Banking provision fails, Nepal-Tibet barter continues

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KATHMANDU, Feb 23 - Over seven months have passed since the budgetary provision that requires trade between Nepal and Tibet to be conducted through the banking channel was implemented. However, the provision failed to make much headway and cross border trade continues only through the barter system.

"Trade with Tibet is taking place only through the barter system. The banking provision, which the government announced in the budget for the current fiscal year, has not made any progress," said Krishna Hari Baskota, Director General of Department of Commerce, talking to The Kathmandu Post.

The refusal of the Bank of China, Khasa Bank, to accept drafts and letters of credit (LCs) drawn by Nepalese banks, despite repeated requests, is the major cause of problem. The Nepalese and the Chinese side even held a number of meetings aimed at resolving the problem, but in vain.

Khasa Bank has taken an adamant stand against modern banking system discouraging businessmen to open LC for business purposes. Also, only a few drafts were drawn initially, which too stopped after they were not accepted by the Chinese banks in Khasa, informed an official at Nepal Rastra Bank.

Although, the trade of goods, which the budget provisioned to bring under the banking system, is in the doldrums, items falling under the traditional group, which the government has exempted from the banking requirements, continue to be traded as usual.

As of today, which is over seven months of the implementation of the budgetary provision on July 16, the department has issued license for import of goods worth Rs 2.74 billion. Similarly, a total of 118 licenses were issued to businessmen. Reciprocally, the value of export licenses stood at the same amount.

Major items that are imported from Tibet into Nepal include fabrics, shoes, electric and electronic goods, yarn, blankets, goats, vegetables and make-up items, among others.

Similarly, goods that are exported from the country include herbs, cement, vegetable ghee, fine flour, fabrics, bitten rice, noodles, rice and utensils, among others.

Nepal participates in BIT-2001

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KATHMANDU, Feb 23 - Nepalese tourism enterprises took part in the tourism exhibition BIT 2001 held from February 14 to 18 in Milan, Italy, at the initiation of Nepal Tourism Board (NTB).

Over 10,000 people visited Nepal stall of whom many were tour operators. On the first day of the fair, RAI, the national television channel carried a documentary show on the Everest region, highlighting the Sherpa culture and mountain tourism, which attracted more visitors to Nepal stall in subsequent days.

From Nepal Hotel Soaltee Crowne Plaza, Radisson Hotel, Monterosa Treks and Expedition, Horizon Tours and Travels, Travel Net International, Trekking Team Pvt. Ltd and Wonderland Travels participated in the event.

Nepal’s participation in the fair is expected to attract more Italian tourists to Nepal in future.

Around 5,000 companies including tour operators, travel agents, tourism boards, hotel chains, hotels, parks, natural sanctuaries and tourism professionals from Europe, Asia, Africa, North and South Americas, the Mediterranean and the Pacific area participated in the fair, according to an NTB press release.