriculture sector will have positive impact for development, he said, adding that the banking sector should increase investment in the agricultural sector.</div>
<div>
	&nbsp;</div>
<div>
	Absolute poverty and backwardness are the main problems in the country at present, UCPN Maoist leader and former PM Dr Baburam Bhattarai said. &ldquo;The country can achieve the target of 10 per cent growth by increasing investment in productive sectors,&rdquo; he argued. &ldquo;Key factors that are having negative effect in all sectors of the economy are poor governance and corruption. Another important factor is the decline in investment to GDP ratio, which is one of the root causes of the slowdown in GDP growth,&rdquo; Bhattarai said. &ldquo;At least 40 per cent of the GDP should be invested in productive sectors to achieve a double digit growth.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	As of now, the government should ensure that at least Rs 700 billion should be utilized in productive sectors to achieve 10 per cent growth since the GDP now stands at nearly Rs 1,700 billion.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We need to build capacity at all levels to deliver as per the policies,&rdquo; he further said, adding that the first question is whether the country&rsquo;s economic boom will allow it to break the cycle of poverty.</div>
<div>
	&nbsp;</div>
<div>
	Nepal must focus on developing its skills and human resources, especially by harnessing the talents of Nepali people from around the world, he advised. &ldquo;We need to make the building of robust private sectors an urgent priority and promote true entrepreneurship because that is how jobs are created.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	He also suggested all political parties to balance between China and India to get maximum benefit from neighbouring economic giants.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of BiCCI Ashok Baid said that political commitment is a must to create an environment of wealth creation through investment, to alleviate poverty, increase the annual GDP growth rate, contain inflation, promote entrepreneurship and generate employment.</div>
<div>
	In the programme, editor-in-chief and chairman of New Biz Madan Lamsal asked politicians to address economic concerns and map out a strategy with the business community and international support to address the country&rsquo;s economic problems.</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 16px;">Former PMs&rsquo; Common Points:</strong></div>
<div>
	&bull;Nepal is in dire need of economic revolution as it has suffered much during the various political changes of the past</div>
<div>
	&bull;Energy, agriculture and tourism sectors should be prioritized&nbsp;</div>
<div>
	&bull;The private sector should lead the country&rsquo;s development</div>
<div>
	&bull;The government should play the role of a catalyst for the development of the country&nbsp;</div>
<div>
	&bull;Nepal should focus on turning the optimism on the country&rsquo;s future into real action</div>
<div>
	&bull;Inclusive growth must be the main goal for Nepal&rsquo;s development</div>
<div>
	&bull;The mood should be changed from thinking Nepal as a poor country to a country that holds hope</div>
<div>
	&nbsp;</div>
<div>
	<img alt="NEPAL LEADERSHIP SUMMIT" src="/userfiles/images/DECLN%20(Copy).jpg" style="width: 550px; height: 727px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-12-09',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'One may call it an ambitious plan, but it is not impossible. In the fi rst week of September, the country’s five former prime ministers came together in a common platform to share their vision to revolutionize the local economy. The Nepal Leadership Summit which was organised jointly by the Birgunj Chamber of Commerce and Industry (BiCCI) and New Business Age (NBA) with the slogan: ‘Roadmap of Economic Revolution: Vision 2080 BS’ cae up with 12-point Birgunj Declaration  pledging, among others, to give priority to national economic agenda and to honour individual property rights.',
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			'id' => '2814',
			'article_category_id' => '40',
			'title' => 'Growing And Growing Cement',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 14px;"><em>Cement production in Nepal has been growing sharply over the past few years. The industry is among the country&#39;s most flourishing business sectors as the demand of cement is constantly rising. &nbsp;The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors. &nbsp;</em></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi and Sanjeev Sharma</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepal&rsquo;s cement industry has been flourishing despite all sorts of problems. The industry has seen significant growth over the last few years. According to Dhruba Thapa, President of the Cement Manufacturers Association of Nepal (CMAN), the country&rsquo;s cement industry has been steadily growing at 8-10 per cent annually for the past several years. &ldquo;The cement industry has seen growing steadily. Its future looks bright,&rdquo; says Thapa when asked to comment on the current situation of the Nepali cement industry. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The annual demand of cement in Nepal is about four million metric tonnes of which some 3.2 million metric tonnes is met through domestic production while the rest is imported,&rdquo; he adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s import of cement has been dropping year after year because of the rising domestic production. According to the Trade and Export Promotion Centre (TEPC), the rate of growth in cement imports has declined in the last fiscal year. Nepal imported OPC cement worth Rs 2.99 billion in fiscal 2013-14. In the previous fiscal year i.e. 2012-13, cement imports stood at Rs 3.75 billion. The decline in the import of both cement and clinker reflects Nepal&rsquo;s progress towards self-sufficiency in cement production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to CMAN, the domestic cement industry has an installed production capacity of about 6 million tonnes annually which is higher than the annual demand of four million metric tonnes. But the cement factories currently operational have been able to utilize only about 50 per cent of their total production capacity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, this hasn&rsquo;t stopped the private sector from entering this sector in a big way. Currently, according to the data provided by CMAN, there are 45 cement factories in operation producing 3.2 million metric tonnes of cement annually. Local production fulfils about 80 percent of the requirement and the rest is met by imports from India. Nepal produces OPC, PPC and PSC cement, of which OPC is preferred these days.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Out of the 45 factories, only 12 also produce clinker, a major raw material used in cement production. As early as a decade ago, Nepal used to depend on India for 95 per cent of its clinker requirement. However, with more factories now setting up clinker production units after acquiring limestone quarries, import from India has been declining year after year. Today, almost 60 percent of the clinker demand is met through domestic supply. &ldquo;The remaining is imported from India. A few factories will start producing own clinker in 2015. That will bring down the import to 20-25 per cent. Nepal will be self-reliant in clinker over the next three years,&rdquo; says Thapa.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn4.jpg" style="width: 550px; height: 205px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Problems</strong></div>
<div>
	Power shortage because of long hours of load-shedding is the biggest challenge being faced by cement manufacturers in the country. The power crisis has forced them to use diesel power which makes each cement sack costlier by Rs 25. The high import duty levied on raw material, mainly clinker, is another problem, according to cement manufacturers. It has weakened the competitiveness of Nepali cement in terms of price. &ldquo;The government has been continuously increasing the customs duty on clinker ignoring its effects on domestic cement manufacturers,&rdquo; complain cement manufacturers. Thapa says all this makes the Nepali cement costlier than cement in any other SAARC country. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The syndicate system in transportation is another big problem for the domestic cement industry. &ldquo;We are not getting sufficient number of trucks to supply our finished goods to the targeted location,&rdquo; says Anil Kumar Agrawal, Managing Director of Shree Cement Industries. &ldquo;The cost associated with transportation is high as well.&rdquo; Manufacturers complain that even with enough production and demand, they are unable to supply their products to the market due to unavailability of transportation. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Every commodity has a lifespan; and in the case of cement, it is 30 days,&rdquo; said Tej Bom, Head of Sales and Marketing at Ambe Cement, &ldquo;If the finished product is not used within 30 days, the desirable outcome is not achieved.&rdquo; The need of the hour, according to him, is to effectively end the syndicate system so that Nepali products remain competitive with Indian brands.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cn3.jpg" style="width: 300px; height: 313px; float: right;" />Declining Import</strong></div>
<div>
	With the rise in domestic production, import of foreign cement in Nepal has come down significantly over the past few years. The data compiled by the Trade and Export Promotion Center (TEPC) clearly points to this. The country which imported portland class cement (OPC and PPC) worth Rs 4.31 billion in FY 2090/10 saw the import decrease 30 per cent to Rs 2.99 billion in 2013/14. The rising production has also led to the increase in the import of gypsum, one of the major ingredients of cement. Nepal imported gypsum worth Rs 754 million in FY 2013/14, up 133 per cent from Rs 322 million in FY 2010. But the import of clinker, another key component is seen gradually declining. Import of clinker, which was recorded at Rs 8.03 billion in FY 2009/10, decreased to Rs 5.99 billion in 2012/13 before rising to Rs 6.54 billion in the last FY. The increase is due to the government provision made mandatory for the cement manufacturers to produce clinker they need by 2073. However, producers are seen dissatisfied by the government announcement. &quot;Clinker production means more investment. More than 70 per cent of the investment goes for clinker production. So, mere announcements are not enough. We need a supporting strategy as well,&quot; says Anil Kumar Agrawal , Managing Director of Shree Cement Industries. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite the fact that use of Indian cement has lessened in recent years, policy hurdles still remain in place to stop the use of Nepali cement in large constructions of national importance. &nbsp;&quot;General consumers are not importing cement from India. It&rsquo;s the big infrastructure projects run through the international competitive bidding (ICB) process that are importing cement from India,&quot; mentions Thapa,. Thapa, who is also the Executive Director of Cosmos Cement Industries, says that a provision in the ICB contract, which exempts the imported construction materials from taxes, is hampering the competitiveness of Nepali cement. &quot;The imported cement gets an exemption of Rs 185 per sack in customs duty. That is why it is cheaper. It has affected the Nepali cement market,&quot; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn1.jpg" style="width: 550px; height: 261px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Export Prospects</strong></div>
<div>
	With the increase in production, export of Nepali cement has also risen in the past few years. Though the size of the export is negligible compared to the import, the increasing trend indicates to the possibility of Nepali cement becoming a product of comparative advantage to the country&#39;s export. Nepal exported cement worth Rs 3.16 million in FY 2013/14 after starting the export in FY 2012/13 which was logged at Rs 148,700. Nevertheless, it will take time for Nepal to become a net exporter of cement, according to producers. &quot;As we are not being able to fulfill the domestic demand, there is no possibility of export currently. Most factories are selling their products within the country. We can think of exports once we meet the domestic demand,&quot; opines Tej Bom, Head of Sales and Marketing at Ambe Cement.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cn2.jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Foreign Direct Investment</strong></div>
<div>
	Nepali cement industry has turned lucrative to foreign investors in recent years. Big international producers, namely, Dangote of Nigeria, China&#39;s Hongshi and Reliance of India are in the process to establish production facilities in Nepal. Lured by the infrastructure boom in Northern India and Western China, the companies are eying to tap Nepal&#39;s vast limestone reserves. Their products are expected to be export-oriented while also fulfilling the domestic demand in Nepal. Dangote Group, one of the largest industrial conglomerates of West Africa, is said to be starting the construction of cement factory in the next one year. The company which was granted a USD 500 million FDI approval in November 2013 by the Investment Board of Nepal (IBN) is currently looking for a local partner, according to an informed source.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, the top Chinese manufacturer Hongshi Holding Group has partnered with the Nepali company Shivam Cement to kickstart its business in Nepal. The company in March, 2015 signed a joint venture (JV) agreement with Shivam Holdings Nepal to set up a Rs 30 billion production facility. According to the agreement, Hongshi will have 70 per cent share (Rs 21 billion) and the rest (Rs 9 billion) will be invested by Shivam. The JV which will be named Hongshi-Shivam Cement Pvt Ltd aims to produce 120,000 sacks or 6,000 tonnes of cement per day and has plans to start production in three years. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, Reliance Cement Industries of India has also received endorsement from the IBN to establish a cement factory in the country. Though much is not known about the progress after the approval of its investment proposal last year, the company has pledge Rs 40 billion in FDI and aims to produce 2.3 million tonnes of cement annually. Collectively, the three foreign companies have received project approvals worth USD 1.2 billion which has been marked among the largest FDI commitments in the Nepali industrial sector for the time being. Likewise, two other foreign companies have also recently expressed their interests to invest in the country&#39;s cement industry, according to a source close to the matter.&nbsp;</div>',
			'published' => true,
			'created' => '2015-06-01',
			'modified' => '2015-06-01',
			'keywords' => '',
			'description' => 'Cement production in Nepal has been growing sharply over the past few years. The industry is among the country's most flourishing business sectors as the demand of cement is constantly rising.  The vast untapped limestone reserves spread across the country have not only lured domestic companies but also the international investors.',
			'sortorder' => '2659',
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	(int) 1 => array(
		'Article' => array(
			'id' => '2806',
			'article_category_id' => '40',
			'title' => 'The Story Of Nepali Startups',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	The startup scene in Nepal has changed significantly over the last five&ndash;seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The Nepali startup scene is heading slowly but surely in a good direction,&rdquo; thinks Mark Sears, CEO of CloudFactory, one of the most successful Nepali startups. Bidhyabaridhi Sigdel, Investment Director at Dolma Impact Fund, shares similar views. &ldquo;Now we are seeing new and unique businesses, which involve a brilliant choice of timing and products,&rdquo; he says. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It&rsquo;s not just startups like CloudFactory and F1Soft which are doing quite well, nationally as well as internationally. There are others too. For example, Grepsr, a company specializing in web crawling service. The company has international clients such as The Boston Consulting Group, GE Capital, and Target, and is doing very well in their third year. Subrat Basnet, one of the co-founders of the company emphasizes on the massive opportunity for tech entrepreneurs in Nepal to make an impact on a global scale. &ldquo;With the growth of local talent, low risk investment and low operational cost, among other things, Nepali tech entrepreneurs can really compete in the global market if they have great ideas and the right marketing,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	11Beep is another up-and-coming startup from Nepal. It has been trying to build an anonymous mobile social network. It&rsquo;s CEO Bimal Maharjan who is an active participant at startup events around Kathmandu and has even has flown to Italy for a four-month bootcamp called TechPeaks&mdash;The People Accelerator, feels the excitement and challenges of working on an idea alongside other entrepreneurs, designers and hackers.</div>
<div>
	&nbsp;</div>
<div>
	Another idea which was developed in Nepal and has gained some ground locally with aggressive plans to expand internationally is CashOnAd, a mobile advertising platform that is working to revolutionize the advertising world. The fact that CashOnAd&rsquo;s android app on Google Play has already been installed in more than 100,000 devices shows their success in a comparatively short period. With the mobilization of local talent and the right growth strategy, CashOnAd has the potential to be very scalable and profitable in a short period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Innovative companies such as Grepsr, 11Beep and CashOnAd are pioneering a new era of tech entrepreneurship in Nepal. They are dreaming big and thinking of conducting business beyond the borders of Nepal and competing globally. There are also other tech companies making their presence felt in the domestic market as well as chasing the international market.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Many more innovative ideas are surfacing at events like StartupWeekend, GDG Meetups, Hackathons, Mobile Social Networking, Tedx , BarCamp, Mapthaons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Even Incubators like Biruwa Ventures and communities for open source and developers is growing,&rdquo; says Amit Agrawal of Janaki Technologies, &ldquo;Now the vision is crossing the borders and soon we will see kickass startups from the Himalayas, that will rock the world.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
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				<td bgcolor="#84F2AE">
					<div>
						<span style="font-size: 14px;"><strong>Government&rsquo;s Startup Fund</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Lately, it seems that the government has understood the importance of promoting entrepreneurship in the country. The latest national budget has announced a Startup Fund of Rs 500 million. While making his budget speech, Finance Minister Dr Ram Sharan Mahat said that this Fund, which is yet to take shape, will help cultivate the culture of entrepreneurship and promote fresh ideas by bankrolling promising startups. The government expects the private sector and NRNs, too, to contribute to this seed fund, according to officials at the Department of Industry.</div>
					<div>
						&nbsp;</div>
					<div>
						Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), thinks that the criteria and working procedure of the Fund should be established at the earliest possible to make the allotted resources useful. &ldquo;Though the seed amount is not large, the initiative is good. The government now needs to work out an implementation plan as soon as possible,&rdquo; said Murarka, adding that the private sector can decide how to support the programme once there is clarity about the working modality.</div>
					<div>
						&nbsp;</div>
					<div>
						&ldquo;It has already been four months since the government announced the Startup Fund through the national budget. Now, the government should focus on the implementation aspect of the Fund without any delay,&rdquo; advises Hari Bhakta Sharma, senior vice president of the Confederation of Nepalese Industries (CNI).</div>
					<div>
						&nbsp;</div>
					<div>
						Besides the Startup Fund, the government has been running a Business Incubation Programme (BIP) under the Department of Cottage and Small Industries (DoCSI). The BIP which has been running for the last eight years is targeted at supporting startup enterprises. &ldquo;BIP has been trying to create a favourable environment for innovative and aspiring entrepreneurs. This includes providing physical facilities and mentorship services on various aspects of management and production such as productivity enhancement, quality management, accounting, marketing and intellectual property rights,&rdquo; says Pawan Kumar Timalsena, director at DoCSI. &nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Incomplete ecosystem&nbsp;</strong></div>
<div>
	Startups in Nepal face some common challenges in terms of taking their products international and growing the brand. The most obvious challenge is financial. Startups don&rsquo;t get loans without collaterals from the banks. Likewise, angel investors are very few and far between. So, most startups are forced to survive on bootstrapping. Thus, finance is the most difficult problem that people face in Nepal to start a startup. There are no investors willing to invest in startups, according to industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If an idea or product solves a problem and provides value, the target customers need to be aware of the product or service. International customers can be reached through Google AdWords, Facebook ads, advertisements in relevant platforms, among other ways. But all this needs funding. Financial leverage is necessary for this, and the company should have adequate capital to properly market the product or service. This is one area where most of the Nepali startups are lagging behind.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In most cases, finding investors for ideas or early stage ventures is extremely challenging. Therefore, we recommend that entrepreneurs build some sort of track record before approaching investors,&rdquo; says Vidhan Rana, founder-managing partner of Biruwa Ventures.</div>
<div>
	&nbsp;</div>
<div>
	The risk-averse culture in Nepal has led to less competition among the startups than in other parts of the world. This lack of overall competition has hurt the start up ecosystem in terms of quality, valuations, and market-building. But the industry is growing, though slowly, say the industry insiders.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Other Challenges</strong></div>
<div>
	Another challenge is talent. Nepal has many colleges from where thousands of students are graduating every year. However, tech companies have a hard time finding the right talent when necessary. &ldquo;While there are many young talented people in Nepal, there are few senior, experienced engineers and managers,&rdquo; shares Sears.</div>
<div>
	&nbsp;</div>
<div>
	Publicity is another challenge for the Nepali startups. To expand globally, Nepali startups need a network or presence outside of Nepal. Getting covered by popular tech blogs, websites, international media etc. could help create awareness of Nepal-based companies. In this context, events like Startup Weekend Kathmandu platform is a good one. At such events, innovative ideas can get some initial traction through its wide network and reach.</div>
<div>
	&nbsp;</div>
<div>
	Starting up a startup is another major challenge. Though some initiatives have been taken to provide funding for startups which have survived at least for a couple of years or more, startups do not get financial help from banks or other similar institutions at their initial stage. In simple words, there are no institutions to provide seed capital to startups.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The ecosystem here carries a general feeling that the startups do not know anything about business. Whereas, in advanced markets, startups are received in a positive connotation,&rdquo; observes Bibhusan Bista, CEO of Young Innovations, a Nepali tech startup, which has been helping new startups by organizing startup events like &ldquo;Hackathon&rdquo; among others.</div>
<div>
	&nbsp;</div>
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					<div>
						<span style="font-size: 14px;"><strong>IFC&rsquo;s Business Oxygen (BO2)</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						BO2 is a USD 14 million SME venture fund established in partnership with International Finance Corporation (IFC), Bank of Kathmandu and Beed Management. It was established in 2012 to provide risk capital to Small and Medium Enterprises in Nepal through structured equity and quasi-equity investments. It specializes in providing finance to SMEs that might be ignored by BFIs, or cannot access finance from BFIs due to a lack of collateral. BO2 looks for promising entrepreneurs who have worked on good business ideas and show a flair for entrepreneurship.</div>
					<div>
						&nbsp;</div>
					<div>
						Companies may qualify for BO2 if they satisfy any two of the three criteria, namely: less than 50 staff, total assets below Rs 250 million and total annual turnover below Rs 250 million. In addition to funding, BO2 provides advisory services to build the capacities of small and medium enterprises to reach the next level.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Who can qualify for investment?</strong></div>
					<div>
						BO2 concentrates on small entrepreneurs who want to take the step up to the next level. We are looking for SMEs in the growth stage with a history of profitable performance and potential for creating value for investors in the time period of the investment. Entrepreneurs should keep in mind the following points when considering funding from BO2:</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; This is not &#39;free&#39; or &#39;subsidized&#39; money.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The business or its owners should not be blacklisted. Preferably the company should not have bank loans, or if it does, then it should be repayable with the investment amount.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; The company should be registered in the CRO as a public limited or a private limited company.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull;Since BO2 is looking at growth stage companies for investment, the company should have been in business for at least 2 years. If under 2 years then the owners should have been involved in the same sector for more than 2 years.</div>
					<div>
						&nbsp;</div>
					<div>
						&bull; BO2&#39;s investment will be utilized for the purpose of increasing top or bottom line.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Investment Period</strong></div>
					<div>
						BO2 investment is only for a period of four years, which may be extended by a maximum of one year. At the end of the investment period BO2 will exit the investment by selling its shares in the company, back to the original owners at a predetermined value. BO2provides investment in nine sectors: Manufacturing, Energy Based, Agro and Forest Based, Tourism, Trading, IT and Communication, service industries, construction and infrastructure, and realty.&nbsp;</div>
					<div style="text-align: right;">
						<em>(Source: IFC)&nbsp;</em></div>
				</td>
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		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong>Focus on the Global Tech Map</strong></div>
<div>
	&ldquo;Tech entrepreneurs are becoming more ambitious, focused on putting Nepal on the tech map, despite the challenges in taking their product into the global market. Soon, it would not be surprising to hear of big ideas from Nepal making a global impact,&rdquo; says Rana. He advises those who want to start a startup to focus on doing branding well, having a unique offering, scalable business model, global thinking, flat hierarchy with a good working culture, and getting inspired by what&rsquo;s happening globally.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	With quality product and right expansion strategy, a handful of tech companies from Nepal are venturing into the global stage and starting to make an impact. Though challenges come with the territory, Nepal&rsquo;s tech companies have a remarkable opportunity to take a bite out of the global tech scene.</div>
<div>
	&nbsp;</div>
<div>
	Subrat of Grespr believes that Nepal can be put on the tech map. &ldquo;But to put Nepal on the global tech map, we need more companies from Nepal like CloudFactory, F1Soft, Janaki Technologies and Grepsr, and an ecosystem that builds and nurtures quality startups,&rdquo; he says.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Sustainability Issue</strong></div>
<div>
	Industry insiders believe that Nepalis are very capable of innovative work. But the reality on the ground is that Nepal doesn&#39;t seem to have good homegrown startups. There is foreign involvement in most of the leading startups from Nepal. Most of the tech startups that do exist are happy doing outsourcing jobs which might not be a sustainable solution for development of IT in Nepal. What could be the reason?</div>
<div>
	&nbsp;</div>
<div>
	Niranjan Bom Malla, founder of Vidinterest.com says, &ldquo;Based on my experience, there are two big problems that we have in our country right now. One, the Nepali culture of investment, very few angel investors - for most of them, IT startup is not the 1st choice. They think they have better places to invest in other sectors. Two, most of the foreign investors are not comfortable investing in our country, because of our political and financial situation. Trust me, I had talks with more than 100 angel investors over the last two years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Experts also believe that startup businesses should always focus on creating a strong team to sustain their growth. &ldquo;Without a strong team, even businesses with strong potential are at the risk of failure,&rdquo; observes Rana.</div>
<div>
	&nbsp;</div>
<div>
	Bista of Young Innovations believes that Nepali startups should come up with new ideas of business rather than copying successful global products and trends for sustainability in the long run.</div>
<div>
	&nbsp;</div>
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				<div>
					<span style="font-size: 14px;"><strong>Janaki Technology: Building Acclaimed Software</strong></span></div>
				<div>
					&nbsp;</div>
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							<td>
								<img alt="Amit Agrawal, CEO,  Janaki Technology" src="/userfiles/images/cs1(3).JPG" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
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								<div align="center">
									<div>
										<strong>Amit Agrawal</strong></div>
									<div>
										CEO&nbsp;</div>
									<div>
										Janaki Technology</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					Janaki Technology is a software product company well known for its SMS based service, Sparrow SMS and it&rsquo;s much acclaimed application Picovico. Founded in 2007 as a normal web application and outsourcing company, it entered the Nepal SMS Value Added Service (VAS) Market in 2010. It harnessed its experience of catering to the software needs of its national and multinational clients and built &lsquo;Sparrow SMS&rsquo;in 2010 as a platform to facilitatevarious SMS based services.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					SMS services and VAS was not a new thing in Nepal by then, &ldquo;however, we were unique in our implementation and use of latest technology. Our strong technical team worked hard to make it better than other existing SMS services,&rdquo; Amit Agrawal, CEO of the company says while elaborating on the success mantra of the service.</div>
				<div>
					&nbsp;</div>
				<div>
					The company served multinational clients inside and outside the country and Sparrow SMS has received national and international awards. &ldquo;We are still focusing on innovating our products and there is a long way to go,&rdquo; Agrawal said.</div>
				<div>
					&nbsp;</div>
				<div>
					In 2011 the company rolled out Picovico, an application to convert photos into video. The product was selected for seed funding in 2011 by &lsquo;the Morpheus Ventures&rsquo; India. A year later, the Chile Government selected it for &quot;StartupChile&quot; programme awarding it equity free funding of 40,000 USD.&nbsp;</div>
				<div>
					&nbsp;</div>
				<div>
					Agrawal shares that the company focused on research and development for making the products and therefore remained in loss during its initial years. But since than the company has been in profit and presently its annual growth rate has been between 15 to 20%.</div>
				<div>
					&nbsp;</div>
				<div>
					Reflecting on challenges that the company faced as a startup, Agrawal shares that they also went through common problems faced other businesses in Nepal like load-shedding, delayed and multi-layered government processes, shortage of talented workforce and unfriendly business policies. &ldquo;Not having proper startup-ecosystem in the country was another big problem, when we started,&rdquo; he said. &nbsp;&ldquo;Lack of industry support from government, angel investors and startup accelerators along with unclear laws about IT industry and small market size are other major problems especially for Nepali tech companies,&rdquo; he shared. The company has gained substantial popularity among local clients and is presently doing market research to expand its reach beyond Nepal, Agrawal said adding that the company is working on pushing Picovico in the global market, especiallyin Europe and America. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<strong>&nbsp;(By Upashana Neupane)</strong></div>
			</td>
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	</tbody>
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<div>
	&nbsp;</div>
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								<img alt="Ujjwal Chapagain, Managing Director, Himalayan Rabbit Farm" src="/userfiles/images/cs2(7).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 238px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Ujjwal Chapagain</strong></div>
									<div>
										Managing Director</div>
									<div>
										Himalayan Rabbit Farm</div>
								</div>
							</td>
						</tr>
					</tbody>
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				<div>
					<div>
						<span style="font-size: 14px;"><strong>Himalayan Rabbit Farm: A Social Start-up</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Ujjwal Chapagain, managing director of The Himalayan Rabbit Farm took up the risk of leaving a secure job and entering into an unchartered business terrain of commercial rabbit meat production. Such a business is still little known about across the country. When Chapagain thought of it as a business venture, he was questioned more than assured to take the risk. But he succeeded.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						He thought that a small risk taken could help in the sectorial as well as his personal growth. In the very beginning, he had decided his business venture will be a social enterprise rather than a purely commercial. Established in 2012, the venture has provided 100 small farmers with an extra source of income in the form ofrabbit farming.Along with that six farmers have been producing rabbits on a larger scale, following the footsteps and guidelines of Chapagain.</div>
					<div>
						&nbsp;</div>
					<div>
						Chapagain was a jobholder in the non-governmental sector. He left the job and invested all his savings in starting up an organic vegetable shop at Jhamsikhel and an integrated farm in Bhaktapur in partnership with some friends. Unfortunately, the project did not succeed, the cause of which he alludes to lack of teamwork with his business partners. After this, he found himself at the crossroads forced to choose between doing business and reverting to being a jobholder. He decided to stay.</div>
					<div>
						&nbsp;</div>
					<div>
						He explored various business prospects and finally decided to start rabbit farming. He took the decision after figuring out that rabbit meat had high demand in the market, as it had remained unnoticed as a livestock farming option and therefore had no substantial competitors. Besides that, another major reason, which attracted his attention, was the fact that rabbit meat is considered to be healthy food and as people were being oriented towards healthy meat options, he thought that he could cater to this consumer sentiment.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						After finalizing his new business idea, Chapagain faced the problem of capital shortage. As he had spent all his savings in the previous venture, the only option left to him was borrowing from a bank. Considering the failure of his earlier business venture, it was hard to convince family members to put up family land as collateral for acquiring bank loan for his new venture. He convinced them and he acquired a bank loan and started rabbit farming in partnership.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has around 500 rabbits at its rabbit farm in Balambu, Kathmandu. For breeding, there are around 100 females. It is planning to upgrade the existing breeding centre into a modern one for breeding high yielding rabbit breeds. Presently, it procures 300 to 400 kilograms of rabbit meat every month from farmers situated in different parts of the country. Chapagain says that this quantity is consumed in the market, which primarily consists of hotels and restaurants.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs3(7).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						Within two years, Himalayan Rabbit Farm has succeeded to put rabbit meat as an option on menus. The success stems from the fact that people, who have tasted it, have loved it. Chapagain feels that interest towards the meat has been growing and he has been continuously working to boost it. To increase customer attraction and establish rabbit meat eating culture, the company had provided free tasting samples to visitors of Food, Drinks and Hospitality Exhibition held in September this year.The company has been working on innovating rabbit meat dishes in association with Nepal Academy of Tourism and Hotel Management (NATHM), so that hotels and restaurants could replicate them.</div>
					<div>
						&nbsp;</div>
					<div>
						On the social side, Chapagain has been constantly working with local farmers to help them in rearing rabbits and thereby generating additional household income. The company provides training on rabbit keeping, managing and shade building for rabbit farming to farmer, among other support.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						As of now, farmers in Mayagdi, Rasuwa, Sindhuli, Dolakha, Nawalparas and Kathmandu have taken up rabbit farming. He says that famers from other areas have been also showing interests.</div>
					<div>
						&nbsp;</div>
					<div>
						In the past two years, Chapagain has made a huge leap in introducing a totally new area to livestock farming in Nepal and now he wishes to establish rabbit farming as a national programme, similar to that of pig, goat and poultry farming. Along with this he wishes to make rabbit meat easily available in the market for purchase. To this end he has plans up his sleeves to set up outlets for selling rabbit meat products in places with higher market volume.</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
					<div>
						&nbsp;</div>
				</div>
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					<span style="font-size: 14px;"><strong>Selling the Innovation</strong></span></div>
				<div>
					&nbsp;</div>
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								<img alt="Madhukar KC, Founder, Matribhumi Urja Pvt Ltd" src="/userfiles/images/cs4(6).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
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							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Madhukar KC</strong></div>
									<div>
										Founder</div>
									<div>
										Matribhumi Urja Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Madhukar KC, founder of Matribhumi Urja Pvt Ltd invented a fuel-efficient wood fire stove that is being commercially developed. Recently, he has designed eight different burners and presented them to the Alternative Energy Promotion Centre, as requested. These designs include skewer stove, high-altitude stove, portable stove and bio-gas stove among others for household and commercial use.</div>
					<div>
						&nbsp;</div>
					<div>
						CB Urja Pvt Ltd has been granted the production and marketing rights for the wood fireportable stovesKC innovated. It started production since mid-May 2014 from its Balaju Industrial Estate based factory.</div>
					<div>
						&nbsp;</div>
					<div>
						The government has recently decided to provide five ropanis of land in Chitwan to set up a factory produce burners at a larger scale, KC informed. He is optimistic that the decision would help to develop his venture. His journey so far has been challenging, especially during the research stage, as he had to personally finance his research and development works. Sharing his experience, KC complains of banks and financial institution&rsquo;s unwillingness to take intellectual property as collateral for providing loans. In lack of loans, he has been managing investments with the profit earned by selling the products.</div>
					<div>
						&nbsp;</div>
					<div>
						KC, originally a resident of Pyuthan had moved to Chitwan and it is where he first introduced the product to the public. The first prototype of woodfire stove was developed after a long series of trial and errors on coal stove. A successful prototype was developed in the 33rd attempt. For over 13 years he has been devoting all his time in developing the product. Coming now, he has improvised his products to use bio-mass. KC says that the performance of his stoves is higher than the government benchmark claiming that his stoves scored 29 in the benchmark against the official benchmark of 25. KC plans to develop products that can score around 33 to 35 in terms of performance and fuel efficiency. &nbsp;Presently he has been working fuel-efficient stoves to be used with bio-gas and liquefiedpetroleum gas (LPG).</div>
