"Safety and security of any investment remains a top priority of the government," said the PM said while addressing a gathering of business community organized by the CII, FICCI and AssoCham. [break]While assuring them of security of their investments, he informed that Nepal provides national treatment to all foreign investors.
He also cited Nepal´s readiness to sign Bilateral Investment Protection Agreement (BIPA) and Double Taxation Avoidance Agreement, which were left undecided so far, as the testimony of country´s "serious and sincere" efforts to guarantee security of ivestors and their investments while welcoming Indian investments in Nepal.
Dr Bhattarai also tried to win the confidence of Indian investors by promising them that his government will try and tame militant trade unions.
"We are mindful that labor rigidities pose difficulties for investors. But we also understand that hostility of workers towards investors is largely due to income insecurity," he said, adding that the government has made efforts to achieve labor flexibility by offering workers well functional social security mechanism.
As the establishment of Social Security Fund would ultimately help address the labor grievances, he said it will play an instrumental role in improving industrial relations and give security foreign investments.
Referring to income and other disparities, Dr Bhattarai said Nepal can win sustainable peace only if the government ensured economic prosperity to the people. "Therefore, while we are focused on giving finishing touches to the political process, we are sincerely attending to the economic development needs of the country."
Dr Bhattarai said agriculture, tourism, hydropower, forestry and mining are the sectors that offer immense opportunities and Indian entrepreneurs are welcome to invest in them.
(Photo: www.baburambhattarai.com)
"Trained manpower in Nepal also gives an edge to the investors to set up businesses in service sectors like information and communication technology, financial sector, education and health services," he added.
The PM also informed that preparations were underway to announce 2012 as Nepal Investment Year, wherein the government will offer different large scale infrastructure and business projects to foreign investors to invest in.
He stated that Nepal was soon setting up the Board of Investments chaired by the PM to end red tape and facilitate investors. "We will continue to make efforts to boost tourism and plan to develop Lumbini, the birthplace of Buddha, for next year," he stated.
Dr Bhattarai expressed concerns over country´s widening trade deficit, which stands at a staggering Rs 218 billion with India, and sought Indian government´s support to address it. "This trade imbalance is not just bad for Nepal; it is equally bad for India in the longer run. Correcting this is in the interest of both the economies," he stated.
President of Federation of Nepalese Chambers of Commerce and Industry Suraj Vaidya and President of Confederation of Nepalese Industries Binod Chaudhary sought honest and serious engagements between India and Nepal.
Speaking on the occasion, Devin Narang, executive member of Federation of Indian Chambers of Commerce and Industry (FICCI) had raised concerns over threats faced by Indian investors. "Surveys reflect concern for industrial security due to labor unrest and power problems in Nepal, he said, adding, "In addition, open border can be misused."
Rajive Kaul, past president of CII, stressed for a new economic partnership between the two countries.
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