IMF
mission hopes for improved economy
An International
Monetary Fund (IMF) mission, which concluded its visit to Nepal
recently has concluded that considerable progress has been made
in Poverty Reduction Growth Facility (PRGF) for stable economic
growth to be supported by IMF.
The IMF mission
is again visiting Nepal around October to finalise PRGF negotiations.
IMF mission
has estimated a 3.5 to 4.5 per cent GDP growth rate in the fiscal
2003-04, if there is a progress in peace talks and in resolving
the current political difficulties, said Sukhwinder Sign Resident
Representative in Nepal. IMF suggested that next year budget would
need to contain regular spending and strengthen revenue performance
so as to allow higher development spending, while avoiding excessive
Government borrowing. IMF missions stresses to reform taxes further
to streamline the tax system and reduce evasion. The monetary
policy will need to strike a balance between supporting this recovery.
and remaining alert to inflationary pressures.
Similarly,
IMF officials believe that the 10th Plan/Poverty Reduction Strategy
Paper (PRSP) presents a sound strategy for enhancing growth and
reducing poverty in Nepal.
It places
appropriate emphasis on a robust private sector, agricultural
development, improved public sector management and governance,
and strengthened social service delivery, while maintaining prudent
macroeconomic policies.
While supporting
the efforts being undertaken by the government to improve financial
sector reforms with management changes at Rastriya Banijya Bank
and Nepal Bank, the IMF urge for action against willful defaulters.
Peace
to accelerate Nepal's GDP
The Asian
Development Bank (ADB), in its annual economic assessment of the
Nepalese economy in the report The Asian Development Outlook (ADO-2003),
has made a forecast that Nepal's gross domestic product (GDP)
will grow by 1.5 per cent in 2003 and 3.5 per cent in 2004.
The ADO-2003
launched recently states that the economic recovers based upon
the assumptions that law and order will be restored, the global
economic recovery - including India's - will continue and that
there will be normal weather.
"A cease-fire
announcement in January this year offers hope that the economy
may strengthen and an opportunity for the government to undertake
strong economic reforms and to begin implementing a programme
targeted at reducing poverty," the ADO-2003 says.
Agricultural
growth may slow down to 2 per cent in fiscal year 2003, but recover
to 3 per cent in 2004. The irregular monsoon of July - August
2002 will adversely affect the summer crop in 2003, it says.
Industry is
likely to grow about 0.2 per cent in 2003 and may expand by 3.5
per cent in 2004. The extent of the recovery will be largely determined
by export growth and political stability, the report says.Industry
is likely to grow about 0.2 per cent in 2003 and may expand by
3.5 per cent in 2004. The extent of the recovery will be largely
determined by export growth and political stability, the report
says.
"Addressing
the underlying causes of the insurgency-widespread rural poverty
and the failure to spread the benefits of development more widely
- is critical for Nepal's development," it says.
Panel
formed to monitor POL prices
His Majesty's
Government has constituted a ten-member petroleum products prices
monitoring and fixation committee under the convenorship National
Planning Commission (NPC) member Dr. Yubaraj Khatiwada.
The committee
was constituted as per the decision made by the Council of Ministry
to fix joint prices by reviewing the prices and undertaking monitoring
of petroleum products each month, as it is affected by the fluctuation
in the prices in India and international market, the Ministry
of Industry, Commerce and Supplies informed.
The committee
members are secretaries of Ministry of Finance and Ministry of
Industry, Commerce and Supplies, Chairman of the Nepal Oil Corporation
board of directors and one representative each nominated by the
Ministry of Industry. Commerce and Supplies from the Industry
and Commerce sector, the Consumer's Forum, the Janahit Protection
Forum, economist and the Petroleum Dealers Association whereas
joint secretary of the Ministry of Industry, Commerce and Supplies
(supply and government industries division) is the member secretary.
Nepal,
Bhutan Signs MoU For Tourism Promotion travel
To promote
tourism in an integrated manner in the Himalayan belt, two leading
travel trade oraganisation from Nepal and Bhutan have signed an
agreement.
With a view
to consolidate fraternity and established a clear understanding
and professionalism in the travel trade industry, Nepal Association
of Travel Agents (NATA) and Association of Butanese Tour Operators
(ABTO) have signed a memorandum of understanding (MoU) in Kathmandu
recently.
NATA president
Joy Dewan and Ugen Tsechup Dorji, president of ABTO, signed and
exchange document of the MoU for their respective organisation.
The accord, which is the first of its kind, signed in the private
sector level has emphasised the need to promote Kathmandu and
Paro as sister destinations in the Himalayan zone and bolster
people-to-people ties.
NATA and ABTO
have also agreed to organise an exchange programme between tourism
entrepreneurs on annual basis. They have further agreed to allow
them to function as tourism ambassadors in respective countries
to promote tourism.
MOU
formalises duty-free access of Nepali garments into Canada
The governments
of Canada and Nepal signed a Memorandum of understanding (MoU)
allowing for the duty-free import of Nepalese Textiles and apparel
into Canada
The MoU was
signed by Lava Kumar Devkota, Secretary at the Ministry of Industry,
Commerce and' Supplies and Peter Sutherland, Canadian Ambassador
to Nepal on behalf of their respective governments.
According
to a press release from the Canadian Embassy the MoU formalises
Canada's decision to allow Nepal's Garment and Textiles Industries
to receive the benefit of duty-free access to the Canadian market
from January 1, 2003.
Under the
MoU, Canada will provide duty free access to all Textiles and
Apparel Products from Nepal. the textile and apparels to be exported
to Canada need to fulfill the rules of origin of the Canadian
government, the Canadian authorities can visit exports and producers
facilities in relation to export of products to Canada, and such
visits may take place for the purpose of verification of rules
of origin and investigation of transshipment.
The top five
experts from Nepal to Canadian in 2001-2002 were garment, handicraft,
pashmina and carpets.
Major imports
from Canada in the in the same period were dried peas, chicks
peas, mustard oil, mustard oil, machinery and parts, electro medical
instruments and instruments apparatus.
Nepal
to export sugar to EU nations
His Majesty's
Government is to export sugar for the first time to the European
Union Nations.
This year,
the government will export 9,200 metric tonnes of sugar to Portugal,
the EU member, and for this some metric tonnes of sugar has already
reached to Calcutta port, Salt-Trading Corporation has stated.
The government
has given permission to export sugar to Salt Trading Corporation
and National Trading Limited and the process of export of raw
sugar is underway.
Nepal is among
the eight developing nations to got the facility of export of
sugar to the European nations.
In accordance
with the facilities to be provided to the poor farmers of least
developed countries, European nations have also provided this
facility to Nepal.
The sugar
to be exported by the Salt Trading Corporation is of international
standard, Salt Trading Corporation said.
For this purpose,
representatives of the Sugar Association of London had made an
on the spot inspection of Nepal's Sugar Mills and found international
standard in Nepali sugar.