					<div>
						&nbsp;</div>
					<div>
						KC&rsquo;s stove, besides firewood, can use biomass such as pine leaves, seeds of Schima Wallichi (Chilaune) tree, seeds of Hog Plum (Lapsi) and other bio wastages, which generally remain unused, as fuel source. A candy factory in Parbat entirely uses Hog Plum seeds to fuel the stove. This unique portable stove uses two watt computer fan for air supply. The insulated version of the stove does not heat the room as it is covered by mud, specially designed for the Terai region. The fixed stoves installed in rural households also have similar mechanism and provide better flames while emitting lower smoke. KC says that these stoves can be customised to fit in the requirements of an individual household. This mechanism makes it fuel-efficient, environment and user friendly while ensuring smoke free kitchen.Along with that stove uses parts made of recycled metals supplied by the Butwal based Metal Craft Pvt Ltd.</div>
					<div>
						&nbsp;</div>
					<div>
						<img alt="" src="/userfiles/images/cs5(5).jpg" style="width: 550px; height: 399px; margin-left: 10px; margin-right: 10px;" /></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;KC is the first to incubate at the Business Incubation Programme of the Department of Cottage and Small Industries (DoCSI). In 2009, KC was recognised by National Academy for Science and Technology (NAST) with an award for developing efficient stoves. He was also awarded with Surya Nepal Asha Social Entrepreneurship Award in 2013. After being awarded with the awards, KC realized the buzz that his business had created in the market. He has registered patent rights for his innovations. Presently he has been trying to acquire international patent rights for his LPG and bio-gas burners and the DoCSI has pledged assistance in this endeavour.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Gaurav Aryal)</strong></div>
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	&nbsp;</div>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>CloudFactory: A Crowd-sourcing Powerhub</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt="Mark Sears, CEO, CloudFactory" src="/userfiles/images/cs6(5).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 218px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Mark Sears</strong></div>
									<div>
										CEO, CloudFactory</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						As crowd-sourcing and cloud-working are becoming the next big things in the global outsourcing market, new companies are flocking into this lucrative business. CloudFactory, a Kathmandu-based startup has emerged among the frontrunners in the global crowd-sourcing market. The company, founded in 2010 by a Canadian tech entrepreneur, Mark Sears, is rapidly expanding its foothold in Nepal and beyond. CloudFactory came into existence when Sears came to Nepal on a vacation with his wife in 2008. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The company basically is a web-based outsourcing platform that hires cloud-workers who can work from their internet enabled locations. CloudFactory&#39;s clients are those who need big data services such as data entry, data processing, data collection along with audio/video transcription, categorization, web research and image tagging. The tasks are broken down into sets of &quot;microtasks&quot; which are then distributed to its pool of online workers who complete their work in the &quot;virtual assembly lines&quot;. CloudFactory currently employs 3,200 workers from Nepal and across the world, who process over a million tasks per day.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Nepali startup scene is heading slowly but surely in a good direction&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did the idea of CloudFactory germinate?</strong></div>
					<div>
						In 2008, we were a software development company building web and mobile applications for North American and European clients. Many of them started needing data entry related work and kept asking if we could hire people in Nepal and do it. We kept saying no because we were a high-end software boutique and not a data entry company. At the same time we had been living in Nepal for a year and only hiring talented computer engineering fresher. &nbsp;During the period we met many other talented Nepalis looking for an opportunity. The major existing solution was Amazon&#39;s Mechanical Turk (AMT) - a crowd sourcing internet marketplace. But its enterprise-grade was not enough for our clients and we faced many quality related problems. So we started CloudFactory on January 1, 2010 as a technology platform to cater to the big demand and supply of online workers and haven&#39;t looked back since then.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the turning points for your company?</strong></div>
					<div>
						&nbsp;The shift from a software development company to a product company back in Jan 2010 was a major turning point. Another major turning point was in May 2012 when we hired our first 25 cloud workers in Nepal. Up until then we were a tech/engineering company building a platform and now we had to learn how to recruit, train and manage large numbers of data operators.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						While there are many young, talented people in Nepal there are less senior, experienced engineers and managers. We are a young team and in many ways I think that has been a good thing, we have learned a lot and grown together. I am so proud of the things we have accomplished to get to this point and I look around and see that I am surrounded by some of the finest young leaders in Nepal - it is amazing to see the growth and maturity that comes from being part of a growing international startup like this.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did you manage the investments?</strong></div>
					<div>
						Our team, technology and traction are the keys to us for raising investments. This latest round was definitely related to our participation in a business accelerator in the US where I got to meet and pitch to a lot of great investors at the end of the 7-month program.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the major projects of CloudFactory? What are its main focuses?&nbsp;</strong></div>
					<div>
						Large-scale data entry, audio/video transcription, web research, image tagging and categorization are our major projects. Companies come to us with large amounts of routine and repetitive work that we can break down in small tasks that can be partially automated but require people as well to complete many of them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						&nbsp;While we have not received any formal help from the government we have very much appreciated informal support from people like Radhesh Pant at Nepal Investment Board. While their focus is mostly on the top hydropower investments in Nepal but he understands and appreciates the opportunity for companies like CloudFactory to provide job creation in Nepal. As a landlocked country we need to be thinking more about how we can accelerate the shift to a knowledge economy. For that ICT should be higher on the priority of the government. Even so, the most important thing the government could do is stay out of the way of ICT growth in Nepal and focus on not being a hindrance and let entrepreneurs continue to innovate from their internet-enabled residences across the Kathmandu valley.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What are the challenges being faced by the Nepali tech startups?</strong></div>
					<div>
						Tech startups in Nepal are mostly just freelancers working together in small teams of 2-20 people. They work on the early development side of web and mobile applications but rarely get the opportunity to build a full business by bringing products to market themselves. We need some more product startups to go through the full lifecycle to see some wins on the international stage. We will then have the capital and experience to start the second wave of tech startups in Nepal. I see this happening in the next 3-5 years. Until then many will continue to get experience on the engineering/product development side by building other people&#39;s products. The future is bright, Nepali startup scene is heading slowly but surely in a good direction.</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
			</td>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&ldquo;Lack of human resource to work on our ventures is the major problem&rdquo;</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt="Anil Basnet, Chief Operating Officer  Metro Vibes" src="/userfiles/images/cs7(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 243px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Anil Basnet</strong></div>
									<div>
										Chief Operating Officer&nbsp;</div>
									<div>
										Metro Vibes</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Metro Vibes, is a startup company that specializes in web design, development and hosting, email services, graphic design, domain registration, and providing IT consultancy and internet marketing services. After working for over five years with other tech companies, Anil Basnet, Chief Operating Officer of Metro Vibes, felt the need to establish his own IT company. He shared the idea with his three friends and they conceived Metro Vibes.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						Company&rsquo;s growth curve has been pretty stable and has improved substantially since its establishment. Presently 22 employees are working with company and Basnet said more would be joining in the near future. &ldquo;We work hard to meet projects deadline. We get up at 4 in the morning for our venture Metro Tarkari and ensure that the delivery is made within the set time frame,&rdquo; Basnet said while elaborating on the growth factors.</div>
					<div>
						&nbsp;</div>
					<div>
						Though the venture faced financial crisis in its initial days, lack of skilled manpower was and remains the major problem. &ldquo;We have unique concepts, required finance and latest technological equipments, but there is scarcity of skilled manpower who can translate our venture ideas into actions,&rdquo; stated Basnet. Another problem is the absence of government policy on ecommerce. &ldquo;We are confused about the method of handling online transactions,&rdquo; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						Starting the Merotarkari.com, an online vegetable ecommerce system, was one of the most prominent turning points for the company. This venture boosted the company&rsquo;s working style and contributed in its expansion. The concept of virtual receptionist was another unique idea in office automation that became a major turning point for the company.</div>
					<div>
						&nbsp;</div>
					<div>
						The company started with five clients in the initial phase and coming now it is serving more than 120 trustable clients that range from national to international boundaries. Its core products are mterotarkari.com, metrofever.com, metro bulk email service, and metro biometric attendance system.&nbsp;<strong>(By Angila Sharma)</strong></div>
					<div>
						&nbsp;</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>&lsquo;&lsquo;The company has been working hard to extend its reach to every field&rsquo;&rsquo;</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt="Shraddha Timilsina, CEO, Sastra Creations Pvt Ltd" src="/userfiles/images/cs8(2).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Shraddha Timilsina</strong></div>
									<div>
										CEO</div>
									<div>
										Sastra Creations Pvt Ltd</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sastra Creations Pvt Ltd is an IT startup company that provides wide range of services including web design and development, hosting, graphics designing, mobile app and software development. The company was founded in 2012 by two IT students Shraddha Timilsina and Binamra Dhakal in their pursuit of utilising their IT skills. &quot;We perceived that IT sector has great opportunities and possibilities in Nepal and hence decided to work and build our own IT business,&rdquo; Timilsina, who presently acts as the CEO of the company, said.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						In the two years of its establishment, the company had several major turning points. Launching the Nation Wide Web Competition 2013in partnership with the Computer Association of Nepal (CAN), on 2nd January, 2013 provided it with much needed publicity and helped gain reputation as an authority in the IT sector. &quot;It helped talented and skilled participants in acquiring better knowledge about opportunities in web design and development. It helped us to grow at the national level,&rdquo; Timilsina said. Next to it, the company provided IT support for conducting online election of Nepal Medical Council online. Launching its own range of software &ndash; school software and Catreen management software &ndash; in September 2014 provided it much impetus for being included in the top 20 IT startup companies by the ICT magazine.</div>
					<div>
						&nbsp;</div>
					<div>
						Software and websites sales has been major source of the company&rsquo;s income and investment. It claims that its annual income has grown about three times from 2012 to 2014 with current annual turnover resting at Rs 12 lakh. It has provided employment opportunities to more than 10 youths in 2 years.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						The Company has been able to sustain and grow on its own due to the total dedication of its founders and employees. The success, however, was not easy. It has faced its share of financial and operational obstacles and challenges in the first few months of establishment. Timilsina thinks that lack of proper system and knowledge about IT and load shedding are the major problems faced by them. Reflecting on her experience, Timilsina said that it is hard to acquire big projects or partnership with bigger organizations in lack of personal links with them.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						For any business, Timilsina thinks that market is important. She claims that taking business online just provides any business with the market. It is not possible to promote business without going online and it is time efficient if you are using digital marketing tools including software to run a business, she claims. The company perceives each and every sector including agriculture, entertainment, ecommerce, restaurants and hotels, travel agencies and any other business to be its potential client.<strong>&nbsp;(By Rashika Pokharel)</strong></div>
				</div>
			</td>
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<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<strong><span style="font-size: 16px;">&ldquo;We are working on making our technology strong and making it securer&rdquo;</span></strong></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
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							<td>
								<img alt=" Bimal Maharjan, CEO, 11Beep" src="/userfiles/images/cs9(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 242px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Bimal Maharjan</strong></div>
									<div>
										CEO, 11Beep</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						11Beep is startup company, which since recently have been gaining popularity as a social network that provides platform to individuals to enjoy unrestrained personal freedom of expression.11Beep is a network built specially for mobilephones that doesn&rsquo;t keep any digital history. It lets you share freely what is on your mind with your friends without worrying about any digital footprint.</div>
					<div>
						&nbsp;</div>
					<div>
						11Beep came into operation on November 2013 following Bimal Maharjan&rsquo;s, the CEO of the company, competitive analysis of the market to find the company&rsquo;s startup idea. Maharjan had conceived the idea after analysing various posts on different social networking sites.</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;People only share trendy thoughts on social networking sites but hesitate to share thoughts that might be considered or taken in negative light by their social networking peers. 11Beep provides anonymity to individuals and emancipates them from the fear of being identified thereby enabling them to share their thoughts spontaneously without any restraints, says Maharjan, CEO of 11Beep. Thus this network paves way for individuals to share their thoughts, whatever their nature, whenever it strikes to their mind. Besides anonymity, this network has another cool feature of deleting all the post after certain time frame. This feature enables that the individual does not leave digital footprint behind for others to trace. Fundamentally, it is a social network with quite higher levelof security.</div>
					<div>
						&nbsp;</div>
					<div>
						The company has been running by five-member team &ndash; with only CEO committing his full time to it and others helping him out on part time basis. 11Beep is preparing to launch another product in the market but before launching it, its been focusing on making the existing product more user friendly and winning user confidence.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						&quot;Our startup is based on the idea of a loosing algorithm and is designed for maintaining anonymity. We don&#39;t want to go wrong anywhere. We are working on making our technology strong and making it securer. We have required technical competencies and expertise and are very happy with our work and knowing that we are on the track of gaining our objective,&quot; says Maharjan.</div>
					<div>
						&nbsp;</div>
					<div>
						The company is sustaining through its own resources and has not got any support from government. &quot;Fortunately I don&#39;t have to pay my team so that is a relief .We don&#39;t require huge investment and our biggest need at the moment is human capital, we are investing on our own so right now we don&#39;t feel the need for funding but in the next phase, we will need huge investment,&quot; he added.</div>
					<div>
						&nbsp;</div>
					<div>
						As a part of its aim, Beep11 believes in building something which people can make good use of. But being a start up it has its own woes too. &quot;Our society in not built to encourage tech entrepreneurs and as in the initial phase they don&rsquo;t earn much to sustain, it is very difficult for startups to establish in Nepal,&rdquo; Maharjan said.&nbsp;</div>
					<div>
						<strong>(By Rashika Pokharel)</strong></div>
				</div>
			</td>
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	</tbody>
</table>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Sasto Deal: Providing the Best Deals</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Amun Thapa, CEO, Sasto Deal" src="/userfiles/images/cs0(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 239px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Amun Thapa</strong></div>
									<div>
										CEO, Sasto Deal</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						Sasto Deal (SD) is one of the prominent rising stars of online retail shops in Nepal. The company was started almost 3 years ago with the aim of switching offline Nepali market to online and providing best deals. Upon returning from the US, Amun Thapa, SD&rsquo;s CEO, decided to do some business and began to search for ideas that would sell. It did not take long to Amun to realize that Nepali people had been wasting some really useful hours in shopping. &ldquo;I found people lingering to different places in search of different items. I asked myself if everyone was doing the same and the answer was yes. I was compelled to seek for a solution and I knew there was one. However, the sad part was that no one was doing anything about it,&rdquo; says Thapa. He realized that he could save people this hours by taking it online and making it available on their desktop or mobile phones. The idea was simple but he needed people who could translate his vision into reality. This brought him in touch with his schoolmates who were pursuing their degree in the IT field. They worked around the idea and gave birth to Sasto Deal. The initial phase was a bumpy ride as they had problems in making deals. It was difficult for them to make people believe in online business. &ldquo;People laughed at our ideas and we had to go out to the market begging for deals. But now, the same people are begging us to feature their products,&rdquo; says Thapa proudly. The company believes that the initial phase was difficult because online business was a new term to this part of the world and also because the rulers find it difficult to trust the new comers. The company believes that they are grown large.&ldquo;I would probably say the growth rate is over 100% right now, this is not only due to the fact that the company is outperforming but also due to the fact that we are in the e-commerce business and with every single product, our chances for growth increases,&rdquo; Avash K.C, CO-CEO of Sasto Deal, said.</div>
					<div style="text-align: right;">
						<strong>(By Angila Sharma)</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
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	<tbody>
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			<td bgcolor="B5F1E6">
				<div>
					<span style="font-size: 14px;"><strong>Himalayan Wonders: A Travel Startup with a Difference</strong></span></div>
				<div>
					&nbsp;</div>
				<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
					<tbody>
						<tr>
							<td>
								<img alt="Nishes Thapa, Operations Manager, Himalayan Wonders" src="/userfiles/images/cs01.jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 206px;" /></td>
						</tr>
						<tr>
							<td bgcolor="#B5F1E6">
								<div align="center">
									<div>
										<strong>Nishes Thapa</strong></div>
									<div>
										Operations Manager</div>
									<div>
										Himalayan Wonders</div>
								</div>
							</td>
						</tr>
					</tbody>
				</table>
				<div>
					<div>
						The Internet has changed the way companies do their business and tourism sector is no exception to it. Himalayan Wonders, a Nepali travel startup, also harnessed the latest developments made in the field of online technology and took all its business online. Founded in 2013, the company provides affordable tours and trekking packages to Nepal. This online portal is packed with informative contents and pictures and travellers can choose and book any tour package online through any Internet enabled device such as smartphone and tablet from anywhere in the world.Himalayan Wonders came into existence when an American geologist Dr David Urmann and his Brazilian friend Pablo Souto Maior suggested Nishes Thapato start his own company. Dr Urmann has been visiting Nepal since the mid-90s&#39; for research on climate change and in credited for establishing the company. Dr. Urmann and another Co-founder, Maior, promote the startup in the global market while Thapa heads the Nepal operations of the company. The company has been receiving overwhelming response from travellers and trekkers around the globe. Within a year it has received five-star rating from Trip Advisor and many positive reviews from its satisfied customers. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size: 14px;"><strong>&lsquo;&lsquo;Ever since the inception of the company, we never looked back&rsquo;&rsquo;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How did your business idea germinate?</strong></div>
					<div>
						I was born in Tripureshwor VDC of Dhading and tourists visiting Ganesh Himal pass through it. Those tourists always fascinated me and it is during these days that my interest of doing something in tourism industry developed. In 1998 I came to Kathmandu and started working in the tourism sector. I worked for different people and gained industry experience that one must have in order to thrive in this booming industry. Dr David Urmann, an American friend of mine, suggested me to establish my own travel company. With his and his Brazilian friend Pablo Souto Maior constant help, we established the company in 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What is the growth rate of your company?</strong></div>
					<div>
						Since its inception, we have never looked back. Our business is growing every year. With the end of the decade long insurgency, the tourism and hospitality industry has been prospering. If this continues, I am hopeful of maintaining the existing healthy growth rate.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>What problems did you face while starting the business?&nbsp;</strong></div>
					<div>
						We have not faced major problems till date. Our business so far has been smooth with tremendous support from staffs, friends and families. However, events such as general strikes and political instability in the country, have always posed to be a big threat. In the past, we have suffered financial losses due to such condition.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>How are you managing investments?</strong></div>
					<div>
						We received bank loans to meet our initial investment requirements. In due course of time as the company started to grow, I borrowed money from friends and even used my personal savings to make further investment. We keep track of every penny that goes out as expenditure and comes in as earning. We keep our books up-to-date and this has become the success mantra of the company.</div>
					<div>
						&nbsp;</div>
					<div>
						<strong>Have you got any help from the government or private organizations?</strong></div>
					<div>
						We have not received any help from the government. &nbsp;If government agencies show interest in us, we would be glad to work together for the growth of this industry. Trekking Agencies Association of Nepal (TAAN) has provided us substantial help in promoting our business at the international level.&nbsp;</div>
					<div style="text-align: right;">
						<strong>(By Sanjeev Sharma)</strong></div>
				</div>
				<div>
					&nbsp;</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-12-23',
			'modified' => '2015-06-01',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The startup scene in Nepal has changed significantly over the last five–seven years, with new and young entrepreneurs coming up with innovative ideas every year. Today, though there is no official data, the number of successful startups in Nepal is estimated to be above 50. These are the companies that are said to be running in good profit. Over this period, a young Nepali startup ecosystem has been in the making, though it is still incomplete due to the absence of venture capitals in the ecosystem. With most of the successful startups belonging to the IT sector, the future of the Nepali startup industry looks promising.',
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		'Article' => array(
			'id' => '2800',
			'article_category_id' => '40',
			'title' => 'Unlocking Nepal's Growth Prospect',
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			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&nbsp;--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	&lsquo;Nepal does have natural resources. They are of course our growth potentials but not necessarily the key element needed for our future economic growth. The key element is human resource; the brainpower, creativity of the people, entrepreneurship and innovation. If we can unlock our human potential, if we can unlock entrepreneurship and innovation which will make use of the natural resources that Nepal has, then our growth potential will be unlocked; we will become a rich country.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Thus spoke Finance Minister Dr Ram Sharan Mahat, the chief guest of the second edition of the Asian Paints NewBiz Business Conclave &amp; Awards, organized by New Business Age Pvt Ltd at Hotel Soaltee Crowne Plaza on September 11.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(5).jpg" style="width: 550px; height: 234px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(2).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 397px;" />Investing in Human Resource</strong></div>
<div>
	The remarks of Dr Mahat, a six-time finance minister, are a clear departure from the traditional belief that natural resources are a must for the economic growth of any country. The appropriate use of the available natural resources is necessary, the Finance Minister said, adding, however, that the country&rsquo;s economic development is possible through the use of brainpower, creativity, entrepreneurship and innovation. He cited examples of Japan, Hong Kong, Taiwan and South Korea which have achieved fast economic growth despite having practically very little natural resource.</div>
<div>
	&nbsp;</div>
<div>
	Deependra Bahadur Kshetry, former vice-chairman of the National Planning Commission (NPC), who too attended the Conclave, agrees with the finance minister. &ldquo;We need more skilled and trained human resource, creativity and innovation in business and entrepreneurship to exploit our abundant natural resource, which gives us a comparative advantage. However, the endowment of natural resource alone is not enough. This is what the finance minister means. And this is true as well,&rdquo; said Kshetry, while talking to New Business Age after the conclusion of the Conclave.</div>
<div>
	&nbsp;</div>
<div>
	Kshetry says the government should invest more in developing the country&rsquo;s human resources because it will help build the national capacity. &ldquo;In simpler terms, it means investing more in education and skill-oriented training. Investment in human resource will help unlock our growth prospects,&rdquo; he added.</div>
<div>
	&nbsp;</div>
<div>
	To invest in human resource development is to compete with investment in infrastructure and other social sectors. Here, the government has harder choices to make as it cannot choose one sector over the other as almost all sectors in Nepal need investment, and huge ones, for the matter. So, according to economists and development experts, the government will do well to have a well-designed national development plan, which will clearly spell out our national priorities. &ldquo;It will help attract international support as well. Then it will be easier for the government to decide in which areas to use domestic resources and in which areas external resources,&rdquo; say Kshetri.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Managing Director of Jade Consult, Bkesh Pradhanga, another speaker of the Conclave, echoed similar sentiments. &ldquo;The government should mobilize our human resource properly. For this, the government should invest in higher education of the country&rsquo;s workforce and this should be the primary focus,&rdquo; he opined. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 604px;" />Focus on Three &lsquo;I&rsquo;s</strong></div>
<div>
	Our development priorities should not miss the three &lsquo;I&rsquo;s &ndash; infrastructure, investment and inclusion &ndash; according to Johannes Zutt, World Bank country director for Nepal and Bangladesh. Zutt, who was also one of the speakers of the Conclave, clearly said that the three &lsquo;I&rsquo;s should be Nepal&rsquo;s top priority for now if the country is to achieve fast economic growth.</div>
<div>
	&nbsp;</div>
<div>
	On the investment front, the level of foreign investment has been low. According to the Investment Board, the total amount of foreign investment in 2012 which was declared the Investment Year was USD 62 million. It went up in 2013 to USD 208 million. In 2014 so far, it is USD 130 million. Domestic investment, too, hasn&rsquo;t been growing at the expected rate. &ldquo;Nepal is investing below the rate of investment needed to achieve a double digit growth. There is actually money available in Nepal for higher investment, but it isn&rsquo;t happening. The business community complains about access to finance, regulatory burdens and labour costs. These are the problems existent is South Asia but it is debilitating in Nepal,&rdquo; observed Zutt.</div>
<div>
	&nbsp;</div>
<div>
	But why has large scale investment not come to Nepal? Pradhananga answers, &ldquo;It is because of political instability, lack of policy predictability, and industrial disputes that have caused the closure of companies like Surya Nepal in the recent past.&rdquo; He added that Nepal immediately needs an investment of USD 15 billion for various projects that are ready for implementation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;For private investment to come, we need to create more enabling environment. This is why we have initiated some new incentives to lure private investment from this year&rsquo;s budget, Dr Mahat said, &ldquo;In the hydropower sector, for example, we have announced income tax exemption for the next ten years and fifty percent tax rebate for another five years.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Zutt opined that Nepal is caught in a vicious cycle of investment and infrastructure. &ldquo;Nepal doesn&rsquo;t have high enough levels of investment in infrastructure that is necessary for businesses to succeed and because it doesn&rsquo;t have that infrastructure, it is not getting the investment,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Pradhananga suggested to the government to focus on infrastructure development for the next one decade. He also advised to change old laws and policies and introduce new ones to attract private investment. &ldquo;The Hydropower Policy 2001 and Foreign Investment and Technology Transfer Act 1992, to give a few examples, are quite old. The aim of these laws and policies is to attract FDI in the country. But we haven&rsquo;t been able to make them timely and updated. This has negatively affected our development efforts,&rdquo; said Pradhananga. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Hydro Hopes</strong></div>
<div>
	All the speakers of the Conclave agreed that hydropower has great potential in Nepal. &ldquo;We are rich in water resource. We have huge hydropower potential. We can be the power house of clean energy in South Asia,&rdquo; said Dr Mahat.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But the reality is different from the rhetoric. Nepal has hardly tapped one percent of its total hydropower potential. So far, the country has been able to produce only about 750 MW of hydroelectricity though the total hydropower potential of the country is said to be over 80,000 MW. That means one of the sectors where Nepal&rsquo;s growth prospects lie is the hydropower sector. Over half a dozen projects that are together expected to produce more than 5,000 MW of hydroelectricity are in advanced stage of development (see box). The government&rsquo;s claim to do away with load-shedding over the next three-four years is based on these projects.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;In Nepal, hydropower is one such sector of investment which can bring about a positive change in the entire econom</div>
<div>
	&ldquo;If the PDA [project development agreement] with the Upper Karnali hydropower project is signed over the next few days or weeks, then it will be a game changer. It will lead to the signing of PDA with half a dozen other major hydropower projects,&rdquo; said Dr Mahat.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs4(4).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 231px;" />Nepal&rsquo;s Strategic Location</strong></div>
<div>
	The speakers of the Conclave also said that Nepal&rsquo;s geographic location between China and India, two rapidly growing economies of the world, provides the Himalayan nation a great opportunity for economic growth. &ldquo;Nepal&rsquo;s growth prospects also lie in the fact that it is located between China and India, two of the fastest growing economies of the world. If Nepal can establish itself a trading partner between China and India, it will greatly help Nepal&rsquo;s economic growth,&rdquo; said Zutt.</div>
<div>
	&nbsp;</div>
<div>
	It is worth mentioning here that the annual trade volume between India and China has already crossed USD 70 billion and the two countries have planned to increase it to USD 100 billion by 2015. If Nepal can build roads, highways and rail links to connect its northern border with southern border, then it can effectively work as a trading partner between the two Asian giants, according to economists and development experts. &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>&lsquo;2015: Nepal&rsquo;s critical juncture&rsquo;</strong></div>
<div>
	Addressing the Conclave, Dr Swarnim Wagle, member of National Planning Commission said that the year 2015 will be very crucial for Nepal as the country&rsquo;s new constitution is expected to be promulgated in 2015. Once, the constitution is ready, Dr Wagle said, Nepal&rsquo;s political transition would be complete and then the country&rsquo;s economy can take off. &nbsp;&ldquo;We are few centuries behind other countries but I think that we can really make the year 2015 our critical juncture and really expedite our path into modernity,&rdquo; said Wagle.</div>',
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			'description' => 'Nepal needs to invest in its human resource and exploit its natural resource to the fullest to unlock its growth prospects.',
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			'title' => '2nd Newbiz Business Conclave & Awards 2014',
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			'content' => '<p>
	&nbsp;</p>
<p>
	<span style="font-size:14px;"><a href="http://www.abhiyan.com.np/article-conclav_27bhadau2071_presentation">Presentations of some speakers in the conclave</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_25bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड वितरण शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_award">न्यूबिज बिजनेश कन्क्लेभ एण्ड अवार्ड कार्यक्रम शुरु</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-news_26bhadau2071_conclave">न्यूबिज कन्क्लेभ एण्ड अवार्डको दोस्रो संस्करण आज</a><br />
	<br />
	<a href="http://www.abhiyan.com.np/article-BSchoolAward2014">न्यू विज् विजनेश स्कूल अवार्ड २०१४</a></span></p>',
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			'created' => '2014-09-12',
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			'description' => '2nd Newbiz Business Conclave & Awards 2014',
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		'Article' => array(
			'id' => '2790',
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			'title' => 'Nepal Strives For DC Degree: What Is In Store For Private Sector?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Akhilesh Tripathi</strong></div>
<div>
	&nbsp;</div>
<div>
	If everything goes as planned by the government, Nepal will graduate from the Least Developed Country (LDC) status over the next eight years (i.e. by 2022) to a Developing Country (DC) status. Even if that target is not achieved by the specified time, the process that has been initiated already with the start of the current three-year plan (FY 2014 to FY 2016) has a lot in store for the private sector as opportunities, say analysts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Foremost among such analysts is Dr Govind Raj Pokharel, Vice Chairman of National Planning Commission (NPC). He says, &ldquo;Graduation from the LDC status is a Herculean task but it is achievable if the government and the private sector work together and there is strong support of the donor community. We have pinned a lot of hope on the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Dr Pokharel claims that the next eight years over which Nepal will try its best to graduate from the LDC status to DC status will be full of business opportunities for the private sector. &ldquo;We have expected a huge investment from the private sector. We know that the private sector will not invest without seeing opportunities first. Still, we hope that such investment will come from the private sector because there will indeed be opportunities,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 485px;" />According to economists as well as the country&rsquo;s graduation strategists, there will be business opportunities in all major sectors - agriculture, manufacturing, services, hydropower, tourism, infrastructure development etc. &ldquo;These are the major areas where the private sector will find ample business opportunities provided that the government creates an enabling environment. But there will be opportunities in other sectors as well if there is an enabling environment,&rdquo; shares Dr Hemanta Dawadi, Director General of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).</div>
<div>
	&nbsp;</div>
<div>
	It seems the government is keen about creating those opportunities for the private sector through change in policy in line with the development targets which will have to be achieved over the next eight years for Nepal to become a developing country. The good thing is this has started with the recently announced budget for the new fiscal year. &ldquo;The budget is also poised to graduate Nepal from a Least Developed Country status as defined by the UN,&rdquo; said Finance Minister Dr Ram Sharan Mahat while presenting the budget on July 13.</div>
<div>
	&nbsp;</div>
<div>
	In his budget speech, Dr Mahat said that the country needs to invest minimum 30 percent of GDP in fixed capital formation to earn the identity of a developing country in the next eight years. &ldquo;However, the average investment of past three years has been only 22 percent,&rdquo; he noted, &ldquo;To bridge this gap of eight percentage point in fixed capital formation, additional Rs 160.00 billion should be invested in the coming Fiscal Year alone.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Finance Minister proclaimed that various reform measures will be carried out in this fiscal year in order to increase domestic and external investment and facilitation. He said additional reforms and revisions will be carried out by evaluating the practices and experiences of policies, regulations and laws regarding industry, trade, energy, banking and financial sector that were started back in 1990&#39;s decade, adding that the next (14th) Periodic Plan will have a clear roadmap for transforming the country into developing country status within coming eight years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	To create the right opportunities for the private sector, the budget has also stated to amend the Companies Act, Competition Promotion and Market Protection Act and Insolvency Act. This will simplify the process of company establishment, renewal and liquidation. Similarly, the budget talks about amending the provisions of existing Debt and Guarantee Act in order to attract foreign investment in mega projects and viable sectors, where the domestic investment is insufficient.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;New laws regarding industrial enterprise and foreign investment and technology transfer will be formulated. Foreign Investment Policy and Industrial and Intellectual Property Policy will be formulated. Bill regarding Special Economic Zone will be tabled in Parliament. Procedures regarding the establishment of large industries under foreign investment will be simplified,&rdquo; said the Finance Minister.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs2(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 468px;" />Opportunities in Energy Sector</strong></div>
