The new Nepali government's policies and programs for the financial year 2009/10 aim to strengthen ties with neighboring countries.

"The state's foreign policy will be conducted based on the principles of the UN Charter, Panchasheel (the Five Principles of Peaceful Coexistence), and Non-alignment keeping national interest on the top," says the 27-page document that was tabled by Nepali President Ram Baran Yadav at the parliament meeting on Thursday.

"Friendly and cordial relations with neighboring countries, particularly with India and China, will be further strengthened on the basis of mutual respect, equality, co-operation and cordiality, " the new policies stated. "The Nepalese territory will not be allowed to be used against any neighboring and friendly countries. "

The government is planning to develop a network of highways.

"Construction works of East-West railway and Hulaki road in Terai-Madhesh will be initiated. Mid-hilly road as well as Koshi, Gandaki and Karnali corridor road projects connecting Nepal-India border to Nepal's border with Tibet in China will be initiated," the president said.

Thus, Chinese and Indian tourists and businessmen will benefit from the proposed north-south road corridor.

The government is also planning to build a regional airport in Lumbini district in southern Nepal, the birth place of the Buddha, and a revered destination for China's Buddhist pilgrims. Nepal Tourism Board announced a six percent increase in air-borne Chinese tourists in June, while new flight routes from China to Nepal are scheduled.

The plans to develop Lumbini are expected to increase the number of Chinese tourists.

The promise to give high priority to the speedy implementation of some large-scale hydropower projects is also a positive sign for Chinese and Indian investors, who have been active in hydropower sector in Nepal.

Nepal's biggest hydropower project, the 750-mw West Seti in the far western development region, plans to sell electricity to India. It has brought together players from different countries.

Promoted by Australian Snowy Mountains Engineering Corporation, the construction is to be undertaken by a Chinese company.

Though the agreement for the project was signed in 1997, the work was delayed first due to political instability and then the opposition of local groups.

Foreign investors will be further encouraged by the government's decision to review existing laws and rules to promote private sector investment in infrastructure, especially foreign investment in developing infrastructure.

Nepali President Ram Baran Yadav on Thursday presented the "Policy and Programs of the government of Nepal for Fiscal Year 2009/2010" at the meeting of the Legislature-Parliament.

Nepal's fiscal year starts from every mid-July.

After President Yadav's presentation of the annual policies and programs on behalf of the government, a 20-hour debate on it by house members is expected, as proposed by the parliament secretariat.

Senior leader of the Communist Party of Nepal (Unified Marxist- Leninist) Madhav Kumar Nepal was elected the prime minister on May 23. However, after times of expansion, the cabinet has not got its full shape.

(Xinhua News Agency July 10, 2009)