Roundup of Nepali Economic and Business News for Jan 11-12
By NepaliEconomy.com
Rising petroleum consumption is becoming a problem in light of stress in country's balance of payment (Rs 20 billion deficit in the first 4 months of the fiscal year). According to NOC demand seems to be rising across the board - diesel up 100 percent, petrol up 80 percent and cooking gas up 50 percent. Nepal government is pressuring NOC to slow demand growth by raising prices but NOC is balking. Nepal will spend Rs 5 billion on petroleum imports in January 2009, up from Rs 3 billion August. The only silver lining in this dismal news is strengthening of NRs against the US dollar on the back of rising IRs. On another NOC related news, talk on long delayed (13 years to be exact) Raxaul-Amlekhgunj oil pipeline is going on. Nepal government is planning to privatize Salt Trading Limited and NOC but it could be just cheap talk - who in the right mind wants to invest in militant-labor infested industries?
Rising petroleum consumption is becoming a problem in light of stress in country's balance of payment (Rs 20 billion deficit in the first 4 months of the fiscal year). According to NOC demand seems to be rising across the board - diesel up 100 percent, petrol up 80 percent and cooking gas up 50 percent. Nepal government is pressuring NOC to slow demand growth by raising prices but NOC is balking. Nepal will spend Rs 5 billion on petroleum imports in January 2009, up from Rs 3 billion August. The only silver lining in this dismal news is strengthening of NRs against the US dollar on the back of rising IRs. On another NOC related news, talk on long delayed (13 years to be exact) Raxaul-Amlekhgunj oil pipeline is going on. Nepal government is planning to privatize Salt Trading Limited and NOC but it could be just cheap talk - who in the right mind wants to invest in militant-labor infested industries?
Nepal Telecom (NT) is brushing with its regulator Nepal Telecommunication Authority (NTA) over ownership of frequencies. It is a pretty arcane subject but I think the bottom line is that NTA has to break the monopoly of NT over frequency ownership for the benefit of consumers.
Remittances continue to flow into the country. According to Nepal Rastra Bank (NRB), during the first four months of fiscal year 2009/20 Rs 67.74 billion came into the country; up 7% versus the same period the previous year. Moreover, Nepalese continue to pour out of the country at record pace; 100,051 left in the first five months of the current fiscal year, down just 2,852 from the same period last fiscal year. Nepalese workers in Qatar got a break with hike in salary and allowance to 800 Riyal (Rs 16,000) per month plus two-way ticket starting January 1. Liquidity crunch continues to take toll (a) the cabinet has formed a high-level committee to take on the issue (b) interest rates on C&I loans are going up which will likely impact the economy.
Inland Revenue Office (IRO) of Kathmandu is mobilizing 15 volunteers to collect tax on house rents. Apparently only 44,000 landlords pay such tax. The question is why volunteers and not the legal authority of the state? Is this a joke?
Remittances continue to flow into the country. According to Nepal Rastra Bank (NRB), during the first four months of fiscal year 2009/20 Rs 67.74 billion came into the country; up 7% versus the same period the previous year. Moreover, Nepalese continue to pour out of the country at record pace; 100,051 left in the first five months of the current fiscal year, down just 2,852 from the same period last fiscal year. Nepalese workers in Qatar got a break with hike in salary and allowance to 800 Riyal (Rs 16,000) per month plus two-way ticket starting January 1. Liquidity crunch continues to take toll (a) the cabinet has formed a high-level committee to take on the issue (b) interest rates on C&I loans are going up which will likely impact the economy.
Inland Revenue Office (IRO) of Kathmandu is mobilizing 15 volunteers to collect tax on house rents. Apparently only 44,000 landlords pay such tax. The question is why volunteers and not the legal authority of the state? Is this a joke?
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