Pandey Elected FNCCI Prez

Pradeep Jung Pandey has been elected the new president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Pandey defeated his rival Bhaskar Raj Rajkarnikar to become the 17th president of FNCCI in the elections held on April 12. Pandey received 54.6 percent votes, while Rajkarnikar garnered 45.4 percent.

 

Outgoing FNCCI President Suraj Vaidya on April 13 administered oath of office to Pandey and handed him the leadership. Similarly, Pandey administered oath of office to newly-elected office bearers and executive committee members amid a programme at the FNCCI secretariat in Kathmandu. Pashupati Murarka was elected the senior vice-president by the new executive committee of the FNCCI.Among other vice presidents are Kishore Pradhan (district and municipal chambers), Dinesh Shrestha (commodities associations)  and Shekhar Golchha (associates). The newly elected committee will work for next three years leading the umbrella organisation of Nepal's private sector.

 

 

Nepali Economy will Grow 4.5% in 2014 : WB & ADB

Asian Development Bank (ADB) and The World Bank have projected Nepal's GDP to grow by 4.5 per cent in the fiscal year 2014. This projected growth rate is lower than the government’s target of 5.5 per cent. ADB says in Asian Development Outlook 2014 that the prospects for 2014 are more optimistic than that of 2013. 

 

Similarly, South Asia Economic Focus published by The World Bank (WB) also projects Nepali economy to grow at around 4.5 per cent. Like ADB, WB also says that the growth rate will be backed by rise in agricultural production, timely budget execution and strong remittance boosting consumption and service sector growth.

 

The WB report explains, “While the pace of capital expenditure may be below initial exectations, inward remittance inflows have been significantly above projected levels and should provide an additional boost to the services sector.” The report also expects the growth rate to reach 4.5 per cent if the capital expenditure picks up in the second half of 2014. The report by ADB reads, “The economic outlook is more optimistic than in FY2013, considering the successful second Constituent Assembly election in November 2013, the favourable monsoon, and expected strengthening in remittance inflows.” The report also says that the political transition has boosted the morale of investors and the business community.

 

ADB expects the GDP to grow by 4.7 per cent in 2015. The projection is based mainly on the expectations of normal monsoon, a timely budget, continued strong remittance inflows, a revival in real estate and housing, and the better growth outlook in India.

 

ADB’s growth projection does not match with that of the government not only for the GDP growth but also with the inflation rate. The ADB’s report projects 10 per cent inflation rate in 2014, well above the central bank’s targeted 8.5 per cent.  The report says that wage pressures, rise in fuel price, continued weakening of the currency and high inflation in India, persistent power shortage, rise of civil service salary and allowance and other supply side constraints fuel the inflation rate. Similarly, the report projects 9.5 per cent inflation in 2015 assuming a good harvest, reduction of inflation in India, cautious monetary and fiscal policies and subsiding domestic wage pressures.