<div>
	The government plans to end load-shedding over the next three years. In this period, four major public sector-funded projects namely Upper Tamakoshi, Kulekhani II, Chameliya and Upper Trishuli hydroelectric projects will enter production phase and will together generate 560 MW of electricity. Similarly, 42 private sector-funded hydroelectric projects will generate 628 MW of electricity in this period. Similarly, the government will start the construction of other projects such as Tamakoshi V, Madi Khola, Maiwa Khola hydroelectric projects including Tanahu and Rahughat projects. Similarly, according to the budget, the construction of Kabeli Hydroelectric Project will be started in Public-Private-Partnership model.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector will be invited to carry out various works related to these energy projects. That clearly means business opportunity,&rdquo; explains Dr Arjun Karki, International Coordinator of LDC Watch, &ldquo;Several other bigger projects will be initiated over the next eight years which means there will be good business opportunities for the private sector.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	In order to complete the projects on time, the budget has announced to provide full exemption on income tax for the first ten years and 50 percent exemption for additional five years to those producers who generate and connect electricity to national grid and export it within FY 2022/23. &ldquo;I have made an arrangement to provide a lump sum grant of Rs 5 million per MW of electricity to those producers who generate and connect the generated electricity to national grid. I have also made provision of an additional 10 percent of such grant to those producers who generate and connect the generated electricity to national grid within FY 2017/18,&rdquo; says Dr Mahat. &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Agriculture</strong></div>
<div>
	The government plans to modernise, diversify and commercialize the agriculture sector over the next one decade. This is reflected in the newly announced budget as well. The budget targets to keep interest rate on six percent on loans to be provided by the commercial banks for modern farming, livestock and poultry farming, medicinal plants, vegetables and horticulture, dairy business, aquaculture, agro storage, cold storage, slaughter house and meat-related business. This provision, the government thinks, will also help address the problem of unemployment and youth migration from rural areas.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the budget has provisioned up to 50 percent subsidy in the loan interest taken in order to develop land and mechanize farming for private groups which are involved in the commercialization and mechanization of farming by integrating 10 hectares land in mountain and 20 hectares land in Terai and up to 75 percent interest grant for the cooperatives of marginalized and landless farmers.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the construction of the main as well as branch canals of major irrigation projects such as Sikta, Babai, Mahakali and Rani Jamara Kulariya etc will be given continuity. It is the private sector that will be awarded contracts to carry out these works which clearly means good business opportunities for the private sector. Similarly, the tunnel construction work of Bheri Babai Multipurpose Diversion Project will also be initiated in this fiscal year.&nbsp;</div>
<div>
	&ldquo;The government wants significant private sector investment in agriculture. For this it is ready to create the environment,&rdquo; remarks Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong><img alt="" src="/userfiles/images/cs3(6).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 434px;" />Opportunities in Tourism</strong></div>
<div>
	Tourism is going to be another sector of good business opportunities for the private sector. The government, through the latest national budget, has already announced to provide income tax exemption for five years to the industries established with an investment of more than Rs 2 billion in the tourism sector. Similarly, aviation companies, too, will get such income tax exemption. They will further get 50 percent income tax exemption for subsequent three years, according to the budget.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;This income tax exemption is aimed at promoting the establishment of good hotels and resorts at the major tourist destinations and other places of the country. This is a clear opportunity for the private sector,&rdquo; explains Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Opportunities in Infrastructure Development</strong></div>
<div>
	Nepal has to do a lot in infrastructure development so as to increase accessibility, facilitate service delivery and enhance cost effectiveness. For example, the government wants to construct at least one road on multi-year contract basis in each electoral constituency where there is no year-round transportation. Similarly, the construction work of the Kathmandu-Terai Fast Track will be started in this fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The government plans to open the track of several new roads, black-top and expand several existing roads and build hundreds of bridges across the country. The government has allocated more than Rs 14.3 billion for this purpose in the current fiscal year alone. Similarly, the new budget has allocated Rs 4.5 billion for the maintenance of 16,788 kilometres of strategic and local roads including their regular maintenance, routine maintenance, periodic maintenance, and rehabilitation and urgent maintenance.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, according to the new budget, the government will carry out urban infrastructure development programmes in cities like Biratnagar, Birgunj, Butwal, Dharan, Janakpur and Nepalgunj including the development of 10 Urban Corridors with eight ongoing and two new.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The national budgets to be announced in the fiscal years to come will have to continue such infrastructure development programmes, if Nepal is to achieve the DC status by 2022. So, there is no dearth of business opportunities for the private sector,&rdquo; says Dr Pokharel. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;&nbsp;</div>
<div>
	<strong>Investment Requirement</strong></div>
<div>
	According to NPC&rsquo;s estimates, the government or the public sector will have to invest Rs 3,300 billion and the private sector will have to invest double the amount &ndash; a whopping Rs 6,600 billion -by 2022 if Nepal is to achieve the status of a developing country by then. But will such a huge investment really come from the private sector?</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We hope it will because the country is now headed towards political stability and legal and economic reforms are in the pipeline. That means the next eight years are going to be a wonderful business opportunity for the private sector,&rdquo; assures Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	According to NPC&rsquo;s investment plan, Nepal will need a total investment of Rs 1013.91 billion in the agriculture sector by FY 2021/22 to achieve the graduation target. Two-thirds of this investment, i.e. around Rs 675.94 billion is expected from the private sector. The agriculture sector includes forestry and fishing as its subsectors.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector is expected to invest in the modernization of agriculture and increase productivity, replace agricultural imports and promote exports. The government is expected to make this easier through policy and legal reforms, if necessary,&rdquo; says Dr Pokharel.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the industrial sector which includes mining and quarrying, manufacturing; electricity, gas and water, and construction will require a total investment of Rs 1807.87 billion. Of this amount, Rs 1205.24 is expected from the private sector. &ldquo;So there is a huge opportunity for the private sector in the industrial sector as well,&rdquo; thinks former NPC Vice Chairman Prithvi Raj Ligal.</div>
<div>
	&nbsp;</div>
<div>
	Likewise, according to the NPC plan, the service sector which comprises wholesale and retail trade; hotels and restaurants; transport, storage and communications; financial intermediation; real estate, renting and business activities; public administration and defence; education; health and social work; and other community, social and personal service activities will require a total investment of Rs 6874.98 billion &ndash; Rs 4583.32 billion from the private sector and Rs 2291.66 billion from the public sector.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(4).jpg" style="width: 550px; height: 110px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Criteria for Graduation&nbsp;</strong></div>
<div>
	There are basically three criteria to graduate from the LDC status &ndash; Human Assets Index (HAI), Economic Vulnerability Index (EVI) and GNI per capita. HAI is about the stock of the human capital of the country and comprises the nutrition status of the population, mortality rate of children aged five or under, and gross secondary school enrolment ratio and adult literacy rate. EVI reflects the country&rsquo;s vulnerability to exogenous shocks and comprises of population size; remoteness; merchandise export concentration; share of agriculture, forestry and fisheries in GDP; share of population living in low elevated coastal zones; instability in export of goods and services; victims of natural disasters; and instability in agricultural production.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Likewise, GNI per capita is related with the country&rsquo;s income-generating capacity and is based on a three-year average estimate of the country&rsquo;s per capita GNI (World Bank Atlas Method). After determining threshold level for each of the criteria every three years, the United Nations Committee for Development Policy (CDP) reviews the progress made by LDCs and if the country has been eligible at two successive triennial reviews, it recommends a country for graduation from the LDC category. At least two of the three criteria or GNI per capita twice higher than the threshold should be met in order to be eligible for graduation.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Among the three criteria for LDC assessment, Nepal has already met the EVI threshold level and is very close to meeting the HAI criteria; however, there is a huge gap between the GNI threshold level and Nepal&rsquo;s present status. The role of the private sector is going to be very important to meet this criterion,&rdquo; observes Dr Karki.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Increasing Productive Capacity</strong></div>
<div>
	Karki is of the opinion that Nepal will have to start working seriously to enhance its productive capacity significantly to achieve the GNI per capita threshold. &ldquo;The country is facing problems like huge trade deficits, high underemployment rate, income inequality and low quality of life,&rdquo; says Dr Karki, &ldquo;Factors including subsistence agriculture, deteriorated industrial environment, power shortage etc., have led to a low level of economic growth and development. Therefore, there exists a great challenge to sustain the achievements and narrow down the gaps between GNI threshold level and the current status.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our GNI per capita has improved over the past few years but we still need to accelerate it, he adds. Karki&rsquo;s observation points to two important areas where private sector can come forward &ndash; commercial agriculture and power generation. Fortunately, these are the two major areas of emphasis in the budget presented at the parliament recently. If the government really implements the policies and budget allocations announced in the budget speech, the privates sector can make good money while contributing to this graduation of the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ligal lists more areas where the private sector has such opportunities. &ldquo;Productive capacity has basically four components &ndash; infrastructure; energy; science, technology and innovation; and private sector development,&rdquo; says Ligal, adding &ldquo;The role of the private sector is very important in increasing the country&rsquo;s productive capacity by investing in infrastructure development, energy exploitation and by making technological innovations.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Although Nepal has already met the EVI criterion, it still has to either increase its GNI per capita by US$ 770 or the HAI score by 6.17 before 2015 to be eligible for consideration for graduation. This is because eligibility conditions should be fulfilled during two successive triennial reviews, and the CDP will now review the progress only in 2015,&rdquo; Chandan Sapkota, an economist with the Asian Development Bank, Nepal, says, &ldquo;After the review, Nepal will have to sustain the progress through 2018, the next triennial review, only after which the CDP will recommend for graduation.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	This means Nepal has good length of time to fulfil the criteria. But effective intervention from the government is a must. And the NPC has recognised this clearly. &nbsp;&ldquo;If the past trend is of any guide to future, it will be difficult for Nepal to meet the projected threshold of US$ 1,502 even by 2021, unless effective policy interventions are in place. Vigorous efforts are needed to achieve the projected GNI per capita of US $ 2,094 in 2021 so that the economy is on the way to achieve the estimated threshold by 2021,&rdquo; reads NPC&rsquo;s Approach Paper to Graduation from LDC by 2022.</div>
<div>
	&nbsp;</div>
<div>
	According to Ligal, the private sector &ndash; both domestic and foreign &ndash; will have to invest heavily in sectors like physical infrastructure, hydropower, tourism and agriculture over the next eight years. &ldquo;But the private sector will not make such a huge investment under the present circumstances. For private sector investment to come, the government will have to create conducive environment through legal, administrative and policy reforms. If this happens, private sector will come forward as the Graduation process would offer lucrative business opportunities,&rdquo; he says, adding that Nepal needs more aggressive economic reforms in the near future.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs5.JPG" style="width: 550px; height: 430px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<strong>Partnership with Private Sector</strong></div>
<div>
	The Istanbul Programme of Action, which aims to at least halve the number of LDCsby 2020, too, has laid great emphasis on public-private partnership. It says, &ldquo;Partnerships with the private sector play an important role for promoting entrepreneurship, generating employment and investment, increasing the revenue potential, developing new technologies and enabling high, sustained, inclusive and equitable economic growth in least developed countries.&rdquo; In the present circumstances, when the private sector is complaining of lack of enough conducive environment for investment, PPP model can be a good alternative so that the private sector can feel secure as the government too will have stake in such projects. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists say that investment in the industrial sector is a must to increase the economic productivity. &ldquo;Productivity and job opportunities in the service sector have remained low. And it consists of more informal sectors,&rdquo; observes Shanker Sharma, former vice-chairman of NPC, &ldquo;We need more manufacturing industries. If there is political stability, right policies in place and adequate legal reforms, then investment in the manufacturing sector will come.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Karki, too, stresses on the need for public-private partnership (PPP) model of development. &ldquo;The PPP model is going to be very helpful in those areas of investment where the private sector alone is a bit hesitant to enter,&rdquo; he says. If the government comes forward to invest in such sectors, the private sector will follow suit, he adds.</div>
<div>
	&nbsp;</div>
<div>
	Dr Dawadi is also of the opinion that the government alone cannot take the country out of the LDC status to the developing country status. &ldquo;To be successful, the graduation strategy will require a full and uninterrupted understanding, support and cooperation from the private sector,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	True that both economists and development activists are right in their view that this target spelt out in the &nbsp;approach paper to the latest three-year plan (FY 2014 to FY 2016), is highly ambitious. But the government has its own basis for its optimism.</div>
<div>
	&nbsp;</div>
<div>
	The doubt of the economists and activists is based on the fact that the previous three-year plan (FY 2010 to FY 2013) had aimed such graduation by 2030. But the government officials say they pre-poned the target by eight years looking at the rapid progress in the recent years. They particularly cite increase in the country&rsquo;s per capita gross national income (GNI), decreased poverty level, and significant progress on major social indicators such as mortality rates, school enrolment rates, life expectancy etc. Since the LDC category was brought in practice in the international development parlance in 1970, only four LDCs &nbsp;have graduated to DC status so far &ndash; Botswana (1994), Cape Verde (2007), Maldives (2011) and Samoa (January 2014). But the number of LDCs has almost doubled since then. It means graduation from the LDC status is not so easy. But development experts think that the goal is achievable if the public and private sectors of the country work together.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	When the economy grows and businesses thrive, the sky is the limit for the individual private sector operator. It means a large pool of resources, a larger market and a higher level of operation,&rdquo; Dr Dabwdi concludes, &ldquo;The opportunity will be for both new business creation as well as horizontal growth of existing businesses.&rdquo;</div>',
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			'description' => 'The role of the Nepali private sector is going to be very crucial if Nepal is to become a developing country by 2022, as planned by the government. It means large business opportunities await the private sector over the next eight years.',
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		'Article' => array(
			'id' => '2786',
			'article_category_id' => '40',
			'title' => 'Outbound FDI : Can Nepali Businesses Go Global?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		&nbsp;</div>
	<div>
		<strong>--By Siromani Dhungana</strong></div>
	<div>
		&nbsp;</div>
	<div>
		<em><span style="font-size: 16px;">A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still in force in Nepal which stops Nepali citizens from investing in a foreign country. The existing fear is that the country&rsquo;s economy will suffer if Nepal allows outbound FDI. But many evidences suggest that despite this law, Nepali people are investing in different other countries through one channel or other. And such evidences are becoming more visible. Policymakers are in dilemma while the business community is also largely divided on the issue. However, the debate on legitimatizing outbound FDI is heating up in recent times. What impact will it have on a country like Nepal where the national economy is not strong? Will it create BoP deficit as many fear? What happens if all businessmen start to set up industries in foreign countries which have better policy stability and lesser labour problem? New Business Age tries to analyse some of these major concerns:</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.</div>
	<div>
		&nbsp;</div>
	<div>
		However, zero capital mobility in and out of a country cannot be expected. Many evidences suggest that the investment is going abroad through one channel or the other. Any state should allow aspiring businessmen to invest anywhere globally because this will help the currency get its true value recognized, Dr Chiranjibi Nepal, Economic Advisor to the Prime Minister claims. &ldquo;Investment is a must to increase the value of the money. The government should open up avenue for outward FDI to acknowledge this fact.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Evidences also show that the flow of money cannot be barricaded by any laws or policies. For instance, Nepal, according to a report of Global Financial Integrity (GFI), lost a total of $ 8.01 billion between 2001 and 2010 due to illicit capital flight. It means that on an average, $ 801.4 million (Rs 70.39 billion) went out of Nepal annually during that period of almost a decade.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1(4).jpg" style="width: 550px; height: 163px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		GFI&rsquo;s another report entitled &lsquo;Illicit Financial Flows from the Least Developed Countries: 1990-2008&rsquo; had put Nepal&rsquo;s annual capital flight at $ 480.4 million. Based on the amount of capital flight, Nepal has been ranked 58th among 143 countries surveyed and sixth among the Least Developed Countries (LDCs) for exporting funds illegally.</div>
	<div>
		&nbsp;</div>
	<div>
		The report clearly points to the huge illegal financial flows from Nepal and it is high time that the government addresses this problem without making any further delays, Nepal opined. &ldquo;The government should legalize outward FDI to keep the record of outflow of financial transaction in the formal system,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
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						<div>
							<span style="font-size: 14px;"><strong>Existing Laws Related to FDI</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Foreign Investment and Technology Transfer Act &ndash; 1992</strong></div>
						<div>
							Foreign Investment and Technology Transfer Act (FITTA) &ndash; 1992 &amp; Industrial Enterprises Act - 1992 are the two most important laws for the promotion of industries in Nepal. These two acts are highly encouraging acts for attracting FDI or Joint venture investments in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA includes provisions related to facilities and concessions. This Act treats foreign investors as equals to local investors and provides them same incentives and facilities.</div>
						<div>
							&nbsp;</div>
						<div>
							The Act is also very positive on providing visa to foreign nationals. The Act has ensures 6 months non-tourist visa to a foreign national if he/she want to conduct survey, study or research with the objective of making investment in Nepal.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							After that if he or she makes investment or establishes an industry, the investor (along with the dependant family members) is granted business visa until the investment is retained. Similarly, residential visa is granted to a foreign investor and his family if s/he makes an investment of one hundred thousand US dollars in one business. All these are highly encouraging statements. However in actual practice, the investors face various problems, time and again.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							FITTA and IEA also offer some fiscal incentives including income tax relief. But the amended Finance Act and New Income Tax Act have withdrawn all such incentives, which is considered a controversial decision. Several amendments to FITTA through the Finance Act of 2001 and the progress made in this regard helped the nation in its efforts to gain membership of WTO, SAFTA, and BIMSTEC, but these amendments too are not enough, say investors.</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Industrial Enterprises Act - 1992</strong></div>
						<div>
							The IEA has &nbsp;one-window committee (OWC) provision, which is coordinated by the director general (DG) of Department of Industry (DoI) and has DGs of Customs, Inland Revenue, Value Added Tax (VAT) and Commerce as well as representatives from central bank, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the government.</div>
					</td>
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			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<strong style="font-size: 14px;"><img alt="Dr Chiranjivi Nepal" src="/userfiles/images/cs2(1).JPG" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need: A Positive Beginning</strong></div>
	<div>
		Nepal&#39;s legal system begins from the word restriction, which, according to many, rightly articulates the government&rsquo;s mind-set. A 50-year old law entitled &lsquo;Act Restricting Investment Abroad, 1964&rsquo; is still effective in the country. The law was introduced to restrict Nepalis from investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		We need a fresh and positive beginning, economist and former chief secretary Dr Bimal Koirala told New Business Age. &ldquo;The government should reform existing laws to facilitate businessmen to invest in foreign countries instead of imposing restriction.&rdquo; The fear among policymakers is that what happens if businessmen do not bring back money to the country. And, the answer to this fear is to set up effective monitoring bodies that will keep record of every businessman who invests abroad, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Given the low trade volume of the country and frequent fluctuation in the Balance of Payment (BoP), some experts advise against allowing Nepali businessmen to invest abroad. Koirala slams such opinion claiming it to be an out-dated concept.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Times have changed and the government has to realize this fact. The government should understand and accept the new liberalized and globalized world and business scenario, Koirala opines.</div>
	<div>
		&nbsp;</div>
	<div>
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						<div>
							<span style="font-size: 14px;"><strong>Act Restricting Investment Abroad, 2021BS (1964)</strong></span></div>
						<div>
							&nbsp;</div>
						<div>
							Article 3 Restriction on making investment abroad:&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							(1)<span class="Apple-tab-span" style="white-space: pre;"> </span>No one shall make any kind of investment abroad after the commencement of this Act.</div>
						<div>
							&nbsp;</div>
						<div>
							(2)<span class="Apple-tab-span" style="white-space: pre;"> </span>Notwithstanding anything contained in sub-section (1), in relation to any specific kind of investment, the Government of Nepal may, by a notification in the Nepal Gazette, grant exemption from the restriction set forth in that sub-section, and specify the kind, extent, period of the investment so exempted and other necessary terms pertaining thereto.</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Past Initiatives</strong></span></div>
	<div>
		Nepal started systematic initiative of attracting FDI in 1981. The Sixth National Plan (1980/81-1984/85), for the first time, incorporated a policy for utilizing foreign capital and technology as a useful supplement. The Plan mentioned that foreign investment and technology was primarily required in large-scale industries and mineral industries. Since then, the government continued revising policies related to inward FDI. Foreign Investment and Technology Transfer Act was introduced in 1992 and amended in 1996 in line with open and liberal economic policies. But outward FDI-related provisions remained unchanged.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Recently, the government has started fresh initiative to review the policy. Foreign Investment Policy 2014 has been prepared and consultations with stakeholders are underway on it, according to Ministry of Industry. &nbsp;However, business community blames the government for not being proactive to introduce new policy. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Policies that Restrict Outward FDI</strong></span></div>
	<div>
		<strong>Act Restricting Investment Abroad, 2021(1964):</strong>&nbsp;This law, as its name suggests, restricts any Nepali citizen from investing outside of Nepal. While this may be an old Act, it is still valid in the country. It defines restricted investments as foreign securities, partnership with foreigners, foreign bank accounts, owning house and land in a foreign country and any foreign investment in cash or kind except as prescribed by the government. This law has severely affected outward FDI as Nepali citizens cannot freely invest outside the country. Despite a provision within the Act that leaves a space for aspirant businessmen to invest abroad by taking approval from the government, nobody has received such approval.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<strong>Foreign Exchange Regulation Act:&nbsp;</strong>This act does not allow Nepalis to open bank accounts in foreign countries if the money is earned in Nepal. Nepalis can open bank account abroad only if they earn money outside Nepal. But the account holder should inform Nepal Rastra Bank about the account.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Changing Times but Unchanged Laws</strong></span></div>
	<div>
		The existing laws were formulated at a time when entrepreneurship in Nepal was at a primitive stage and Nepali businessmen did not have sufficient capital and expertise to invest abroad, said Basudev Adhikari, Director of Nepal Rastra Bank.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepali business community has come a long way since 1964. &ldquo;For instance, now we have a Forbes-listed billionaire that shows that our businessmen have enough capital to invest in various sectors,&rdquo; said Adhikari. Competitiveness of Nepali business sector has tremendously increased over the last few years. Lawmakers should reform existing laws considering the changed scenario, he added. The prevailing laws have failed to prevent outflow of capital from Nepal anyway.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Anup Bahadur Malla" src="/userfiles/images/cs3(5).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 166px;" />Need for Caution</strong></span></div>
	<div>
		Still the policy of allowing Nepalis to invest abroad cannot be introduced without caution. The most challenging job for the government is to set the ceiling for outward FDI, opined Anup Bahadur Malla, executive member of FNCCI. The government should not introduce any law haphazardly, he suggested. Meticulous studies are required even when formulating laws related to inward FDI, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		There are flaws in inward FDI policies as well which have created some adverse impact on the economy, according to him. Foreigners in Nepal are venturing into small businesses which have nominal contribution to the national economy, he argued. For instance, Chinese nationals, according to him, have been replacing Nepali small entrepreneurs from Thamel and other places but their contribution to the national economy and employment generation is negligible. From this, the government should learn that both inward and outward FDI can be harmful if laws are formulated without rigorous study, he claimed.</div>
	<div>
		&nbsp;</div>
	<div>
		Along with fixing ceiling, he claims identification of competitive sectors is the most challenging job for the government. It should initiate debate on maximum investment-ceiling limit on outward FDI, and identify the sectors where Nepalis can take competitive advantages, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
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						<div>
							<span style="font-size: 14px;"><strong>Defining FDI</strong></span></div>
						<div>
							Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI implies that the investor exerts a significant degree of influence on the management of the enterprise resident in the other economy.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates, both incorporated and unincorporated. FDI may be undertaken by individuals as well as business entities.</div>
						<div>
							&nbsp;</div>
						<div>
							Flows of FDI comprise capital provided (either directly or through other related enterprises) by a foreign direct investor to an FDI enterprise, or capital received from an FDI enterprise by a foreign direct investor. FDI has three components: equity capital, reinvested earnings and intra-company loans.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Equity capital is the foreign direct investor&rsquo;s purchase of shares of an enterprise in a country other than its own.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Reinvested earnings comprise the direct investor&rsquo;s share (in proportion to direct equity participation) of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor. Such retained profits by affiliates are reinvested.</div>
						<div>
							&bull;<span class="Apple-tab-span" style="white-space: pre;"> </span>Intra-company loans or intra-company debt transactions refer to short- or long-term borrowing and lending of funds between direct investors (parent enterprises) and affiliate enterprises.</div>
						<div>
							(Source: World Investment Report 2012, UNCTAD)</div>
						<div>
							&nbsp;</div>
					</td>
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			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Outbound FDI: An Open Secret&nbsp;</strong></span></div>
	<div>
		Policies on outward investment have been seen as a screening device to restrict the outflow of capital from the country. But it is an open secret that Nepalis have already started investing abroad.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Chaudhary Group (CG), a company owned by Forbes-listed billionaire and renowned industrialist Binod Chaudhary who has invested abroad through Cinnovation Group, a multi-dimensional conglomerate established in 1990 headquartered in Singapore. The company was created to take CG&rsquo;s business interests global. Currently, it is expanding its footprint in global market.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Business leaders and government officials hesitate to give opinion regarding outflow of capital from Nepal in public. &nbsp;But they privately confide that there are many instances where the investment is going abroad through one channel or the other. India has been one of the easiest destinations for Nepali investors to invest, one businessman told New Business Age. &ldquo;Businessmen channel capital to India through their relatives and acquaintances living in India,&rdquo; he disclosed. More than a dozen of reputed Nepali business houses have invested in India in one or other way and even government officials are aware of this fact, he claimed. So, it is better to legalize outward FDI to control informal outflow of money.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="Dr Bimal Koirala" src="/userfiles/images/cs4(3).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 169px;" />Drives of Outward FDI</strong></span></div>
	<div>
		A question worth asking is: what triggers outward FDI from Nepal? There is not an easy answer. Generally, two major drives can be analysed: market-seeking drive and resource-seeking one. Nepali businessmen want to go outside country for market-seeking purpose, said Pradeep Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Businessmen eye foreign market when their businesses are saturated in the home country, he said. It can thus be said that the drivers of outward FDI from Nepal are largely determined by market-seeking factors with little role played by policy measures.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Political instability, labour unrest and terror created by conflicting parties might have triggered businessmen to invest abroad during a decade-long conflict, he said. But the situation has changed now and businessmen do not want to go global if there is prospect of good business in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Anti Outward FDI Logics</strong></span></div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Positive Financial and Macro Economic Indicators: Experts say that the overall economic indicators including economic growth should be in positive direction and should be stable to allow Nepalis to invest in foreign country. Given Nepal&rsquo;s volatile economic situation, some economists advise not to allow outflow of the capital.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Investment Climate: Why do our businesses want to go outside though market in Nepal has been growing? An easy answer is that there is no investment climate in the country. It is not possible to open up outward FDI without ensuring investment climate in the country. Our own country is in dire need of investment in almost all sectors and it is a matter of concern as to why businessmen are lobbying to open up outward FDI, an economist questioned. Several structural bottlenecks and supply-side constraints are impacting the investment climate in Nepal. Tough reform measures have to be formulated before bringing policies related to outward FDI, he suggested.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Trade Deficit: Nepal has been witnessing a whopping trade deficit year after year. Nepal imports essentials goods and services by drawing on its foreign currency reserves, which are primarily contributed by remittances. Many experts fear that foreign currency reserve may deplete if the country allows businessmen to invest aboard.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Distrust on Businessmen: Another crucial problem is trust deficit. The government is not certain that businessmen who invest abroad will sincerely send their profit back to the country. &ldquo;The country that does not trust its own businessmen cannot make progress. The environment of trust should be built between business community and the government that will facilitate the process of bringing policies related to outbound FDI,&rdquo; opined CNI vice president Haribhakta Sharma.</div>
	<div>
		&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Competitiveness: According to Global Competitiveness Report released by World Economic Forum, Nepal ranked 117 among 144 economies in 2013-14. In order to succeed in the global business, businessmen should be competitive. But, can Nepali businessmen be competitive when they have not been able to show their competitiveness in domestic front, questioned Dr Chiranjibi Nepal. He suggests that the government should provide competitive business environment.</div>
	<div>
		&nbsp;</div>
	<div>
		6.<span class="Apple-tab-span" style="white-space: pre;"> </span>Absence of Entrepreneurial Attitude: Entrepreneurship needs innovative ideas and risk taking skills. Given their low entrepreneurial activities in homeland, many argue that the business community in Nepal still lacks entrepreneurial attitude. Most of the businessmen are involved either in hereditary business or in service sector or trade activities. These traits are not sufficient to compete in global market and most of them do not have entrepreneurial bent of mind, claims an expert. &ldquo;This fact should be kept in mind while formulating policies.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		7.<span class="Apple-tab-span" style="white-space: pre;"> </span>Poor Performance of Manufacturing Sector: Nepal&rsquo;s manufacturing sector is in weak state. The country cannot create much employment in absence of manufacturing activities. &nbsp;On the other hand, the country relies heavily on imports to meet daily consumer needs. In such circumstance, opening up outward FDI without improving the performance of country&rsquo;s manufacturing sector might be suicidal, says a FNCCI member requesting anonymity.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		8.<span class="Apple-tab-span" style="white-space: pre;"> </span>Fluctuation in BoP: Generally, businessmen prefer to invest in a strong economy where their capital is safe. If allowed to invest abroad, Nepali businessmen may make majority of their investment in the countries which have strong economy. Currently, remittance has helped maintain Nepal&rsquo;s Balance of Payment (BoP). If in the future, inflows of remittance drops and at the same time businessmen take capital abroad, there will be severe BoP crisis. This is why the government is still reluctant to introduce outward FDI-related policies, an official at Finance Ministry said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Rhetorical Logics and Laxity of the Government&nbsp;</strong></span></div>
	<div>
		Some experts vocally criticize the government&rsquo;s laxity in creating business friendly environment and improve overall macroeconomic scenario. For how long can Nepal restrict businessmen from investing abroad, questioned economist Dr Posh Raj Pandey. The government and experts who do not favour the idea of opening outward FDI often repeat the same rhetorical logic but do nothing to improve the scenario, he said.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The government is literally idle in terms of bringing any policy to foster an environment favourable for investment. Presently, the government is not taking any risks as the remittance influx has helped maintain economic stability. But the same situation cannot continue forever, according to him. He said that the government should not always repeat same logic to restrict outward FDI. If our government wants to promote economic prosperity, it should be ready to take risks and formulate smart policies, he suggested.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>FDI and Mobility of Money&nbsp;</strong></span></div>
	<div>
