Kathmandu, April 28: Nepali Congress President and former Prime Minister Sher Bahadur Deuba has said Nepal’s investment regime is now liberal in terms of sectors open for foreign investment, tax policies and repatriation of earnings.
In his remarks at an inauguration
of the Nepal Investment Summit 2024 here today, the leader said almost all
sectors are open for foreign investment in Nepal. "Agriculture, tourism,
infrastructure development, mines and minerals, manufacturing, tourism,
hydropower and IT are some of the key sectors where domestic and foreign
investment will have a transformative impact."
According to him, foreign
investment is protected by domestic law and various international instruments
to which Nepal country is a party. The leader of the main opposition said,
"I have come to know that the Government has expressed its willingness to
conclude bilateral investment protection agreement with various countries to
promote Nepal as an attractive destination for investment."
Flexible labour law, demographic
dividend with a substantial share of the young and energetic population,
reliable supply of electricity, and availability of local raw materials also
contribute to making production cost low compared to other high wages countries
in the region, he added.
He informed the foreign community
about the establishment of one one-stop service that includes the Investment
Board of Nepal for large-scale projects under Public Private Partnership and
the Department of Industries for other small and medium-sized investment
projects.
"We have streamlined processes
to save time and energy for registration of companies and putting them into
operation relatively within a short period. Less bureaucracy means faster
decision-making and quicker approval of proposals," he said.
According to the leader, all major political
parties remain committed to promoting foreign investment in Nepal and come
together to foster consensus on key investment-related issues.
Acknowledging that Nepal is still
the least developed country and confronts huge development challenges, he said
despite having huge potential for development, lack of adequate capital and
appropriate technology to realize development benefits are the concerns of
Nepal. "In this context, the convening of this high-level event assumes a
particular significance."
"The internal market is
expanding with an increase in the income of people and the external market is
accessible due to geographical proximity and concessional trading facilities
that we receive from our neighbors and other partners. Our two neighbors -India
and China- offer huge market opportunities for Nepal. We also have a supportive
trading relationship with the USA and EU," he said.
On the occasion, he also stated that
Nepal pursues a liberal economic policy where market and the private sectors
have an important role to play in advancing economic development under a
democratic framework.
"The Government plays a
facilitating role and creates an environment that is conducive for investment
and business without losing its responsibility to ensure social justice and
inclusive representation of all segments of Nepali society. We live in an era
of intense competition for investment. This means we need to be more attractive
and competitive in providing incentives and protecting investment.
Money goes where it is treated well. We continue pursuing reform coherently and practically to adjust our investment regime in light of changes in the internal and external economic environment," he said.
Sharing the forum that Nepal
doesn’t entertain a discriminatory policy vis-à-vis foreign investors, he said
they are treated at par with national investors. "We welcome foreign
investors as our valued guests."
Claiming that there are convincing
examples to prove that foreign investment in Nepal is profitable. Some of the
multinationals working in Nepal have been able to repatriate a good amount of
dividends over the years.
"Please come to Nepal and
invest in our economy that will be beneficial to you and our people. We will
provide you full protection and assure you of our sustained cooperation from
start to finish," he urged the foreign community.
The main opposition leader took time to recall the moment when the party initiated economic reform in Nepal. "Back in 1990, the Nepali Congress government liberalized the economy, invited the private sector, and created a conducive environment for foreign investment. During that short span of period, our government reoriented the policies, revised old laws and brought new laws, rationalized public expenditure, and initiated the liberal tax regime."
As the former Prime Minister said,
during his tenure as the Prime Minister, the government implemented crucial
reforms aiming to promote foreign investment, boost tourism, harness the
potential of hydropower, revitalize industries and agriculture. "As the
reform was not completed, I believe that the present government will continue
the reform initiatives and create a more conducive environment for the private
sector."
Stating that Nepal has huge
untapped potential, he said common efforts can make a difference. The leader
also wished for the success of the Summit. (RSS)