Roundup of Economic & Business News (July 19 - July 25)

New Highest Railway Opens All-Round Inter-Regional Link Prospects
Commentary
Dr. Upendra Gautam
Spotlight, July 25
China naturally integrates with South Asia by mountains and rivers - specifically speaking the Himalayan range, and the integrity of flow of the Ganga , the Brahmputra and the Sutlej rivers. Now a new high-tech link is being developed. On 1 st of July, the 85 th anniversary day of the Chinese Communist Party, the first regular railway service to Lhasa was flagged off from Beijing . Covering 4062 KM, the train reached Lhasa after 48 hours. Thus, the railway service became yet another significant steel way to further solidly unify remote Tibet with the rest of the mainland China . more…

Melamchi still 'five years away'; locked project offices opened
Nepalnews.com, July 25
The Melamchi Drinking Water Project (MDWP), which is touted as the only long-term solution to the thirsty population of Kathmandu Valley, could at least take five years to complete even if works at the mega project go unhindered. more....

Melamchi, locals reach compromise on land
eKantipur.com, July 25
A committee formed to compensate locals in Sundarijal for 204 ropanis of land acquired by Melamchi project to build a water treatment plant has decided to release inflated compensation to land owners. Distribution of the agreed compensation would mean losses to the project worth Rs 231.75 million. more...

Travel, trekking, rafting open to foreign investment
eKantipur.com, July 25
As part of its commitment to the World Trade Organization, the government has opened travel, trekking and rafting business to foreign investment. more...

Microsoft fights piracy in Nepal
Teleguportal.net, July 24
After fake currency, CDs and branded clothes and accessories, Nepal is fast becoming a hub of fake software, to the consternation of software giant Microsoft Corporation. more....

Foreign employment up by 29 pc
eKantipur.com, July 24
An average of 500 persons left the country for employment purpose daily in the fiscal year 2005/06, reveals the annual report of Department of Labor and Employment Promotion (DoLEP). more....

NOC's monthly loss totals Rs 660m
eKantipur.com, July 24
Rattled by soaring crude oil prices in the international market, the cash-strapped Nepal Oil Corporation (NOC) continued to incur rising losses, with its monthly loss reaching 660 million rupees. more....

Korean company keen on int'l airport in Pokhara
eKantipur.com, July 24
Korea South-South Cooperation Corporation (KSSCC), a North Korean construction company and De Rumale Pvt Ltd, its Nepalese counterpart, have once again shown interest in financing the construction of an international airport in Pokhara, which has only been on paper since the last three decades. more....

Change in Land policy can hit Finance Cos
eKantipur.com, July 24
Upendra Poudyal is the Chief Executive Officer of Nepal Merchant Banking and Finance Limited. An MBA degree holder from Tribhuwan University, Poudyal is also Co-convener of Banking and Finance Committee of Confederation of Nepalese Industries, Vice Chairman of Nepal Finance Companies Association and Secretary of Rotary Club, Kasthamandap. more....

Monetary Policy Highlights
Nepalbiznews.com, July 24
Nepal Rastra Bank (NRB) has been making public its annual policy statement each year since fiscal year 2002-03. NRB, in its policy statement focuses on broader macroeconomic objectives of attaining stability, maintaining adequate level of international reserves and ensuring financial sector stability. more....

Monetary policy pleases bankers
The Himalayan Times, July 23
Monetary policy released by Bijay Nath Bhattarai, governor of the Nepal Rastra Bank (NRB) here today for the fiscal year 2063-64 seems to have brought to please the bankers by decreasing the capital adequacy ratio (CAR) to 11 per cent from earlier 12 per cent. But, the depositors are still under threat due to lack of serious homework by the central bank. more....

HAN Flays Budget As Burden On SMEs
The Himalayan Times, July 23
The Handicraft Association of Nepal (HAN) has termed the recently announced budget for the fiscal year 2006-06 as yet another burden on the small and medium enterprises. more....

Nepse gains impressive 9.06 points
Nepalnews.com, July 23
The index of Nepal Stock Exchange (Nepse) continued its bullish trend posting a growth of 9.06 points over the week due to the rise in the share prices of the commercial banks. more....

Inflation to remain at 6 percent in 2006/07: NRB
Nepalnews.com, July 23
The monitory policy of 2006/07, published by the Nepal Rastra Bank (NRB) has forecasted six percent inflation in the fiscal year 2006/07. more....

NRB warns of restriction on commercial banks
RSS, July 23
The Nepal Rastra Bank (NRB) Sunday announced some stricter measures it could take if commercial banks fail to increase their paid-up capital to one billion rupees by mid-July 2009. more....

SAARC Development Fund of $300m to help reduce poverty
Narinjara News, July 23
The SAARC Development Fund (SDF) likely to be launched early next year with an initial amount of US$ 300 million - decided at the meeting of SAARC Finance Ministers in Islamabad, Pakistan on Tuesday. more....

Monetary policy to mop up excess liquidity
eKantipur.com, July 23
Management of excess liquidity to curb the creeping inflation would be one of major priorities of the annual Monetary Policy due to be announced on Sunday by Nepal Rastra Bank (NRB). more....

Nepal to bring tourism master plan by October
People's Daily Online, July 21
Nepal is preparing to bring out a Tourism Master Plan by October this year, The Himalayan Times reported on Friday. ... more....

Trade deficit increased by 25.3 percent: NRB
Nepalnews.com, July 21
The trade deficit of the country during the first 10 months of the fiscal year 2005-06 rose by 25.3 percent compared to the same period during the previous fiscal due to a higher rate of growth in imports against a slower pace of exports. more....

Interview with Rajendra Kumar Khetan, Dr. Shankar Sharma and Prof. Dr. Bishwambher Pyakuryal about the Nepal Govt's Budget 2006-07
Spotlight, July 21
“If The Morale Of Business Community Is Not Boosted, It Will Be Difficult To Attain Five Percent Growth. more....

Nepal placed in converging economic category
RSS, July 21
The UNCTAD's Least Developed Countries Report 2006: Developing Productivity Capacities has categorised Nepal into the converging economic group. more....

Maoists assure to create conducive environment for industries
Nepalnews.com, July 19
Senior Maoist leaders have expressed commitment to allow industries to operate smoothly without any fear or threats. more...