		Numerous positive aspects of outward FDI are overshadowed by a few negative ones, said Dr Bimal Koirala, economist and former chief secretary. Outflow of capital also helps create more opportunities to lure inward FDI and Nepali businessmen come back to the home country with more expertise and skills which will ultimately contribute to the domestic economy, according to him.</div>
	<div>
		&nbsp;</div>
	<div>
		The mobility of money in and out of a country does not stop simply by laws. A state should facilitate in the continuity of the mobility of money because if the movement of money slowsdown it will depreciate the value of currency. Investment, regardless of the frontiers, is a must to increase the movement of the money. Acknowledging the fact, the government should open up avenue for outward FDI, said Dr Chiranjibi Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Pragmatic Approach</strong></span></div>
	<div>
		Some experts suggest the government to allow Nepalis to invest abroad but only in competitive sectors. According to economist and former finance secretary Rameshore Khanal, the government should identify competitive sectors and should allow businessmen to invest only in those sectors. Some of these sectors, according to him, are:</div>
	<div>
		1.<span class="Apple-tab-span" style="white-space: pre;"> </span>Tourism (eco-tourism, home stay)</div>
	<div>
		2.<span class="Apple-tab-span" style="white-space: pre;"> </span>Adventurous sector (climbing, rafting)</div>
	<div>
		3.<span class="Apple-tab-span" style="white-space: pre;"> </span>Hospitality sectors: Hotel and restaurant (antique hotels like Dwarika)</div>
	<div>
		4.<span class="Apple-tab-span" style="white-space: pre;"> </span>Banking/insurance</div>
	<div>
		5.<span class="Apple-tab-span" style="white-space: pre;"> </span>Construction</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Way Forward</strong></span></div>
	<div>
		The government should carry out empirical studies on the effect of outward FDI on domestic economic activities. Before formulating laws, the government should assess some aspects of outward FDI including whether it will have a positive and significant impact on economic growth, and potential adverse impacts on various sectors.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		On the part of the government, it is not appropriate to remain literally idle on the issue of outbound FDI. The government should not see policies as a screening device to restrict the outflow of capital from the country. Rather it should formulate policies that will facilitate it. The Nepali private sector&rsquo;s long wait to go around the globe to invest should take a positive turn soon.</div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-07-30',
			'modified' => '2014-09-12',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'It is not surprising that Nepali businessmen, like many around the world, want to be competitive and set their footprint in the global market. But existing policies are keeping their dreams from being materialized. The government remains skeptic and reluctant to allow outward FDI citing probable impact on the national economy.',
			'sortorder' => '2634',
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	),
	(int) 6 => array(
		'Article' => array(
			'id' => '2776',
			'article_category_id' => '40',
			'title' => 'Business Click By Click',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<div>
		<em><span style="font-size: 14px;">The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.&nbsp;</span></em></div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Compared to the developed countries, Nepal&rsquo;s e-commerce is still in its infancy. Its share in the national GDP is negligible at present but it has been growing,&rdquo; says Amrit Man Tuladhar, CEO of Muncha.com, one of the country&rsquo;s leading e-commerce websites which has been in operation since 2000. According to Tuladhar, the past couple of years have been particularly encouraging for e-commerce in the country. &ldquo;Some unique websites have come up over the past couple of years,&rdquo; he observes.</div>
	<div>
		&nbsp;</div>
	<div>
		Thamel.com is perhaps the first e-commerce site in the country. It started online business in 1999 and today it is one of the major players. &ldquo;We are probably the first company in Nepal to start online business with a dot com company name registered as Thamel Dot Com Pvt Ltd,&rdquo; claims Rajesh Lal Joshi, CEO of Thamel.com. &nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		E-commerce in Nepal started through gift-sending and bill payment services through online portals. Today, it&rsquo;s possible to buy almost everything online - new clothes, books, mobile phones, laptops, second-hand goods, jewelleries, home appliances, fresh vegetables and what not. One can even order one&rsquo;s lunch online from home or office, thanks to the latest developments in e-commerce activities. There are a number of e-commerce companies offering these services. Airlines have started selling air-tickets online through these services. Banks are handling online transactions because people have started paying and receiving online, though the trend is low.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;In 2000, there were a couple of websites doing e-commerce. Today there are more than a hundred. Of them, over a dozen are active in the business,&rdquo; says Tuladhar. &nbsp;&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs4(1).JPG" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 316px;" />Growing Popularity &amp; New Trends</strong></span></div>
	<div>
		Today, the online market has expanded due to the increasing purchasing power of Nepali consumers. The trend is also on the rise because of the rise in the number of Internet users. &ldquo;Online business is on a progressive path and the trend is evolving high with many players coming in the arena with their unique business models,&rdquo; says Joshi.</div>
	<div>
		&nbsp;</div>
	<div>
		The domestic e-commerce market has now expanded into various segments such as online shopping, e-banking, mobile commerce, electronic cash transfers and e-ticketing. Online markets are attracting buyers (and sellers too!) because they are time- and money-saving and are hassle free.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Lately, Nepal has graphed a swerving online presence. The proliferation of various online business portals in recent years is enough to valibate the claim that &nbsp;the presence of e-commerce is encouraging in Nepal,&rdquo; says Asgar Ali, CEO of eSewa Fonepay.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Annual online transactions in Nepal are estimated to be around Rs 10 billion, although an official figure is not available. Dozens of online shopping websites have emerged since the inception of e-commerce in Nepal. Muncha.com, Thamel.com, Harilo.com, YesKantipur.com, Metrotarkari.com, Foodmandu.com, Bhatbhatenionline.com, etc. are some of the popular websites among Nepali online shoppers (see Box). Some of them sell their own products whereas others deliver from global sites such as eBay and Amazon.</div>
	<div>
		&nbsp;</div>
	<div>
		According to industry insiders, Nepalis of the middle- and upper-middle class who have access to faster Internet have started enjoying shopping online. &nbsp;They find it easy because on the one hand it saves time, on the other, it&rsquo;s easy and reliable. &ldquo;You don&rsquo;t need to hang around shopping stores and malls wondering where a particular product is. With online shopping, all you need to do is find a product online, fill-in payment details and submit. That&rsquo;s all to get your stuffs delivered at your home,&rdquo; says Manish Shrestha, portal chief of Bhatbhatenionline.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-banking</strong></span></div>
	<div>
		Lately, electronic banking or e-banking, as it is more popularly known, is getting popular in Nepal. According to the stakeholders, the use of e-banking has been increasing with the rising competition among the banks and financial institutions. &ldquo;The trend of e-banking is growing,&rdquo; says NRB Spokesperson Bhaskar Mani Gyawali, &ldquo;The situation of e-banking in the country is satisfactory at present.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Instead of opening a new branch, banks have started focusing on e-banking which is a cost-effective way to expand their services. For this, banks have adopted modern banking technologies such as branch-less banking, mobile banking etc. According to NRB, all 32 commercial banks in the country have started branch-less banking and mobile banking by mid-January 2014.</div>
	<div>
		&nbsp;</div>
	<div>
		Banks&rsquo; customers are, however, yet to adopt online payment for the goods or services they buy on the Internet. Most online shoppers still prefer cash on delivery (COD) though all commercial banks provide e-banking services. &ldquo;There is a lack of awareness among Nepalis about e-banking. An overwhelming majority still prefers COD though they have bank accounts,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs1.JPG" style="width: 550px; height: 412px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>E-ticketing</strong></span></div>
	<div>
		Nepali air travelers are gradually getting used to e-ticketing, a good evidence of growing e-commerce in the country. Today, all private sector airlines currently operational in Nepal are selling their tickets online. According to the Airline Operators Association of Nepal (AOAN), all air travellers who have access to the Internet have started buying tickets online. &ldquo;E-ticketing has become popular because it saves time,&rdquo; says AOAN Spokesperson Ghanashyam Acharya, &ldquo;Very few people reach the airline&rsquo;s office to buy tickets these days.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Agrees Prajwal Thapa, marketing director at Simrik Air. &ldquo;Both foreigners and Nepali travellers buy tickets online for domestic flights.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		Nepal Airlines Corporation (NAC), the state-owned airline which is the only airline in Nepal that doesn&rsquo;t offer e-ticketing has started preparations to start providing the service within 2071 BS (by mid-April 2015), according to an NAC official. &ldquo;E-ticketing is one of NAC priorities for the new year,&rdquo; he said.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs5(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 281px;" />Payment Options&nbsp;</strong></span></div>
	<div>
		In the past, Nepali online shoppers were dependent on international payment mechanisms and merchants to purchase online. However, today there are few, but enough for the time being, online payment processing companies in Nepal, which allow online shoppers to pay their bills online, without any processing fees, in most of the cases.</div>
	<div>
		Most of these companies allow the customers to send and receive money online, buy air tickets, pay utility bills, purchase mobile recharge cards, pay school college bills, Internet bills, subscribe to newspapers and magazines online; Some of these companies are eSewa and PayWay.</div>
	<div>
		&nbsp;</div>
	<div>
		People can also pay for the goods they buy online through e-banking and debit cards. This trend has started but it is negligible at present. A majority of online shoppers still prefer paying cash on delivery.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;The online payment structure in Nepal is still being developed so we still do a lot of cash business. &nbsp;We encourage our customers to pay online as much as possible given the options in Nepal which are basically bank to bank transfers or payment gateways who are tied to your bank account,&rdquo; says Akshay Sthapit, CEO of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Problems &amp; Limitations</strong></span></div>
	<div>
		Though an Internet-based business, e-commerce in Nepal seems to be limited to the Capital valley. Some online business activities have been reported in places like Pokhara and Dharan but such activities are few and far between.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;There are e-commerce websites which provide their services across the country. But may be because of the lack of awareness, the online customers are mainly from the Kathmandu valley, mainly Kathmandu and Lalitpur. However, we do have customers from a few other cities as well,&rdquo; shares Stebin Bajracharya of Harilo.com.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a clear policy is another problem and according to people in the online business, it is hindering the growth of online markets in the country. &ldquo;There is no clear policy. The government has neither helped the domestic e-commerce market nor obstructed it,&rdquo; says Joshi of Thamel.com. We don&#39;t have any act, law or regulation or government directives which allows conducting legal online financial transactions. Critics say that the Electronic Transaction Act without a single word on online payment is only half done.</div>
	<div>
		&nbsp;</div>
	<div>
		According to Tuladhar of Muncha.com, Nepal&rsquo;s e-commerce market is facing problems in the bill payment system. &ldquo;The government can facilitate by establishing a central payment gateway. The central bank and concerned authorities should look into this issue,&rdquo; he advises.</div>
	<div>
		&nbsp;</div>
	<div>
		Lack of a regulator is another problem. At present, all one needs to do to run an e-commerce site is register a company at the Company Registrar&rsquo;s Office. Once the company is registered, one can start the business. No one knows which agency is responsible for regulating the e-commerce business &ndash; Ministry of Finance, Nepal Rastra Bank, Ministry of Science and Technology, High level Commission for Information Technology or National Information Technology Centre?&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs2.JPG" style="width: 550px; height: 337px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>The Issue of Digital Signature</strong></span></div>
	<div>
		Although online transactions are on the rise in the country, the trend of acquiring authorized digital signature, which is essential for the business, has not started. According to Electronic Transaction Act 2008, all companies, which carry out electronic transactions must acquire digital signature from the Certified Authority (CA) licensed by the Office of the Controller of Certification (OCC). &ldquo;Banks and financial institutions, remittance companies, and e-commerce companies among others are the kind of companies which should acquire a digital signature from a CA licensed by the OCC,&rdquo; said Manish Bhattarai, deputy controller of the OCC, an agency under the Ministry of Science, Technology and Environment (MoSTE).&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		So far, only one company, Nepal Certifying Authority (NCA), has acquired the license for CA from the OCC. &ldquo;Though one company has been issued the license of CA, no company or individual has acquired a digital signature so far in Nepal from the CA licensed by the OCC. Electronic transactions carried out without a digital signature from a CA licensed by the OCC do not have legal validity,&rdquo; claims Bhattarai. He also informed NewBiz that the OCC has drawn the attention of Nepal Rastra Bank regarding the issue of the BFIs not acquiring authorized digital signature.</div>
	<div>
		&nbsp;</div>
	<div>
		Biplav Man Singh of NCA, however, claims that the issuance of digital signature has not started in Nepal because of the government&rsquo;s negligence. &ldquo;The government has issued the CA license to NCA but it has not provided the Root Certificate to us. Therefore, we have not been able to issue any digital signature. It has been a year since we have been issued the license,&rdquo; laments Singh.</div>
	<div>
		&nbsp;</div>
	<div>
		Digital signature is like an electronic locking system, which facilitates and regulate the authenticity of electronic transactions. It cannot be stolen or copied by any fraud, authenticates the identity of the sender of a message or signatory of a document and ensures that the document is unchanged. Nepal government introduced digital signature in financial transactions from February 2012. The MoSTE established the OCC to manage electronic transactions and use technology to reduce electronic crimes.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;Online transactions have been getting popular lately, but the question of security has always been there. A digital signature ensures secured, authentic and non-repudiation electronic transactions such as e-mail, e-commerce, e-banking and e-governance,&rdquo; shares Bhattarai.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Bhattarai informed NewBiz that OCC has already drawn the attention of the NRB to take action against BFIs for using digital signatures from unauthorized firms. At present, companies based in India and America are issuing digital signatures to local online transaction service providers, which is against the Electronic Transaction Act 2008. &ldquo;Sadly, all BFIs providing internet banking service are using digital signatures issued by unauthorized licensors,&rdquo; said Bhattarai.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong><img alt="" src="/userfiles/images/cs6(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 566px;" />Digital Agencies</strong></span></div>
	<div>
		With living standards and costs going up in developed nations, digital agencies and online business marketers from there gradually made headways into third world countries including Nepal looking for avenues to establish their offshore units. Today, there are many digital agencies or IT companies, as they are known in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		While outsourcing their software to clients from developed nations, many of these digital agencies also tried to educate Nepali entrepreneurs for taking their businesses online. &ldquo;It was very hard to find business persons who were willing to take their businesses online. My team struggled for a couple of years but our continuous efforts in educating entrepreneurs for going online bore fruits,&rdquo; says Deepak Bhandari, Founder of Radiant Infotech Nepal&mdash;a digital agency that has been in the software production business for more than a decade now.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		With the operational costs relatively lower and prospects much brighter, Bhandari shares that small investment, consistency in work quality coupled with good communicative and technical skills and a willingness to adapt and upgrade to technological advances is all that is needed to thrive in the digital agency business.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Along with taking Nepali businesses online, Nepali digital agencies compete in the global freelance market. &ldquo;Competing in the global market is not an easy task unless you are ready to deliver outstanding products at relatively modest prices,&rdquo; says Sanjeev Singh, Co-founder of Catmandu- a startup Nepali digital agency that mostly outsources its products.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		It&rsquo;s not just Nepalis who are materializing their dreams via the Silicon Valley revolution offshoot; many digital agencies with foreign roots and international foot prints have established their offshore production in Nepal. India has been a major destination for software outsourcing in South Asia, but still Nepal has its own attributes to win over some share of it.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;I took a fortunate trip just over a decade ago to India and other countries, looking for ways to reduce my growing software development requirements for clients in Melbourne. Even though it was a challenging time in Nepal, with the UN assisting in the path to a new democracy, I felt Nepal offered a unique opportunity. It was not saturating like India&rsquo;s IT industry,&rdquo; says Michael Simonetti, founder of AndMine, an Australian digital agency that has its offshore production unit in Nepal.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		Though the growing inflation and corresponding increase in the operational and other costs have been testing the offshore model, Simonetti still sees future in the model. Complimenting his view, Bhandari says that Nepal has bright scope in the digital agency business. He quotes an online report: &ldquo;Over the coming years, outsourcers are expected to expand their operations quite substantially. Different survey reports have claimed that the growth of outsourcing will remain strong. Like India and other nations there is huge potential for Nepal also to grow in IT service outsourcing business&rdquo;.</div>
	<div>
		&nbsp;</div>
	<div>
		While Internet connectivity, working hours, political instability and power cut are the concerns of this sector, Deepak finds lack of any state mechanism to bring all financial transactions made by freelancer software manufacturer as a major problem for the growth of IT service outsourcing business. &ldquo;Many freelancers are involved in this business without any legal registration. The government should seriously implement the plans it has made so far for the development of this sector along with bringing freelancers within the boundary of taxation.&rdquo;</div>
	<div>
		&nbsp;</div>
	<div>
		<img alt="" src="/userfiles/images/cs3(3).jpg" style="width: 550px; height: 375px; margin-left: 10px; margin-right: 10px;" /></div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 14px;"><strong>Brighter Prospects</strong></span></div>
	<div>
		E-commerce has brighter prospects in the country, according to industry insiders. The access of Nepalis to the Internet has been increasing. The new generation is very keen about online activities. &ldquo;It seems the stage has been set for a rapid growth in online shopping as people find less and less time for physical shopping,&rdquo; observes Tuladhar.</div>
	<div>
		&nbsp;</div>
	<div>
		&ldquo;We will soon see a Cambrian moment with online shopping and services once proper payment systems and delivery infrastructures are in place which is already happening. &nbsp;When that happens, the change will be swift just like it was with mobile phones in Nepal,&rdquo; concludes Akshay Sthapit, CEO, Harilo.com.</div>
	<div>
		(With inputs from Chitra Raj Bhandari)</div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-05-07',
			'modified' => '2014-09-08',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The seeds of e-commerce were sown in Nepal about a decade and a half ago. It has taken a bit longer for the fruits to be borne, but today we can see some of them. Offline shopping is still the popular option, but a lot more Nepalis are buying online today. The total annual online business in Nepal is now estimated to be Rs 10 billion, according to industry insiders who attribute this growth to the rising Internet population, a growing middle class, increasing mobile penetration as well as low levels of e-commerce activities.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '2784',
			'article_category_id' => '40',
			'title' => 'Rising Stars Of The Economy',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	--By Akhilesh Tripathi and Sanjeev Sharma</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We all know that all is not well with the Nepali economy. Insecurity, much-aggravated industrial atmosphere, power shortage, transport obstacles, strikes and closures and labour unrest stand as barriers in the path to Republic Nepal&rsquo;s economic progress. The country&rsquo;s economic growth rate, according to official government estimate is below four per cent at present as there is lack of political commitment on a common economic agenda, investment-friendly environment, energy and physical infrastructure in the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But despite these obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the &ldquo;rising stars&rdquo; of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector. The entry of the Nepali private sector into these areas, especially after the liberalization of the economy post 1990, has resulted in significant growth in these sectors.</div>
<div>
	&nbsp;</div>
<div>
	Similarly, the continuity of the economic liberalization policy in republican Nepal has produced a significant group of entrepreneurs and businesspersons who are now successful in these areas. This breed of entrepreneurs and business persons thinks that if there is political will and stability, adequate power supply, supportive policy and peaceful industrial environment, then these rising stars will rise even higher.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;However, political stability is the first condition for economic development. Political parties do have their respective ideologies and differences too, but there needs to be a minimum understanding on common issues of economic development, which would help build atmosphere conducive to investment and trust. This would help the rising stars of the economy to attain newer heights.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Construction Materials: Market Picking Up&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Construction Material" src="/userfiles/images/cs(2).jpg" style="width: 550px; height: 266px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The construction industry is a growing industry in Nepal. It contributes around 10 &nbsp;to 12 per cent to the national GDP and uses around 35 per cent of the government&rsquo;s annual budget. As the country plans to invest more in infrastructure such as roads, railways, airports, bridges, and irrigation and hydropower projects and as the housing sector shows sign of improvement, the prospects for the construction industry in the country look brighter.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector has created employment opportunities to more than one million people in the country. When it comes to development of any physical infrastructure, construction materials are the major components. With the growth in the construction industry, the demand for construction materials too has risen.</div>
<div>
	&nbsp;</div>
<div>
	In the last one decade, over 150 construction material factories from cement, paint and bricks to steel factories have been established with an eye on the realty sector and the government&rsquo;s infrastructure development projects. These factories have helped reduce import of construction materials. The country has also become almost self-reliant in bricks, steel and paint; cement production is also on an encouraging trend. The price of construction materials is growing by 20 to 22 per cent every year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The realty sector, which is one of the major buyers of construction materials in the country, has shown some signs of improvement. According to Ichchha Raj Tamang, president of Nepal Land and Housing Developers&rsquo; Association, the sector has started taking a turn for the better. &ldquo;In the recent couple of years, the realty sector has been improving by over 30 per cent annually,&rdquo; claims Tamang.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Lately, according to construction material dealers, the demand from housing developers and the general public that had slowed down a couple of years ago, has shown some progress. &ldquo;A couple of years ago, the demand went down by around 50 percent due to the government&rsquo;s failure to release the budget on time,&rdquo; said Manik Tuladhar of the Kathmandu Construction Materials&rsquo; Dealers Association. With the situation in the housing sector showing indications of improvement, developers have been speeding up work at their projects.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, construction material dealers said that with demand for construction materials slowly picking up, prices too have increased. Shil Ratna Tamrakar, proprietor of Shristina Traders, which deals in paints, said that the demand had increased remarkably compared to last year and that prices had risen by up to 10 percent depending on the brand.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that around 90 percent of the country&rsquo;s requirement of paints is fulfilled by domestic products. Along with a growth in housing activities in the past one decade, the number of paint factories too has gone up. There are 32 paint factories in the country with a combined investment of around Rs 6.5 billion.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Steel Rolling Mills&rsquo; Association said that local steel factories had been able to exist mainly due to the demand from housing developers. There are around three dozen steel plants in the country, and of them, 12 are run in full-fledged operation. All these factories produce 400,000 tonnes of iron rods annually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are more than 70 cement factories that have obtained operating permits from the Department of Industry. The cement industry already has an investment of around Rs 30 billion. Pashupati Murarka, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that even though the number of companies receiving government permits has gone up, only around 40 plants are in regular operation.</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s annual requirement of cement amounts to 3 million tonnes, of which nearly 80 percent is being met by local products. &ldquo;There are no authentic records, however, most of the production is going for construction of private houses and commercial buildings of housing developers,&rdquo; said Murarka. He added that if construction of physical infrastructure receives a boost, the country would be self-reliant in cement too.</div>
<div>
	&nbsp;</div>
<div>
	It is estimated that the construction sector is creating employment opportunities to about one million people. That means it generates employment next to the agriculture sector in the country. Similarly, about 60 percent of the nation&#39;s development budget is spent through the use of contractors. From this, it is clearly seen that construction is a major sector and any productivity enhancement activity in this sector will have a positive impact on the overall improvement of the national economy.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						Realizing the need for enhancement of the construction industry, Construction Business Act 2055 was promulgated and came into force from April 14, 1999. This is an effort made to institutionalize and systematize the construction sector. The Act has defined the procedures and requirements relating to issues and renewal of license and classification of and obligations of construction entrepreneurs. The law has established Construction Business Development Council (CBDC) under the chairpersonship of the Minister for Physical Planning and Works, and Construction Business Development &amp; Implementation Committee (CBDIC) under the chairpersonship of Joint Secretary (technical) designated by the Ministry for Physical Planning and Works. These both are regarded as the apex institutions to develop the Nepali construction industry. Establishment of the CBDC and CBDIC is the important step taken by the government to promote the country&rsquo;s construction industry.</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Education: On Private Sector Shoulders</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="Education" src="/userfiles/images/cs1(3).jpg" style="width: 550px; height: 381px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	With private investment standing at nearly Rs29 billion at present, the education sector is well on the path of evolving into a lucrative service sector business in Nepal. Nobody needs to frown at the idea of education being compared with business. It has done much more good than bad. Even big business houses have started to invest in education.</div>
<div>
	&nbsp;</div>
<div>
	Private investment in the education sector has grown consistently over the past few years. It now stands at more than Rs29billion, including the investments in schools, colleges, educational consultancies and training institutes. Out of this investment, nearly Rs25 billion is in private schools and colleges, according to the statistics maintained by the Company Registrar&rsquo;s Office (CRO).</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs7(1).jpg" style="width: 550px; height: 130px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Statistics also reveal that the investment has been increasing since 2006, the year when the government decided to register privately-owned educational institutions as companies. New private investment in schools and colleges stood at more than five billion rupees and six billion rupees in 2010 and 2011, respectively. Similarly, private investors have committed an investment of Rs 2.53 billion in the first three months of 2014.</div>
<div>
	&nbsp;</div>
<p>
	<img alt="" src="/userfiles/images/cs8(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 200px; height: 345px;" />According to Umesh Shrestha, president of the Higher Secondary School Association Nepal (HISSAN), private investment in the education sector has increased because it provides good return. &ldquo;This is why even big business houses have pitched into the sector lately,&rdquo; he explains &ldquo;Leading Nepali industrialists and entrepreneurs have launched huge education projects. There will be more such projects in the future.&rdquo; Population growth and increasing demand for quality education are the other major factors behind the increase in private investment in education, he adds.</p>
<div>
	&nbsp;</div>
<div>
	Educational expert Mana Prasad Wagle credits it to the hype of the phasing out of the Proficiency Certificate Level (PCL) in the year 2010 that invited high investment in &lsquo;Plus Two&rsquo; colleges. In 2009, five new colleges with an authorized capital of more than Rs 100 million each were established. Since then, on an average, more than half a dozen such colleges have been established every year. In the eyes of education experts, an investment of Rs 100 million should be more than enough to ensure quality education.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The number of private educational institutions with massive investment is also increasing every year in the major cities, especially in Kathmandu. &ldquo;The number of students leaving the country after SLC for higher studies has drastically decreased now. This is because they find quality education within the country, thanks to a number of good private colleges. This has also prevented millions of rupees from going abroad,&rdquo; says Shrestha.</div>
<div>
	&nbsp;</div>
<div>
	It would not be an exaggeration to say that higher secondary (HS) education rests (and grows) on the strong shoulders of the private sector. Let&rsquo;s consider the following numbers: more than 60 per cent of the nearly a million HS students in the country get their education from private institutions; more than 80 per cent of the students who pass the HS level every year are from private institutions.</div>
<div>
	&nbsp;</div>
<div>
	There are around 3600 HS schools in Nepal at present. Out of them 291 are 0+2 colleges, which run classes for only the 11th and 12th grades. The remaining are 10+2 colleges, which run classes from grade 1 to 12.</div>
<div>
	&nbsp;</div>
<div>
	Private sector institutions have not only played a vital role in boosting Nepal&rsquo;s educational capacity but have also brought along a whole new market dimension. Consider these facts: The annual business transaction of private educational institutions amounts to Rs 22 billion &ndash; Rs 11 billion at school level, five billion rupees at HS level and six billion rupees at university level education.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The private sector has been helping the government by a great deal by making such a huge investment in the education sector,&rdquo; says Rajendra Baral, Chief Executive Officer at Caspian Valley College.</div>
<div>
	&nbsp;</div>
<div>
	On the other hand, HISSAN chief Shrestha sees an immense possibility of educational tourism in the country. &ldquo;Nepal&rsquo;s naturally air-conditioned climate makes it a good educational destination for international students, if we can establish schools and colleges of international standard or open affiliates of internationally recognized universities here,&rdquo; he says.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div style="text-align: center;">
						<span style="font-size: 14px;"><strong>Government Efforts</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<div>
							The government&rsquo;s efforts in education are mainly focused on primary and secondary level education. The government has been increasing the budget allocated for the education sector year on year. The government has earmarked Rs 80.95 billion to this sector for the current fiscal year - up by Rs 60.13 billion of current fiscal year&rsquo;s revised allocation. Similarly, Nepal&rsquo;s education budget increased by more than double in just four years reaching Rs 63.91 billion in fiscal year 2011/12 from Rs 27.06 billion in 2007/08.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Nepal allocates 3.4 percent of its GDP and almost 17 percent of the national budget to the education sector. The country, however, does not meet the global standard of allocating at least 5 percent of GDP and 20 percent of the total budget to the education sector. Only 9.92 percent of the total education budget has been allocated for higher education, and merely 7.85 percent for university education.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							Government investment in higher secondary education is even less&mdash;two percent of the total education budget&mdash;despite having around one million enrolments a year. Education expert Dr Tirtha Khaniya observes that there is scope for private sector investment and growth in higher study institutions. &ldquo;The government&rsquo;s negligence to the higher secondary level education provided an opportunity for the private sector which cashed in on the opportunity. A similar opportunity lies there for the private sector in university level education too. We will gradually see more private sector investment in this category,&rdquo; he says.</div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Banking sector: Time for Consolidation</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs2(3).jpg" style="width: 550px; height: 350px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Starting from the government-owned Nepal Bank in 1937, the banking industry in Nepal has come a long way. The industry grew tremendously, especially after the entry of the private sector after 1990. It is one of the sectors of the economy that have grown significantly over the past one decade. &nbsp;The sector has immense growth prospects as nearly 60 per cent of the population is still out of the range of formal financial channels. Today, the banking sector is more liberalized and modernized, systematic and managed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are various types of banks and financial institutions (BFIs) working under the modern banking system in Nepal. It includes central (1), commercial (30), development (87), finance companies (59), co-operatives (15), NGOs (30) and others (3). Technology is changing day by day. And the use of new technologies has affected the traditional method of the service of banks. Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc., services are available in banking system in Nepal. Nepal&rsquo;s banking sector has flourished over the years despite numerous challenges and is trying to be at par with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Today, there are ample opportunities for the banking sector to explore the small and medium enterprises and rural markets in Nepal via innovative products such as microfinance, mobile banking etc.,&rdquo; says Anil Shah, CEO of Mega Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs10.JPG" style="width: 550px; height: 348px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Nepal is an agro-based economy with nearly 84 percent of the population in the rural areas. The BFIs need to develop ingenious products and adopt new technologies to cater to the rural sector. By reaching remote locations, BFIs could contribute towards poverty alleviation as well,&rdquo; observes Nepal Rastra Bank Spokesperson Bhaskar Mani Gyawali.</div>
<div>
	&nbsp;</div>
<div>
	The public is gradually turning to the organized financial service providers i.e. the BFIs. At present, only 15.1 percent of the total households in Nepal borrow from local money-lenders, while 10 years ago some 40 per cent households were indebted to money lenders, according to the latest Nepal Living Standard Survey (NLSS) released by the Central Bureau of Statistics (CBS).</div>
<div>
	&nbsp;</div>
<div>
	Today, nearly 40 per cent households have access to commercial banks&rsquo; branch within 30 minutes walking distance. This was merely 22 percent a decade ago. Similarly, the presence of co-operatives within 30 minute walk radius has also increased from 25.9 per cent to 53.9 per cent during the same period.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Though the growing number of financial intermediaries is not as successful as expected in increasing the financial accessibility, the expansion has definitely helped in general population&rsquo;s access to finance,&rdquo; says Gyanwali.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Going through the trends seen over the past few years, the country&rsquo;s financial sector seems heading for consolidation through mergers and acquisitions. According to experts, the number of banking and financial institutions (BFIs) will reduce by half over the next one decade. Statistics support this fact. Forty-three BFIs have merged with each other to become 18 over the past three years. According to NRB, another 25 BFIs are in the final stage of merger to become 10. NRB sources say that the central bank will continue with its merger campaign in the new Nepali Year.</div>
<div>
	&nbsp;</div>
<div>
	As a part of this campaign, the NRB is soon going to introduce the Acquisition Bylaws and there are signs that the minimum capital required to run banks could be increased significantly.</div>
<div>
	&nbsp;</div>
<div>
	Apart from banking, other financial sectors, too, are coming up. Credit rating, portfolio management, mutual funds and central depository system companies have already come into operation. This has opened new opportunities for investment.</div>
<div>
	&nbsp;</div>
<div>
