Views of a Nepali Economist

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1. Nepal's 238 percent tax on imported vehicles is a waste of taxpayers' money

2. Nepalese Commercial banks show low trust on other Financial Institutions

3. US Ambassador to Nepal says "It's the economy, stupid."

4. British Army announces Gurkha troop reduction

5. China promises to promote tourism in Nepal

6. Department of Customs suspects capital flight using fake bills

...The department has unearthed fake abbreviated customs declaration forms...there could be two reasons behind producing fake abbreviated customs declaration forms: to produce legal documents to the imported goods through illegal points or to misuse foreign currency

The department has suspected capital flight by two Birgunj-based firms — Shyam Galla and JB traders and arrested them. It is estimated that some Rs 300 million has been misused by Shyam Galla and Rs 160 million by JB Traders

The issue had come into the light after police on August 29 nabbed five people with fake customs declaration forms. They were trying to get more than Rs 7.52 million transferred to India on the basis of the counterfeit documents.

7. Food security situation remains stable in Nepal

...attributed to a good harvest of winter crops (April-June) and employment opportunities generated by development aid...wheat and barley production increased by 12.2 per cent and 9.6 per cent respectively compared to last year

...but, 28 Village Development Committees (VDCs) in the south-western belt of the district as highly food insecure...because of...a 60 per cent reduction of wheat and spring paddy production due to a dry spell, which was cumulative to the 2010 reduction of 40-60 per cent in the main paddy production.

Parts of the Eastern Hill and Mountain districts are reported as moderately food insecure...Most of the Mid and the Far Western Hill and Mountain districts reported a food secure situation...a seasonal deterioration is reported in part of the Eastern Hill and Mountain districts where the winter crops of wheat and barley are cultivated in limited areas and do not play a vital role in food security...situation in upper Dolpa and some Village Development Committees in the northern and the southernbelt of Baitadi are likely to deteriorate to the highly food insecure phase during the next cycle as there will be no incoming harvest and employment opportunities as well as market supply will be affected by monsoon

According to the central bank, High food prices remain a concern. The year-on-year inflation, measured by the Consumer Price Index, increased by 8.8 per cent in mid-June 2011 whereas the indices of the cereal subgroup increased by 10.4 per cent.

8.Tourist arrivals via air up by over 26 percent in August...Some Numbers

*arrivals from South Asian region have gained robust growth of 38.7 percent
*India 50 percent
*Bangladesh 20.9 percent
*Sri Lanka 11.7 percent
*Pakistan 1 percent

*arrivals from other Asian regions have also registered growth by 57.2 percent
*China 157.6 percent
*Malaysia 95.2 percent
*Thailand 55.6 percent
*Singapore 51.6 percent
*Japan 9.5 percent
*Arrivals from South Korea declined by 10.7 percent

*arrivals from Europe registered overall positive growth of 0.9 percent
*Germany 51.5 percent
*Belgium 28.2 percent
*Denmark 16.2 percent
*Italy 9.3 percent
*Sweden 7.5 percent
*UK 3 percent
*Arrivals from France declined by 13.8 percent
*Arrivals from Netherlands declined by 11 percent
*Arrivals from Russia declined by 31.2 percent
*Arrivals from Spain declined by 10.3 percent

*arrivals from Australia registered growth of 19.7 percent
*arrivals from New Zealand registered growth of 7 percent

*arrivals from USA registered growth of 16.9 percent
*arrivals from Canada registered growth of 33 percent

*49,858 foreign tourists departed from TIA in August 2011.
*52,811 Nepali arrived while 64,326 departed from TIA in August 2011.

Labels: banks, capital flight, china, customs, financial institutions, food security, gurkhas, imports, tourism, vehicle tax