Nepal Economic Digest (August 02, 2020)


August 2, 2020


Nepal Economic Digest (August 02, 2020)
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KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.

Instances of how Huawei faces ban globally

The China-based company, Huawei Technologies, faces product and 5G wireless network project bans in several countries across the globe.

The majority of the countries, particularly the United States, European countries, Australia, among others allege that Huawei’s products may purposely contain security holes that the Beijing government could use for spying purposes.

Moreover, several countries allege that Huawei even steals intellectual property from foreign technology companies.

The Chinese technology company faces allegations in terms of intellectual property and research and development.

For instance, the US Department of Justice in January 2019, charged Huawei with bank fraud as well as stealing trade secrets.

The Department of Justice had then charged the Chinese company Huawei with a list of crimes including money laundering, conspiracy, bank and wire fraud, obstruction of justice, and flouting U.S. sanctions on Iran.

Huawei, however, was quick to deny the charges. Meanwhile, Ren Zhengfei, Huawei’s founder, broke years of silence to dismiss the US accusations that the company helps Beijing to spy on Western governments.

It should be noted that several factors have heightened media coverage and discussion about Huawei. Discussions about Huawei’s business practices were intensified amid the US-China trade war talks.

Likewise, several companies and countries worldwide are considering 5G wireless network rollouts.

Six local levels of Siraha fail to bring budget

Six local levels in Siraha district have failed to bring the budget for the fiscal year 2020/21. The local levels are required to bring the budget, including their annual estimates of income and expenditure within June 24.

However, they have failed to bring the budget due to internal conflict and disagreement between the people’s representatives.

The Federal Government has earlier sent circulars to all local levels in the district to present their annual budget within June 24.

However, only six out of the 17 local levels in Siraha are yet to hold their municipal assembly due to internal rift.

Eleven local levels in the district held their municipal assembly and presented the budget only after the Ministry of Finance sent letters to the local levels warning that the funds that are transferred from the federal government to the local levels would be withheld if they failed to bring budget within the stipulated date of June 24.

Construction of national pride road projects to be expedited

The national pride road projects showed little progress in the last fiscal year due to the impact of COVID-19. With this experience in hindsight, the government aims to expedite these projects and complete their construction in the stipulated time.

The Mid-hill Highway and the Hulaki Highway which have been set to be completed in fiscal year 2022/23 will be completed in the stipulated time, the Ministry of Physical Infrastructure and Transport said.

Although the construction of the Mid-hill (Pushpalal) Highway started in fiscal year 2008/2009, it has been only four years since it was fully initiated.

Secretary at the Ministry Devendra Karki said although work on the national pride road projects were stalled for three and half months in the last fiscal year due to the COVID-19, works would be accelerated up in the next fiscal year.

(Compiled and prepared by Nitish Lal Shrestha)

Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.