	Due to stiff competition, banks are trying to provide specialized services such as investing in hydropower, infrastructure and agriculture. The trend is low at present but it has started. Similarly, expansion of branches of BFIs, especially in the urban areas, has reached almost a saturation stage. Now the banks are looking at cheaper ways to increase their outreach; so they are attracted towards branch-less banking, e-banking and mobile banking.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs11.JPG" style="width: 550px; height: 258px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The last one decade has been significant for the banking sector. Many good things happened. As a result, financial access increased by five times over the past one decade, according to statistics maintained by the CBS. Similarly, the statistics maintained by NRB reveal that 40 per cent of Nepalis have access to formal banking channels. These statistics incorporate only the A, B, C and D class BFIs licensed by the NRB. There are nearly 20,000 Savings and Credit Cooperatives operating throughout the country. Similarly, there is a large number of women&rsquo;s groups, farmers&rsquo; groups etc., which also provide banking services. If we consider these institutions, the number of Nepalis having access to financial services will increase significantly. This doesn&rsquo;t mean that the situation of financial access is great in Nepal; what it means is what has been achieved over the past one decade is more than satisfactory.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Increasing access to finance is one of the main roles of the central bank so that central bank is also encouraging the BFIs to venture into unbanked areas through its policy measures,&rdquo; informs Gyawali. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The achievement made by the banking sector over the past one decade can be broadly categorized into three parts: growth in financial access, expansion of loans and development of corporate culture. The rate of financial access increase is high for this period. Similarly, new areas for investment have been discovered. Today, banks have started investing in specialized long-term projects such as hydropower. Likewise, there has been development of corporate culture in the banking sector over this period. This has made the banking sector more transparent, credible and professional. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<table border="0" cellpadding="10" width="99%">
			<tbody>
				<tr>
					<td bgcolor="#E5E4E2">
						<div>
							<span style="font-size: 14px;"><strong>Weaker Side:</strong></span></div>
						<div>
							- All kinds of BFIs are allowed to mobilize deposits</div>
						<div>
							- Lack of adequate financial literacy</div>
						<div>
							- Increasing operational risks of BFIs</div>
						<div>
							- Failure to identify new areas for investment</div>
						<div>
							- Inadequate supervision capacity of NRB</div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hotels: More Room for Growth</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs3(4).jpg" style="width: 550px; height: 397px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Nepali hotel industry is rapidly heading towards booming growth. After sluggishness for about a decade, during the conflict years, the country&#39;s hospitality sector is now looking more and more lucrative with hoteliers- both domestic and foreign- investing into multi-billion projects. Surge in visitor numbers with Nepal becoming a prime destination for international, regional and domestic tourists is leaving the country&#39;s hotels sector without much room. Recent tourism rankings published by reputed institutions points out that the country is gaining significant attention from travelers and visitors across the globe.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Industry leaders estimate the size of Nepali hotel sector- ranging from five star hotels to lodges- has reached about Rs 300 billion. &quot;It is one of the fastest growing sector which is providing considerable number of employment,&quot; says Madhav Om Shrestha, executive director of Hotel Association of Nepal (HAN). According to him, the sector is providing direct employment to over 3, 00,000 people and indirectly benefitting around one million. &quot;With big international hotel chains entering Nepal, the industry is treading on to track to healthy revival.&quot;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal, which has witnessed the departure of some big hotel chains in the past, is again set to become a rewarding market for renowned international hoteliers. Last year saw the US-based multinational hotel chains Marriott and Sheraton announce their entry into the Nepali market. In May 2013, Nepal Hospitality Group (NHG), a company under Nepal&#39;s leading conglomerate Maliram Shivakumar (MS) Group, signed an agreement with Marriott International to open a four-star hotel with an investment of around Rs 650 million. Dubbed as &quot;Fairfield by Marriott Kathmandu&quot;, the 10-storey business hotel with 108 rooms is under-construction at Thamel, a prime tourist and commercial location in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The hotel targeted towards mid-income guests will start its commercial service by the beginning of 2016. Fairfield is a brand of hotels franchised by Marriott International. NHG is also constructing a 250-room, four-star luxury hotel in Naxal, as a joint venture with the Marriot International.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;In this foray, Sheraton Hotels and Resorts announced its re-entry into Nepal. Shesh Ghale, the Nepal born Australian millionaire businessman, has come up with a joint venture with Sheraton to operate a five-star hotel in Kathmandu. In April 2013, Ghale&#39;s investment company, MIT Group Holding Nepal set the project rolling by signing an agreement with Sheraton&#39;s owner Starwood Hotels and Resort Worldwide Inc.</div>
<div>
	&nbsp;</div>
<div>
	Slated to open in February 2018, the cost of 225-room Sheraton Kathmandu project is expected to be around Rs 7 billion. Sheraton, the largest brand of Starwood Hotels and Resorts Worldwide has history of managing five-star hotel in Nepal. The chain in 1980s&#39; and 90s&#39; managed the Hotel Everest Sheraton in Kathmandu.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Indian hotel chain Lord Hotels and Resorts has already started its operation in Nepal. The company opened its first international hotel in Kathmandu, the Mirage Lords Inn at Battisputali with an investment of Rs 200 million. The 40-room budget hotel is targeted to serve domestic and international guests ranging from religious visitors to adventure seekers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs12.JPG" style="width: 550px; height: 398px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:12px;"><strong>Investment Hotspot</strong></span></div>
<div>
	The hotel investment frenzy has also wrapped Nepali business community. Many have announced to open new hotels while some have already opened doors to welcome guests into their newly built auberge. The Hotel Shambala, a 65-room, four-star Tibetan- styled boutique hotel, located at Bansbari started its operations few months ago. Similarly, construction of the Chhaya Center at Thamel is in full swing. The structure upon its completion will accommodate a 200-room four-star hotel along with an exclusive shopping mall. Likewise, The Centurion Group has been constructing a 120-room hotel in Biratnagar.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Meanwhile, Muktishree Group, Vaidya&#39;s Organization, Non-Resident Nepalese Association (NRNA) and Civil Aviation Authority of Nepal (CAAN) have made their announcements to establish five-star hotels. &nbsp;In the meantime, other major tourist destinations such as Pokhara, Lumbini, Biratnagarand Nepalgunj are also experiencing rising investments in the sector.</div>
<div>
	&nbsp;</div>
<div>
	This sector is becoming a center of attraction for Nepali banks and financial institutions (BFIs) as well. According to recent Nepal Rastra Bank (NRB) data, total investment of BFIs in the sector reached an estimated amount of Rs 21 billion by the end of April. The central bank also notes that in the first nine months of current fiscal year (FY), the sector welcomed an investment of Rs 3.16 billion, up by 20.8 percent from last FY&#39;s 2.30 billion.</div>
<div>
	&nbsp;</div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#E5E4E2">
					<div>
						<span style="font-size: 14px;"><strong>Time to be Cautious</strong></span></div>
					<div>
						Despite the significantly increasing activities in the hotel sector there are also cautionary calls arising within the industry itself. &quot;The overall trend in investment and the growth in infrastructure is satisfactory, but marketing of Nepal in international arena is lacking,&quot; opines Binayak Shah, vice president of Summit Group of Hotels. Shah, who is also the Managing Director of Airport Hotel, said that as the sector will have more than enough infrastructures amid the rise in number of international hotel chains coming to Nepal and growing domestic investments. &quot;In addition, unsold apartments are also being converted in to hotels. If we cannot market our resources innovatively, in a few years time, we will have more supply than demand,&quot; he says. &quot;This has to be balanced.&quot;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 14px;">ICT: Explosive Growth</strong></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).JPG" style="width: 550px; height: 271px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The Information, Communication and Technology (ICT) sector has grown in a geometric proportion over the last few years bringing speedy transformation. The explosive growth and rapid infrastructure developments led the sector, nascent only some years ago, to around Rs 50 billion worth strong sector in a year.</div>
<div>
	Nepal has been enjoying remarkable growth in ICT sector due to expanding telecom sector, increasing use of email/internet, emerging social media and steady growth in the use of state-of-art gadgets.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs121.jpg" style="width: 550px; height: 656px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	The pace of mobile phone adoption in the country was surprising in the last couple of years as nearly two third households have access to telephone facility. The overall teledensity has increased to 87.20 per cent by mid-March, according to the telecom regulator Nepal Telecommunications Authority.</div>
<div>
	&nbsp;</div>
<div>
	It is likely that the transaction of overall ICT products will double in the next few years. Internet penetration rate increased to around 30.99 per cent till mid- March, and the rise of Internet users will have a direct impact on the trade of computers, claims Computer Association of Nepal (CAN).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	High competition among world class brands including HP, Samsung, Dell, Asus, Compaq, MAC, Sony, Lenovo and Acer have not only contributed to lower the price, due to hard competition, but also have provided quality products to Nepali customers.</div>
<div>
	&nbsp;</div>
<div>
	Along with hardware parts, the software market is also experiencing a steady growth in the country. Experts and professionals involved in this business are taking this growth as a positive aspect of developing awareness related to information technology.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;The overall trade of software has increased in the domestic market though there is not actual data available from concerned authority. Amrit Kumar Pant, General Secretary of CAN, said, the market and activities related to this business have been increasing as the people have been using software and application as necessity while it was used in the form of luxury till some years ago.</div>
<div>
	&nbsp;</div>
<div>
	ICT has provided enormous opportunities from various aspects, according to the regulator Nepal Telecommunications Authority (NTA). Nepal&rsquo;s telecom sector has created employment opportunities for at least 50,000 people and contributed more than Rs 20 billion as revenues every year to the national coffer.</div>
<div>
	&nbsp;</div>
<div>
	Even the government has come up with some ambitious plan including that of connecting east and west via Optical Fibre network. For the purpose, the government has planned to utilise the Rural Telecom Development Fund (RTDF), the fund collected by Nepal Telecommunications Authority from telcos.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, the sector is not without problem. According to telcos, there are many problems in the policy front. The telecom sector has been witnessing government&rsquo;s dillydally in bringing relevant laws and policies.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, there are still room to improve in terms of quality. On the one hand, telcos and internet service providers need to ensure quality of service. On the other, Nepal should not become trading hub for low quality ICT goods. In such situation, the government need to bring policies ensuring consumers&rsquo; rights. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	ICT is still an untapped market in Nepal, an expert told New Business Age. &ldquo;All concerned stakeholders need to put sincere effort to take this sector to the next level.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Hydropower: From Deficit to Export Considerations</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs6.JPG" style="width: 550px; height: 342px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Forced to live under electricity cut averaging 10 hours a day during dry seasons, Nepal is gradually developing its hydropower projects to escape the long-standing power crisis. Things have changed positively in the recent years as the dust of political uncertainty is finally showing signs of settling down. 87 hydel projects totalling 2,345 megawatts are under construction. Both the government and private sector have ramped up their investments in these projects. The projects, upon completion, are expected to add electricity into the national power grid within the next seven years. Similarly, the Investment Board Nepal (IBN) has also taken initiatives to construct five mega-hydel projects of 3,750 MWs. IBN, which was formed four years ago to fast-track mega projects, is said to be involved with promoters for power development agreement (PDA). The promoters have assured to start the construction of projects immediately after the finalization of PDAs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This indicates the increasing involvement of private sector in the country&#39;s hydropower development. Nepali private sector has thus far managed to produce 232 MWs electricity after the electricity act of 1992 came into effect. According to Independent Power Producers Association, Nepal (IPPAN), the private sector has invested Rs 55 billion in 25 hydro projects till date since the establishment of the first private power plant in 2000.</div>
<div>
	&nbsp;</div>
<div>
	Increasingly positive tones of bilateral donors have also raised hopes in this sector. The World Bank and Asian Development Bank (ADB) are planning to raise their stakes in Nepal&#39;s hydropower development. The World Bank (WB),which has already provided development related financial assistance worth Rs 200 billion to Nepal is further adding investments in hydropower projects. The International Finance Corporation (IFC) of the World Bank Group has recently agreed to provide USD 84.6 million for the 37 MW Kabeli-&#39;A&#39; project. The electricity output from the run-of-river project situated in Panchthar district will be then connected to the national grid through the 132 KVA Kabeli Corridor Transmission line. The transmission line, which is jointly financed by the WB and Nepal Electricity Authority (NEA) is in the construction phase. Likewise, IFC has also expressed readiness in Arun III (900 MW), Upper Marsyangdi (600 MW), Upper Karnali (900 MW) and Upper Trishuli (213 MW). During his visit to a WB program in US and Mexico in April, Finance Minister Ram Sharan Mahat received commitment from the IFC for investing for Rs 600 billion in developing hydropower projects of 3,000 MWs. Similarly, ADB is also stepping up to invest in the country&#39;s big hydel projects. Last year the bank agreed to provide soft loan of Rs 13 billion for 140 MW Tanahu Hydropower Project. Likewise, the European Investment Bank (EIB) which also agreed to loan Rs 1.5 billion for the above mentioned project has also committed to provide Rs 12 billion to build the Kaligandaki and Marsyangdi Transmission line along with another Rs 3 billion to build the Trishuli Corridor Transmission Line.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The sector is also grabbing significant attention from foreign investors. Official data shows that hydropower sector has attracted highest FDI commitments in the recent months. According to data published by Department of Industry (DoI), foreign investors pledged Rs 11.8 billion worth FDI commitments in the first nine months of the current fiscal year against Rs 2.65 billion during the same period, last year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Rising Export Potential</strong></span></div>
<div>
	<img alt="" src="/userfiles/images/cs13.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 250px; height: 435px;" />Few years back it was almost unimaginable for power crisis marred Nepal to even think of supplying electricity to neighbouring countries. The scenario, however, is looking more and more real for Nepal to make its way forward to become a net power exporter. Nepal after producing 2,345 MW by 2018-19, will have surplus energy after consuming its annual demand of estimated 1,700 MW by that time. In this circumstance, India will be the most likely market of Nepali electricity as the energy hungry southern neighbour is increasingly looking to import power from its himalayan proximate.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The construction and installation of countrywide and cross-border high capacity transmission lines indicates the rising power trade potential between India and Nepal. The tower installations in Nepal section of 400 KVA Dhalkebar-Muzzafarpur Cross-Border Transmission line has started earlier this year. The construction of the project, which started in January is scheduled to be completed within 16 months of its commencement. Similarly, feasibility study of 400 KVA Bardaghat-Gorakhpur Transmission Line has also begun. The high capacity cross-border transmission lines would facilitate power transmission between the two countries. A secretary-level agreement between Nepal and India has already paved way to build the framework for power trading.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Private power producers say that both countries should look into effective modalities of power trading. &quot;Energy banking agreement model is the best option,&quot; says Er Gyanendra Lal Pradhan, Chairman of FNCCI&#39;s Energy Committee. According to Pradhan, if the model is adopted, Nepal can send surplus power to India in rainy season and bring back the same amount of electricity in dry seasons. He said that countries across the world are adopting this model owing to its flexibility and practical approach. &quot;The model is being effectively practiced by New York Electricity Exchange of United States and Hydro Quebec of Canada, they do banking up to 90 per cent of electricity they trade and remaining 10 per cent is priced.&quot; Pradhan stressed the need for building strong network of nationwide transmission lines as it would further help if Nepal and India engage in energy banking.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, absence of clear policies and other problems such as inefficient bureaucracy, rampant corruption, lack of nationwide transmission grid, issues related to infrastructure and land compensation are regarded as the bottlenecks in Nepal&#39;s hydropower development efforts. For instance, the draft of electricity bill, 2065 introduced in the parliament has seen little or no progress over the past five years. Similarly, issues related to power purchase agreement (PPA), higher bank lending rates in hydropower projects, value added tax (VAT) levied to private producers and low allocation of national budget are also seen as problems hindering the sector&#39;s overall development.</div>',
			'published' => true,
			'created' => '2014-06-09',
			'modified' => '2014-07-30',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Despite obstacles, some sectors of the economy have progressed and their future looks bright. We could call them the “rising stars” of the economy. In this issue, NewBiz has tried to highlight some of these rising stars, which include: Hotels, Hydropower, Construction Material, ICT, Education, and Banking Sector.',
			'sortorder' => '2626',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	),
	(int) 8 => array(
		'Article' => array(
			'id' => '2773',
			'article_category_id' => '40',
			'title' => 'The Business For Social Benefit',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<em><span style="font-size:16px;">Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society. &quot;Fortune at the bottom of the pyramid&quot;, a phrase coined by the late Indian academic CK Prahalad, has become popular among social entrepreneurs. But the question is: are we heading towards ensuring benefit to the bottom billions or not? In this issue, we focus on scope, opportunities and motivation for social entrepreneurs and the way forward.&nbsp;</span></em></div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Those at the &#39;bottom of the pyramid&rsquo; have been neglected since decades and it is time to change perceptions through which they are perceived. They should not be perceived only as recipients of aid.They are agents of development and they can be partner in entrepreneurship, says Catrin Frohlich, co-founder of Hidden Journeys who is involved in promotion of social entrepreneurship in Nepal for the last couple of years. She opines that acceptance of bottom billion as business partner opens avenue to set up social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social entrepreneurship embraces market-based approach as social enterprise is about innovation and making profit along with makingimpact on development of the society, she argues. It is not the rejection of profit but rather is about sharing of profit with target groups and there by helping them in enhancing their living standards, Frohlich adds.</div>
<div>
	&nbsp;</div>
<div>
	Nepal needs to create jobs and job creation is not possible without enterprises. Social entrepreneurship is all about leading country towards prosperity through sustainable approaches.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Catrin Frohlich" src="/userfiles/images/cs1(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Scenario of Social Entrepreneurship</strong></span></div>
<div>
	A large number of population is reeling under acute poverty despite the fact that massive resources at the local level remain unused.In such a scenario, Nepal can be a very appropriate country for venturing into social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, it is again not an easy task to venture into social enterprises, especially in a country with relative absence of entrepreneurial aptitude. Social entrepreneurship is comparatively new phenomenon but it is gaining momentum, says Vidhan Rana of Biruwa Ventures. We have good understanding of the word social but less understanding of the word entrepreneurship, he opines. &ldquo;Social entrepreneurshipis not about establishing NGOs and distributing aid money to people in need,&rdquo; he says, adding, &ldquo;Innovative ideas to venture into business is a must to start enterprise.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Many people perceive the term social enterprise as a connotation of not-for-profit organization. The not-for-profit mantra is out-dated now, says Rana adding, &ldquo;Make profit but involve the bottom billions in business and share the profit with them. This is the philosophy behind the concept of social entrepreneurship.&rdquo; Social entrepreneurship has become a buzz word and Rana fears that this hypemight be misused by not genuine social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	This is a new domain and there is a corresponding dilemma at the policy level. While a debate on what is genuine social entrepreneurship has started, Sadhana Shrestha, executive director at TEWA and former Country Representative, in Nepal at Ashoka, accepts the prevalence of dilemma about the termamong businessmen also. While attempting to correct the prevailing notion that perceives both types of organizations synonymously, she says that NGOs and social enterprises are different. Nepal does not have laws specific to social entrepreneurship but it certainly has a category in the Company Act, which describes such companies as those that do not distribute profits (though they makes profits).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The most encouraging part in this is the increasing involvement of young generation. Youth led organizations such as Biruwa Ventures, Entrepreneurs for Nepal (E4N), Udhyami Nepali, Hidden Journeys and ChangeFusion Nepal have been working to promote entrepreneurship including that of social entrepreneurship.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Sadhana Shrestha" src="/userfiles/images/cs2(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Fight Poverty with Profitability</strong></span></div>
<div>
	&ldquo;The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits,&rdquo; by C.K. Prahalad, professor of corporate strategy at the Ross School of Business of the University of Michigan is considered as a seminal work on social entrepreneurship. The concept of &lsquo;The Fortune at the Bottom of the Pyramid&rsquo; provided new business models targeted at providing goods and services to the poorest people in the world. Prahalad&rsquo;s concept seeks to solve global poverty by turning the bottom of the socioeconomic pyramid from victims of globalization into its beneficiaries through consumerism.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The book combined a pragmatic framework with inspirational case studies to show companies how they could develop innovative business models and find new profits by serving the world&rsquo;s five billion poorest people at the bottom of the economic pyramid (or BOP).</div>
<div>
	&nbsp;</div>
<div>
	Prof Prahalad was in favour of private-sector led social enterprises. Responding to a question &ldquo;What are the big lessons learned since the book was first published?&rdquo; by Triple Pundit, a new-media company for highly conscious business leaders, Prahalad said:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	First, the thesis of the book that the private sector is an integral part of the poverty alleviation process is well accepted by multilaterals, aid agencies, many NGOs and large private sector firms as well. &nbsp;Second, there is now a growing belief that the bottom of the pyramid provides an opportunity for business to &ldquo;do good and do well.&rdquo; Third, we recognize that the BOP is more than micro-consumers. &nbsp;It also represents micro producers and micro investors who can be connected to national and global markets. And the BOP can also be the source of major innovations that affect us all. &nbsp;These ideas were in the original book but have been confirmed and amplified.</div>
<div>
	&nbsp;</div>
<div>
	Reviewing the book, Bill Gates, Chairman and Chief Software Architect, Microsoft says: &quot;C. K. Prahalad argues that companies must revolutionize how they do business in developing countries if both sides of that economic equation are to prosper. Drawing on a wealth of case studies, his compelling new book offers an intriguing blueprint for how to fight poverty with profitability.&quot; This book is considered a hallmark in introducing discourse and practices of private sector led social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong><img alt="Vidhan Rana" src="/userfiles/images/cs3(2).jpg" style="float: right; margin: 0px 0px 0px 10px;width: 300px; height: 144px;" />Evolution of the Concept &amp; Growing Concern&nbsp;</strong></span></div>
<div>
	Many believe that business philanthropy and social involvement of business community is linked with long rooted concept of &ldquo;Sewa Hi Paramo Dharma&rdquo; [Social Service is the Ultimate Religion]. Historical evidences suggest that not all business leaders have been content in simply performing a commercial role in society. Numerous businesspersons, industrialists and entrepreneurs have made significant contributions to their local communities.</div>
<div>
	&nbsp;</div>
<div>
	Earlier, there were notable efforts to engage business in society via charity or social welfare activities. These were mainly inspired by religious affiliation and cultural inspirations. From mid-1970s onwards general interest in corporate social responsibility grew and this is reflected in the involvement of Nepali corporate sector in CSR activities. &nbsp;This interest was consolidated in the 1980s. As part of the general redefinition of state functions in this period, the role of business in addressing social problems became more prominent. Such political and policy developments, it is argued, have made a significant contribution towards enhancing social roles of businesses.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Social Enterprises: Sustainable Approach of Development&nbsp;</strong></span></div>
<div>
	Sadhana Shrestha, while stating that NGO workers should not be considered as social entrepreneurs, claims that social entrepreneurship should have some basic qualities: innovation, breakthrough ideas, sustainable and replicable model and system changing ideas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social entrepreneurs should give enough attention to the sustainability of their business and generally do not distribute dividend rather inject it in the business to ensure sustainability of the enterprise, she claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Social enterprises are businesses whose primary purpose is the common good. The main characteristics that distinguish a social enterprise from other types of businesses, non-profits and the government agencies is its sustainable approach, opines Mahabir Pun, the winner of the Ramon Magsaysay Award 2007 for his project that brought wireless Internet to rural Nepal.</div>
<div>
	&nbsp;</div>
<div>
	Social enterprise directly addresses a difficult social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Challenges in Social Entrepreneurship&nbsp;</strong></span></div>
<div>
	The social enterprise movement was connected mainly with non-profits that used business models and earned income strategies to pursue their mission in the early days of social entrepreneurship. The understanding has become clearer now. Enterprises, whose sole purpose is to make social impact, are now considered as social enterprises. The sector, however, is not out of challenges.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Identification of business model:</strong> Business is often linked with profit in Nepal. And even the image of non-profits is not very positive. In such a situation, building positive image for social enterprises is a challenging task, says Catrin Frohlich.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Capacity building: </strong>Building capacity of aspirant social entrepreneurs is another challenge for Nepal&rsquo;s social entrepreneurial world. Capacity building initiatives should not be limited to launch of businesses, but should be continued when it comes at scaling up level, addsFrohlich.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Financing:</strong> A real social entrepreneurship is about innovation but traditional financing institutions do not always believe in innovative ideas and may deny lending money, opines Frohlich while pointing to the challenge of acquiring financial assistance for social enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Legal provision:</strong> Policy and regulatory frameworks have many grey areas. In such a context, it is feared that the word social entrepreneurship could be easily misused by non-profits and others institutions to gain undeserving reputation, says VidhanRana.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Opportunities&nbsp;</strong></span></div>
<div>
	The concept of social entrepreneurship is an outcome of the realization that aid recipients cannot make tremendous progress in their life compared to entrepreneurs, says Vidhan Rana. In the same vein, Frohlich also opines that despite some good works, NGO-model of development is not always in favour of the bottom billion. Despite challenges, social entrepreneurship field in Nepal is recently witnessing positive trends and receiving new opportunities as it is the best model for optimum and sustainable use of resources.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	If analysed from the perspective of national development, social entrepreneurship does not put the national economy at risk. It is a beautiful aspect of social entrepreneurship that while an individual takes all the risk of innovation, all members of the target community share the benefit.Similarly, social entrepreneurship is even more inclusiveforwomen entrepreneurs and adopting this approach can assist in making the entire development process more inclusive. Considering the present trend, it is obvious that in the coming years we&rsquo;ll see social entrepreneurship woven into the very fabric of existing disciplines and become an integral lens through which we will understand all sectors and fields of study.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Corporate Houses for Social Cause&nbsp;</strong></span></div>
<div>
	Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that will have positive impact in the society. Generally, CSR activities are carried out using profit amount. CSR is a process with the aim to embrace responsibility for the company&#39;s actions and encourage a positive impact through its activities on the environment, consumers, employees and communities.</div>
<div>
	&nbsp;</div>
<div>
	Though companies are not directly involved in social entrepreneurship, their involvement in social issues has been increasing in one or another form. In Nepal, many companies have been involved in many social activities such as Coke for water conservation, Unilever for hand washing promotion, Yeti Air tree plantation etc.</div>
<div>
	&nbsp;</div>
<div>
	Involvement of business community in social activities is not new phenomenon. Some renowned business houses have been involved in some traditional CSR activities. Operation of eye hospital from Golchha and donation to Briddhashram (old age home) from some business families can be taken as examples to this end.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, some business houses have been involved in special CSR initiatives as annual events such as Asha Awards, Sports Tourism promotion, and health awareness program being carried out by Surya Nepal. There also are some companies such as NCELL that provide direct charity (e.g. school building, sukumbasi house roofing etc.) that is linked directly with their business promotion. Chaudhary Group has established a separate unit Yunus Centre to promote social entrepreneurship though it is yet to start work effectively.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides, recruitment of deaf staffs in the Nanglo restaurant can be taken as a good example of social entrepreneurship business. Dabur is also involved in social business as it provides help to farmers in herbal cultivation.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Future Outlook</strong></span></div>
<div>
	Positive impact made by existing social enterprises on target communities and in making profit has triggered enthusiasm in aspiring entrepreneurs. Numbers of aspirant social entrepreneurs are increasing and their conviction show that they can make money and can do things differently in the entrepreneurial world. &nbsp;Social enterprises will prove that enterprises can be financially sustainable, even profitable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs4(2).jpg" style="width: 550px; height: 512px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2014-04-10',
			'modified' => '2014-05-07',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Social entrepreneurship in Nepal is on the way of gaining its ground over the last few years. Despite its varied aspects and differences in its definition, entrepreneurs agree it to be a form of business that helps in promoting social causes and better changes in society.',
			'sortorder' => '2620',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	),
	(int) 9 => array(
		'Article' => array(
			'id' => '2723',
			'article_category_id' => '40',
			'title' => 'Nepali Women As Entrepreneurs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By Siromani Dhungana</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali women entrepreneurs have not broken the glass ceiling, says Pramila Rijal, president of SAARC Chamber Women Entrepreneurs Council (SCWEC). &ldquo;But they have already made the first cracks.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Rijal&rsquo;s idea rightly summarizes the present conditions of women in business in Nepal. Alka Rajouria Rijal, executive director at Federation of Women Entrepreneurs&rsquo; Association of Nepal is also of the same opinion. Women entrepreneurs have come far but they still have a long way to go, she opines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to her, there are many issues that still need to be improved: access to finance, gender-responsive policies, family barriers and deconstructing stereotypes about women entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs6(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 410px;" />Business: It was Men&#39;s Domain&nbsp;</strong></span></div>
<div>
	Hajuri Bista, one of the forerunners in the arena of women entrepreneurship says, &ldquo;I had never seen men and women work together. It was really challenging to get out of the dogma that women should take care of household chores and not venture into the business world.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	In 1990, the country adopted a &nbsp;democratic political system but women entrepreneurs still finding not an easy path at that time, she recalls. Late Yangzi Sherpa, Ambica Shrestha, Rita Thapa, Maggie Shah, Renchin Yonjan, Shyam Badan Shrestha, Shanti Chadha, Nilam Pande, Mohini Lama, Brinda Rana and some other faces were managed to shine in this period as entreprenuers. They were the trailblazers at that time, Bista recalls.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&quot;Even after democracy, I have seen many times aspiring women entrepreneurs breaking into tears in meetings due to unexpected hurdles and apathy from their family and the society,&quot; she said reflecting on her experience. &ldquo;Why should be women engaged in business?&quot; &nbsp;was a common mindset at that time, she adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Fortunately, times have changed now. There are host ofefforts underway to boost women&rsquo;s participation in business and women are in the condition to get guidance &nbsp;in all phasesof entreprise development &nbsp;-- from training on leadership, to new forms of financing.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Entrepreneurship has been traditionally seen a male preserve and idea of women taking up entrepreneurial activities considered as a distant dream, she says. But the mindset has been changing, she adds. &ldquo;It takes time to change all the established social norms but we have achieved tremendous success in the field of women entrepreneurship.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs1(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 204px;" />Has a Long Way to Go</strong></span></div>
<div>
	There are umpteen problems even now. Women face problem from their initial commencement of enterprise, says Barsha Shrestha, deputy chief executive officer at Clean Energy Development Bank.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The society still does not believe in their capacity and it is an uphill task for women to face such conflicts and cope with such challenges, she adds. Obtaining the support of bankers, managing the working capital, difficulty in getting credit are the problems to solve which male family member&#39;s support is still needed, she informs.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now women are empowered enough and can lead big corporations too, says Ambica Shrestha, women entrepreneur and president of The Dwarika&rsquo;s Hotel. &ldquo;All they need is chance of working as freely as their male counterparts.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs2(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 188px;" />Absence of Entrepreneurial Aptitude</strong></span></div>
<div>
	If you have innovative idea to venture into business that is what we call entrepreneurship, says Renchin Yonjan. But male businessmen in Nepal lack entrepreneurial aptitude, she claims. Most of the women who are aspiring in entrepreneurs are involved either in their family business or in service sector that still does not have talents (male or female) with the basic ingredients of entrepreneurship. &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Parents want their daughter to be involved in jobs rather than entrepreneurship, shares Barsha Shrestha. The reason is clear. They do not want their daughters to take risk and put their money at risk.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides, even majority of women in the country lack entrepreneurial aptitude. Women have no entrepreneurial bent of mind, informs Pramila Rijal. &ldquo;But this problem does not prevail only among women but also among men too.&rdquo; &ldquo;Yes, women are more inclined towards household chores and existing social structure does not allow them to think broadly,&rdquo; she adds.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs3(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 187px;" />Expand Access to Finance&nbsp;</strong></span></div>
<div>
	Women in the country have been facing many problems to get going with their business ideas. Finance shortage is one of them. Women entrepreneurs always suffer from inadequate financial recourses and working capital, says Rita Bhandary, president of Federation of Woman Entrepreneurs Associations of Nepal (FWEAN). They are not able to afford external finance due to absence of tangible assets as security. Women have very less property and bank balance in their name. Male members of the family do not want to invest their capital in the business run by women due to lack of confidence in the women&#39;s ability to run a venture successfully.</div>
<div>
	&nbsp;</div>
<div>
