Foreign investment vital for Nepal, says PM Oli

By Prakash Silwal (New Delhi) / February 22: Prime Minister KP Sharma Oli has said that there was an overwhelming consensus in Nepal that economic agenda should now be among the foremost priorities. “There is also consensus that foreign investment is vital and we need to attract it,” he added.

Prime Minister Oli, who is presently on a state visit to India, said this while addressing Monday an interaction programme with the Business Community in New Delhi.

In a globalized world, strength of economy can ensure dignity of a nation and its people. Nepal is fully aware of this reality and has accordingly identified economic development as its priority. To develop, economy must grow and to grow, we need businesses, investment, industries and employment, the Prime Minister added.

The Prime Minister said when it comes to foreign investment in Nepal, Indian investors have natural advantage, as the two countries and peoples are close and the private sectors and business communities of the two countries are well known to each other. “Nepalese entrepreneurs thus are reliable business partners for India”.

Noting that Nepalis are pursuing a liberal economic policy, Prime Minister Oli said investors are key actors, innovators, entrepreneurs and leaders, and over the years, Nepal has taken steps to improve and facilitate trade and investment environment. “We have reduced tariffs, simplified tax regimes and focused on the development and operation of trade related infrastructure”, he added.

He also emphasized that commerce and connectivity between the two countries must not be affected by consideration other than economic development. “Non-discrimination between Nepalese and Indian investors is our firm policy. We have planned to set up Special Economic Zones and Industrial Estates in major business hubs of the country, with most of them in the plains next to Nepal-India border”, he added. Investing within SEZ has multiple benefits that include flexible and investment friendly labour law.

Stating that the rate of return is high in Nepal, Prime Minister Oli referred to success stories of manufacturing companies like Dabur Nepal and Unilever as well as telecom operators, banks and insurance companies about the good profit they are making.

Most of Nepal’s products enjoy zero tariff in developed countries. In WTO, Members — both developed and developing — have committed to further expand duty free coverage to products from LDCs like Nepal. WTO Members have also pledged to offer preferential treatment to services and service suppliers from LDCs. As a result, to invest and produce in Nepal means to be able to benefit from these global, regional and bilateral preferential schemes, which are nonreciprocal, Prime Minister Oli said.

The Prime Minister on the occasion shared that Nepal was working closely with India, Bangladesh and Bhutan to improve trade, transit, connectivity and cooperation in energy at the sub-regional level. Stating that India is a fast growing big economy, he said as a close neighbour, Nepal wants to benefit from India’s success.

The Prime Minister also invited investment in manufacturing, hydropower, tourism, services, IT, mining and agro based industries. Hydropower could be a prime choice as 7000 rivers and rivulets in Nepal have massive power generation capacity, he added while citing the two big hydropower deals with Indian companies (Upper Karnali and Arun III).

“Government of Nepal invites the private sector, domestic and foreign, to invest resources, produce goods and services and create jobs in the country”, the Prime Minister said and pledged to reform policies needful to facilitate Indian investment in Nepal. “Our common future lies in our shared prosperity, and we are bound to be good friends forever. There is no alternative to cooperate and collaborate for mutual benefits”.

On the occasion, Chief Executive Officer of Investment Board of Nepal Dr Radhesh Panta said Nepal offers appropriate opportunities for investing in energy, tourism and education sectors.

National Reconstruction Authority CEO Sushil Gywali said Nepal needs investment along with prompt technology to undertake the post earth-quake reconstruction works.

FNCCI President Pashupati Murarka said Nepalis are influenced by the economic development achieved by India and called on the India’s private sector to become the economic development partner of Nepal.

Confederation of Indian Industries President Harshavardhan Noetia said mutual cooperation in economic sector would go up with the improved relations between the two countries.

Deputy Prime Minister and Minister for Foreign Affairs Kamal Thapa, Finance Minister Bishnu Prasad Poudel, Home Minister Shakti Bahadur Basnet, lawmakers, Chief Secretary Dr Somlal Subedi, Indian Minister of State Piyush Dashnayake, Nepal’s Ambassador for India Deep Kumar Upadhyay and India’s Ambassador for Nepal Ranjit Rae were present at the programme. RSS