Kathmandu, February 6, 2007

Due to a sharp rise in imports vis-à-vis exports, Nepal’s trade deficit continues to widen, as it crossed Rs 52.72 billion during the first five months of the current fiscal year 2006-07. However, trade imbalance slowed down to 14.

However, trade imbalance slowed down to 14 per cent compared to a significant rise of 30 per cent during the corresponding period of the previous year, reveals the macro-economic situation report released by Nepal Rastra Bank (NRB), on Tuesday. The total exports declined by 0.9 per cent to Rs 26.59 billion in contrast to an increase of 12.2 per cent in 2005-06. Of the total exports, export to India declined by 0.3 per cent as against a significant growth of 24.6 per cent in the same period in the previous year. Exports to other countries also declined by 2.2 per cent in comparison to a decline by 8.1 per cent in the corresponding period of the previous year. Decline in exports to India was attributed to a decline in exports of polyester yarn, plastic utensils, cattle feed, copper wire and rod, GI pipe, noodles, jute goods and bags.

Likewise, decline in exports to other countries was due to a decline in the export of readymade garments, Pashmina and woollen carpets, states the report. Growth in total imports decelerated to 8.5 per cent to Rs 79.32 billion compared to a growth of 22.8 per cent in the same period of the preceding year.

Consensus eludes 8-party meet

Kathmandu, February 6, 2007

The effort to have Prime Minister Girija Prasad Koirala address the nation for a second time failed today with constituents of the eight party alliance failing to reach a consensus on the electoral system.

The alliance leaders are to meet again tomorrow afternoon. It all started by enumerating the agenda of the speech the PM was to deliver. While the PM was supposed to read a speech which had nine points, what proved to be a tough nut to crack was the electoral system. “While the PM favoured a mixed electoral system, with due changes in the light of the ground realities, it was spurned by others who want to go for an all-out proporational representation,” said NC (D) General Secretary Bimalendra Nidhi who represented Sher Bahadur Deuba today in the meeting. Maoist leader Prachanda and UML leader Madhav Kumar Nepal reinforced the expediency of going for an “all-out” proportional representation.

The NC (D), however, is for a mixed system which Nidhi said “is better than the all- out proportional representation”. “The leaders could not work out a common stance on issues like the electoral system. This has pushed the talks into Wednesday,” UML leader Jhala Nath Khanal said.

The meeting can, however, be said to be a success given the “principled understanding” on raising the number of seats under both the categories.