	Most of the women entrepreneurs fail due to lack of proper financing facilities, because finance is life blood of every business activities, according to Shrestha. Marketing and financial problems are such obstacles where even training doesn&#39;t significantly help the women. Some problems are structural in nature and beyond the control of entrepreneurs. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bankers often deny women credit on the ground of lack of collateral security, Shrestha says. Therefore, their access to risk capital is limited. Women cannot start big business ventures unless equal access of finance is ensured, Shrestha claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>A Wave of Progress in SME</strong></span></div>
<div>
	Small and Medium Enterprises (SMEs) are possibly one of the best and most cost-effective avenues for furthering economic development. Slowly but gradually, women have been expanding their foothold in this SME field. Currently, women own about 14,300 small and medium enterprises in Nepal, accounting for 2 percent of GDP (registered formal sector) and employing over 200,000 workers. A study commissioned by IFC, private sector lending arm of the World Bank Group, suggests that meeting their current credit requirements of US$ 106 million can increase their contribution to the economy, according to SAARC Chamber Women Entrepreneurs Council (SCWEC).</div>
<div>
	&nbsp;</div>
<div>
	Throughout the country, women have been setting up small and medium enterprises after acquiring the skills, resources, and support necessary to grow and sustain their businesses, says Alka Rajouria Rijal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is very positive aspect of women in entrepreneurship that they are creating jobs at a time when the country is reeling under massive unemployment problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similarly, women&rsquo;s involvement in entrepreneurship will not only contribute to create jobs but also to change the stereotyped role of women which is largely limited to household chores. All should motivate women entrepreneurs to give them the moral support for their business ideas.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs4(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 300px; height: 166px;" />Networking: Key to Success&nbsp;</strong></span></div>
<div>
	The equation is very simple: you have to expand your business once you start it, you have to develop a network to expand business and you have to have a free-society to develop a network, says Barsha Shrestha who believes that Nepali women are struggling to this end.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Women should have a very strong network at three levels: in the sector concerned, with all entrepreneurs and national and international level, according to women entrepreneur Renchin Yonjan.</div>
<div>
	&nbsp;</div>
<div>
	Women have tremendous potential for networking as they are polite and soft compared to their male counterparts, she opines. In business, exposure gives knowledge. Exposure is key that will help women to materialize their dreams. Women entrepreneurs should get out from social restrictions, expand their contacts and start business ventures. Women entrepreneurs should not hesitate to create their brand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Full-time entrepreneurs should have the broadest networks. Long-held belief is, however, that women have weaker networks and rely excessively on family and friends to build their business. This logic is directly linked with the perception that women cannot handle business independently and they are reliant on family and friends for networking, says Yonjan. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Dream Big&nbsp;</strong></span></div>
<div>
	The number of women-owned business has been growing over the past decade or so. However, evidences show that most of these businesses don&#39;t scale up. Further, women entrepreneurs are still considered suitable only in small and medium enterprises.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Over the last few years, it is found that women entrepreneurs often seem to be pigeonholed into the &lsquo;lifestyle business&rsquo; category or education sector in Nepal. This is obviously good but not enough, says Ambica Shrestha. Women entrepreneurs are still missing out on the chance of a bigger slice of the pie.</div>
<div>
	&nbsp;</div>
<div>
	Women-owned businesses are still a drop in the ocean of commerce, according to Pramila Rijal. She suggests women entrepreneurs to dream high. &ldquo;It is time that women entrepreneurs start dreaming of setting up big corporations and running big businesses.&rdquo; We have to dream and we have to work to full our dreams, opines Rita Bhandary.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong><img alt="" src="/userfiles/images/cs5(1).jpg" style="float: right; margin: 0px 0px 0px 10px; width: 300px; height: 168px;" />Changing Scenario</strong></span></div>
<div>
	Picture a woman and you might imagine a women busy in domestic chores and childcare. Further, if someone speaks about a female entrepreneur and you might imagine a woman at the helm of a small business, perhaps in a cosmetic outlet or childcare centre.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	For decades the symbol of women entrepreneurship has been, to many, the pickle, fashion or childcare. They were considered shadow of their male counterparts. Time has come now to break the stereotypes and women should take the baton.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	On the one hand, the mindset of society has been changing, Yonjan opines. &ldquo;But challenges have also increased and women have to compete in the highly competitive world.&rdquo; Access to Information and Communication Technology (ICT), and better exposure to the rest of the world have provided unique opportunities to the women entrepreneurs to expand their footholds,&rdquo; she claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Our aim is not to steal the profit pie, which male entrepreneurs have been enjoying but to seek new chances of generating new and innovative sectors where women can see their future, says Yonjan. However, these sectors should not be limited to the small and medium industries.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;I am definitely seeing more women enter the entrepreneurship sector,&rdquo; Shrestha says. Is entrepreneurship a man&rsquo;s world? No not at all, she firmly believes. We need to break all the stereotypes prevailing regarding women in business.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion</strong></span></div>
<div>
	Women across the country have started several business ventures at their own initiatives. It is time to taking bigger steps towards providing flexible workplaces for women to get in the entrepreneurship. &quot;We know that where women are venturing now had been a male bastion. But that should not deter them. Women are equal partners in business,&rdquo; says Yonjan. All section of the society should encourage their effort of entering into the entrepreneurship because people&rsquo;s dream of peace and prosperity is directly related to the economic growth. Women&rsquo;s involvement in entrepreneurship should be encouraged because it will not only create more opportunities but also ensure inclusive growth. It will be imperative in achieving highest sustainable economic growth and employment and in raising living standard.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/cs1b.jpg" style="width: 550px; height: 611px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<table border="0" cellpadding="10" width="99%">
	<tbody>
		<tr>
			<td bgcolor="#E5E4E2">
				<div>
					<div style="text-align: center;">
						<span style="font-size:18px;"><strong>World&rsquo;s Top 10 Influential Female Entrepreneurs&nbsp;</strong></span></div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Wu Yajun" src="/userfiles/images/1%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Wu Yajun</strong></span></div>
					<div>
						Wu Yajun holds the title of229th richest person in the world. The journalist-turned Chinese businesswoman is the Chairwoman of Longfor Properties, an investment holding company, which manages several businesses including real estate and property investment, development and management across China. Born to an ordinary family in 1965, she and her former husband founded Chongqing Zhongjianke Real Estate Co Ltd in 1995, which was later renamed as Longfor Properties. &nbsp;Her net worth as of 2013 is estimated at USD 4.4 billion. Wu is also serving as the member of China&#39;s National People&#39;s Congress. She is among the top 50 in Forbes&#39; Power-Women list.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Zhang Yin" src="/userfiles/images/2%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Zhang Yin</strong></span></div>
					<div>
						Zhang Yin is the founder and director of China&#39;s biggest paper maker- Nine Dragons Paper Holdings Limited. The company buys scraps from US and other parts of the world and turns them into cardboard boxes to export Chinese goods. At the age of 49 in 2006, she became the first woman to top the list of richest Chinese businesspersons, according to the Huron Report. Zhang Yin&#39;s net worth is estimated at USD 3.9 billion as of 2012.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Rosalia Mera" src="/userfiles/images/3%20(Copy)(5).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Rosalia Mera</strong></span></div>
					<div>
						Rosalia Mera is the co-founder of Inditex, a worldwide fashion retailer, which owns famous brands such as Zara, Massimo Dutti, Pull and Bear and Bershka among others. At the age of 11 Mera dropped out of school and began to work as a sales person in a clothing store. With her former husband, she co-founded the Zara clothing chain in 1975, which later became the world&#39;s largest fashion retailer. Mera died on 15th August 2013 after suffering a stroke at the age of 69. At the time of her death she was the richest woman in Spain and the world&#39;s richest self-made woman. Before her death, Rosalia&#39;s net worth was estimated at USD 6.1 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Oprah Winfrey" src="/userfiles/images/4%20(Copy)(4).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Oprah Winfrey</strong></span></div>
					<div>
						Oprah Winfrey has been ranked as the richest African-American of the 20th century who is currently North America&#39;s only black billionaire. The 60- year old celebrity entrepreneur and philanthropist is best known for her talk show &quot;The Oprah Winfrey Show&quot;, which was considered as the highest-rated program of its kind in history from 1986 to its ending in 2011. She was also the world&#39;s only black billionaire in between 2004-2006. Winfrey is the founder of Harpo Productions, the Oprah Winfrey Network (OWN) television channel and Oprah Winfrey Leadership Academy for Girls. Oprah received the Presidential Medal of Freedom in 2013, the highest civilian award of the United States. Her net worth is estimated at USD 2.9 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Arianna Huffington" src="/userfiles/images/5%20(Copy)(3).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 117px;" />Arianna Huffington</strong></span></div>
					<div>
						Arianna Huffington is the creator of the Pulitzer-prize winning news website and blog &quot;The Huffington Post.&quot; She started the website in 2005. In 2009, she ranked 12 in Forbes&#39; list of the Most Influential Women in Media. The 63-year old Greek-American author and syndicated columnist has an estimated net worth of USD 35 million. In 2011, after the sale of The Huffington Post to AOL for USD 315 million, she became the President and editor-in-chief of The Huffington Post Media Group. &nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Kiran Mazumdar-Shaw" src="/userfiles/images/6%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Kiran Mazumdar-Shaw</strong></span></div>
					<div>
						Kiran Mazumdar-Shaw is the chairman and managing director of Biocon Limited, a biotech company based in Bangalore. Partnering with an Irish firm to make industrial enzymes, she founded the company in 1978 when she was just 25 with a seed capital of Rs 10,000. She is regarded as India&rsquo;s first biotech entrepreneur. The 60-year old businesswoman is also the Chairman of Indian Institute of Management (IIM-Banglore). She is in the Forbes&#39; list of the world&#39;s 100 most powerful women and the Financial Times&rsquo; top 50 women in business list. As of 2010, her net worth is estimated at USD 900 million.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yelena Baturina" src="/userfiles/images/7%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 115px;" />Yelena Baturina</strong></span></div>
					<div>
						Regarded as the richest Russian woman and the Russia&#39;s only woman with net worth more than USD one billion, Yelena Baturina is the founder of construction and infrastructure investment company Inteco. She founded the company in 1991 as a plastic manufacturer but later changed its business. Baturina witnessed her net worth fell dramatically during the height of the financial crisis of 2008/09. The 50-year old entrepreneur also owns a hotel chain and is the founder of BE OPEN, a cultural and philanthropic foundation.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Giuliana Benetton" src="/userfiles/images/8%20(Copy)(2).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 116px;" />Giuliana Benetton</strong></span></div>
					<div>
						Giuliana Benetton is the founder of Benetton Group, a worldwide fashion brand, which operates a network of more than 6,500 stores and outlets across 120 countries. The Italian company, which is fully owned by the Benetton family, owns famous clothing line-up brands such as United Colors of Benetton, Undercolors of Benetton, Playlife and Sisley. Giuliana started the family business in 1965 by knitting sweaters. At the age of 76, Giuliana is currently serving asdirector of Benetton Group and Edizione S.R.L, a financial holding company of the Benetton family. Her net worth is estimated at USD 2 billion as of 2013.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Mary Perkins" src="/userfiles/images/9%20(Copy).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Mary Perkins</strong></span></div>
					<div>
						Mary Perkins is the richest self-made British businesswoman. Alongside with her husband Douglas Perkins, she co-founded Specsavers in 1984, a leading global retail chain of optics (eyeglasses and contact lenses), hearing equipment and optician services. Born in 1944, Mary was the daughter of an optician who studied optometry at Cardiff University where she met Douglas.</div>
					<div>
						&nbsp;</div>
					<div>
						Specsavers Optical Group Ltd which is fully owned and by Perkins family operates 1,650 stores across the globe. Mary became the first female optician in the UK to receive the title of &quot;Dame Commander of the Most Excellent Order of the British Empire&quot; (DBE) in 2007. She was also included in the list of BBC Radio 4&#39;s 100 most powerful women in the UK. As of 2011, her net worth is estimated at USD 1.15 billion.&nbsp;</div>
					<div>
						&nbsp;</div>
					<div>
						<span style="font-size:16px;"><strong><img alt="Yoshiko Shinohara" src="/userfiles/images/10%20(Copy)(1).jpg" style="float: left; margin: 0px 10px 0px 0px; width: 100px; height: 119px;" />Yoshiko Shinohara</strong></span></div>
					<div>
						Yoshiko Shinihora is considered as the most influential Japanese female entrepreneur. At the age of 77, she is currently the chairman and CEO of Tempstaff Co. Ltd, a human resource management and consulting firm that specializes in contingent hiring, job placement along with childcare services. The company operates and provides services to its 59,000 clients across the world including Japan,United States, China, Singapore, India, Indonesia and South Korea. Shinohara started the company as a temporary job recruitment agency with a seed capital of USD 9,000 in 1973 in her apartment after divorcing at the age of 38. At first, she struggled to find clients as she had to lobby against Japan government&#39;s stiff opposition to temporary job placements. Her business flourished in the 1990s as economic downturn coupled with rising deflation forced Japanese companies to abandon long-term job guarantees to their employees. Tempstaff now has 5,000 staffs and earns USD 2.9 billion annually.&nbsp;</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2014-03-07',
			'modified' => '2014-05-07',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'Women entrepreneurship is gaining importance in Nepal as well. In this issue, NewBiz focuses on the problems, issues, challenges faced by Nepali women entrepreneurs, and ways to overcome them.',
			'sortorder' => '2616',
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			'article_date' => '0000-00-00 00:00:00',
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	(int) 10 => array(
		'Article' => array(
			'id' => '2583',
			'article_category_id' => '40',
			'title' => 'New Nepal Government Setting The Economic Agenda',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	Nepali economy counts on post-election confidence. With the elections for the Constituent Assembly (CA) and the legislature parliament just concluded, general public and business leaders want one thing for certain &ndash; political stability and economic prosperity.</div>
<div>
	&nbsp;</div>
<div>
	Nepali business and consumers have been on a decade-long roller-coaster ride of unstable government with changes in leadership, epic legislative struggles and policy reversals culminating in what has amounted to a mess.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Now there are rays of hopes. The return of political stability is expected everywhere. Business community is upbeat by the successful second CA election. As the liberal forces are going to take the helm of the government, all are waiting for a decisive outcome that can provide real relief to people. And, it is the business community which has been waiting for a favourable situation for their business and investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Decoding the Election Result</strong></span></div>
<div>
	People expressed their aspirations and exercised their power during this election to set the progressive course for issues that matter them the most. Interestingly, people filtered those parties who often take to the street to fulfill their demands but fail to deliver when they lead the government.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The victory of Nepali Congress in the urban areas clearly indicates that urban voters favour liberal economy. Similarly, the fact that majority of votes were secured by Nepali Congress reflects people&rsquo;s will to be led by a political party which is in favour of social harmony and cohesion.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say that the business community was terrorized due to the hotpotch federal agenda put forth by UCPN (Maoist) and other ultra-leftist groups in a belligent manner. The recent poll results might have relieved the entire business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Business goes beyond the ethnicity. An entrepreneur from Madhesh has to do business in the hilly region and vice versa,&rdquo; says former finance secretary Rameshore Khanal. &ldquo;Political parties now should raise the issue of &lsquo;economic nationalism&rsquo; instead of creating tensions among various castes and classes,&rdquo; he remarks. In his words, policy stability and policy consistency is more important than caste and regional issues for development and prosperity.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Long Journey&nbsp;</strong></span></div>
<div>
	Nepal became the 147th member of the World Trade Organization (WTO) in 2004. It is now over two decades since the government adopted liberalization and a development model based on private enterprise and foreign investment, with the market forces as a major driver of the economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Yet, the government&rsquo;s initiatives for strengthening the private sector have been illusive over the last decade. With over decade-long experience, it is perhaps time to evaluate the advantages Nepal took from the WTO membership and way forward to get maximum advantages as a WTO member.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is now time to seriously revisit the deep trade deficit Nepal has continued to run, says Bhawani Rana, vice president of FNCCI, one of the private sector umbrella organizations. The new government needs to make an overview of our foreign investment trends and identify policy bottlenecks, she emphasizes.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>We Can, If We Want</strong></span></div>
<div>
	In the early 1990s, the entire business environment was affected due to the people&rsquo;s movement. Democracy was recently restored. The country was in a state of euphoria as all had much expectation from the new democratic government. But the country&rsquo;s economic situation was not good as the overall economic indicators were in the red. Foreign reserve was depleted. In such a situation, Nepali Congress formed the government and was successful to bring economy back on track.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	That was thanks to the fact that one of the proponents of free market economy, Dr Ram Sharan Mahat took charge of the finance ministry. Though opponents blamed him for favouring economic giants, he despite criticism firmly advocated free market economy and that has proved to be the right decision. The country achieved a record high growth of 8.60 percent in the GDP in 1994.</div>
<div>
	&nbsp;</div>
<div>
	The situation after the 2013 election could hardly differ, hope the businessman and ordinary people. The situation is similar and so are the people&rsquo;s expectations. The early 1990s have proved that the economy can revive if the political leadership is committed for that, says economist Dr Jagadish Chandra Pokharel. A revival in confidence is sorely needed if the country is to deal with the slowdown in economic growth, he adds. The new government should facilitate the business environment. Stable policies and investment friendly mechanism help to make a recovery in business confidence, according to him. But, as NC this time is most likely to form the government with CPN-UML as almost equal partner, doubts are high wether the post-1990 miracle can be repeated. When CPN-UML came to power replacing NC during post-1990 period, it had reversed some crucial policies adopted by NC.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Fear Side</strong></span></div>
<div>
	Moreover, the country&rsquo;s economic sector is not completely terror-free. The Baidya-led ultra-left communist party may create troubles for the sake of making its presence feel. Given Nepal&rsquo;s immediate past, communal and caste issues may resonate strongly in the country&rsquo;s psyche, across the wide-ranging social and economic strata. Understandably, left-extremism (including UCPN-Maoist) may try to create trouble given the humiliating loss experienced by them in the latest polls. Though their presence has significantly reduced in the national politics, left-extremism may try to fuel labour issues to create trouble in the industrial relations.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Economists, however, argue that the economy and its development, and distribution of benefits, are at least as important as the emotional issue about communities, castes and class politics.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s clear that uncertainty over policy regime and regulations has been a hindrance to foster investment climate in the country,&rdquo; says businessman Pashupati Murarka.</div>
<div>
	&nbsp;</div>
<div>
	The only way out from the existing chaotic situation is to create more and more jobs in the country, Murarka reiterates. The country cannot get rid of political instability until the youths are left jobless, he claims.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Silver Lining&nbsp;</strong></span></div>
<div>
	What are the elements that shape the country&rsquo;s transition from volatile politics to stable democracy? All too often, policy analysts focus on the political process, while neglecting the vital role of economic reform in determining democratic success&nbsp;</div>
<div>
	or failure.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, high unemployment and lack of entrepreneurial opportunities posed serious challenges to Nepal&rsquo;s transition. On the other hand, the country faced growing unresolved grievances caused by issues such as misappropriation of private property, rampant corruption and widening inequality.</div>
<div>
	&nbsp;</div>
<div>
	Yet, there is silver lining. Despite a decade-long political turmoil and armed conflict, the country&rsquo;s economy was good enough to maintain its basic economic indicators in the positive direction. It is for sure that the country will go through a long and complex journey before the current political transition will settle to form a stable democracy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s micro as well as macroeconomic indicators are positive. &ldquo;We have sufficient foreign currency reserves,&rdquo; says joint secretary at the finance ministry Madhu Kumar Marasini. He underlines the need for utilizing the remittance inflow in the productive sector. &ldquo;All we need is proper management of our own resources to open new avenues of development,&rdquo; he opines.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;Despite political instability, Nepal has witnessed a noticeable growth in all sectors during the last decade. And, it is sure that the country can improve its economic indicators if we get visionary leadership, claims former finance secretary Rameshore Khanal.</div>
<div>
	&nbsp;</div>
<div>
	Nepal has made significant progress in various sectors including health, education, drinking water and telecommunication which clearly shows that the country&rsquo;s economy is ready to take off and all it needs is a runway to move on.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>The Issue of New Constitution&nbsp;</strong></span></div>
<div>
	Drafting the new constitution is going to be an uphill task. There are many differences among political parties. But, the country cannot bear perennial transition. It is the need of the hour to fulfill the aspirations and dreams of the people in a positive manner.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Underdevelopment creates multiple problems. It fuels the frustration and pessimism among people which is not good for country&rsquo;s economic health. And, politicians often blame the political transition for the dysfunction of development. In order to end the culture of blame game, we need the constitution which can end the existing political fiasco.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The business community wants this government to draft the constitution on time, opines Rajan Singh Bhandari. The economy cannot go ahead in an ad-hoc basis forever. This fact should be realized by all political parties and they need to draft the new constitution and promulgate it within the stipulated time, he adds.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size: 16px;"><strong>Conclusion&nbsp;</strong></span></div>
<div>
	Many leaders often express the hopes of transforming Nepal into another Switzerland. And, it is not a far cry if we try. Can economic prosperity be achieved in a country that reels under perennial political problems? Entrepreneur Hari Bhakta Sharma says, &ldquo;Yes, we can achieve economic prosperity.&rdquo; We can achieve every success if there is collective effort from the government and the private sector and positive vibes for development among people, he claims.&nbsp;</div>
<div>
	It is widely believed that the new government will be successful to take a decisive role to make our collective dream of becoming rich and prosperous a reality. And, we all need to be clear that the economic prosperity is not meant only for business community but for all of us. Let us make a collective dream and start the journey of becoming a prosperous nation. It is a fact: &ldquo;United we stand and divided we fall.&rdquo; Let&rsquo;s make a collective effort to be the citizens of a prosperous country.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Cover Story" src="/userfiles/images/cs1%20(Copy)(3).jpg" style="width: 575px; height: 570px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>',
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			'created' => '2014-02-12',
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			'description' => 'The results of the second Constituent Assembly (CA) election show that parties contesting on very radical economic ideologies have been rejected by the voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in the urban areas across the nation.',
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		'Article' => array(
			'id' => '2443',
			'article_category_id' => '40',
			'title' => 'Partners In Economic Growth',
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			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;">Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? <strong>Achyut Wagle </strong>analyses the challenges and opportunities.</span></div>
<div>
	&nbsp;</div>
<div>
	When we say &#39;engaging development actors&#39; we are talking about hierarchical operational levels like local, district, sub-regional, regional, national, international and global, where each of these levels &nbsp;form a complex matrix of actual actors primarily from five sectors -- the public or government, private or business, civil society, actual beneficiaries or common people and, development partners (donors).&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The economic growth is only possible through multidimensional interactions among these different groups of actors that are defined by the recent development literature as multi-stakeholder approach of development. The scope and limitation of the roles of each of these and conflicts and/or complementarities of the interests of these actors, singly or jointly, determines both the scale and the speed of the economic growth of any country, including Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, there is a problem in the definitional level, that is, whether all players in Nepal could be covered by these five categories of development actors mentioned above. Take for example Nepal&#39;s political parties who on their own right want to be the development actors, whereas their role and influence in development domain should either come through the public sector (for those who win the election and form the government) or only as the common people or the beneficiary (until they win the next election). The face of the civil society, if it has any, is not different from that of the political parties. In international practice, donors do not figure out with separate identities, who in Nepal&#39;s case appear even more quintessential actors. These distortions have serious implications both in engaging the development actors in their due roles and also attaining the ultimate results of our development endeavours.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Actors</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. The Government</strong></span></div>
<div>
	It is obvious that we need government for governance, hopefully a good governance. Although Nepal is not an exception among the least developed nations that face the crisis of governance, but one additional dimension in our case is we persistently face deficiency of democracy, perhaps more acutely at present. Nepal&#39;s politics during the last six decades of modern history has invariably been dominated by the dictatorial forces of some form that didn&#39;t believe in pluralistic, competitive democracy. This has been the main source of crisis of governance in general, manifested in the form of rule of force than rule of law, poor growth of institutions and their effectiveness, haphazardly conceived and weakly implemented policies, misuse of the state power by the powerfuls, strong nexus between the crime and law enforcement, utter lack of transparency and rampant corruption in public expenditure, rise of business syndicates and, worst of all, pervasive and persistent impunity. And, the list can on, and on.</div>
<div>
	&nbsp;</div>
<div>
	We don&#39;t have elected local governments at the local and district levels for last one decade, for no tangible reason for this vacuum, except for the height of irresponsibility and imperviousness of the political actors of the country. It should have in fact been the first priority of all particularly after the signing of Comprehensive Peace Treaty seven years ago; as the local governments would have been the best channels to deliver the much touted about peace dividend, many of the economic rights and delivery of the public services at the grassroots. Above all, it would have provided the people at the grassroots with direct access to the state mechanism. One can only imagine at this point, how many of new generation of leaders this process would have produced and how much would it have facilitated the process of proposed federalization of Nepal.</div>
<div>
	Nepal never created democratic government institutions at sub-regional or regional levels. We have bureaucratic arrangements like regional administrators who virtually have no role in economic planning and development except for that of official messengers.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="The Engagement Matrix" src="/userfiles/images/CS2%20(Copy).jpg" style="width: 550px; height: 307px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	At the national level, we have Himalayan scale of policy confusions at development governance. We still have National Planning Commission (NPC) located inside the high walls of Sigha Durbar, that mercifully distributes development to the people of far and wide corners of Nepal. We still believe that the people who live in NPC as if have divine senses to understand the exact development needs of the people living at Tinker and Olangchung Gola and ability to address them from here. The duplication of the roles between the finance ministry and NPC, the constant squabbles and ego-clashes of the mandarins in them is staple national drama. The independence of central bank has always been a mirage, as we saw ten governors in Nepal Rastra Bank in as many years. We never had and, nor will have the possibility of implementing &nbsp;an independent monetary policy of our own in foreseeable future due to &#39;pegging&#39; of Nepali currency with the Indian Rupee.</div>
<div>
	&nbsp;</div>
<div>
	At the international level, Nepal is gradually losing its credibility as a viable economy. We have not been able to organize the Nepal Development Forum, to interact with our international development partners, for the last one decade. Our ability to communicate about our needs with them and prioritize development areas to streamline their support has substantially reduced. &nbsp;The torch-bearers of our economic diplomacy are the political nominees typified, for example, by the recently sacked Nepali ambassador to Qatar. We may talk about FDI, but it has even stopped trickling in. We have also failed to introduce a functional mechanism to make sure that all official foreign assistance is spent through our budget, despite the fact that many of the donors are in favour of such a system.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. The Private Sector</strong></span></div>
<div>
	The post-1990 marked an era that tried to put the private sector in the driving seat of economic growth. The policies of liberalization, privatization and legal as well as institutional reforms initiated by the first elected government after reinstatement of democracy brought about substantial positive changes, the impact of which has withstood violent conflict of a decade. Private airlines, large private sector banks, private hospitals, multiple universities, private investment in communication, information technology and hydropower, and private participation in building infrastructures like roads and irrigation facilities are some of the exemplary outcomes of these policies.</div>
<div>
	&nbsp;</div>
<div>
	But this encouraging trend was abruptly truncated by the armed conflict waged by the Maoists and, after seven long years after cessation of hostilities too, there is no certain sign of putting the policy of private-sector-led growth back on track. The political mayhem we are witnessing even after the second Constituent Assembly elections last month is even more disgusting to say the least.</div>
<div>
	&nbsp;</div>
<div>
	Needless to say, three preconditions for private sector actors to come forward to contribute to economic growth are: ensured private property rights, an appropriate business climate that encourages investment and a predictable policy regime that provides &nbsp;a reasonable time horizon for conceptualizing, executing, operating and if needed closing of the businesses without being unnecessarily anxious about the safety of, as well as, return from the investment.</div>
<div>
	&nbsp;</div>
<div>
	But, the greatest challenge to all of these aspects not only comes at the operational level but at the level of the very philosophy of the strongest of the political forces of Nepal. Confiscation of the private property, politically patronized trade unions disturbing the industrial atmosphere, politically sponsored extortions and sheer unpredictability of the public policies are true bottlenecks for the private sector investment, both foreign and domestic. Consequently, economy suffers from low level of investment and job creation, low level of private sector confidence and, as the result, massive amount of capital flight from the country.</div>
<div>
	&nbsp;</div>
<div>
	Despite all these odds, we must acknowledge the fact that the private sector has constantly been instrumental in the delivery of goods and services at the lowest possible price levels when the presence of government apparatus is as good as non-existent, and even when the armed conflict was at its height.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Civil Society and NGOs</strong></span></div>
<div>
	Nepal&#39;s civil society and the media don&#39;t believe in a long but natural process of the outcome of their activities. The natural role of the civil society or media is to cater the common people with factual information, on the basis of which people form their opinion, and that opinion gets reflected through the ballots. Then comes change through the policies of the mandated government. But, instead, in Nepal they want to be seen as activists and instant impact makers. The NGOs and INGOs strive deliberately to slip-out from the bracket of civil society and claim themselves to be real, grassroots development partners.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The media outlets in general have grown in terms of quantity, quality and reach, whereas NGO activities have become more suspicious and slanted. A large number of INGOs are deeply engaged in spreading this or that religion. . We probably need to re-examine the extent of real contribution of many of such NGOs to the economic growth, development and social harmony of our country.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. The Beneficiaries&nbsp;</strong></span></div>
<div>
	The common people both as actors and true beneficiaries of the economic growth and development efforts are at complete loss of direction. First, the people who are so far completely deprived of any form of meaningful development are not capable of even to identify and articulate their developmental needs. Let me directly quote from a woman whom I had met at Dehimandu of &nbsp;Baitadi, a year ago. In her early thirties, she looked like of fifties, who on top of a heavy load of fodder was carrying two malnourished kids and a pitcherful of water in her arms.</div>
<div>
	&nbsp;</div>
<div>
	When I asked her what did she looked for to ameliorate her sufferings, she first vehemently denied that she had had any suffering and then explained -- she was a happy woman as she could fetch drinking water walking just for 45 minutes whereas she had to spend some one hour in her parental home before marriage, collect fodder from the grassland half an hour away, her two kids out of six she gave birth have, fortunately, survived, her husband who worked in the Indian town of Pithoragarh visits twice a year, her mother-in-law beats her only once or twice a month, she had four cattle and enough land to feed her family for eight months in a year and rest is managed by her husband and his brother. She has plans for sending her kids to nearby school, just two hours of walk, for few years, and then they will follow their father to work in some Indian city. &#39;I am a happy woman and want nothing more,&quot; she emphasized.</div>
<div>
	&nbsp;</div>
<div>
	I don&#39;t think this story needs any further illustration.</div>
<div>
	&nbsp;</div>
<div>
	Second, who know what they want, they too don&#39;t have access to the authorities or knowledge on how to communicate their demands and concerns. Even if some managed to communicate, the end result may just be the same as being idle, ab initio.</div>
<div>
	&nbsp;</div>
<div>
	There is another extreme, where people lately have begun to obstruct the development projects claiming to have absolute ownership of the entire natural resources of their area. The process of participatory development is impeded either way.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. The Donors</strong></span></div>
<div>
	Unlike in other countries, donors for Nepal&#39;s case are imperatively very crucial development actors. It is but natural that the donors, particularly the bilateral ones, have their own interest or agenda in providing the financial assistance to Nepal. The nature of such interest, though, may vary from presenting a mere philanthropic face of the donor in question, influencing in certain policies, providing business to their home companies to increasing diplomatic clout.</div>
<div>
	&nbsp;</div>
<div>
