Monthly EconBiz Comment - Jan 2006

The key political developments were
a) Promulgation of the Interim Constitution – 2063 on January 15.
b) The onset of unrest and violence in terai region led by the Madhesi People's Right Forum (MPRF) following the promulgation of the interim constitution.
c) The dissolution of Maoists’ People’s Government on January 18.

The key economic developments were
a) The actuate shortage of electric power in the country leading to record amount of load shedding.
b) Dismal economic news – worsening trade balance, declining foreign employment and lack of FDI – continues unabated.
c) Political instability continues to wreck havoc on Nepal’s economy. On the inaugural day of “Visit Pokhara Year”, there was chakka jam in Pokhara and parts of Pritivi highway. The National Federation of Nepal Transport Entrepreneurs froze the nation’s highways with 3-day long transportation strke.
d) On the positive news, “Nepal Telecom (NT) is planning to distribute an additional 3.5 million mobile phone lines in the country within the next three years, thereby tripling the total teledensity to 16 lines per 100 people” and Nepal opened its first commodity exchange.

Key Political News
Prachanda directs cadres to allow police, VDC secys in villages (Jan 03, 2007)
Three royalist groups unite (Jan 10, 2007)
Eights parties 'agree' to share 48 parliamentary seats (Jan 10, 2007)
Maoists choose their MPs for interim parliament (Jan 12, 2007)
Jwala Singh demands separate, independent Terai state (Jan 15, 2007)
HoR promulgates interim constitution, dissolves itself (Jan 15, 2007)
MPRF protest interim constitution; calls Madhesh bandh (Jan 16, 2007)
Over two dozen MPRF activists arrested in the capital (Jan 16, 2007)
Nemwang, Yadav to remain Speaker, Dy Speaker; Maoists to get senior DPM's post (Jan 17, 2007)
Government releases Rs. 70 million to Maoists (Jan 18, 2007)
Maoists announce to dissolve all of their people's govt units (Jan 18, 2007)
Prime Minister will administer oath of office to Chief Justice (Jan 18, 2007)
CPN-UML elects Nepal as party leader in interim legislature (Jan 18, 2007)
Madhesi activists call indefinite vehicular strike in Janakpur (Jan 18, 2007)
One killed in Lahan over MPRF protests, administration clamps curfew (Jan 19, 2007)
Voters' registration to begin from January 23 (Jan 20, 2007)
12-hour curfew imposed in Lahan as unrest continues (Jan 22, 2007)
Koirala re-elected as NC parliamentary leader (Jan 23, 2007)
MJF protesters shut down Biratnagar (Jan 24, 2007)
Curfew clamped in Janakpur (Jan 24, 2007)
Government to remove King’s picture from notes (Jan 25, 2007)
Curfew clamped in Birgunj, Biratnagar, Janakpur and Siraha (Jan 25, 2007)
Rautahat tense; Madhav Nepal’s ancestral house vandalised (Jan 26, 2007)
Terai unrest may delay CA polls: CEC Pokhrel (Jan 27, 2007)
Curfew re-imposed in Birgunj, Lahan; bandh hits life in Terai districts (Jan 27, 2007)
Indigenous community expresses solidarity with Madhesi movement (Jan 28, 2007)
Curfew imposed in Gaur; protests continue in terai (Jan 28, 2007)
Another protester killed in police firing in Bara (Jan 28, 2007)
Janakpur, Birgunj and Kalaiya under curfew (Jan 29, 2007)
Tripathy resigns amid Terai crisis (Jan 29, 2007)
One protester killed in Biratnagar; curfew imposed (Jan 30, 2007)
Thapa, Mandal arrested for 'instigating' violence in Terai; other royalists under watch (Jan 30, 2007)
Bandh hits normal life in eastern districts (Jan 31, 2007)
Police Sub-inspector, protester killed in Biratnagar (Jan 31, 2007)
PM calls for talks to resolve all problems; Nepal will have federal system after CA polls (Jan 31, 2007)

Key Business News
Mid Marsyangdi builder issues notice to resume work (Jan 5, 2007)
NT acquires bandwidth from Indian firms (Jan 6, 2007)
Power cuts 8 hrs a week (Jan 7, 2007)
Business registration to go online (Jan 9, 2007)
NT reduces Internet tariff by 83 pc (Jan 11, 2007)
NEA to issue bonds to raise fund (Jan 12, 2007)
Chilime power plant resumes operation (Jan 12, 2007)
High-level committee for PEs privatization (Jan 18, 2007)
Export slips, import grows in first four month: NRB (Jan 18, 2007)
Foreign employment declines by 5 pc (Jan 19, 2007)
Transport entrepreneurs call nationwide strike (Jan 22, 2007)
FDI commitment nosedives by 80 pc (Jan 22, 2007)
NT to distribute 3.5m mobile lines by 2010 (Jan 24, 2007)
Transporters end their strike (Jan 24, 2007)
3 hrs per day power cut from Friday (Jan 25, 2007)
South Korea to permit Nepali workers (Jan 28, 2007)
Nepal in for round-the-year power cuts (Jan 29, 2007)
Terai unrest worsens petrol shortage (Jan 30, 2007)
Nepal gets its ‘commodities exchange’ (Jan 30, 2007)
Terai agitation cripples industries (Jan 31, 2007)