BoP Records Surplus of Rs 77.19 bn 

The overall Balance of Payments (BoP) recorded a surplus of Rs 77.19 billion during the first six months of the fiscal year 2013/14 compared to a surplus of Rs 7.77 billion during the same period of the previous fiscal year. According to the latest Current Macroeconomic Situation of Nepal published by Nepal Rastra Bank (NRB), the current account posted a surplus of Rs 55.02 billion in the review period compared to a surplus of Rs 4.41 billion in the same period of the previous year. The surplus in the current account was primarily due to an upsurge in service credit as well as high rate of growth of grants and workers’ remittances in the review period, said the central bank. The Free on Board (FoB)-based merchandise trade deficit increased by 24.7 percent to Rs 277.12 billion during the six months of 2013/14 while the same deficit had gone up by 27.9 percent in the same period of the previous year. 

 

Rs 18.9 Bn FDI in Seven Months

Foreign direct investment (FDI) in Nepal has reached Rs 18.9 billion during the first seven months of the current fiscal year. At a programme organised at the Prime Minister’s Office on February 16, officials said that 135 projects of FDI have been approved during the period. The country received Rs 19.94 billion FDI in fiscal year 2012/13 and Rs 7.14 billion in the previous fiscal year. The number of projects receiving FDI has reached 2,787 so far, surpassing Rs 113 billion in investment. It is said that 186,789 people are employed in FDI projects. Investors from China, India, Japan, South Korea, the USA and the UK, among other countries are the FDI contributors in Nepal. Secretary at the Ministry of Finance, Shantaraj Subedi said that the ministry was ready to resolve the policy-level hassles to attract FDI. He said FDI alongside the domestic investment was needed for the country’s development and the government would do the needful for the same. Secretary at the Ministry of Industry, Krishna Gyawali said that approval of the proposed Industrial Management Act, 2070 BS should not be delayed as well as Industrial Entrepreneurship Act 2049 BS and Foreign Investment and Technology Act, 2049 BS should be amended to match the needs of time.

 

Pvt Sector Seeks Representation in CA

Private sector entrepreneurs and businessmen have sought their representation in the Constituent Assembly (CA). They have demanded that the government include representatives of the private sector in the list of 26 CA members to be nominated by the Cabinet. They put forward this demand at a programme organised in the Capital on Feb 19, arguing that the role of the private sector to propel the economy is significant. Speaking at the programme, vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Pradeep Jung Pandey said that it was time for the political parties to live up to the commitments they have expressed in their election manifestos. “This is a crucial time to realise the dreams shown in the election manifestos,” he said, “The private sector is ready if the government is.” The Cabinet should not forget the private sector in the list of 26 CA members to be recommended to the President, he suggested. Speaking at the same programme, general secretary of National Business Initiative, Surendra Bir Malakar opined that the recent political changes had failed to give momentum to the national economy. He added that the economy had suffered in the absence of a stable government. “The main priority at present is constitution making,” he said, “This, however, does not mean 

that we should forget the country’s economic agenda.”

 

Saudi Fund to Invest Rs 3 bn in Budhi Ganga 

The Saudi Fund will be investing about Rs 3 billion in the 20MW Budhi Ganga Hydropower Project. According to Subarna Lal Shrestha, chief of the project, the Fund has already okayed the loan and a loan agreement will be signed over the next 3-4 months. After the Fund showed interest in investing in the project, a Nepali delegation led by Dilli Bahadur Singh, director general of the Department of Electricity Development went to Saudi Arabia last Monday (Feb 17) to hold discussion with Fund officials. The two sides have signed preliminary documents for the loan. “A loan agreement will be signed once the Board of Directors of the Saudi Fund and the Council of Ministers of Nepal endorse the decision,” finance ministry Under Secretary Hari Prasad Pandey who was part of the Nepali delegation told The Corporate. The Kuwait Fund for Arab Economic Development has already signed a soft loan agreement of nearly Rs 1.8 billion for the project.