	It is the responsibility of Nepal as a nation-state to identify our needs, prioritize them and explore the areas of possible engagements for the donors where their interest may be served without jeopardizing or compromising our own interests. We often degrade ourselves claiming that we cannot afford to be selective or, to say no. May be true. But we definitely can streamline the support and make them to agree to spend in our projects and programmes chosen by the national budget system.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Foreign Employment" src="/userfiles/images/CS3%20(Copy).jpg" style="width: 550px; height: 330px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	For years, we have tried to formulate a functional foreign aid policy but failed to conclusively frame and effectively implement it. Our absorption capacity of foreign assistance has often been below the &#39;fair&#39; mark and donors seem reluctant to increase and diversify the support mainly due to prolonged political transition and uncertainty coupled with administrative inefficiency. We have often failed to meet the capital expenditure earmarked by our own system that hardly gives incentive to major donors to augment their grant or loan portfolios.</div>
<div>
	&nbsp;</div>
<div>
	We often hear not only engagement but of overengaement of the donors in our development process. They are often alleged of directly interfering in policy making, selection and implementation of the projects etc. Many countries bring in their own experts and repatriate larger chunk of their support back home. Discrimination in pay for the same work between the Nepali staff of same qualification and caliber against their consultants is whopping. Probably Nepal has left more vacuum, not doing proper homework in time to make their engagement more fruitful yet unintrusive.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Dynamics and Correlations</strong></span></div>
<div>
	Let&rsquo;snow dwell briefly on a few key dynamics of Nepali economy. I will touch upon only those areas which appear to be inconsistent in pattern, look paradoxical or needed fresh looks and comparisons.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Dynamics of the Human Resource and Migration</strong></span></div>
<div>
	Nepal&#39;s population growth rate now stands at 1.4 percent per annum according to census 2011. Without going into the boring details of numbers, &nbsp;we can say that some of the development indicators certainly show that we have made very impressive progress in terms of increasing the primary school enrollment, literacy and life expectancy, reducing child and maternal mortality rates, increasing access to health and transport services etc.</div>
<div>
	&nbsp;</div>
<div>
	But with regard to human resource development, we are caught in a very awkward position. About one third of the working age population (or about twelve percent of the total population) has out-migrated to foreign employment, mainly in menial jobs. Better educated too, have migrated to developed countries, majority of them with a set mind to permanently settle in the destination countries.</div>
<div>
	&nbsp;</div>
<div>
	It is an interesting paradox that migrated unskilled and uneducated youths are sending their entire earning back to Nepal and the remittances thus received have saved Nepali economy for at least a decade now from potentially falling into acute balance of payment crisis. On the contrary, the educated lot is not only migrating but also taking a hefty sum, on an average forex equivalent of about 35 billion rupees every year, from the national coffers towards tuition, travel and accommodation costs.</div>
<div>
	&nbsp;</div>
<div>
	In a rough calculation, to create a university graduate with sixteen years of education in private institution at present prices costs the nation between 5 to 6 million rupees. And, the return to the nation is clearly zero when one migrates never to come back. It is another paradox that the poor country like Nepal is investing so heavily in human resource to be used solely by the developed countries. The cost-benefit comparison shows that after such a big investment in education, it is unfeasible for them to stay in Nepal and get the cost returned given the lack of opportunities and relatively unattractive pays here.</div>
<div>
	&nbsp;</div>
<div>
	Then, left here in Nepal are true mediocres, who have spent less, studying in community schools, compelled to be contended with low rate of return and perform far below than the average. Nepali civil service is the true mirror of this phenomenon. If the trend of migration is not reversed, very soon Nepal will lack the required human resource of both low and high end skills. This is likely to have serious repercussion in national output. A trend is already visible in sectors like metal and construction works.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Direction of Foreign Trade" src="/userfiles/images/CS4%20(Copy).jpg" style="width: 550px; height: 429px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Dynamics of Foreign Trade and Remittances</strong></span></div>
<div>
	Nepal&#39;s trade deficit stood at scary level of 500 billion rupees in the last fiscal year (2012/13). Official figures show that export to import ratio was 1:6, whereas unofficial estimates suggest that such ratio should stand at 1:10. The accompanying table is self explanatory.</div>
<div>
	&nbsp;</div>
<div>
	In the last FY, Nepal received about 435 billion equivalent of remittances from the migrant workers. This definitely has put Nepal in comfortable level of forex reserve. But, a comparison of trade and remittance data suggests that our economy is heading to a very dangerous trend of the Dutch Disease like effect. Our consumption has been fueled by the remittance income of the households, which in turn is widening the export-import gap. Our productive sector is paralyzed for lack of power, human resource and investment. Our imports are largely consumables, perishables but hardly the production inputs. This apparently is unsustainable, dangerous trend. We need to re-identify Nepali goods that can have comparative and competitive advantage in the export market. At the same time, we must be able to diversify both export and import trade.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Dynamics of Growth and Poverty</strong></span></div>
<div>
	Nepal&#39;s average annual GDP growth rate during the last fifteen years has remained barely at 3.5 &nbsp;percent level. But, in the same period, the headcount poverty, the percentage of the population living below $1 dollar a day poverty line at PPP has unbelievably reduced from 58 percent in 1996 to 25 percent in 2011. What we are effectively saying here is that the poverty can be reduced without growth. In other words, we are challenging the existing theories that correlate growth and poverty and suggesting a completely new economic paradigm on both growth and poverty reduction. This is impossible. The government&#39;s development literature attributes this as the effect of the increased inflow of the remittances. Again, if that is the case too, we are saying that the remittances do not contribute to the economic growth but reduce poverty. This is equivalent to proposing an absolutely new economic theory.</div>
<div>
	&nbsp;</div>
<div>
	In countries like India and Argentina some 30 percent people still live under the poverty line. Mexico has 28 percent people under this magic line. It appears that we are very fast approaching to the United States which still has 15.1 percent people living under the poverty line, according to the World Bank data of 2011. All these are impossible and counter-intuitive arguments and one single conclusion of this is: what we are saying is not credible. On the one hand, we are saying that graduating a country from the least developed to a developing one is a highly ambitious enterprise, on the other our poverty data shows that we are already in far higher position than many of G-20 countries.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Investment and Infrastructure</strong></span></div>
<div>
	The private sector investment both domestic and FDI are in declining trend. The foreign direct investment of Rs. 9.08 billion was recorded in FY 2012/13compared to Rs. 9.20 billion in the previous year. The intent of investing about Rs. 39 billion was proposed by domestic entrepreneurs in the same year, which is less by some seven percent than the previous year. Apart from this, an investment of Rs 100 billion has been proposed for the hydel projects expected to be completed in next five years.</div>
<div>
	&nbsp;</div>
<div>
	One of the very encouraging developments is that the private sector has more aggressively come forward to invest in infrastructure than ever, not only in power but also in the telecommunications, surface transportation and airports. There are a number of large J-V projects in hydropower like Upper Karnali, Upper Seti and Arun III, at different stages of development. Yet, they have constantly been victim of political bickerings and protracted decision making process in the bureaucracy.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="" src="/userfiles/images/CS1%20(Copy)(1).jpg" style="width: 550px; height: 367px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	Very shaky political climate is main distraction to investment, both domestic and foreign.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. Agriculture and Manufacturing</strong></span></div>
<div>
	Our experience suggests that Nepal is not faring well in the manufacturing. Many products we tried could not compete with Indian and Chinese goods that are in instant supply and cheaper for the reasons of mass production and use mostly of their own raw materials. But on the contrary, Nepal has fared well in our niche products like hand-spun dhaaka and pashmina, handicrafts and herbs where there is our backward link in production and possibility of substantive value addition.</div>
<div>
	&nbsp;</div>
<div>
	The manufacturing industries that use Nepali agricultural products have seemingly given better returns to investment. The commercialization of agriculture itself presents real prospects for investment, perhaps in a scale thus far not even imagined of. Off-season farming of cash-crops and commercial farming of valuable herbs can open new avenues in the agriculture sector. Added road links to provide market access should be able to attract new investment for processing, phyto-sanitation and storage facilities. But, we often get carried away by the documentary camouflages like Agriculture Perspective Plan (APP), which presented every possible good plan for agricultural growth without any mention about the land where farming would be done. This was truly a plan made to farm in the air. Just an example.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>6. The Service Sector &amp; Growth Linkage</strong></span></div>
<div>
	Two sectors, financial services and tourism have exhibited very promising trend both in terms of attracting substantial amount of investment and promising good rate of returns. The financial sector now mobilizes about Rs 1.1 trillion of deposits and Rs. 0.9 trillion as loans and investments. The growth in the sub-sectors of insurance, stocks and commodities has also been impressive. But the hard fact is, Nepal&#39;s entire banking sector even jointly doesn&#39;t have liquidity enough to finance a medium-scale hydro project of say of 200 MW. Similar is the situation of insurance companies to provide insurance cover to these projects if they opted to insure. We don&#39;t have a domestic reinsurer, yet.</div>
<div>
	&nbsp;</div>
<div>
	Areas like transportation services have also expanded, along with the increased road networks. The tourism infrastructure is growing steadily. Health and education services by now have national reach due to private sector investment. But the issue here is: how do we make the expansion of these sectors contributory to the overall economic growth of the country? Anomalies like in these sectors have rather added new problems. For example, the over exposure of the banking credit in the real-estate has fueled inflation, created large portfolio of NPA in the industry and put &nbsp;the balance-sheet of a number of banks in a very bad shape for a number of years.</div>
<div>
	&nbsp;</div>
<div>
	The transportation facilities can contribute more if they provided easier market access to the products and supported supply of inputs to increase the production and add value to them. But, largely, the scenario is just opposite.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>7. Choice between Improved Subsistence &amp; Prosperity</strong></span></div>
<div>
	There has been virtual explosion in small scale development initiatives like solar and micro hydro for rural electrification, NGO-led rights based development and awareness campaigns, literacy classes, skill development and self-employment schemes, community or gender-focused empowerment programmes etc. Policies of reservation, inclusion and positive discrimination are now widely debated. These definitely are good things.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	But we need to link these activities with our main objective. If our prime aim is a little improvement in the bare subsistence life-style and help reduce abject poverty, these are definitely the ways we should invest and focus on. But if our aim is tangible economic growth that can also compensate to the lost opportunity of decades, we need higher degree of commitment, massive investment and multi-stakeholder engagement at all possible levels, as we discussed about. By now, it is apparent that these small things may be beautiful in facilitating poorest of the poor to live relatively a better life, but seldom enough to effectively speed-up the economic growth and overall prosperity and well-being of the entire population. When we can uplift the living standard of every citizen, universally ensure education and employment, issues of inclusion and reservations automatically become redundant.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Choice" src="/userfiles/images/CD2%20(Copy).jpg" style="width: 550px; height: 413px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Engagement: Process &amp; Paradigm</strong></span></div>
<div>
	&#39;Engaging Overall Partners&#39; is a great concept and also an absolute imperative. But engaging multi-stakeholders with varying, often conflicting, interests is an equally challenging proposition. It perhaps requires a different development culture than Nepal is practicing now. We need both formal and informal common forums, factual information and access to them, effective communication amongst all stakeholders in multitude of directions, &nbsp;reasonable level of credible independent research to ascertain what is working and what is not and, of course, a unity of purpose at the macro level of objectives.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Some key components that can be instrumental in enhancing such engagement can be as follows:</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>1. Discourse</strong></span></div>
<div>
	Nepal utterly lacks any form of meaningful discourse, at any level on economic, financial and developmental issues, except for some media reports and limited number of seminars that take place, here and there. Such discourses should have taken place at three different arenas -- the political parties, policy making units and the academia. And, they should.</div>
<div>
	&nbsp;</div>
<div>
	Since the political parties are the one who govern the country, the economic policy of each major one of them is important tool to make people understand their means and ends of the economic growth and development. Such policy of each party, ideally, should be framed through fully democratic debate at all levels of the respective party organizations; and reflected in their manifestoes. But, this is not at all the case. Except for a couple of leaders in each major party who understand economic issues, the entire outfits are virtually illiterate about the economy, its components and trends. Worst of all, none of these parties have understood the importance of such debate and need to initiate them sooner than later.</div>
<div>
	&nbsp;</div>
<div>
	At the policy making level, trained economists are rare species. A couple of recent finance ministers, for example, were undergrads in subjects other than economics. Bureaucrats have more incentive in appeasing their bosses in any possible way but professionalism. They lack refreshment trainings, more so in economic issues. The redundancy of their rusted ideas gets amply reflected in the so-called new but essentially archaic policies. It is one of the main reasons that our economic policies seldom work.</div>
<div>
	&nbsp;</div>
<div>
	Both of the deficiencies in political and bureaucratic levels should have been bridged by the discourse at academic level. But, unfortunately, in Nepal such discourse is completely absent. A few academics who have made some name as economists have limited themselves in the role of consultants to INGOs and impartial viewpoints about national economy are non-existent. The reluctance of newer universities to institute the department of economics is indicative enough to explain the predicament.</div>
<div>
	&nbsp;</div>
<div>
	Discourses at stakeholders&#39; level, on the topics suitably designed to them are another striking need. At the donors&#39; level, they seem to have instituted a loose network, but its effectiveness as a debate forum on the core economic issues is still beyond the public knowledge.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>2. Research</strong></span></div>
<div>
	For meaningful engagement at any level, credible data are the primary need. The factual information only can ascertain the scope of participation for each stakeholder. But, whenever we try to talk about any aspect of Nepali economy, we immediately loose thread for lack of proper data and absence of conclusions drawn out by properly analyzing them. As mentioned above, we have contradictory and unbelievable or just tentative figures even on cardinal data like GDP, inflation, unemployment and trade. All comparison and correlation conclusions, like I made above, are largely heuristic. We have no option citing whatever the government agencies like the National Planning Commission, Nepal Rastra Bank or Finance Ministry cook in the name of research and analysis. The nation hardly invests anything in research. There are not independent, credible and well-equipped institutions to carryout research in multi-dimensional aspects of the economy and its trends. Such large scale researches need substantial resources and experts right from the stage of research design to econometric analysis and interpretation of those results. There must be somebody to invest on them.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>3. Reform</strong></span></div>
<div>
	The policy and institutional reforms are other important areas that ensure participatory engagement among the development actors. The continuous process of policy reforms provide opportunity to accommodate the emerging needs, practically realized in the development processes at different levels. The institutional reforms increase the functionality of the actors and replicability of the good practices. Nepal also greatly lags behind in undertaking reforms that are due for long time. Some multi-donor sectoral approaches (SAps) in education and health sectors have delivered impressive results. If similar policy as well as institutional frameworks can be extended to include other possible actors in more sectors, that is likely to increase the portfolio efficiency.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>4. Streamlining</strong></span></div>
<div>
	It is important to understand, when we engage multiple stakeholders, it is natural to have varying interests, priorities, methodologies and objectives to come to fore. Without streamlining them, the national objective of economic prosperity is impossible to achieve. Extensive exercises of benchmarking, clustering, grading and ranking are the necessary part of this process. This can greatly reduce the duplication or omission of many of development endeavours; thereby increase the allocative efficiency of resources. A national focal point, a functional unit, not a generic large structure like a ministry, is internationally adopted practice. At times, when the government agencies try to do it, there are instances of conflicts between the different actors. Therefore, such tasks could be outsourced to some independent professional entity with established, proven credibility.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>5. &nbsp;Good Faith</strong></span></div>
<div>
	All forms of engagements are only possible if the actors are committed to support in good faith on single objectives of economic growth and development of Nepal. The source of good faith is the spirit of democracy that respects the plurality of views, culture of agreeing to disagree and readiness to be partner in the process than to be a savior or ruler. We all have our interests. Sacrifice of a small portion of it by each actor might create a large space for engagement and cooperation and also help serve our own interests better while helping others to serve their own.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<em>&nbsp;(Based on paper presented by the author, in IVAAN seminar, 7th Dec 2013 in Kathmandu.)</em></div>',
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			'description' => 'Multi-stakeholder Approach is the recent buzzword in development literature. How can Nepal use this approach? Achyut Wagle analyses the challenges and opportunities.',
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		'Article' => array(
			'id' => '2310',
			'article_category_id' => '40',
			'title' => 'New Nepali ‘Laissez Faire’ How Strong? How Long?',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.</div>
<div>
	&nbsp;</div>
<div>
	There is hope in the air. Seven out of every ten Nepalis on the voters&rsquo; list of Nepal have exercised their franchise. And, six out of every ten Nepalis who have voted have gone for centrist and liberal left political forces (Nepali Congress &amp; CPN UML), while virtually rejecting the far left polls-boycotting so-called 33-party alliance, the radical left Maoists led by Prachanda, and the rightist regional forces of Madheshis and far right RPP forces.</div>
<div>
	&nbsp;</div>
<div>
	The message is clear. Enough of politicking, now make the polity firm and economy firmer. Create a business environment that is conducive to entrepreneurs, to foreign direct investment and to rapid employment generation.</div>
<div>
	&nbsp;</div>
<div>
	New Business Age interacted with several experts and noted people from various walks of life to ascertain the mood of the nation with regards to the economy of tomorrow.</div>
<div>
	&nbsp;</div>
<div>
	There is surely a high hope that the newly elected CA-Parliament will draft the new constitution that would introduce new economic policies that would propel the country toward the positive direction and we could witness the inevitable growth and development of the country coming with a stable economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Eminent economist Rameshore &nbsp;Khanal, the former Finance Secretary sums up the spirit rightly, &ldquo;The Constituent Assembly election results show parties contesting on conservative economic ideologies have been rejected by voters. Nepali Congress (NC), which is considered as a party having the most liberal economic policies, dominated the polls especially in urban areas across the nation. People expressed their aspirations and exercised their power during this election so as to set the progressive course for issues that matter them the most.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The defeat of the Maoists and the regional forces is also seen as the defeat of the federalist agenda. Khanal further notes, &ldquo;In fact, business community was terrorized due to ethnicity-based federal agenda put forth by UCPN Maoist,&rdquo; he said, adding that the recent poll results might have relieved the entire business community. More than 90 per cent businessmen do not want federalism based on ethnicity because they cannot do good business amid ethnic tensions. The entire business environment would be more volatile if political parties that favour regional and ethnic agenda had won the election&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Kamlesh Kumar Agrawal, the General Secretary of Nepal Chamber of Commerce, observe, &ldquo;Clear mandate for the centrist parties is a good sign indeed, and a major difference from the last CA election result. Now is the time for them to fulfill their promises of economic revolution or rapid development&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	Shekhar Golchha, the President of Nepal Automobile Dealers&rsquo; Association, is visibly happy with the turnout, the peaceful polls and the results emerging out of the process. He is satisfied that while issues of federalism, sub-national identity etc found limited mention in election manifestos of most parties, the focus has rightly been on economic aspects and stability of the polity.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Bhaskar Raj Rajkarnikar, the Senior Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), is confident that the new Constitution shall finally be put in place in Nepal now. And the government shall now work firmly towards creating investment-friendly environment in the country. However, he also strongly espouses the need to have local governance bodies as well.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election " src="/userfiles/images/cs1%20(Copy)(2).jpg" style="width: 550px; height: 209px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Common Minimum Economic Agenda</strong></span></div>
<div>
	It would be pertinent to mention here that the five recent former Prime Ministers of Nepal (Madhav Nepal and Jhalanath Khanal of CPN UML, Sher Bahadur Deuba of Nepali Congress, and Pushpa Kamal Dahal and Dr Baburam Bhattarai of UCPN Maoist) came on the same platform of Nepal Leadership Summit created in Birgunj by the Birgunj Chamber of Commerce and Industry and New Business Age group, and at the end of their deliberations on Economic Growth Roadmap of Nepal for the next one decade, they had signed a 12-point Common Minimum Economic Agenda, which included several fundamental issues.</div>
<div>
	&nbsp;</div>
<div>
	The Declaration noted that the ratifying five leaders commit to give priority to the national economic agenda rather than their respective party agenda in national interests, and also to end the current uneasy industrial relations in favour of productivity, and bring in a new labour and industrial policy conducive to overall economic development. The leaders firmly were committed to individual property rights, the important role of the private sector in the economy, and to an environment to attract rapid FDI in Nepali industries.</div>
<div>
	&nbsp;</div>
<div>
	A sampling of the core issues taken up in the talks by these leaders: &ldquo;Unhindered power supply is the pre-condition for economic development, in which the government should not run businesses, but just be the regulator,&rdquo; Sher Bahadur Deuba; &ldquo;Green economy the focus of economic development,&rdquo; Madhav Nepal; &ldquo;Agriculture, regional market and infrastructure development for economic prosperity,&rdquo; Jhala Nath Khanal; &ldquo;Foreign investment urgently required, and economic revolution with justifiable distribution must,&rdquo; Dr Baburam Bhattarai; &ldquo;Time for economic revolution, in which agriculture is the base, and production, construction and development going hand in hand,&rdquo; Pushpa Kamal Dahal.</div>
<div>
	&nbsp;</div>
<div>
	Today, since three of these former PMs are the top leaders of the top two parties, Nepali Congress and CPN UML, getting support of above 50% of the voters who exercised their franchise, this itself can be the first corner-stone of economic policy-making of Nepal next.</div>
<div>
	&nbsp;</div>
<div>
	<img alt="CA Election Nepal" src="/userfiles/images/cs2%20(Copy)(1).jpg" style="width: 550px; height: 355px; margin-left: 10px; margin-right: 10px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Securing Private Property</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Narottam Aryal, Educationist" src="/userfiles/images/cs3%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 259px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Narottam Aryal</strong></div>
						<div>
							<em>Educationist</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	The first and the biggest concern is of security of private property and business.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;The new constitution MUST acknowledge the role of private sector in the national development and ensure the property rights and should guarantee its security,&rdquo; notes Narottam Aryal, an educationist leading the forum of Nepali colleges affiliated to foreign universities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Similar voice is echoed by the Manager (Business Development), Chaudhary Group, Roshee Lamichhane, &ldquo;There is an urgent need to espouse and introduce economic reforms in Nepal with their principal focus on Private Property holding, freedom for entrepreneurial innovation, and abolishing cartel systems.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Employment Generation</strong></span></div>
<div>
	Property rights apart, the next big concern is naturally of employment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	According to Central Bureau of Statistics, the unemployment rate stands at an alarming 46 percent. The only ambition that most young people have is to leave Nepal and a couple of thousands of young people get on planes every day and fly to the Middle East, South East Asia, Europe and beyond to find jobs. However, there is a huge potential of jobs within the country itself. &ldquo;To address this issue to a larger extent I believe private sectors should be promoted to play a vital role in the growth of national economy and in creating new employment opportunities as it is the only sector that remains the single largest employer,&rdquo; notes Amit Giri, CEO of International Centre of Academics focused on the task of taking higher education through distance and online learning mode to working people of Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Limiting Government Role in Business</strong></span></div>
<div>
	A well-known axiom states that the business of government is not to do business. The government has to define in a very clear and precise terms the roles and responsibilities and limit of the state and roles of the private sector.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Educationist Narottam Aryal of King&rsquo;s College notes in this context, &ldquo;I think that there is still a huge confusion on this front in Nepal. I think that the Government should limit itself to building infrastructure, creating maintaining legal institutions, maintain law and order and peace, and education and health. For the rest of the things the Government must create an enabling environment for the private sector. The new government must bring the programs to promote youth entrepreneurship with a special focus on agriculture and tourism.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Agriculture: the Mainstay of the Economy</strong></span></div>
<div>
	Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Amit Giri calls for policies that allow agrarian credit, market forces to help develop agri-business and conducive environment ensured by the government for the same.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Infra-structure Leap: Backbone for Industrialization to follow</strong></span></div>
<div>
	&nbsp;</div>
<table align="left" style="margin: 0px 10px 0px 0px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Bijay Rajbhandary, Managing Director CE Construction Pvt Ltd" src="/userfiles/images/cs4%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 223px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Bijay Rajbhandary</strong></div>
						<div>
							<em>Managing Director</em></div>
						<div>
							<em>CE Construction Pvt Ltd</em></div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;Infrastructure development is a basic tool to upgrade the country&rsquo;s economic activities, hence there has to be special policies to accelerate the development activities. Real Estate sector, despite its significant contribution in country&rsquo;s economy is highly fragmented and disorganized. Hence, in order to strengthen this sector, it should be treated as an industry and proper norms and policies should be formulated protecting the interest of this industry, Policies need to be introduced for allowing the foreigners to buy apartments in Nepal with $ 100,000 ceiling but through foreign currency to help boost foreign currency reserves in Nepal,&rdquo; notes Bijay Rajbhandary, the Managing Director of CE Constructions, a leading realtor of Nepal.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	It is worthwhile to note that though more than 10,000 kms of roads have been blacktopped, at least another 10,000 kms need to be done so out of the 40,000 kms of graveled roads to help push business through ground transport.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Power Surplus Nepal</strong></span></div>
<div>
	Former Finance Secretary, Rameshore Khanal, is bang on, when he says, &ldquo;New government should focus on power generation to boost the production since the overall productivity of the country has been affected due to the condition of power deficit. &nbsp;Also, new government should immediately forward some laws related to economy including banking, electricity, industries among others and it should bring special measures to attract more foreign direct investment.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Bijay Rajbhandary echoes the same spirit when he says, &ldquo;Needless to mention, our country is reeling under the acute energy crisis, and in the light of the fact that Nepal has the capacity to generate hydropower sufficient to export, apart from internal consumption, there has to be some special arrangement from the government side to ensure that such projects are protected from any kind of hindrances, be that political or social.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	A nation with more than 80,000 MW of hydel power producing capacity, and with immense solar and biomass power resources, has less than 1000 MW of installed capacity. Nothing can be a larger wastage of resources than this, indeed.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;Power Surplus Nepal movement, engulfing enabling policy-making by the government, active domestic and foreign direct investment in this sector, a pro-active media influencing public opinion towards it and a dynamic bureaucracy, has to be the primary national mission today,&rdquo; notes journalist Janardan Baral.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Investments: Domestic and Foreign</strong></span></div>
<div>
	&ldquo;There are lots of investments currently held up with the hope of much anticipated stability. The election result clearly embraces free market economy and has rejected federalism based on ethnic provinces (showing inclination towards economic development). Militant workers&rsquo; union affiliation is assumed weakened that gives hope for local industries that have suffered over a decade. I have reasons to hope these foundations will be addressed in the Constitution. I hope the government will vigorously implement promises, focus on stability, invest in infrastructure and recoup the lost decade of dark era. All this will boost investor confidence that will take the country to a much awaited, rather needed, growth trajectory,&rdquo; notes Managing Partner of Mathema + Partners, an architectural firm Ajaya Mathema.</div>
<div>
	&nbsp;</div>
<div>
	Taking the discourse to the policy level, Bijay Rajbhandary says, &ldquo; We need clear-cut policy for Foreign Direct Investment in Nepal that would allow a good influx of foreign capital along with their expertise that would create a good development as well as job opportunities within Nepal. Likewise, we also need a policy allowing Nepali investment in foreign land in order to explore and exploit the growth opportunities present in those countries.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Educated, Trained Nepal</strong></span></div>
<div>
	&ldquo;A major focus in the new Nepal should be on providing free and quality primary and secondary public education to all as the research shows that access to secondary education (grades 9-12) remains a major challenge, as evidenced by the disturbingly low net enrollment rate of 24 percent at this level. More than half of primary students do not enter secondary schools, and only one-half of them complete secondary schooling. In addition, fewer girls than boys join secondary schools and, among those who do join, fewer complete the 10th grade. Girls should be encouraged more to study as I believe that when a girl gets educated a family gets educated and when a family gets educated the society gets educated. Hence, the country gets educated. Alongside, to make higher education accessible at every Nepali, liberalization of the education sector leading to more and private Universities and even Distance and Open Learning Universities need to be allowed by the government changing the current policy regime in this context,&rdquo; notes Amit Giri.</div>
<div>
	&nbsp;</div>
<div>
	Focusing on systemic changes within the sphere of public education in Nepal, Bijay Rajbhandary notes, &ldquo;Education sector must be secluded from any kind of political interference at all levels. Besides, teaching methodologies also need to be amended giving more emphasize on general and practical knowledge and skill development rather than making it exam focused&rdquo;.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Media &amp; Entertainment Sector</strong></span></div>
<div>
	Narayan Puri, noted film-maker and the CEO of Himalaya TV, speaking on expectations of the entertainment sector, says, &ldquo;We&rsquo;ve been waiting for development in our industry as well. There must be given soft loan for this industry in low interest, which can happen if this sector is recognized formally as an industry by the government. We need electricity facilities as other normal industries. Further, the owners of entertainment enterprises are often been made hostage by the workers on minor issues and no security is provided for the investors. There has to be strict policy in this regard. This is largely a non-profit business as well as social awareness and information providing business. And, hence, the government should provide subsidy for this business. Different new technical equipments are required in this business so government must tax rebates in this sector. Any kind of media which gives awareness and information to the public about education, public health, etc must be encouraged by the government.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Tourism Promises</strong></span></div>
<div>
	&ldquo;With Nepal having abundant scenic beauty is already attracting many tourists from across the world but there could be an added milestone in this line with some development in tourism sector by adding Health tourism and Religious Tourism in the existing portfolio,&rsquo; Bijay Rajbhandary notes.</div>
<div>
	&nbsp;</div>
<div>
	With airborne tourists still less than a million in Nepal, and per capita spending of tourists coming below USD 40 a day, there is a long way to go indeed. Power supply, better infra-structure, better hygiene, new destinations, integrated promotion of Nepal tourism in select markets with focus on digital communication, along with enabling policy encouraging FDI in tourism as well from the government end will help make Nepal move higher from the current 112th position in world tourism revenues of nations.</div>
<div>
	&nbsp;</div>
<div>
	Rightly does Ashok Pokharel, the President of Nepal Association of Tour Operators, say, &ldquo;Peace, security and physical infra-structure are the hall-marks of rapid tourism growth.&rdquo; Buddhist centre of Lumbini and leading Himalayan destination Pokhara surely need international air connectivity, while Kathmandu needs faster upgradation of road infrastructure.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>The Last Word</strong></span></div>
<table align="right" style="margin: 0px 0px 0px 10px;" width="25">
	<tbody>
		<tr>
			<td>
				<img alt="Roshee Lamichhane, Manager, CG" src="/userfiles/images/cs5%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 200px; height: 224px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<div>
							<strong>Roshee Lamichhane</strong></div>
						<div>
							Manager, CG</div>
					</div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&ldquo;I favour national consensus government should be formed for stability in the political arena&rdquo;, says Rameshore Khanal. And the national consensus government can be created only by bringing the top two largely centrist parties closer, rather together, in their mission, Nepali Congress and CPN UML, he adds.</div>
<div>
	&nbsp;</div>
<div>
	CG Manager Roshee Lamichhane, a representative young voice, notes, &ldquo;New government should therefore ensure that the benefits of economic growth and development are not going to be cornered away by few influential people and businessmen or politicians but are going to be conferred among the masses and the new political regime operates the economy to make it become and remain vibrant with employment opportunities and marketable surplus. I can only envision an ever growing economy wherein the government can satisfy the Nepal&rsquo;s appetite for good food, well served, at a price that even common man can afford.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Taking the discussion to another level, Ajaya Ghimire, Chairman, Ace Institute of Management, says, &ldquo;I do hope however that a constitution will be written within two years. It will embrace periodic elections allowing people to choose who will govern the state. It will also embrace freedom of expressions and freedom of economic activity and constitutional right of the individual against state oppressions. &nbsp;But for people to truly experience those rights and freedom, we will have to wait for our society to evolve from its present feudal mindset.&rdquo; Prophetic, quintessential aspiration of the moment.</div>',
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			'description' => 'The nation after its recently concluded historic polls for the next Constituent Assembly and Parliament registering 71% turnout, now expects liberal economy, business freedom, large-scale FDI and power generation, and employment promoting measures from the new Constitution and the government that comes ahead, as found by Prof Ujjwal K Chowdhury, after talking to several people from various walks of life.',
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		'Article' => array(
			'id' => '2178',
			'article_category_id' => '40',
