Carpet export down by 11 pc
ekantipur.com, July 31
Hand-knotted woolen carpet industry, the second largest export commodity of the country, suffered a double-digit decline in export in the last fiscal year, indicating tough days ahead. more…
NEA's loss swells to Rs 2.70b
ekantipur.com, July 31
High capital cost, leakage, outstanding arrears and tariff structure has ballooned Nepal Electricity Authority's (NEA's) loss to over Rs 2.70 billion in 2005/06, said NEA Chief Arjun Kumar Karki. more…
BIMSTEC implementation hits more roadblocks
The Himalayan Times, July 31
Despite BIMSTEC free trade area (FTA) agreement having been scheduled to come into force from July 1, 2006, it could not happen due to political situation in Thailand. Member countries of the BIMSTEC Trade Negotiating Committee (TNC) have failed to meet the deadline on ‘trade-in-goods’ for tariff reduction in the meeting held from July 25 to 28 in Colombo. more…
Yak & Yeti resumes operation
The Himalayan Times, July 31
After eight months of closure, Yak & Yeti, one of the six 5-star hotels in Kathmandu, is all set to resume its operations from Tuesday, ending loggerheads between the management and the trade unions. more…
Biz Briefs
The Himalayan Times, July 31
Machhapuchchhre Bank Ltd (MBL) has opened an ATM counter at the gate of Nepal Rastra Bank (NRB) central office, Baluwatar. more…
"Abnormality in middle Marshyangdi": NEA Chief
Nepalbiznews.com, July 31
Management of Nepal Electricity Authority (NEA) on Tuesday has appealed to form a high-level parliamentary committee to probe the irregularities of ongoing middle Marshyangdi hydro electricity project located about 170 km west of Kathmandu, in Lamjung district. more…
One village one product rolling ahead
Nepalbiznews.com, July 31
The government is all set to go for implementing "one village one product" programme on public private partnership basis with selection of 2 to 3 VDCs from each district out of 9 selected for the project as per the recent budget announcement. more…
History high price of gold last year Biz News
Nepalbiznews.com, July 31
The last fiscal year was the period the gold witnessed the history’s highest price with the increased price of petroleum products and Iranian nuclear crisis. more…
Legal lacuna disappoints cargo entrepreneurs
Nepalbiznews.com, July 31
Despite the effort to make specific cargo law, legal lacuna over the years pertaining cargo business has disappointed the freight entrepreneurs. more…
Economic diplomacy urgent necessity
Nepalbiznews.com, July 30
Private sector representatives, government officials, foreign policy experts and other stakeholders have reiterated that Nepal's foreign policy has to be redefined in accordance with the changed context of globalization and to cater the aspirations of Nepalese people after mass movement -2. more…
Gherao in Nepal Stock Exchange
Nepalbiznews.com, July 30
Nepal Stock Exchange Limited popularly known as NEPSE has remained closed on Sunday following a protest organised by the investors and brokers. more…
Monday, July 31, 2006
Saturday, July 29, 2006
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...
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...
Friday, July 28, 2006
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....
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....
Tuesday, July 25, 2006
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...
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...
Monday, July 24, 2006
Monetary Policy for 2006/07
Major Highlights of Monetary Policy
for 2006/07
Delivered by
Governor Mr. Bijaya Nath Bhattarai
on July 23, 2006
Interesting Points
2005/6
(1) Real GDP at factor cost is estimated at 2.3% in 2005/6.
(2) The revised estimates of annual average CPI inflation stands at 8 percent, higher than initially projected for 2005/06
(3) Broad money growth is estimated at 16.3 percent. Increased private sector remittances contributed to monetary growth.
2006/7
(4) The country is in transition. Foreign and local investment in the economy hinges on how quickly the current transitional period improves. However, a level of monetary liquidity warranted in support of intended rate of economic growth exists in ample.
(5) The budget speech of 2006/07 has targeted economic growth at 5 percent.
(6) Annual average CPI inflation is projected at 6 percent for 2006/07.
(7) The BOP surplus is projected at Rs 16 billion on the back of expected increased remittances and foreign assistance.
Highlights
1. NRB has been making public its annual monetary policy statement each year since fiscal year 2002/03. This policy statement focuses on broader macroeconomic objectives of attaining price stability, maintaining adequate level of international reserves and ensuring financial sector stability and thereby facilitating high and sustainable economic growth.
2. The detailed monetary policy statement consisting of the implementation status of monetary policy of 2005/06 and comprehensive analysis of this year's monetary policy is published. This is the summary of the main document of monetary policy. Status of
Economic Goals of Monetary Policy of 2005/06
3. The Nepalese economy continued to suffer from a decade long internal conflict, political stalemate, adverse weather conditions and elevated levels of oil prices in 2005/06. As a result, incremental fixed capital formation remained low, economic activities remained sluggish and inflationary pressures continued to persist.
