Roundup of Economic & Business News (July 28 - July 29)

Driving benefit from SAFTA
Editorial
Anu Mahmud
The New Nation, 29 Julu 2006
The (SAFTA) South Asian Free Trade Agreement has been implemented from July 1, 2006, which is operating under the framework of the South Asian Association for Regional Cooperation (SAARC). The SAARC includes Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. Afghanistan will join the group next year. India, Pakistan and Sri Lanka belong to the group of the developing countries while the least developed countries. more…

Monetary Policy-2063/64
Editorial
Uttam Maharjan
Gorkhapatra, July 29, 2006
IN accordance with the practice of announcing the monetary policy on the heels of the budget announcement, the Government of Nepal announced the monetary policy for fiscal year 2063/64 on July 23. The main thrust of the monetary policy is to contain inflation, which reached a whopping 8 per cent at the end of the last fiscal year despite the target of keeping it at 5 per cent. Inflation has risen due to a hike in the price of oil in the world market. On the domestic front, the cumulative loss of Nepal Oil Corporation is to blame for the spiralling inflation. This fiscal year, the inflation rate is to be capped at 6 per cent by withdrawing excess liquidity from the market. more…

Capitalize on gem mining potential - Ignored Nepali Treasure
Commentary
Hari Bhakta Upadhyaya
eKantipur.com, July 29
Since the beginning of human civilizations, the multicolored natural stones like diamonds, ruby, sapphire, emerald etc. have been the most exciting objects to mankind. In recent days, the gem aesthetics, made possible with the advancement in modern technologies, that design beautiful jewelries and ornaments out of the stones have contributed to make them even more precious. Gems have already made their own international market. more…

Monetary Policy affects stock market – NEPSE dips by 10.61 pts
eKantipur.com, July 29
The recently unveiled Monetary Policy has visible impacts on the stock market, with share prices of commercial banks treading on a decline. As a result, Nepal Stock Exchange Ltd (NEPSE) shed 10.61 points over the week. more…

ADB to support new budget
eKantipur.com, July 29
Director General of Asian Development Bank (ADB), South Asia Department Kunio Senga has expressed bank's strong commitment in supporting development priorities set in the budget for fiscal year 2006-07. This was stated in a press release issued by the ADB's Nepal office on Saturday at the end of his three-day official visit. more…

Can VDCs carry out dream budget?
Nepalbiz.news.com, July 29
Agni Neupane is a secretary of Hapur Village Development committee (VDC), a far-flung area of Dang district, the mid-west, who was obliged to be city centric carrying out all the rest documents of the VDC pursuing the CPN Maoist’s attack over the VDC building four years back. more…

Million Japanese grant to construct hospital
Nepalbiz.news.com, July 29
Japan is proving grant assistance of Rs.6, 187, 056 (US$ 83,137) to the Association of Medical Doctors of Asia- Nepal (AMDA-Nepal) for the construction of a 15-bed hospital at Mechinagar municipality in Jhapa. more…

Japan places priority on hydropower in Nepal
The Himalayan Times, July 28
A senior Japanese embassy official today said that Japan government has placed priority on boosting Nepal’s socio-economic development. more…

NRB profit stands at Rs 2.01b
The Himalayan Times, July 28
Nepal Rastra Bank (NRB), the central bank and monetary authority of the country, has registered a distributable profit of Rs 2.01 billion in the fifty year period since its inception. more…

Economic cost of the conflict
Nepalbiz.news.com, July 28
Most conflicts take place in poor countries. And conflicts, in turn, make people poor. Even in the post-conflict phase, the chances of resumption of war remain high. Following the end of hostilities, war resumes within five years in 44 per cent of all conflict-hit nations. more…

Privatize state-run media: MPs
eKantipur.com, July 28
Members of the House of Representatives on Friday urged the government to take immediate initiative for providing autonomy to state-run media so as to reduce the financial burden on the state and enhance media credibility. more…

Automobiles to cost up to 15 pc more
eKantipur.com, July 28
Following the government's decision to revise customs and excise duties on four wheelers, automobile dealers have announced increases in the price of vehicles by up to 15 percent. more…

Birgunj customs revenue falls
eKantipur.com, July 28
Stung by the intensification of smuggling and cut on customs duties on various commodities, Birgunj customs, the largest revenue generating customs in the country, registered a decline of 3 percent in revenue collection over the last fiscal year. more…

Dealers, NOC, ink agreement
eKantipur.com, July 28
Nepal Oil Corporation (NOC) and Nepal Petroleum Dealers Association (NPDA) on Thursday signed a 29-point agreement, whereby the corporation agreed to pay Rs 40,000 to each dealer who displaced their kerosene outlets from joint refilling stations. more…

Special uneconomic zone: Every new budget reinvents the wheel with rehashed recycled programs
NepaliTimes.com, July 28
A budget that pleases all constituencies is a rare phenomenon. And pundits will tell you, like they told you last year and the year before, that this is a good budget if it can be implemented properly. more…

Black gold’ still buried
Nepali Times, July 28
EDINBURGH—The three-month-old ceasefire has not persuaded the UK’s Cairn Energy to resume its search for oil under the tarai. more...

Advertising Hoardings
RSS, July 28
Soft and hard drinks, cigarettes, household luxurious items, electronic items, motorcycles and vehicles, fast food restaurants are the largest advertising spenders in Nepal especially in the Kathmandu Valley. Most of these home and abroad products choose roadside or rooftop hoarding for their advertisement. We could see several bill colorful boards on the either side of the road, a few of them displaying their own ad. more...

NOC still unsure to compensate dealers
Nepalbiznews.com, July 28
Nepal Oil Corporation (NOC) is still unsure if it would be able to provide compensation to the petroleum dealers for the loss they had to bear to displace kerosene pump from the original place although it promised to provide it within next six moths starting from mid August on Thursday. more...

TAAN turns apex org for trekking agents now Biz News
Nepalbiznews.com, July 28
The decision of the government to make mandatory provision of the registration of trekking agents in Trekking Agents Association Nepal (TAAN) for open walkathon has stimulated trekking and tourism entrepreneurs. more...

Business community for their participation in the constituent assembly
Nepalbiznews.com, July 28
Business community has asked the Interim Constitution Drafting Committee (ICDC) to ensure their participation in the election to constitution assembly through the interim constitution, as they are also an important community of the society. more...