			'title' => 'Tourism Next In Nepal Vision Ahead',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	<em><span style="font-size:14px;">Premium positioning for higher revenues, advanced infra-structure &amp; larger domestic and foreign direct investment are the mainstay of Nepali Tourism Next, whereas Nepal already excels in authentic and ethnic route to tourism, notes <strong>Prof. Ujjwal K Chowdhury.</strong></span></em></div>
<div>
	&nbsp;</div>
<div>
	The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion. One out of every seven persons travelled to another nation in 2012 and 1 out of every 11 adults of the world is engaged in tourism industry. Emergence of new travel destinations and innovative approaches for catering to the needs of the industry, provides it with the potential to be an important component of the national economy.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	In light of these facts, the New Business Age reviewed the present standing and potential sectors of Nepali Tourism industry and the lessons that the industry could learn from countries including India, Malaysia, Bhutan, Middle East, et al.</div>
<div>
	&nbsp;</div>
<div>
	An international symposium entitled &ldquo;Understanding Tourism and Aviation Next in Nepal&rdquo;, participated by niche experts from India, Malaysia and Nepal itself, was organized in Kathmandu in September this year. This symposium jointly organized by New Business age and Hotel Del&rsquo; Annapurna and sponsored by Qatar Airways and Ace Travels, &nbsp;focused on: raising service standards; creating premium brand of experiential tourism apart from the existing largely value-for-money backpackers&rsquo; tourism; positioning of exotic Nepal; upgrading the tourism and hospitality infra-structure: adding new international airport, additional terminals and new air-routes; and increasing domestic and foreign investments in tourism services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Tourism Next Inaugration" src="/userfiles/images/cs1%20(Copy)(1).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 336px;" /></td>
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					<div align="center">
						<div style="text-align: center;">
							<strong>Secretary of the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire,inaugurating Tourism and Aviation Next 2013. (From left) New Business Age Pvt Ltd Chairman Madan Lamsal, Incredible India pioneer Amitabh Kant and South Asia Director of Tourism Malaysia Amran Abdul Rahman.</strong></div>
					</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Goal: 5% of GDP by 2080 BS</strong></span></div>
<div>
	As the opening speaker, Secretary at the Ministry of Culture, Tourism and Civil Aviation, Sushil Ghimire elaborated on how Nepal aims to achieve tourism turnover equal to 5% of the GDP by 2080 BS. Presently the turnover is less than 2%. Secondly, Ghimire focused on strengthening the capacity of national flag bearer, Nepal Airlines and claimed that the ministry is working towards that end. &nbsp;He laid stress on accessing all major stake-holders&rsquo; views while preparing a long-term future course for a private sector driven domain like that of tourism &amp; aviation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Following Ghimire, key participants from India and Malaysia shared their experience and case studies on how their respective nations took their tourism industry to next level. Key giveaways of their presentations follow:&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Case-studies: India &amp; Malaysia</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>INDIA</strong></span></div>
<div>
	The former Tourism Secretary of India and of Kerala state, and the man behind &ldquo;Incredible India&rdquo; and &ldquo;God&rsquo;s Own Country Kerala&rdquo; branding, Amitabh Kant, lamented that the positioning, branding and pricing of an otherwise high-end premium exotic destination like Nepal has been actually very low. He rued that the focus has been on low-end mass tourism in Nepal (however the arrival number has not yet touched a million), while it now needs to be on niche high-end tourism promotion with a clear positioning.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Noting that more than 1 billion people are travelling and almost 9% of the global GDP has been in tourism across the world, he said, Nepal needs to catch up with this burgeoning industry. Moving from sun-sand-sea focused tourism, globally travelers are looking at authentic experience now and Nepal has a huge advantage in it. Referring to the lessons learned from &ldquo;Incredible India&rdquo; campaign, he noted that to take Nepal to the next level in this sector, unique positioning and integrated marketing communication strategy and plan are a must.</div>
<div>
	&nbsp;</div>
<div>
	Kant ended expounding 6Cs for a holistic tourism development approach: civic governance, capacity building, communication strategy, convergence, community participation, and civil aviation.</div>
<div>
	&nbsp;</div>
<div>
	He expanded the concept that in every crisis there is an opportunity. During the onset of the &ldquo;Incredible India&rdquo; campaign, there were several crises going through India and the world. The 9/11 attack on the World Trade Centre (WTC), the Gujarat earthquake, the coalition force war in Afghanistan, attack on the Indian Parliament, etc, were the stories of the day. India was then very low in several aspects of the travel trade competitive index.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Despite these setbacks, the unique positioning of &ldquo;Incredible India&rdquo; was taken up, and international consumers were reached directly through exhaustive campaigns, consistent communication, public relations in travel media, and documentaries in television channels. The results started showing up. During this phase, India strategically positioned tourism as a major engine of economic growth, harnessed the direct and multiplier effects of tourism for employment generation, focused on domestic tourism as a major driver of tourism growth (India being a large nation), positioned India as a global brand, acknowledged the critical role of the private sector, and, finally, created and developed integrated tourism circuits based on India&rsquo;s unique civilization (like the Golden Triangle of Delhi-Jaipur-Agra, the Buddhist circuit of Gaya-Ajanta-Ellora, the sun-sand-sea tourism of Goa-Pondicherry, etc).</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Kerala, India" src="/userfiles/images/cs2%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
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			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Kerala, India</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	Some key strategies and actions taken during the last ten years for increasing the expansion and impact of the &ldquo;Incredible India&rdquo; campaign are:</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Integrated communication strategy with the aim of promoting India as a destination of choice for travelling from 2002.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>Showcasing different aspects of Indian culture and history like yoga, spirituality, etc.&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2008, the Ministry of Tourism launched a campaign targeted at the local population. Aamir Khan endorsed the campaign &lsquo;Atithidevo Bhava&lsquo; (Guests are like God).&nbsp;</div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2009, Minister of Tourism, Kumari Selja further extended the &ldquo;Incredible India&rdquo; campaign at the domestic level. Of the total USD 200 million budget, USD 12 million was allocated for promoting domestic tourism that year.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Result</strong></span></div>
<div>
	<span style="color: rgb(102, 102, 102); font-family: segoeui; font-size: 12.727272033691406px; line-height: 14.545454025268555px;">&bull;&nbsp;</span>In 2000 India&rsquo;s share of the world&rsquo;s tourism income was 0.5% but by March 2013 the share soared to 1.7%.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>MALAYSIA</strong></span></div>
<div>
	The South Asia Director of Tourism Malaysia, Amran Abdul Rahman, elaborated on how Malaysia moved away from &lsquo;Coca-Cola tourism&rsquo; and how it became a major tourist destination from an &lsquo;add-on&rsquo; tourist destination for Singaporean tourists, two decades earlier.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The nation received 13 million visitors in 2003 and 25 million visitors in 2012. The target of 2014, declared as the Visit Malaysia Year, is now 36 million visitors with USD 44 billion income.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Elaborating on the key factors that assisted in gaining such results, Rahman said, Malaysia could achieve this success due to infrastructure growth including the remarkable makeover of Kuala Lumpur Airport, changing mindset of the people and government with tourism coming under direct special supervision of the Prime Minister, heavy promotion of rural Malaysia while ensuring ethnic amity, and focusing on MICE (Meetings, Incentives, Convention and Exhibitions) tourism events heavily.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Malaysia" src="/userfiles/images/cs3%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
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			<td bgcolor="#DDDDDD">
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					<div style="text-align: center;">
						<strong>Malaysia</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Tourism Next: Branding&nbsp;and Capacity-building are Key Drivers</strong></span></div>
<div>
	The Tourism Next panel, a panel comprising some key stakeholders and industry experts on different facets from the private sector, elaborated on key areas where the private and public sector should focus to alleviate the existing condition of the industry. &nbsp;Moderator of the panel, Upaul Majumdar, CEO of Hotel Del&rsquo; Annapurna laid focus on developing a &lsquo;can-do&rsquo; attitude, instead of just talking about challenges.</div>
<div>
	&nbsp;</div>
<div>
	Nalin Mandiratta, General Manager of Soaltee Crowne Plaza, focused on the need of constructing a large Convention Centre for MICE activities to grow; organizing more sports tournaments in Nepal, preparing and implementing dynamic and integrated destination marketing, preparing an integrated One Nepal concept by uniting efforts of various sections of the industry, and focusing on China and India more.</div>
<div>
	&nbsp;</div>
<div>
	Madhusudan Acharya, the Vice President of the Nepal Association of Tours and Travel Agents, explained the benefits of unique positioning by referring to the success of Apple and said that to establish Nepal as a unique tourism destination, it needs similar positioning based on green initiatives and its ethnicity. He emphatically noted that tourism is both a cause and an effect of more holistic socio-economic growth. He noted that Nepal-China roads and Kathmandu&rsquo;s direct air connectivity with Chennai and Bengaluru are much needed pending measures.</div>
<div>
	&nbsp;</div>
<div>
	Nandini Lahe Thapa, the Senior Director of the Nepal Tourism Board and International Marketing In Charge, noted relative maturity of Nepal as a tourism destination However, she noted that it has been quite low at the high-end of the price-service spectrum. &ldquo;We have lowered our rates for other tourism services, but the cost of travel to and from Nepal has been exponentially costly. Hotels have already set the bar higher, but travel trade still needs to come together and raise the standards with rational pricing,&rdquo; she noted. Promotion of new destinations is possible, she told, if concrete proposals come to NTB from entrepreneurs.</div>
<div>
	&nbsp;</div>
<div>
	Sumit Baral, the Senior Consultant with the International Finance Corporation of The World Bank Group, working for its investment climate programmes, with key focus on tourism programmes, recalled how Lufthansa dropped Kathmandu sector to protest the rampant child labor in the carpet industry and how it adversely affected German tourists&rsquo; travel to Nepal. Also, a diagnostic study categorically has shown that service standards decline has been the major factor behind lower per day spending by tourists. Noting that Nepal does not feature in luxury travel, he illustrated how Peru since 2000 has positioned itself as high-end destination, and how Maldives with almost same number of tourists like Nepal (little less than a million a year), actually has been earning double the income that Nepal has been earning from this sector.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Talking from the tourism technology perspective, Prerna Mimani, the Country Head of Amadeus (a global leader in travel trade distribution and marketing), noted that the e-commerce route to promote Nepal is must while stating that presently it is still at a rudimentary level. Mimani elaborated on the potential of collaborating with global travel portals with ethnicity focus for Nepal through efficient use of e-commerce.</div>
<div>
	&nbsp;</div>
<div>
	Suman Pandey , Chairman of PATA Nepal and an entrepreneur, defended budget tourism noting it as an important part of the Nepali tourism eco-system and saying that it is different a way of travelling to experience the country. He poignantly noted, &ldquo;The seven days Golden Triangle plan is over-done and new tourism products are now necessary, as seen in the case of trekking tours being re-packaged as photography tours.&rdquo; Next to that Pandey suggested on organizing events replete with potentials to gain global media visibility, as seen in the case of the earlier Nepali cabinet meeting at Everest base-camp.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Aviation Next: Start Small, But Act in Unison</strong></span></div>
<div>
	Civil aviation has an important role in tourism industry. A separate discussion panel, &ldquo;Aviation Next&rdquo;, forwarded areas in which Nepal has to improvise in the days ahead to gain its tourism promotion objectives. Valentino Bagatsing, the Country Head of International Finance Corporation (IFC) of The World Bank group and moderator of the session, raised the issue air safety standards in Nepal. He noted, that there have been 70 accidents in 60 years, 3 of them being in the last two years and informed that IFC is presently tasked with safety management systems research and planning.</div>
<div>
	&nbsp;</div>
<div>
	Bhola Bikram Thapa, the MD of President Travels, emphasized that the &ldquo;Government should make stronger policies and facilitate processes, and not do business directly.&rdquo; &nbsp;He lamented that the government has been unable to add more aircrafts to the existing fleet of the national carrier, Nepal Airlines.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Ghanshyam Acharya, Chief of Corporate Affairs, Simrik Airlines, noted that three out of every four international traveler to Nepal is airborne and said IATA&rsquo;s Outlook for 2013 that looks forward positively at $711 billion global tourism turnover, has huge potential for Nepal&rsquo;s tourism sector too. Adding to it, he said that blacktopping of many airports in Nepal has increased air safety and air-travel is now available to middle class as well. However, he pointed the need for better regulatory support from policy-makers and rued that no domestic carrier has flown new aircraft since 1998.</div>
<div>
	&nbsp;</div>
<div>
	Representing the government voice, Buddhisagar Lamichchane, the Joint Secretary of Civil Aviation, and Roshan Chitrakar, the Deputy Director General of the Air Navigation Services of CAAN, shared the government&rsquo;s initiatives in addressing the needs of the industry. Chitrakar informed that blacktopping and expansion of airports is going on in a high speed and the hurdles in fleet expansion of the national airlines are now almost removed. He also informed that one year compulsory Air Traffic Controllers&rsquo; training is now split into two parts - six-months in the first phase and then after some work experience another six months of second phase. This will address the problem of human resource crunch in the industry, he added.</div>
<div>
	&nbsp;</div>
<div>
	Lamichchane shed light on the installation of navigational safety equipment, and emphasized that the air safety standards in Nepal is reasonably strong by global standards. Further, he said, &ldquo;Nepali air-routes integration with more global air-routes is underway. And the construction of a second international airport at Bara which will create an East-West air corridor, is also taking off soon. Lamichhane further informed that &ldquo;the regulator and service provider functions of government with regards to aviation are being separated soon and a global consultancy is looking into this.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	The Air India Country Head, TK Saha, defended the pricing strategy of his carrier noting that only 10-15 percent seats go vacant. He advocated for new small aircraft routes and services for various potential sectors like Gaya-Lumbini, Patna-Kathmandu, and Varanasi-Pokhara.</div>
<div>
	&nbsp;</div>
<div>
	Ramdas Shivram, the Qatar Airways Country Head, brought in a basic issue and presented with emphasis. &ldquo;Garbage management is poor in Kathmandu airport&rdquo; he said calling for &ldquo;a blended approach that includes raising awareness in passengers, training airport staff, and implementing strong punitive regulation.&rdquo; &nbsp;He also advocated for more efficient and faster immigration services, quest for quality tourism instead of stressing only on volume-based tourism, and focus on finding and investing in new markets to expand Nepal&rsquo;s tourism and aviation base.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<img alt="Bhutan Tourism Info" src="/userfiles/images/cs4%20(Copy).jpg" style="width: 550px; height: 426px; margin-left: 15px; margin-right: 15px;" /></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Smaller Cases: Bhutan and Sikkim</strong></span></div>
<div>
	BHUTAN has positioned itself as a &lsquo;high-value, low-impact&rsquo; tourism, with USD 250 as average on season spending per day by a tourist, and minimum of USD 200 any time of the year. Bhutan claims to have the Highest Gross National Happiness, and the slogan of Bhutan Tourism is &ldquo;Happiness is a Place&rdquo;.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Tiger’s Nest Monastery, Bhutan" src="/userfiles/images/cs5%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 395px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Tiger&rsquo;s Nest Monastery, Bhutan</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>SIKKIM</strong></span></div>
<div>
	What should be the agenda for Sikkim in 2013 if it plans to be anywhere close to Switzerland? It&rsquo;s the oomph factor, about Switzerland, Dubai, and even backdoor ASEAN countries like Singapore and to some extent Thailand, Malaysia and Indonesia that make them a most sought after destination. Switzerland received more than 10 million tourists in 2010. Even Goa received nearly 3 million tourists in 2010. The highest number of foreign tourists who visit Sikkim never crossed the 5000 mark in a month ever till now.</div>
<div>
	&nbsp;</div>
<div>
	Sikkim would need to emerge as a shopping and fun destination; a destination which film makers and market executives like. Sikkim hence, has introduced para-gliding, trekking, and bike riding in recent years, a few world class universities, a few niche products with enviable reputation, a highly educated libertarian civil society.</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;It&rsquo;s empowering every Sikkimese to figure out where Sikkim should need to focus on rather than a top to bottom approach&rdquo; has been Chief Minister Pawan Kumar Chamling&rsquo;s Approach in developing the Indian state.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Sikkim came out with an integrated vision that brought together and synergized Nature &amp; Trekking Tourism, Eco-tourism &amp; Wilderness Tourism, Village/Rural &amp; Home stay Tourism, Adventure Tourism, Wellness Tourism: Meditation, Yoga, Spa &amp; Herbal medicine etc, Pilgrimage &amp; Buddhist Tourism, Culture &amp; Heritage Tourism, Conference Tourism (MICE destination), Tea Tourism, and Snow Travel and Hydro Tourism.</div>
<div>
	&nbsp;</div>
<div>
	In the last decade, Sikkim has also pro-actively developed these niche aspects of tourism industry there: Flori-Tourism, Geo-Tourism (fossil study), Fairs-Festivals Tourism, Wedding/Honeymoon Tourism, Peace /Health Rejuvenation Tourism, Heli Tourism, Monsoon Tourism, Cave Tourism, Ekant Vas &amp; Agyat Van Vas, Developments of lakes and wetlands, Wayside Amenities- at every 10 Kms distance, Arts Crafts and Souvenir and some premium destinations.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Sikkim" src="/userfiles/images/cs6%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 413px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Sikkim</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong><img alt="Nepal Vs Switzerland" src="/userfiles/images/nepalvzswitz%20(Copy).jpg" style="
float: right; margin: 0px 0px 0px 10px;width: 300px; height: 378px;" />Premium Positioning for Nepal&rsquo;s Tourism: Possible Road-map</strong></span></div>
<div>
	Nepal, the 36th largest nation of the world by land-area, and enriched with most of the world&rsquo;s tallest mountain peaks, huge fresh water-resource and glaciers, &nbsp;home to some of the best lakes and forests in South Asia, and a nation rich in centuries-old civilization heritages and cultures, has often been under-valued in tourism. The recent Travel &amp; Tourism Competitiveness Index 2013 places Nepal at 112th position out of 140 nations surveyed, while Switzerland retained its position at the top of the chart.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Situation Analysis:</strong></span></div>
<div>
	While Nepal is the preferred Himalayan destination globally, it is one of the cheapest travel destinations. Ministry of Culture, Tourism and Civil Aviation study shows that the average daily spending of an airborne tourist in Nepal skidded down to USD 35 from USD 79 in 2003. Some 700,000 foreign tourists (including some 530,000 by air) came to Nepal in 2012 (as per Nepal Tourism Board estimates). But the image of Nepal has been that of the backpackers&rsquo; paradise, value-for-money tourism, and often a glorious destination for the run-away tourists. The image of Nepal&rsquo;s Tourism has been further tarnished in the last decade by the insurgency followed by political instability.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	However, things can take turn for the better. This piece throws open the discussion on the paradigm shift in Nepal Tourism. Without harming the current flow of tourists to Nepal every year with an average per head daily spending of USD 48, we can still look at creating a new crop of premium tourists who will hopefully spend a fortnight minimum in this Himalayan nation with a daily expense of at least USD 200 (four times higher than the current average). Even if there are 5,000 such tourists in a year to begin with, the national average and the total income of all stake-holders of tourism economy will have a qualitative leap ahead.</div>
<div>
	&nbsp;</div>
<table align="center" width="100">
	<tbody>
		<tr>
			<td>
				<img alt="Mt Everest" src="/userfiles/images/cs7%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 408px;" /></td>
		</tr>
		<tr>
			<td bgcolor="#DDDDDD">
				<div align="center">
					<div style="text-align: center;">
						<strong>Mt Everest</strong></div>
				</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:16px;"><strong>Positioning of the Premium Tourism Product</strong></span></div>
<div>
	Let us look at what the premium tourists look for and what &lsquo;tourism product&rsquo; can be dovetailed for them. Then, we can look at what channels and process of marketing communications should be taken to ensure that 5,000 or more such premium tourists actually come for their date with the Himalayas and spend a daily average of USD 200 or stay in Nepal for more than 14 days.</div>
<div>
	&nbsp;</div>
<div>
	The possible product must have a distinct positioning with a clear and creative packaging. The positioning that can be suggested is &lsquo;Pristine, Priceless &amp; Personal&rsquo;. The pristine beauty of nature and culture of Nepal needs no further elucidation. The experience of the &lsquo;product&rsquo; has to be made priceless incorporating a wide variety of the best expectations fulfilled - the Wow-effect of which should out-price the costs. And, surely, the entire experience has to be very personal, to be treasured for long, with an immense nostalgia-value.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<table align="center" width="100">
		<tbody>
			<tr>
				<td>
					<img alt="Lumbimi" src="/userfiles/images/cs8%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 321px;" /></td>
			</tr>
			<tr>
				<td bgcolor="#DDDDDD">
					<div align="center">
						<strong>Lumbimi</strong></div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<div>
	&nbsp;</div>
<div>
	<div>
		<span style="font-size:16px;"><strong>Premium Tourism Product Defined</strong></span></div>
	<div>
		Keeping these parameters in mind, it is suggested that the proposed product should be for couples only, of any age, to make it truly experiential and personal, and should be an all-planned well-packaged fortnight-long visit incorporating the best elements of Nepal.</div>
	<div>
		&nbsp;</div>
	<div>
		For example, a very personal aspect is ensured the moment the visiting couple immediately after landing at Kathmandu airport or on reaching the pre-chosen five-star or boutique hotel is traditionally welcomed and given a set of traditional Nepali wear (based on personal information given while booking the trip). The visit to the five most known heritage points of Kathmandu-- blending heritage, royalty and spiritualism in good measures-- must surely be done along with a broad understanding of the valley over the next two full days in the country, land-travel served with the best of tourist cars available.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		The visit in Kathmandu on the fourth day can be customized to each couple&rsquo;s needs: cuisine, shopping, social entrepreneurship or educational initiative, any theatre or cultural activity, the NTB archaeological museum or any other specific spot. Hour-long flight above Mt Everest and Mt Kanchenjunga can be another sure winner on the morning of this day.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Nagarkot" src="/userfiles/images/cs10%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Nagarkot</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		The fifth day can be at Nagarkot with the sunset and sunrise covered soaking in the beauty of natural landscapes. Subsequent two days can be spent at Chitwan, with lake, park, rural life, festivities (season specific),etc., all planned well.</div>
	<div>
		&nbsp;</div>
	<div>
		Eighth to tenth days can be at Pokhara, ensuring all aspects of the valued hill-destination rated among top ten by Lonely Planet - a bit of trekking, rafting and para-gliding, depending on the couple&rsquo;s interest, age and health. Celebrations like anniversary or birthday or even the marriage of the couple in a few cases could be another &lsquo;personal&rsquo; winner either in Kathmandu or Chitwan or Pokhara depending upon the date.</div>
	<div>
		&nbsp;</div>
	<div>
		Eleventh and twelfth days could be a visit to busy Terai city of business: Birganj or Nepalgunj to bring home other aspects of Nepali life and economy, with shopping, handicrafts, etc., thrown in.</div>
	<div>
		&nbsp;</div>
	<div>
		Last two days can be used for a visit to Lumbini and Buddhist heritage sites or, for those who want it otherwise, to Muktinath and more lakes, hills and forests.</div>
	<div>
		&nbsp;</div>
	<div>
		And, as each couple bids adieu, they should be given an exquisitely packaged album of best moments of their visit, their blogs and comments taken for social media use, and take-away souvenirs also given for their closest family members based on the information shared while booking the trip.</div>
	<div>
		&nbsp;</div>
	<div>
		<table align="center" width="100">
			<tbody>
				<tr>
					<td>
						<img alt="Patan Durbar Square" src="/userfiles/images/cs9%20(Copy).jpg" style="border-width: 0px; border-style: solid; width: 550px; height: 316px;" /></td>
				</tr>
				<tr>
					<td bgcolor="#DDDDDD">
						<div align="center">
							<strong>Patan Durbar Square</strong></div>
					</td>
				</tr>
			</tbody>
		</table>
	</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Integrated Marketing Communications:</strong></span></div>
	<div>
		For such a concept to click at the market there has to be a focused high-decibel concerted IMC campaign integrating all four channels of communication: online, offline, on-air and on-ground and across ten to twelve selected markets of the world from where most tourists come to Nepal, as understood through research conducted by professionals.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size: 12px;">An experiential tourism product needs an experiential video that documents actual experience of say, three distinctly different couples -an Indian, a Chinese/Japanese, and an European/American- who go through the entire &lsquo;product&rsquo; and share their views online and on camera. Such a video needs to be used in every marketing meet, aired in selected channels across the globe in the target nations, and clippings promoted through YouTube. Such experiential videos without any explicit marketing commentary, speak volumes more than guided narrative documentaries of hills and rivers made usually from the government stable.</span></div>
	<div>
		&nbsp;</div>
	<div>
		Social Media and the internet make the most powerful channel to reach to an audience scattered across the globe. Hence, a very high-end interactive portal, ideally on third generation internet platform that&rsquo;s &nbsp;being customized to each individual user, on the concept and product of Premium Nepal, incorporating blogs, photo albums, do&rsquo;s and don&rsquo;ts at every level of the experience will also serve the purpose well. Along with the portal, intense and creative use of Facebook, MySpace, Google+, Dig, Youtube, Twitter, Blogs in e-groups, and other social media platforms need to be used with the single-minded purpose of creating a premium positioning of the said high-end tourism product of Nepal. Online booking of this product should also be facilitated through the right mix of technology options.</div>
	<div>
		&nbsp;</div>
	<div>
		A Premium Nepal Tour Plan Book can be an effective offline (printed) tool of communication. The book will interestingly present possible experiences and options for each day of the visit on one side and provide space for documenting personal experiences, cuisine, culture, visits, and people befriended in the process and small anecdotes on the other side. Still pictures of various events can also be placed and preserved. This book will eventually have an immense personal nostalgia value and will also serve to market the &lsquo;product&rsquo; to future customers spreading a positive buzz or word of mouth. Each customer in the process becomes an advocate realizing thus the life-time value of the premium customers.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PR &amp; Sales Driven High Decibel Road-Shows</strong></span></div>
	<div>
		However, closing the deal will largely happen through an intensive PR driven high-end road-show in at least ten to twelve of the leading sources of tourism to Nepal. This road-show must combine the said film, tour plan-book, and interactive session by the organizing partners and must lead to a plethora of writing on Nepal and on this uniquely positioned tourism product. The road-show must bring together the premier tour operators to South Asian destinations, adventure or heritage tourism operators, leadership of selected chambers of commerce, entertainment industry and travel journalism biggies, including the lead travel writers. The cities where the road-shows can be held may be selected from Delhi, Mumbai, Kolkata, London, New York, Shanghai, Hong Kong, Singapore, Dubai, among others. These road-shows must ensure immediate or follow-up bookings of couples coming to Nepal in the subsequent season.</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>PPP Model with a Consortium Approach:</strong></span></div>
	<div>
		&nbsp;This project can only succeed if it is done on private-public-partnership in which Nepal Tourism Board representing the government and a consortium of private tourism players join hands to first build a brand of Premium Nepal and then execute the product immaculately (execution largely being in private hands). The Consortium can be of a few five star and boutique or heritage hotels with properties in all the places covered in the tour, domestic airlines, premium road transport providers, adventure tourism organizers and may be helicopter-services providers, apart from selected handicrafts-cuisine-apparel-souvenir providers.&nbsp;</div>
	<div>
		&nbsp;</div>
	<div>
		<span style="font-size:16px;"><strong>Revenue Output</strong></span></div>
	<div>
		Even if 3,000 couples, with per couple investment within Nepal being USD 5,000 for a fortnight of Premium Nepal tourism experience, come in a year, Nepali Tourism industry stands to gain a minimum of 15 million USD minus the marketing communications expenses and tour operator commission of a maximum of 20 percent. Some 12 million USD means an additional Rs. 10,000 million infused into the economy by just one new concept implemented creatively and aggressively! Are the government and the industry listening?</div>
	<div>
		&nbsp;</div>
	<div>
		<em>(The author, the Consulting Editor of the NBA, is the former Dean of Symbiosis International University, Pune, Mumbai, and Whistling Woods International, Mumbai.)</em></div>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-11-27',
			'modified' => '2013-12-22',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'The Tourism industry is growing stronger by the day. Celebration of World Tourism Day across the world on September 27 signifies the importance that nations attach to it to achieve their economic development goals. In spite of recession, in some parts of the world, the outlook for the global tourism gross revenue of 2013 is above USD 700 billion.',
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		'Article' => array(
			'id' => '2066',
			'article_category_id' => '40',
			'title' => 'Nepal Leadership Summit: Nepal @ 2080 BS, 12 - Point Economic Growth Roadmap',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>--By NBA Team</strong></div>
<div>
	&nbsp;</div>
<div>
	It was an uphill task, but the gathering of influential leaders and high-level representatives succeeded in adopting a document of a 12-point declaration that renewed their political commitment to lead the country on a path of prosperity and development.</div>
<div>
	&nbsp;</div>
<div>
	The Nepal Leadership Summit 2013 was to bring five former Prime Ministers -- Sher Bahadur Deuba, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, Madhav Kumar Nepal, Jhalanath Khanal and Dr Baburam Bhattarai &ndash; in a common platform. The outcome of the event was a 12-point Birgunj Declaration in which the leaders agreed that the path to prosperity is only possible through a private sector-led economic growth.</div>
<div>
	&nbsp;</div>
<div>
	Due to political instability and resultant fragile environment for investment, the dream of prosperity and development continued to be elusive and leaders in the past displayed weak political will to fulfill their commitments for economic development. But it seems they have now realized that the country is desparate for development. And the 12-point Birgunj Declaration was historic in forging a common agenda on economic issues.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of UCPN Maoist and former PM, Pushpa Kamal Dahal &lsquo;Prachanda&rsquo;, said that the time has now come to be engaged in production, construction and development of the country. &ldquo;In fact, our party has come to a conclusion that political stability is not possible without economic revolution,&rdquo; he informed. &ldquo;We can break the vicious cycle of poverty in the country only by promoting economic activities and adopting the approach of inclusive growth.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Former PM and Nepali Congress (NC) senior leader Sher Bahadur Deuba argued that the government should not engage in trade or operate industries. &ldquo;The government treasury was almost empty when NC formed the government in 1990,&rdquo; he said. &ldquo;The situation has now changed as we have enough money. The problem, however, is that we have been unable to invest due to lack of infrastructure and the energy crisis.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	Deuba stressed on the need for common commitment to end the existing energy crisis. The country will head in the direction of economic prosperity if we will be able to address the problem of infrastructure, industrial security and energy, he added.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Nepal should attract Indian investment and should promote exports to reduce trade deficit, he opined. &ldquo;The government should reduce all bureaucratic hassles. We should provide tax rebate to companies that create 100 or more jobs.&rdquo; he said.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The country&rsquo;s economy remains in a state of confusion, with an expanding budget, energy crisis, trade deficit, inflation, unemployment problem and lack of resources, said former Prime Minister and CPN UML leader Madhav Kumar Nepal. He blamed the revenue-oriented government, the short-term profit oriented private sector and rebellious labour for the slow economic growth. &ldquo;We need to improve our educational system and ensure that we have the skills to pursue the available opportunities,&rdquo; he said.</div>
<div>
	&nbsp;</div>
<div>
	Clarity in policy, investment friendly environment and investment in service and production sector will ensure the country&rsquo;s development, he claimed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of CPN-UML and former PM Jhalanath Khanal emphasized the need for policy stability for economic growth. Modernisation of the agriculture sector will have positive impact for development, he said, adding that the banking sector should increase investment in the agricultural sector.</div>
<div>
	&nbsp;</div>
<div>
	Absolute poverty and backwardness are the main problems in the country at present, UCPN Maoist leader and former PM Dr Baburam Bhattarai said. &ldquo;The country can achieve the target of 10 per cent growth by increasing investment in productive sectors,&rdquo; he argued. &ldquo;Key factors that are having negative effect in all sectors of the economy are poor governance and corruption. Another important factor is the decline in investment to GDP ratio, which is one of the root causes of the slowdown in GDP growth,&rdquo; Bhattarai said. &ldquo;At least 40 per cent of the GDP should be invested in productive sectors to achieve a double digit growth.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	As of now, the government should ensure that at least Rs 700 billion should be utilized in productive sectors to achieve 10 per cent growth since the GDP now stands at nearly Rs 1,700 billion.&rdquo;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&ldquo;We need to build capacity at all levels to deliver as per the policies,&rdquo; he further said, adding that the first question is whether the country&rsquo;s economic boom will allow it to break the cycle of poverty.</div>
<div>
	&nbsp;</div>
<div>
	Nepal must focus on developing its skills and human resources, especially by harnessing the talents of Nepali people from around the world, he advised. &ldquo;We need to make the building of robust private sectors an urgent priority and promote true entrepreneurship because that is how jobs are created.&rdquo;</div>
<div>
	&nbsp;</div>
<div>
	He also suggested all political parties to balance between China and India to get maximum benefit from neighbouring economic giants.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Chairman of BiCCI Ashok Baid said that political commitment is a must to create an environment of wealth creation through investment, to alleviate poverty, increase the annual GDP growth rate, contain inflation, promote entrepreneurship and generate employment.</div>
<div>
	In the programme, editor-in-chief and chairman of New Biz Madan Lamsal asked politicians to address economic concerns and map out a strategy with the business community and international support to address the country&rsquo;s economic problems.</div>
<div>
	&nbsp;</div>
<div>
	<strong style="font-size: 16px;">Former PMs&rsquo; Common Points:</strong></div>
<div>
	&bull;Nepal is in dire need of economic revolution as it has suffered much during the various political changes of the past</div>
<div>
	&bull;Energy, agriculture and tourism sectors should be prioritized&nbsp;</div>
<div>
	&bull;The private sector should lead the country&rsquo;s development</div>
<div>
	&bull;The government should play the role of a catalyst for the development of the country&nbsp;</div>
<div>
	&bull;Nepal should focus on turning the optimism on the country&rsquo;s future into real action</div>
<div>
	&bull;Inclusive growth must be the main goal for Nepal&rsquo;s development</div>
<div>
	&bull;The mood should be changed from thinking Nepal as a poor country to a country that holds hope</div>
<div>
	&nbsp;</div>
<div>
	<img alt="NEPAL LEADERSHIP SUMMIT" src="/userfiles/images/DECLN%20(Copy).jpg" style="width: 550px; height: 727px; margin-left: 10px; margin-right: 10px;" /></div>',
			'published' => true,
			'created' => '2013-10-29',
			'modified' => '2013-12-09',
			'keywords' => 'new business age cover story news & articles, cover story news & articles from new business age nepal, cover story headlines from nepal,  current and latest cover story news from nepal, economic news from nepal, nepali cover story economic news and events,  ongoing  cover story news of nepal',
			'description' => 'One may call it an ambitious plan, but it is not impossible. In the fi rst week of September, the country’s five former prime ministers came together in a common platform to share their vision to revolutionize the local economy. The Nepal Leadership Summit which was organised jointly by the Birgunj Chamber of Commerce and Industry (BiCCI) and New Business Age (NBA) with the slogan: ‘Roadmap of Economic Revolution: Vision 2080 BS’ cae up with 12-point Birgunj Declaration  pledging, among others, to give priority to national economic agenda and to honour individual property rights.',
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