4. The political situation has improved following the successful conclusion of historic people's movement that lasted for 19 days in April 2006.
5. The actual economic growth happened to be lower than 4–4.5 percent, targeted for 2005/06.
6. Real GDP at factor cost is estimated at 2.3 percent for 2005/06. GDP at producers' price is estimated at 1.9 percent for 2005/06. While agricultural GDP is estimated at 1.7 percent, non-agricultural GDP is expected to grow by 2.8 percent.
7. The revised estimates of annual average CPI inflation stands at 8 percent, higher than initially projected for 2005/06. Upward adjustments in domestic oil prices in August 2005 and February 2006 due to the elevated level of global oil prices, a significant increase in transport fares by 25–28 percent in early 2006 2 and persistence of food inflation throughout the year fueled the overall prices in 2005/06.
8. In the first 10 months of 2005/06, the country's overall BOP stood at a surplus of Rs. 20 billion. The current level of BOP surplus is expected to remain till the end of 2005/06. A significant growth in private sector remittances contributed to the increased level of surplus in the current account and overall BOP of the country.
9. Since the last few years, consolidation of the financial sector stability has been one of the important objectives of this bank. To achieve this objective, various financial sector reform programs have been implemented. In this context, programs such as strengthening inspection and supervisory capacity of this bank, adopting prudential norms as per international standards, establishing and operationalising the Debt Recovery Tribunal (DRT), strengthening the Credit Information Centre, refining the provisions regarding the black listing procedures of willful defaulters as per the suggestion of Shankar Sharma Study Committee, forming a Grievance Hearing Cell (GHC) and handing over the management of two problem banks, namely Nepal Bank Limited (NBL) and Rastriya Banijya Bank (RBB) to the foreign management teams, are under implementation.
10. Non-performing loans (NPL) of commercial banks declined from 30.4 percent in mid-July 2002 to 18 percent in mid-April 2006. Various financial sector reform programs implemented over the past few years contributed to some improvement in financial health of problem banks. NBL and RBB, which were incurring losses in the past, have started generating operating profit since 2003/04.
11. However, the financial sector is still at risk. It is challenging to maintain the financial sector stability in the face of the current level of NPL at 18 percent. In terms of absolute amount, the level of NPL stood at Rs. 29 billion as at mid- April 2006. NRB has taken a serious note of high level of NPL of some private sector banks, besides RBB and NBL.
12. The NPL level of RBB and NBL could not improve significantly due to the recalcitrancy on the part of some big borrowers in repaying their debt. One 3 argument cited by willful defaulters for their inability to repay debt is unsatisfactory performance of the economy. Following the revision in black listing procedure, those borrowers have brought forth the concept of limited liability, the sole purpose of which is to obstruct the process of loan repayment. NRB is of the view that willful defaulters must be isolated. There is a need for big borrowers to make their business transactions transparent and encourage them to disclose their property publicly. It is also important to initiate harsh punishment against those who make false disclosure of their property. These types of loans require one time settlement and curative measures. On this issue, NRB solicits the active supports from all concerned, including the government of Nepal.
A Brief Review of Intermediate Targets of Monetary Policy of 2005/06
13. The fixed exchange rate regime is the nominal anchor of monetary policy in Nepal. In this context, NRBhas been monitoring a real effective exchange rate (REER) of NC. REER of NC has marginally appreciated due to relatively higher level of domestic inflation. However, this level of currency appreciation alone is unlikely to adversely affect the competitiveness of Nepalese goods and services.
14. Broad money growth is estimated at 16.3 percent. Increased private sector remittances contributed to monetary growth.
15. Bank credit off-take has been lower than expected. Lower level of investors' confidence and cautious approach adopted by banks in their lending resulted in a lower than expected growth of credit off-take.
16. Excess reserves of commercial banks have been chosen as an operating target of monetary policy for the last two years. Liquidity monitoring and forecasting framework (LMFF) is put in place to monitor excess liquidity of commercial banks. In this context, excess liquidity of commercial banks amounting to Rs. 13.5 billion was mopped up through sale auction in 2005/06. Likewise, on short-term basis, liquidity amounting to Rs. 6.5 billion was mopped up through reverse repo auction.
For rest of the Highlights, please click here (pdf file).
For full report, please click here (pdf file).
Wednesday, July 12, 2006
Nepal Budget - 2006-07
From the Ministry of Finance Website
Budget Speech
Annex of Budget (Tables)
Discussion at United We Blog!
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