Roundup of Economic & Business News (July 26 - July 27)

Uncertainty And Budget
Commentary
Dr. Tilka Rawal
Spotlight, July 26
When I remember what I had written about the forthcoming budget –Dr Ram Sharan Mahat is not expected to move mountains- a couple of days before it was read in the reinstated parliament, I do not get frustrated mainly because of minimal gap between my expectation and realization. Frankly, anyone with some knowledge of the conflict-torn economy would not expect miracles from Dr. Mahat who took charge of managing almost-empty state coffers about two months before the budget was made public. more…

Senior ADB rep arrives; 'assistance in Melamchi will continue'
Nepalnews.com, July 27
In a series of arrivals of high-profile foreign delegates, Director General of the South Asia Department of the Asian Development Bank (ADB), Kunio Senga, arrived in Kathmandu Thursday. more...

China increases aid by 50 percent
eKantipur.com, July 27
China has agreed to provide grant assistance of 100 RMB (Chinese yuan) to Nepal to be used on mutually agreed economic and technical projects. more...

Foreigners can own 85 pc bank equity
eKantipur.com, July 27
Nepal Rastra Bank (NRB), the central bank of the country, has increased maximum foreign equity participation limit in domestic financial institutions to 85 percent from the present 67 percent. more...

Govt to unveil Tourism Master Plan
eKantipur.com, July 27
The government will soon unveil a Tourism Master Plan to remove all legal hurdles coming in the way of tourism promotion. This was stated by Minister for Culture, Civil Aviation and Tourism Pradeep Gyawali on Wednesday in Kathmandu. more...

IOC asks for 10.25 pc interest on dues
eKantipur.com, July 27
Indian Oil Corporation, supplier of petroleum products to Nepal, has demanded 10.25 percent interest from the debt-ridden Nepal Oil Corporation (NOC) for converting its outstanding payment dues into loans. more...

Garment doldrums
Nepalbiznews.com, July 27
Nepalese garment sector has had to suffer remarkably following the phase out of quota system from the world on January 1, 2005 as Nepali entrepreneurs failed to diversify their market and identify the niche items of the goods. more...

Peace through Economic Development in Post Conflict Situations in Nepal
Peacejournalism.com, Commentary
Dr. Hari Bansh Jha
July 26, 2006
Normally, conflict occurs mostly in poor countries. About 80 per cent of the world's poorest countries have civil war within 15 years (Kuroda, 2005). War resumes within five years in 44 per cent of all post conflict situations (Junne & Verkoren). Conflict has a tendency to perpetuate once it erupts as pervasive poverty makes societies more vulnerable to conflict; while conflict creates more space for poverty. The violent conflict itself is the prediction of future large scale violence. more…

Area business does a fair trade in exotic clothing
canyoncourier.com, July 26
BERGEN PARK — Linda Hogan freely acknowledges that she’s no businesswoman, and that’s just one of the unusual and excellent things about Juna, her clothing shop in Bergen Village Shopping Center. more…

Dr Pradhanang: Father of Village Tourism of Nepal
Peacejournalism.com, July 26
Dr Surendra Bhakta Pradhnang of Nepal is the man of honor having the cosmopolitan nature. He is the star of village tourism in Nepal appreciated his valuable works for village development and economy. His outstanding contribution and noble deeds are most beneficial and welfare-oriented to the society, people and country as a whole. more...

UK to provide Rs 4.29b for development
eKantipur.com, July 26
The British government has announced an increase in its aid to Nepal by 10 percent to £33 million (Rs 4.29 billion) for the period April 2006 to March 2007, in response to recent political change and heightened prospects for peace. more...

Revenue collection falls short of target
eKantipur.com, July 26
Stung by deteriorating business climate and the past royal regime's decision to slash customs duties on various commodities, the government registered a low growth of 2.8 percent in revenue mobilization over the last fiscal year. more...

Open door aches tourism entrepreneurs
Nepalbiznews.com, July 26
Government’s decision to allow foreign investment in travel, trekking, and rafting business has disappointed the tourism industry entrepreneurs. The entrepreneurs from travel, trekking and rafting business have opined that foreign investment in these sectors might jeopardize national industries opening an avenue to boost up foreigners. more...

Govt bans labour export to Labanon, Israel
Nepalnews.com, July 26
The government has decided to ban the export of Nepali labourers to Lebanon and Israel in view of the deepening conflict there. more...

Emergency food op starved for donors
OneWorld South Asia, July 26
The U.N.'s World Food Programme has only raised 17 percent of the 5.4 million U.S. dollars it says it needs to buy and deliver rice and fortified wheat to 225,000 villagers in 10 districts. The region faces an annual "hunger gap", the period between harvests when crops run out and people survive by buying food with what they earn as labourers or with cash sent by relatives who have migrated to find work. more...

Nepal should diversify its products and markets
Nepalbiznews.com, July 26
Nepal should diversify its products and services as well as market and try to focus on niche products and markets to increase its share in global market, said Ratnakar Adhikari. more...

Missing opportunity in pharma industry Current Features
Nepalbiznews.com, July 26
Despite the World Trade Organization (WTO)'s concession to the Least Developed Countries (LDCs) to refrain from obligation of providing patent rights to the new pharmaceutical products, Nepali pharmaceutical industries have been unable to cash in on this opportunity. more...

New Foreign Employment Law On Anvil
The Himalayan Times, July 26
With a view to streamline the foreign employment sector, the government is all set to bring a new Foreign Employment Law in the parliament soon. more....

Saarc ministers to talk disputes over Safta implementation
The Daily Star, July 26
An emergency meeting of commerce ministers of South Asian Association for Regional Cooperation (Saarc) countries will be held in Dhaka on August 1-2 to discuss trade disputes among member countries over the implementation of South Asian Free Trade Area (Safta) agreement. more....