Fuel import burns Nepals total export
KATHMANDU, June 23:
That the total import of petroleum products has burnt the country’s total export should set off alarm bells.
“Nepal imported petroleum products worth Rs 59.53 billion in the first 10 months of the current fiscal whereas the total export stood at Rs 52.67 billion, making the earning through total export less than the value of import of petroleum products,” said Deputy Prime Minister and Finance Minister Bharat Mohan Adhikary while presenting Priorities and Principles of the budget for 2011/12 in the Parliament today. This implies, the country’s total export will not be enough to import even petroleum products in the wake of increasing consumption of fuel and its soaring price in the international market.
“It is going to be a serious challenge for the government,” said Adhikary, adding that the sole petroleum importer, Nepal Oil Corporation, has borrowed Rs 2.63 billion from the government and additional Rs 3.30 billion from Employees Provident Fund and Citizens’ Investment Trust.
“The government will be forced to adjust the lending under the development expenses as it was earlier not mentioned in the budget,” added Adhikary. He presented 64-point Priorities and Principles for the next budget for pre-budget discussion that is going to be held for the first time since the Constituent Assembly elections. The parliament will start pre-budget discussion from June 24.
Though the Priorities and Principles have spelt out implementation of Bio-fuel Policy to reduce the import of fossil fuel, lawmakers doubt the government would be able to curtail fuel import.
Yet another government entity, Nepal Electricity Authority, is also not in a good financial health with challenges growing to fulfil increasing energy need. But the finance minister said the budget aims to restructure the power utility apart from expanding transmission lines and promoting hydropower projects through the proposed bank for energy development.
“The cost of doing business has increased due to lack of regular power supply and this, along with rising interest rates, has hurt industrial sectors’ growth,” he said. The rising cost of production and supply constraints fuelled the price. Though, the current fiscal year’s budget has projected to contain the price hike at seven per cent, the government could not crack the whip, and it is hovering around 10 per cent. Adhikary, however, promised to combat price hike through Monetary Policy. “Productivity has also plunged, making the domestic production less competitive in the international market,” said Adhikary promising that his budget will be in line with the Three-Year Interim Plan that has envisioned poverty reduction through employment generation, and inclusive and justifiable economic growth for a sustainable peace. He also pledged to create investment-friendly environment for private sector investment to accelerate economic growth.
Apart from his regular slogans like Aafno Gau Aafai Banau (Develop One’s Own Village), Gau Gau ma Sahakari, Ghar Ghar ma Rojgari (Cooperatives in Every Village and Employment in Every Household), the Priorities and Principle have also spelled out infrastructure projects like Fast Track, Mid-Hill Highway and Model Village in every district.
Source: THT
That the total import of petroleum products has burnt the country’s total export should set off alarm bells.
“Nepal imported petroleum products worth Rs 59.53 billion in the first 10 months of the current fiscal whereas the total export stood at Rs 52.67 billion, making the earning through total export less than the value of import of petroleum products,” said Deputy Prime Minister and Finance Minister Bharat Mohan Adhikary while presenting Priorities and Principles of the budget for 2011/12 in the Parliament today. This implies, the country’s total export will not be enough to import even petroleum products in the wake of increasing consumption of fuel and its soaring price in the international market.
“It is going to be a serious challenge for the government,” said Adhikary, adding that the sole petroleum importer, Nepal Oil Corporation, has borrowed Rs 2.63 billion from the government and additional Rs 3.30 billion from Employees Provident Fund and Citizens’ Investment Trust.
“The government will be forced to adjust the lending under the development expenses as it was earlier not mentioned in the budget,” added Adhikary. He presented 64-point Priorities and Principles for the next budget for pre-budget discussion that is going to be held for the first time since the Constituent Assembly elections. The parliament will start pre-budget discussion from June 24.
Though the Priorities and Principles have spelt out implementation of Bio-fuel Policy to reduce the import of fossil fuel, lawmakers doubt the government would be able to curtail fuel import.
Yet another government entity, Nepal Electricity Authority, is also not in a good financial health with challenges growing to fulfil increasing energy need. But the finance minister said the budget aims to restructure the power utility apart from expanding transmission lines and promoting hydropower projects through the proposed bank for energy development.
“The cost of doing business has increased due to lack of regular power supply and this, along with rising interest rates, has hurt industrial sectors’ growth,” he said. The rising cost of production and supply constraints fuelled the price. Though, the current fiscal year’s budget has projected to contain the price hike at seven per cent, the government could not crack the whip, and it is hovering around 10 per cent. Adhikary, however, promised to combat price hike through Monetary Policy. “Productivity has also plunged, making the domestic production less competitive in the international market,” said Adhikary promising that his budget will be in line with the Three-Year Interim Plan that has envisioned poverty reduction through employment generation, and inclusive and justifiable economic growth for a sustainable peace. He also pledged to create investment-friendly environment for private sector investment to accelerate economic growth.
Apart from his regular slogans like Aafno Gau Aafai Banau (Develop One’s Own Village), Gau Gau ma Sahakari, Ghar Ghar ma Rojgari (Cooperatives in Every Village and Employment in Every Household), the Priorities and Principle have also spelled out infrastructure projects like Fast Track, Mid-Hill Highway and Model Village in every district.
Source: THT
